{"response":{"docs":[{"id":"dlg_ggpd_50557223-2022-03-29","title":"Audit report, City of Dublin Board of Education, Laurens County, 2020 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["\u003c-year ended 1994\u003e-year ended June 30, 1996: Georgia. Department of Audits.","Year ended June 30, 1997- : Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2022-03-29"],"dcterms_description":["Title may fluctuate: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report, City of Dublin Board of Education, Laurens County or Audit report, City of Dublin Board of Education, Laurens County, Georgia. For fiscal year ending June 30, 2000-, audits conducted \"in accordance with auditing standards generally accepted in the United States of America\" are issued as: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ... or City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports). Reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" may be issued as: Review or Management report","Report year covers fiscal year.","\u003cYear ended June 30, 1994\u003e-year ended June 30, 1996 issued by the State of Georgia, Dept. of Audits; year ended June 30, 1997- issued by the State of Georgia, Dept. of Audits and Accounts.","Schedule of salaries and travel supplements for local Georgia Boards of Education, Libraries, etc. ceased to be published in print in 2002. Starting in 2003 this information can be accessed online through the Georgia Government Publications database in GALILEO or in the annual CD-ROM called: Salary and travel compilation reports.","Has supplements: Supplementary information, City of Dublin Board of Education, Laurens County, summary and schedule of salaries and travel ..., -fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2008-","Year ended June 30, 1994, released in 1995? (online surrogate); title from PDF title page (Georgia Government Publications database, viewed August 22, 2016).","Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 29, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits","Atlanta, Ga. : Dept. of Audits and Accounts","[Atlanta, Ga.?] : State of Georgia"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Dublin Board of Education (Dublin, Ga.)--Appropriations and expenditures--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Auditors' reports","Expenditures, Public","Financial statements","Georgia","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, City of Dublin Board of Education, Laurens County, 2020 June 30"],"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_50557223-2022-03-29"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_50557223-2022-03-29"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n(Including Independent Auditor's Reports) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nGOVERNMENT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n3 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \n4 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n5 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n6 \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n7 \n \nH NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n9 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n35 \n \n2 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n36 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n37 \n \n4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 38 \n \n5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n39 \n \n6 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \n \nSCHOOL OPEB FUND \n \n40 \n \n7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \n \n41 \n \n8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n42 \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \nSUPPLEMENTARY INFORMATION \n10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n43 44 45 47 \n \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 \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \n \n SECTION I FINANCIAL \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \n \nINDEPENDENT AUDITOR'S REPORT \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Dublin Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements. We were not engaged to audit the financial statements of the Heart of Georgia College \u0026 Career Academy, Inc. These financial statements collectively comprise the School District's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements \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. \nAuditor's Responsibility \nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the discretely presented component unit. \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 \n \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. \n \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \n \nSummary of Opinions \n \nOpinion Unit Governmental Activities Discretely Presented Component Unit General Fund Capital Projects Fund Debt Service Fund Aggregate Remaining Fund Information \n \nType of Opinion Unmodified Disclaimer Unmodified Unmodified Unmodified Unmodified \n \nBasis for Disclaimer of Opinion on the Discretely Presented Component Unit \n \nThe financial statements of Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) have not been audited, and we were not engaged to audit the Charter School's financial statements as part of our audit of the School District's basic financial statements. The Charter School's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \n \nDisclaimer of Opinion \n \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. Accordingly, we do not express an opinion on the discretely presented component unit. \n \nUnmodified Opinions \n \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, 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. \n \nEmphasis of Matter \n \nSince fiscal year 2011, the School District has maintained a general fund deficit. As of June 30, 2020, the School District had a general fund unassigned deficit fund balance of $780 thousand (Governmental Fund Statements). The School District also had a deficit unrestricted net position of $40.6 million (Government-wide Financial Statements) of which $40.3 million of the deficit is related to the net pension and net OPEB liabilities. The liquidity risk note discusses the School District's deficit reduction plan as of the report date to address the accumulated fund balance deficit. The School District relies on tax anticipation notes to meet its cash flow needs related to operating expenses. The School District expects to continue obtaining interim financing to meet cash flow needs as appropriate. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. Our opinions are not modified with respect to these matters. \n \n Other Matters \nRequired Supplementary Information \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. \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. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the financial statements taken as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated March 29, 2022 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to \n \n provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nMarch 29, 2022 \n \nGreg S. Griffin State Auditor \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF NET POSITION JUNE 30, 2020 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nInterest Taxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES \nRelated to Defined Benefits Pension Plans Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Short-Term Debt Interest Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nRelated to Defined Benefits Pension Plans Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT \nHEART OF GEORGIA COLLEGE \u0026 CAREER \nACADEMY, INC. \n \n$ \n \n2,416,970.81 $ \n \n10.74 996,221.21 1,357,248.61 1,153,119.47 \n31,964.63 60,457.27 1,790,447.40 53,935,767.29 \n \n61,742,207.43 \n \n11,885.67 \n- \n11,885.67 \n \n5,914,335.87 \n \n- \n \n1,018,424.00 \n \n- \n \n6,932,759.87 \n \n- \n \n211,503.25 \n \n- \n \n2,109,460.06 \n \n- \n \n1,071,491.19 \n \n- \n \n1,000,000.00 \n \n- \n \n42,120.83 \n \n- \n \n20,500,941.00 \n \n- \n \n15,768,602.00 \n \n- \n \n2,112,884.09 \n \n- \n \n6,112,606.20 \n \n- \n \n48,929,608.62 \n \n- \n \n3,789,094.00 \n \n- \n \n7,125,889.00 \n \n- \n \n10,914,983.00 \n \n- \n \n47,500,724.40 \n71,812.09 1,767,633.12 \n88,800.46 (40,598,594.39) \n \n- \n11,885.67 \n \nTotal Net Position \n \n$ \n \n8,830,375.68 $ \n \n11,885.67 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2020 \n \nEXHIBIT \"B\" \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nPRIMARY GOVERNMENT NET (EXPENSES) \nREVENUES AND CHANGES IN \nNET POSITION \n \nCOMPONENT UNIT \nHEART OF GEORGIA COLLEGE \u0026 CAREER \nACADEMY, INC. \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt \n \n$ 15,623,676.54 $ \n1,720,580.96 2,004,525.39 \n251,801.19 498,296.87 1,621,487.14 675,211.23 2,614,651.46 1,150,181.20 379,254.35 \n99,374.45 \n25,783.11 192.80 \n1,789,302.74 390,962.52 \n \n120,437.39 $ \n- \n15,983.94 - \n \n11,475,279.52 $ \n666,932.20 1,709,419.46 \n297,254.00 843,048.50 758,272.00 \n6,795.35 775,492.20 192,376.93 \n1,720.71 26,899.38 \n1,490,472.25 - \n \n- $ \n77,220.00 - \n- \n \n(4,027,959.63) \n(1,053,648.76) (295,105.93) 45,452.81 344,751.63 (863,215.14) (668,415.88) \n(1,839,159.26) (880,584.27) (377,533.64) (72,475.07) \n(25,783.11) (192.80) \n(282,846.55) (390,962.52) \n \nTotal Governmental Activities \n \n$ 28,845,281.95 $ \n \n136,421.33 $ 18,243,962.50 $ \n \n77,220.00 \n \n(10,387,678.12) \n \nCOMPONENT UNIT \n \nHeart of Georgia College \u0026 Career Academy, Inc. \n \n$ \n \n181,191.60 \n \n$ \n \n(181,191.60) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Investment Earnings Miscellaneous \n \n10,283,435.64 \n2,903,477.04 117,342.33 9,638.43 686,321.56 \n \n- \n175,701.48 \n \nTotal General Revenues \n \n14,000,215.00 \n \n175,701.48 \n \nChange in Net Position \n \n3,612,536.88 \n \n(5,490.12) \n \nNet Position - Beginning of Year \n \n5,217,838.80 \n \n17,375.79 \n \nNet Position - End of Year \n \n$ \n \n8,830,375.68 $ \n \n11,885.67 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2020 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nInterest Taxes State Government Federal Government Other Due from Other Funds Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n643,984.94 $ \n \n652,792.25 1,357,248.61 1,153,119.47 \n31,964.63 122,003.00 \n60,457.27 \n \n305,301.84 $ \n- \n \n1,467,684.03 $ \n10.74 343,428.96 \n- \n \n2,416,970.81 \n10.74 996,221.21 1,357,248.61 1,153,119.47 \n31,964.63 122,003.00 \n60,457.27 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Due to Other Funds Short-Term Debt \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes Unavailable Revenue - Sales Taxes \nTotal Deferred Inflows of Resources \nFUND BALANCES \nNonspendable Restricted Unassigned \nTotal Fund Balances \n \n$ 4,021,570.17 $ \n \n305,301.84 $ 1,811,123.73 $ \n \n6,137,995.74 \n \n$ \n \n115,635.09 $ \n \n2,109,460.06 \n \n1,071,491.19 \n \n- \n \n1,000,000.00 \n \n4,296,586.34 \n \n94,498.38 $ - \n122,003.00 - \n216,501.38 \n \n1,369.78 $ - \n1,369.78 \n \n211,503.25 2,109,460.06 1,071,491.19 \n122,003.00 1,000,000.00 \n4,514,457.50 \n \n433,264.51 - \n433,264.51 \n \n- \n \n- \n \n433,264.51 \n \n- \n \n93,385.38 \n \n93,385.38 \n \n- \n \n93,385.38 \n \n526,649.89 \n \n60,457.27 11,354.82 (780,092.77) \n(708,280.68) \n \n88,800.46 \n- \n88,800.46 \n \n1,716,368.57 \n- \n1,716,368.57 \n \n60,457.27 1,816,523.85 \n(780,092.77) \n1,096,888.35 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 4,021,570.17 $ \n \n305,301.84 $ 1,811,123.73 $ \n \n6,137,995.74 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2020 \n \nEXHIBIT \"D\" \n \nTotal fund balances - governmental funds (Exhibit \"C\") \nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \nNet pension liability Net OPEB liability \nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \nRelated to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nProperty taxes Sales taxes \nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \nBonds payable Accrued interest payable Capital leases payable Unamortized bond premiums \n \n$ 1,096,888.35 \n \n$ \n \n1,686,200.50 \n \n104,246.90 \n \n66,584,539.18 \n \n4,863,515.35 \n \n7,164,726.73 \n \n(24,677,013.97) \n \n55,726,214.69 \n \n$ (20,500,941.00) (15,768,602.00) \n \n(36,269,543.00) \n \n$ \n \n2,125,241.87 \n \n(6,107,465.00) \n \n(3,982,223.13) \n \n$ \n \n433,264.51 \n \n93,385.38 \n \n526,649.89 \n \n$ (4,940,000.00) (42,120.83) \n(3,182,274.88) (103,215.41) \n \n(8,267,611.12) \n \nNet position of governmental activities (Exhibit \"A\") \n \n$ 8,830,375.68 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Service \nPrincipal Dues and Fees Interest \nTotal Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCapital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 10,313,783.06 $ 117,342.33 \n11,881,755.29 6,433,952.22 136,421.33 179.30 686,321.56 \n29,569,755.09 \n \n- $ 58.45 - \n58.45 \n \n- $ 2,810,091.66 \n9,400.68 - \n2,819,492.34 \n \n10,313,783.06 2,927,433.99 \n11,881,755.29 6,433,952.22 136,421.33 9,638.43 686,321.56 \n32,389,305.88 \n \n14,953,804.90 \n1,800,880.63 2,098,991.56 \n276,310.44 458,356.60 1,719,022.63 701,366.75 2,738,779.64 1,317,474.87 442,208.08 \n99,175.38 25,783.11 1,767,378.41 \n- \n57,286.97 - \n4,098.48 \n28,460,918.45 \n1,108,836.64 \n \n- \n35.00 122,003.00 366,975.01 \n- \n489,013.01 \n(488,954.56) \n \n- \n- \n2,100,000.00 25,639.78 \n444,350.00 \n2,569,989.78 \n249,502.56 \n \n14,953,804.90 \n1,800,880.63 2,098,991.56 \n276,310.44 458,356.60 1,719,022.63 701,401.75 2,738,779.64 1,439,477.87 442,208.08 \n99,175.38 25,783.11 1,767,378.41 366,975.01 \n2,157,286.97 25,639.78 \n448,448.48 \n31,519,921.24 \n869,384.64 \n \n274,561.85 - \n(404,800.00) \n(130,238.15) \n978,598.49 \n(1,686,879.17) \n \n402,743.00 \n- \n402,743.00 \n(86,211.56) \n175,012.02 \n \n159,800.00 (157,743.00) \n2,057.00 \n251,559.56 \n1,464,809.01 \n \n274,561.85 562,543.00 (562,543.00) \n274,561.85 \n1,143,946.49 \n(47,058.14) \n \nFund Balances - Ending \n \n$ \n \n(708,280.68) $ \n \n88,800.46 $ 1,716,368.57 $ 1,096,888.35 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2020 \n \nEXHIBIT \"F\" \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \n \n$ \n \nAmounts reported for governmental activities in the Statement of Activities are different because: \n \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. \n \nCapital outlay Depreciation expense \n \n$ \n \n973,032.79 \n \n(1,895,612.75) \n \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \n \nProperty taxes Sales taxes \n \n$ \n \n(30,347.42) \n \n93,385.38 \n \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. \n \nCapital leases issued Bond principal retirements Capital lease payments Amortization of bond premium \n \n$ \n \n(274,561.85) \n \n2,000,000.00 \n \n157,286.97 \n \n45,721.57 \n \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. \n \nPension expense OPEB expense \n \n$ \n \n574,287.53 \n \n787,994.00 \n \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. \n \nAccrued interest on issuance of bonds \n \n1,143,946.49 (922,579.96) 63,037.96 \n1,928,446.69 1,362,281.53 \n37,404.17 \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n3,612,536.88 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2020 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n45,081.65 \n \n$ \n \n45,081.65 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City of Dublin 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe Heart of Georgia College Career \u0026 Academy, Inc. (Charter School) is a jointly authorized start-up charter school pursuant to the Official Code of Georgia (O.C.G.A.) 20-2-2060 et. Seq., the Charter Schools Act of 1998. The Charter is an agreement entered into by and between the City of Dublin and Laurens County Boards of Education and the State Board of Education to serve students in grades 9 through 12. The Charter School's mission is to improve public educational outcomes and ensure a viable 21st century workforce for the Heart of Georgia region. The financial statements of the Charter School have been included as a discretely presented component unit because they provide services to third parties outside the school system. See notes 4 and 19 for additional component unit disclosures. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGOVERNMENT-WIDE STATEMENTS: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District 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. \nThe Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \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. \n \n- 9 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFUND FINANCIAL STATEMENTS: \nThe fund financial statements provide information about the School District's funds, 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. \nThe School District reports the following major governmental funds: \n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \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. \nThe School District reports the following fiduciary fund type: \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. \nBASIS OF ACCOUNTING \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. \n \n- 10 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers 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. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 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. \nCASH AND CASH EQUIVALENTS \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \n \n- 11 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nINVENTORIES \n \nFood Inventories \n \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \n \nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \n \nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nAny Amount 5,000.00 5,000.00 5,000.00 \n50,000.00 \n \nN/A 20 to 80 years 10 to 80 years 5 to 50 years \nDetermined at purchase date \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \n \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. \n \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \n \n- 12 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \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. \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. \nPENSIONS \nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees 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. \nFUND BALANCES \nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \nThe School District's fund balances are classified as follows: \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \n- 13 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \n \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \n \nPROPERTY TAXES \nThe City of Dublin Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on October 3, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on December 31, 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 Dublin City Clerk bills and collects the property taxes for the School District and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $9,580,533.09. \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): \n \nSchool Operations \n \n19.705 mills \n \nAdditionally, the Laurens County Tax Commissioner collects Title Ad Valorem 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. Title Ad Valorem Taxes, at the fund reporting level, amounted to $733,249.97 for year ended June 30, 2020. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,810,091.66 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. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, 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 and function. 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. \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. \n \n- 14 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nThe 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. \nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \nCOLLATERALIZATION OF DEPOSITS \nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2020, the School District had deposits with a carrying amount of $2,195,906.48, and a bank balance of $3,325,263.70. The bank balances insured by Federal depository insurance were $696,138.16 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 $2,629,125.54. \n \n- 15 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 2,416,970.81 45,081.65 \n \nTotal cash and cash equivalents \n \n2,462,052.46 \n \nLess: Cash on hand Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n5.00 266,140.98 \n \nTotal carrying value of deposits - June 30, 2020 \n \n$ 2,195,906.48 \n \nCOMPONENT UNIT \nAt June 30, 2020, the Heart of Georgia College \u0026 Career Academy, Inc. had deposits with a carrying amount and bank balance of $11,885.67. The bank balance was insured through Federal Depository Insurance Corporation (FDIC). \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $266,140.98 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report, which is publicly available at https://www.sao.georgia.gov/comprehensive-annual-finanical-reports. \n \n- 16 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2019 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2020 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,686,200.50 $ 283,000.00 \n \n- $ \n \n- $ 1,686,200.50 \n \n104,246.90 \n \n283,000.00 \n \n104,246.90 \n \nTotal Capital Assets Not Being Depreciated \n \n1,969,200.50 \n \n104,246.90 \n \n283,000.00 \n \n1,790,447.40 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n66,494,609.61 4,185,896.76 6,818,289.00 \n17,531,071.80 2,918,676.62 2,369,452.80 \n \n89,929.57 715,418.59 346,437.73 \n1,309,646.11 343,043.87 242,922.77 \n \n37,800.00 \n- \n \n66,584,539.18 4,863,515.35 7,164,726.73 \n \n37,800.00 \n- \n \n18,840,717.91 3,223,920.49 2,612,375.57 \n \nTotal Capital Assets, Being Depreciated, Net \n \n54,679,594.15 \n \n(743,826.86) \n \n- \n \n53,935,767.29 \n \nGovernmental Activities Capital Assets - Net $ 56,648,794.65 $ (639,579.96) $ 283,000.00 $ 55,726,214.69 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ \n \n104,155.64 \n \n202,022.18 \n \n109,360.87 \n \n$ 1,338,338.66 \n415,538.69 141,735.40 \n \n$ 1,895,612.75 \n \nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS \nINTERFUND ASSETS AND LIABILITIES \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2020, consisted of the following: \n \nDue From Other Funds \n \nDue to Other Funds \n \nGeneral Fund Capital Projects Fund \n \n$ 122,003.00 - \n \n$ \n \n- \n \n122,003.00 \n \n$ 122,003.00 \n \n$ 122,003.00 \n \nThe interfund receivable and interfund payable represent SPLOST funds owed by the capital projects fund to the general fund for vehicle purchases not covered by state funding. \n- 17 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nINTERFUND TRANSFERS \nInterfund transfers for the year ended June 30, 2020, consisted of the following: \n \nTransfers to \n \nGeneral Fund \n \nTransfers From \nDebt Service Fund \n \nTotal \n \nCapital Projects Fund Debt Service Fund \n \n245,000.00 159,800.00 \n \n157,743.00 - \n \n402,743.00 159,800.00 \n \nTotal \n \n$ 404,800.00 $ 157,743.00 $ \n \n562,543.00 \n \nTransfers were made from the general fund to cover current year capital outlay expenditures paid from the capital projects fund. \n \nSPLOST funds were transferred from the debt service fund to the general fund and capital projects funds to cover allowable SPLOST expenditures not previously funded by state grants. \n \nNOTE 7: SHORT-TERM DEBT \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt provides 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. \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes $ 2,110,000.00 $ 2,890,000.00 $ 4,000,000.00 $ 1,000,000.00 \n \nNOTE 8: LONG-TERM LIABILITIES \n \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2019 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2020 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds Unamortized Bond Premiums Capital Leases \n \n$ 6,940,000.00 $ \n \n- $ 2,000,000.00 $ 4,940,000.00 $ 1,905,000.00 \n \n148,936.98 \n \n- \n \n45,721.57 \n \n103,215.41 \n \n45,721.57 \n \n3,065,000.00 274,561.85 \n \n157,286.97 \n \n3,182,274.88 \n \n162,162.52 \n \n$ 10,153,936.98 $ 274,561.85 $ 2,203,008.54 $ 8,225,490.29 $ 2,112,884.09 \n \n- 18 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \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. \n \nThe School District's outstanding general obligation bonds related to governmental activities of $4,940,000.00 contain a provision that, in the event of a nonpayment, the State Board is authorized to and must withhold from any state appropriations to which the School District may be entitled and apply so much thereof as shall be necessary to the payment of the principal of and interest on such indebtedness then due. \n \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2010 General Government - Series 2011 \n \n3.0% - 4.0% 2.5% - 4.0% \n \n4/22/2010 12/8/2011 \n \n4/1/2021 $ 4/1/2023 \n \n9,755,000.00 $ 1,205,000.00 \n \n4,085,000.00 \n \n3,735,000.00 \n \n$ 13,840,000.00 $ 4,940,000.00 \n \nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Discount \n \n2021 2022 2023 \n \n$ \n \n1,905,000.00 $ \n \n175,600.00 $ \n \n1,500,000.00 \n \n106,400.00 \n \n1,535,000.00 \n \n61,400.00 \n \n45,721.57 41,627.22 15,866.62 \n \nTotal Principal and Interest \n \n$ \n \n4,940,000.00 $ \n \n343,400.00 $ \n \n103,215.41 \n \nCAPITAL LEASES \nThe School District has acquired a solar panel project, crisis alert system, bus camera system and a telephone system under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease terms. \nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \nGovernmental Activities \n \nLand Improvements Equipment Less: Accumulated Depreciation \n \n$ 3,585,000.00 290,538.05 \n1,183,314.31 \n \n$ 2,692,223.74 \n \n- 19 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nDuring the current fiscal year, the School District entered into a lease agreement as lessee for financing the acquisition of a crisis alert system at a cost of $187,500.00 with a down payment of $41,246.25. This lease qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. \nDuring the current fiscal year, the School District entered into a lease agreement as lessee for financing the acquisition of a bus camera system at a cost of $30,101.24. This lease qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. \nDuring the current fiscal year, the School District entered into a lease agreement as lessee for financing the acquisition of a telephone system at a cost of $73,248.05 with a down payment of $16,287.44. This lease qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. \nCapital leases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nSolar Panel Lease Crisis Alert System Telephone System Bus Camera System \n \n5.000 - 6.500% 5.001% 5.598% 9.408% \n \n1/29/2013 10/1/2019 \n1/1/2019 3/1/2020 \n \n5/15/2037 $ 10/1/2023 \n1/1/2023 2/28/2023 \n \n3,585,000.00 $ 187,500.00 73,248.05 30,101.24 \n \n2,965,000.00 146,253.75 43,862.05 27,159.08 \n \n$ \n \n3,875,849.29 $ 3,182,274.88 \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2021 2022 2023 2024 2025 2026 - 2030 2031 - 2035 2036 - 2037 \n \n$ \n \n162,162.52 $ \n \n170,557.19 \n \n175,273.40 \n \n159,281.77 \n \n130,000.00 \n \n780,000.00 \n \n1,075,000.00 \n \n530,000.00 \n \n196,926.45 188,156.78 178,813.81 168,764.48 159,450.00 665,425.00 373,425.00 \n43,875.00 \n \nTotal Principal and Interest \n \n$ \n \n3,182,274.88 $ \n \n1,974,836.52 \n \nNOTE 9: RISK MANAGEMENT \n \nINSURANCE \n \nCommercial Insurance \n \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. The School District carries commercial insurance for these risks, except for flooding and unemployment compensation. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years. \n \nUNEMPLOYMENT COMPENSATION \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not experienced any unemployment compensation claims during the past two fiscal years. \n \n- 20 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nSURETY BOND \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Drivers Education \n \n$ 50,000.00 $ 10,000.00 \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nUnassigned \n \n$ \n \n$ \n \n11,354.82 \n \n88,800.46 \n \n1,716,368.57 \n \n60,457.27 \n1,816,523.85 (780,092.77) \n \nFund Balance, June 30, 2020 \n \n$ 1,096,888.35 \n \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. \n \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nOPERATING LEASES \n \nThe School District leases a fuel disbursement system and 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 $29,366.76 for governmental activities for the year ended June 30, 2020. The following future minimum lease payments were required under operating leases at June 30, 2020: \n \nYear Ending \n \nGovernmental Activities \n \n2021 2022 2023 2024 \n \n$ \n \n59,867.04 \n \n59,867.04 \n \n48,667.04 \n \n30,500.28 \n \nTotal \n \n$ 198,901.40 \n \n- 21 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nFEDERAL GRANTS \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nNOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nP lan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \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. \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 $436,472.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \nAt June 30, 2020, the School District reported a liability of $15,768,602.00 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 0.128491%, which was a decrease of 0.006576% from its proportion measured as of June 30, 2018. \n \n- 22 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nFor the year ended June 30, 2020, the School District recognized OPEB expense of ($351,522.00). At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nOPEB \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience \nChanges of assumptions \n \n$ \n \n- $ 1,715,460.00 \n \n547,613.00 \n \n2,222,875.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n34,339.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n3,187,554.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n436,472.00 \n \n- \n \nTotal \n \n$ 1,018,424.00 $ 7,125,889.00 \n \nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 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: \n \nYear Ended June 30: \n \nOPEB \n \n2021 2022 2023 2024 2025 Thereafter \n \n$ (1,479,845.00) \n \n$ (1,479,845.00) \n \n$ (1,481,166.00) \n \n$ (1,273,391.00) \n \n$ \n \n(680,332.00) \n \n$ \n \n(149,358.00) \n \n- 23 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \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: \n \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, including inflation \n \nLong-term expected rate of return Healthcare cost trend rate \n \n7.30%, compounded annually, net of investment expense, and including inflation \n \nPre-Medicare Eligible \n \n7.250% \n \nMedicare Eligible \n \n5.375% \n \nUltimate trend rate \n \nPre-Medicare Eligible Medicare Eligible \n \n4.75% 4.75% \n \nYear of Ultimate trend rate \n \nPre-Medicare Eligible \n \n2028 \n \nMedicare Eligible \n \n2022 \n \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: \n \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. \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. \n \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. \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. \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \n \n- 24 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. 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: \n \nAsset class \n \nTarget allocation \n \nLong-Term Expected Real Rate of Return* \n \nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \n \n30.00% 46.20% \n1.30% 12.40% \n5.10% 5.00% \n \n(0.10)% 8.90% \n13.20% 8.90% \n10.90% 12.00% \n \nTotal \n \n100.00% \n \n*Net of Inflation \n \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. \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: \n \n1% Decrease (2.58%) \n \nCurrent Discount Rate (3.58%) \n \n1% Increase (4.58%) \n \nSchool District's proportionate share of the Net OPEB Liability \n \n$ 18,328,320.00 $ \n \n15,768,602.00 $ 13,686,387.00 \n \n- 25 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1percentage-point higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \nSchool District's proportionate share of the Net OPEB Liability \n \n$ 13,283,377.00 $ \n \n15,768,602.00 $ 18,925,027.00 \n \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. \n \nNOTE 14: RETIREMENT PLANS \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \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. \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. \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. 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. For the current fiscal year, employer contributions to the pension plan were $2,721,509.64 from the School District. \n \nEMPLOYEES' RETIREMENT SYSTEM \nP lan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. \n \n- 26 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nBenefits P rovided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's required contribution rate for the year ended June 30, 2020 was 24.66% of annual covered payroll for old and new plan members and 21.64% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $20,306.23 for the current fiscal year. \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \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/financials. \nBenefits P rovided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \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. \nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined \n- 27 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nand paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \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 $ 42,902.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2020, the School District reported a liability of $20,500,941.00 for its proportionate share of the net pension liability for TRS ($20,397,035.00) and ERS ($103,906.00). \nThe net pension liability for TRS and ERS 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 and ERS during the fiscal year ended June 30, 2019. \nAt June 30, 2019, the School District's TRS proportion was 0.094858%, which was a decrease of 0.006335% from its proportion measured as of June 30, 2018. At June 30, 2019, the School District's ERS proportion was 0.002518%, which was an increase of 0.002518% from its proportion measured as of June 30, 2018. \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 $248,144.00. \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 next 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. \nFor the year ended June 30, 2020, the School District recognized pension expense of $2,093,041.00 for TRS, $57,391.00 for ERS and $76,524.00 for PSERS and revenue of ($28,147.00) for TRS and $76,524.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 28 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nDeferred Outflows of Resources \n \nTRS Deferred Inflows of Resources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ 1,149,681.00 $ \n \n6,047.00 $ 3,460.00 $ \n \n- \n \nChanges of assumptions \n \n1,957,362.00 \n \n- \n \n1,829.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n485,716.00 \n \n- \n \n3,234.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n3,294,097.00 \n \n60,188.00 \n \n- \n \nSchool District contributions subsequent to the measurement date \n \n2,721,509.64 \n \n- \n \n20,306.23 \n \n- \n \nTotal \n \n$ 5,828,552.64 $ 3,785,860.00 $ 85,783.23 $ 3,234.00 \n \nThe School District contributions subsequent to the measurement date for TRS and for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 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: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2021 2022 2023 2024 \n \n$ (154,047.00) $ $ (913,286.00) $ $ (19,280.00) $ $ 407,796.00 $ \n \n42,514.00 19,937.00 \n(637.00) 429.00 \n \nActuarial assum ptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods \nincluded in the measurement: \n \nTeachers Retirement System: \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, average, including inflation \n \nInvestment rate of return \n \n7.25%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases 1.50% semi-annually \n \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. \n \n- 29 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \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. \n \nEmployees' Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25%  7.00%, including inflation \n \nInvestment rate of return \n \n7.30%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \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 of return. \n \nPublic School Employees Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \nN/A \n \nInvestment rate of return \n \n7.30%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases \n \n1.50% semi-annually \n \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. \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. \n \n- 30 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nTRS Target allocation \n \nERS/PSERS Target \nallocation \n \nLong-term expected real rate of return* \n \nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 51.00% \n1.50% 12.40% \n5.10% - \n \n30.00% 46.20% \n1.30% 12.40% \n5.10% 5.00% \n \n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \n \nTotal \n \n100.00% \n \n100.00% \n \n* Rates shown are net of assumed rate of inflation. \n \nDiscount Rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount \nrate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% \nand 8.30%) than the current rate: \n \nTeachers Retirement System: \n \n1% Decrease (6.25%) \n \nCurrent Discount Rate (7.25%) \n \n1% Increase (8.25%) \n \nSchool District's proportionate share of the net pension liability \n \n$ 33,110,358.00 $ \n \n20,397,035.00 $ 9,942,167.00 \n \nEmployees' Retirement System: \n \n1% Decrease (6.30%) \n \nCurrent Discount Rate (7.30%) \n \n1% Increase (8.30%) \n \nSchool District's proportionate share of \n \nthe net pension liability \n \n$ \n \n147,660.00 $ \n \n103,906.00 $ \n \n66,606.00 \n \nP ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly \navailable at www.trsga.com/publications and www.ers.ga.gov/financials. \n \n- 31 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nNOTE 15: TAX ABATEMENTS \nDublin-Laurens County Development Authority enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Laurens County. \nFor the fiscal year ended June 30, 2020, City of Dublin abated property taxes due to the School District that were levied on October 3, 2019 and due on December 31, 2019 totaling $491,709.56. Included in that amount abated, the following are individual tax abatement agreements that each exceeded 10 percent of the total amount abated: \n \n A 100 percent property tax abatement to an automotive supplier to construct a new facility and increase employment. The abatement amounted to $178.005.94. \n A 100 percent property tax abatement to an international producer of glass fiber fabrics to open a production facility and increase employment. The abatement amounted to $57,747.02. \n A 100 percent personal property tax abatement to an international group of manufacturing companies to open a manufacturing center and increase employment. The abatement amounted to $154,557.87. \n \nNOTE 16: DEFICIT FUND BALANCE OF INDIVIDUAL FUNDS \nFunds reporting a deficit fund balance at the fiscal year end, are as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGeneral Fund \n \n$ \n \n(708,280.68) \n \nThe School District provided a tentative budget to the Georgia Department of Education outlining anticipated expenditure reductions. The School District submits monthly financial reports and bank reconciliations to the Georgia Department of Education's Financial Review division combined with periodic meetings to monitor the deficit. \nNOTE 17: LIQUIDITY RISK \nLiquidity risk is the risk of not having sufficient liquid financial resources to meet obligations when they fall due. The School District faces liquidity risk regarding operating expenditures and long-term debt payment requirements. \nThe School District has reported operating deficits for multiple years. During fiscal year 2020, the School District's overall governmental fund balance deficit was eliminated. However, the School District accumulated a general fund unassigned fund balance deficit of $780 thousand at June 30, 2020. \nAs part of reporting and monitoring requirements, the School District files annual deficit reduction plans with the Georgia Department of Education. The fiscal year 2021 deficit reduction plan's goal is to reduce the general fund unassigned fund balance deficit by $53 thousand. The general fund deficit fund balance has forced the School District to rely on tax anticipation notes to meet cash flow needs related to operating expenditures. \nNOTE 18: SUBSEQUENT EVENTS \nThe School District's short-term debt (tax anticipation notes in advance of property tax collections) at July 1, 2020 was $1,000,000.00. An additional $2,950,000.00 was borrowed during the remainder of calendar year 2020, and the $3,950,000.00 was repaid in December 2020. \n \n- 32 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \n \nEXHIBIT \"H\" \n \nNOTE 19: COMPONENT UNIT \nThe Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) is a discretely presented component unit of the City of Dublin Board of Education (School District). During the year the School District paid $137,514.36 for instruction expense on behalf of the Charter School. This amount is reflected as expense of the School District and included as revenue and expense of the component unit on the Statement of Activities. The Charter School was not audited and did not prepare official financial statements. \n \n- 33 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"1\" \n \nYear Ended \n \nSchool District's proportion of the net pension liability \n \nSchool District's proportionate share of \nthe net pension liability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \n \nTotal \n \n2020 2019 2018 2017 2016 2015 \n \n0.094858% $ 20,397,035.00 $ 0.101193% $ 18,783,588.00 $ 0.112669% $ 20,939,881.00 $ 0.125867% $ 25,967,766.00 $ 0.130616% $ 19,884,989.00 $ 0.137837% $ 17,413,887.00 $ \n \n1,218.00 74,412.00 \n \n$ 20,397,035.00 $ 18,783,588.00 $ 20,939,881.00 $ 25,967,766.00 $ 19,886,207.00 $ 17,488,299.00 \n \nSchool District's covered payroll \n$ 11,599,001.65 $ 12,053,494.83 $ 12,936,988.92 $ 13,808,103.41 $ 13,935,731.79 $ 14,216,882.08 \n \nSchool District's proportionate share of the net pension liability as a percentage of its covered \npayroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n175.85% 155.84% 161.86% 188.06% 142.69% 122.49% \n \n78.56% 80.27% 79.33% 76.06% 81.44% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 35 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \n \nContractually required contribution (1) \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \n$ \n \n2,721,509.64 $ \n \n2,721,509.64 $ \n \n$ \n \n2,424,191.34 $ \n \n2,424,191.34 $ \n \n$ \n \n2,026,192.50 $ \n \n2,026,192.50 $ \n \n$ \n \n1,846,108.32 $ \n \n1,846,108.32 $ \n \n$ \n \n1,945,074.66 $ \n \n1,945,074.66 $ \n \n$ \n \n1,832,548.73 $ \n \n1,832,548.73 $ \n \n$ \n \n1,745,833.12 $ \n \n1,745,833.12 $ \n \n$ \n \n1,687,641.93 $ \n \n1,687,641.93 $ \n \n$ \n \n1,549,293.65 $ \n \n1,549,293.65 $ \n \n$ \n \n1,609,593.00 $ \n \n1,609,593.00 $ \n \n- \n \n$ 12,873,744.79 \n \n- \n \n$ 11,599,001.65 \n \n- \n \n$ 12,053,494.83 \n \n- \n \n$ 12,936,988.92 \n \n- \n \n$ 13,808,103.41 \n \n- \n \n$ 13,935,731.79 \n \n- \n \n$ 14,216,882.08 \n \n- \n \n$ 14,790,902.10 \n \n- \n \n$ 15,070,949.90 \n \n- \n \n$ 15,657,519.46 \n \nContribution as a percentage of covered \npayroll \n21.14% 20.90% 16.81% 14.27% 14.09% 13.15% 12.28% 11.41% 10.28% 10.28% \n \n(1) For years ended 2015 and earlier, the contractually required contribution amount includes the amounts paid by the Georgia Department of Education on behalf of the School District. \n \n- 36 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \n \nYear Ended 2020 \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the net pension liability \n \n0.002518% $ \n \n103,906.00 \n \nState of Georgia's proportionate share of the net pension liability \nassociated with the School District \n \n$ \n \n- \n \nTotal $ 103,906.00 \n \nSchool District's covered payroll \n \n$ \n \n63,470.55 \n \nSchool District's proportionate share of the net pension liability as a percentage of its \ncovered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n163.71% \n \n76.74% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 37 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n2020 2019 \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \n$ \n \n20,306.23 $ \n \n$ \n \n15,728.02 $ \n \n20,306.23 $ 15,728.02 $ \n \n- \n \n$ 82,344.81 \n \n- \n \n$ 63,470.55 \n \nContribution as a percentage of covered payroll \n24.66% 24.78% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 38 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n2020 2019 2018 2017 2016 2015 \n \nSchool District's proportion of the net pension liability \n \nSchool District's proportionate share of \nthe net pension liability \n \nState of Georgia's proportionate share of the net pension liability \nassociated with the School District \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n248,144.00 235,098.00 212,383.00 324,413.00 197,656.00 194,696.00 \n \nTotal \n$ 248,144.00 $ 235,098.00 $ 212,383.00 $ 324,413.00 $ 197,656.00 $ 194,696.00 \n \nSchool District's covered payroll \n$ 641,218.54 $ 702,592.87 $ 647,502.46 $ 699,204.85 $ 653,953.49 $ 615,833.23 \n \nSchool District's proportionate share of the net pension liability as a percentage of its \ncovered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \nN/A \n \n85.02% \n \nN/A \n \n85.26% \n \nN/A \n \n85.69% \n \nN/A \n \n81.00% \n \nN/A \n \n87.00% \n \nN/A \n \n88.29% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 39 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"6\" \n \nYear Ended \n2020 2019 2018 \n \nSchool District's proportion of the net OPEB liability \n \nSchool District's proportionate share \nof the net OPEB liability \n \n0.128491% 0.135067% 0.149451% \n \n$ 15,768,602.00 $ 17,166,601.00 $ 20,997,805.00 \n \nState of Georgia's proportionate share of the net OPEB liability \nassociated with the School District \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \nTotal \n$ 15,768,602.00 $ 17,166,601.00 $ 20,997,805.00 \n \nSchool District's covered-employee \npayroll \n$ 10,619,274.18 $ 11,277,062.55 $ 12,094,905.84 \n \nSchool District's proportionate share of the \nnet OPEB liability as a percentage of its covered- \nemployee payroll \n148.49% 152.23% 173.61% \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \n4.63% 2.93% 1.61% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 40 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"7\" \n \nYear Ended \n2020 2019 2018 2017 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n436,472.00 $ \n \n436,472.00 $ \n \n- \n \n$ \n \n692,013.00 $ \n \n692,013.00 $ \n \n- \n \n$ \n \n700,040.00 $ \n \n700,040.00 $ \n \n- \n \n$ \n \n779,254.00 $ \n \n779,254.00 $ \n \n- \n \nSchool District's coveredemployee payroll \n \nContribution as a percentage of covered- \nemployee payroll \n \n$ \n \n11,455,970.35 \n \n$ \n \n10,619,274.18 \n \n$ \n \n11,277,062.55 \n \n$ \n \n12,094,905.84 \n \n3.81% 6.52% 6.21% 6.44% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 41 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2020 \n \nSCHEDULE \"8\" \n \nTeachers Retirement System \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. \nOn November 18, 2015, the -Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \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%. \nEmployees' Retirement System \nChanges of benefit terms:  A new benefit tier was added for members joining the System on and after July 1, 2009.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. \nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal and salary increases. \nOn March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \nPublic School Employees Retirement System \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. \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). \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. \nSchool OPEB Fund \nChanges of benefit terms: There have been no changes in benefit terms. \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. \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. \n \n- 42 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2O20 \n \nSCHEDULE \"9\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCapital Lease Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n9,681,638.00 $ \n \n9,981,638.00 $ 10,313,783.06 $ \n \n332,145.06 \n \n- \n \n- \n \n117,342.33 \n \n117,342.33 \n \n12,161,069.00 \n \n12,154,856.77 \n \n11,881,755.29 \n \n(273,101.48) \n \n5,683,291.24 \n \n7,434,388.24 \n \n6,433,952.22 \n \n(1,000,436.02) \n \n16,875.00 \n \n16,875.00 \n \n136,421.33 \n \n119,546.33 \n \n- \n \n- \n \n179.30 \n \n179.30 \n \n350,000.00 \n \n350,000.00 \n \n686,321.56 \n \n336,321.56 \n \n27,892,873.24 \n \n29,937,758.01 \n \n29,569,755.09 \n \n(368,002.92) \n \n14,660,057.24 \n1,345,673.00 2,157,253.00 \n530,966.00 666,217.00 1,585,272.00 816,413.00 2,421,731.00 1,341,178.00 443,983.00 \n44,500.00 - \n1,774,380.00 - \n27,787,623.24 \n105,250.00 \n \n15,322,536.01 \n1,425,886.00 2,303,067.00 \n422,464.00 710,814.00 1,455,160.00 816,413.00 2,543,424.00 1,358,735.00 532,346.00 \n50,500.00 - \n1,774,380.00 - \n28,715,725.01 \n1,222,033.00 \n \n14,953,804.90 \n1,800,880.63 2,098,991.56 \n276,310.44 458,356.60 1,719,022.63 701,366.75 2,738,779.64 1,317,474.87 442,208.08 \n99,175.38 25,783.11 1,767,378.41 61,385.45 \n28,460,918.45 \n1,108,836.64 \n \n368,731.11 \n(374,994.63) 204,075.44 146,153.56 252,457.40 (263,862.63) 115,046.25 (195,355.64) \n41,260.13 90,137.92 (48,675.38) (25,783.11) \n7,001.59 (61,385.45) \n254,806.56 \n(113,196.36) \n \n105,250.00 1,212,400.17 (106.09) \n \n(300,000.00) (300,000.00) 922,033.00 1,212,400.17 (2,748,908.87) \n \n274,561.85 (404,800.00) (130,238.15) 978,598.49 (1,686,879.17) \n- \n \n274,561.85 (104,800.00) 169,761.85 \n56,565.49 (2,899,279.34) 2,748,908.87 \n \n$ \n \n1,317,544.08 $ \n \n(614,475.70) $ \n \n(708,280.68) $ \n \n(93,804.98) \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $461,350.39 and $438,946.98, respectively. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 43 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2020 \n \nSCHEDULE \"10\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability \nTotal Other Programs \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Direct Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth Education for Homeless Children and Youth Rural Education Rural Education Striving Readers Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n205GA324N1099 $ 205GA324N1099 \n \n443,511.20 1,364,651.45 \n1,808,162.65 \n \n10.558 \n \n195GA368N1099 \n \n10.579 \n \n205GA324N8503 \n \n25,846.19 \n39,117.54 64,963.73 1,873,126.38 \n \n84.425D \n \nS425D200012 \n \n1,360,051.75 \n \n84.027 84.173 \n \nH027A190073 H173A190081 \n \n576,343.00 18,774.00 \n595,117.00 \n \n84.048 84.196 84.196 84.358 84.358 84.371 84.424A 84.424A 84.367 84.367 84.010 84.010 84.287 84.287 \n \nV048A190010 S196A180011 S196A190011 S365B180010 S358B190010 S371C110049 S424A180011 S424A190011 S367A180001 S367A190001 S010A180010 S010A190010 S287C180010 S287C190010 \n \n42,734.00 2,033.67 \n25,579.82 3,530.17 \n45,052.00 388,112.94 \n11,155.68 120,133.47 \n28,140.95 125,456.35 \n27,322.00 1,751,788.75 \n51,435.13 274,856.64 \n2,897,331.57 \n4,852,500.32 \n \n36,699.69 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n6,762,326.39 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \nNote 1. Basis of Presentation \nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the City of Dublin 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. \n \nNote 2. Summary of Significant Accounting Policies \n \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. \n \nNote 3. Indirect Cost Rate \n \nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 44 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2020 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs CTAE Opportunities Equipment Grant Food Services Hygiene Products Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Vocational Education \nOffice of the State Treasurer Public School Employees Retirement \n \nSCHEDULE \"11\" \n \nGOVERNMENTAL FUND TYPE \nGENERAL FUND \n \n$ \n \n535,932.52 \n \n735,655.00 195,339.00 1,429,970.00 565,177.00 747,077.00 286,636.00 1,262,925.00 1,168,524.00 286,837.00 1,682,790.00 173,399.00 130,194.00 \n92,240.00 25,132.00 236,866.00 73,113.00 41,528.00 \n1,313.00 \n480,774.00 604,436.00 510,577.00 \n44,019.00 (167,753.00) 233,589.00 \n164,404.00 49,109.00 \n10,377.00 52,201.00 \n6,359.00 22,329.77 47,947.00 77,220.00 32,617.00 \n42,902.00 \n \n$ \n \n11,881,755.29 \n \nSee notes to the basic financial statements. \n \n- 45 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2020 \n \nSCHEDULE \"12\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nSPLOST III PROJECTS (January 1, 2018 - December 31,2022) \n \nPayment of certain outstanding debt of the \n \nCity of Dublin School District, including but \n \nnot limited to payment of General Obligation \n \nSales Tax Bonds, Series 2008, in an amount \n \nnot to exceed $1,223,640.00; \n \n$ \n \n1,223,640.00 $ \n \nGeneral Obligation Bonds, Series 2010, in an amount not to exceed $6,445,240.00; \n \n6,445,240.00 \n \nGeneral Obligation Bonds, Series 2011, in an amount not to exceed $4,714,950.00; \n \n4,714,950.00 \n \nImprovements, renovations, construction, furnishing and equipping existing school buildings and facilities including, but not limited to, Dublin High School, Dublin Middle School, Moore Street School, Susie Dasher Elementary, Saxon Heights Elementary, Hillcrest Elementary School and the central office building; \n \n1,044,170.00 \n \nThe acquisition of school vehicles, including, but not limited to, school buses and transportation equipment; \n \n250,000.00 \n \nTechnology equipment and upgrades; and \n \n250,000.00 \n \nThe acquisition of certain property and equipment, including any heating and air conditioning equipment upgrades which may be subject to lease by the City of Dublin School District. \n \n250,000.00 \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n1,223,640.00 $ \n \n- $ 1,223,640.00 $ 1,223,640.00 $ \n \n- \n \n6,445,240.00 \n \n2,024,200.00 \n \n3,469,300.00 \n \n- \n \n- \n \n3,149,250.00 \n \n230,150.00 \n \n454,600.00 \n \n- \n \n- \n \n3,500,000.00 \n \n127,549.66 \n \n- \n \n- \n \n- \n \n385,173.00 \n \n276,443.00 \n \n108,730.00 \n \n- \n \n- \n \n250,000.00 \n \n- \n \n20,846.34 \n \n- \n \n- \n \n250,000.00 \n \n- \n \n- \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE \nComplete 4/1/2021 12/31/2022 \n12/31/2022 12/31/2022 12/31/2022 \n12/31/2022 \n \n$ 14,178,000.00 $ 15,203,303.00 $ 2,658,342.66 $ 5,277,116.34 $ 1,223,640.00 $ \n \n- \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of Laurens 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. \n \nSee notes to the basic financial statements. \n \n- 47 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \n \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED \nIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin 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 29, 2022. \nThe financial statements of the Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) have not been audited, and we were not engaged to audit the Charter School's financial statements as part of our audit of the School District's basic financial statements. The Charter School's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) 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. \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. \n \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 have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS 2020-001, that we consider to be a significant deficiency. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS 2020-001. \nSchool District Response to Findings \nThe School District's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nMarch 29, 2022 \n \nGreg S. Griffin State Auditor \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \n \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nReport on Compliance for Each Major Federal Program \nWe have audited the City of Dublin 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. \nManagement's Responsibility \nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \nAuditor's Responsibility \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. \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. \n \n Opinion on Each Major Federal Program \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. \nReport on Internal Control over Compliance \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. \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. \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. \nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \n \nMarch 29, 2022 \n \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS-7741-12-02 Control Category: Internal Control Impact: Compliance Impact: \n \nAdoption of a Balanced Budget, Deficit Fund Balance Budget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nFS 2013-002 Control Category: Internal Control Impact: Compliance Impact: \n \nDeficit Fund Balance Budget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nFS 2014-002 Control Category: Internal Control Impact: Compliance Impact: \n \nDeficit Fund Balance Budget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nFS 2015-006 Control Category: Internal Control Impact: Compliance Impact: \n \nAdoption of a Balanced Budget, Deficit Fund Balance Budget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nFS 2016-006 Control Categories: Internal Control Impact: Compliance Impact: \n \nAdoption of a Balanced Budget, Deficit Fund Balance Budget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nFS 2017-004 Control Category: Internal Control Impact: Compliance Impact: \n \nAdoption of a Balanced Budget, Deficit Fund Balance Budget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nFS 2018-002 Control Category: Internal Control Impact: Compliance Impact: \n \nAdoption of a Balanced Budget, Deficit Fund Balances Budget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2019-001 Control Category: Internal Control Impact: Compliance Impact: \n \nAdoption of a Balanced Budget, Deficit Fund Balances Budget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nDuring fiscal year 2016, the Board developed and presented to the Georgia Department of Education a new deficit elimination plan. As of fiscal year 2020, the Board has reduced its unassigned fund balance deficit by $5.05 million. The remaining $780 thousand deficit will be eliminated in fiscal year 2021. Reporting requirements applicable for deficit fund balances with the Georgia Department of Education are being followed. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n- 2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities; All Major Funds; Aggregate Remaining Fund Information Discretely Presented Component Unit \n \nUnmodified Disclaimer \n \nInternal control over financial reporting: \n \n Material weakness identified? \n \nNo \n \n Significant deficiency identified? \n \nYes \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with 2 CFR 200.516(a)? \n \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n84.010 84.425 \n \nTitle I Grants to Local Educational Agencies Elementary and Secondary School Emergency Relief Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$750,000.00 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2020-001 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nAdoption of a Balanced Budget, Deficit Fund Balances Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance FS 2019-001, FS 2018-002, FS 2017-004, FS 2016-006, FS 2015-006, FS 2014-002, FS 2013-002, FS-7741-12-02 \n \nDescription: At June 30, 2020, the general fund reported a deficit fund balance. The School District also failed to adopt a balanced general fund budget for fiscal year 2020. \n \nCriteria: Chapter II-8, Governmental Fund Deficits of the Financial Management for the Georgia Local Units of Administration states in part: \"The seriousness of the fund balances deficits cannot be overstated. The Georgia Department of Education requires those LUAs with deficit governmental fund balances to meet certain reporting requirements.\" \n \nChapter IV-2, Preparing Operating Budgets of the Financial Management for the Georgia Local Units of Administration states in part: \"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated essential expenditures, a portion of unassigned fund balance from previous years must be used to fund the shortfall. In the event there is insufficient unassigned fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available unassigned fund balance.\" \n \nThe Department of Audits and Accounts is required to report all instances of budget deficits in accordance with the Official Code of Georgia Annotated 20-2-67(a) which states: \"When an audit by the Department of Audits and Accounts finds and reports irregularities or budget deficits in the fund accounting information regarding a local school system or a school within the local school system, the Department of Audits and Accounts shall report the findings of irregularities or budget deficits to the State Board of Education and the local board of education.\" \n \nCondition: The School District's general fund reported a deficit unassigned fund balance of $780,092.77. However, a portion of the deficit was eliminated through the use of one-time Elementary and Secondary School Emergency Relief Funds. In addition, the School District's original and final budgets for the general fund were not balanced. Total anticipated revenues and beginning fund balance did not equal or exceed total estimated expenditures. \n \nCause: In discussing this deficiency with the School District, they stated that they started the 2020 fiscal year with a $2,061,218.20 deficit in the general fund due to a failure to use effective budgeting techniques in prior years. Also, funds collected for a bond property tax assessed in a previous fiscal year could not be disbursed to the School District due to litigation settling in favor of the other parties. \n \nEffect or Potential Effect: The fund balance of the general fund was not sufficient to meet the fund's obligations at June 30, 2020. The use one-time Elementary and Secondary School Emergency Relief Funds is not a sustainable budgeting technique. This is a financial statement irregularity in accordance with the Official Code of Georgia Annotated (O.C.G.A) 20-2-67 \n \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Recommendation: The School District should establish policies and procedures to enforce the successful implementation of their deficit reduction plan to ensure that expenditures do not exceed availability of resources so that in future periods the School District does not report a deficit fund balance. In addition, appropriate procedures should be implemented to ensure that the adopted budget for each budgeted fund is balanced as required. Views of Responsible Officials: We concur with this finding. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n- 3 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n Dublin City Schools \n207 Shamrock Dr. Dublin, GA 31021 478-353-8000 Fax: 8001 \n \nFredrick C. Williams, Ed. D. Superintendent \nChristi Thublin \nAssistant Superintendent \n \nCORRECTIVE ACTION PLAN  FINANCIAL STATEMENT FINDING \n \nFS 2019-001 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nAdoption of a Balanced Budget, Deficit Fund Balances Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance FS 2019-001, FS2018-002, FS 2017-004, FS 2016-006, FS 2015-006, FS 2014-002, FS 2013-002, FS-7741-12-02 \n \nAt June 30, 2020, the general fund reported a deficit fund balance. The School District also failed to adopt a balanced general fund budget for fiscal year 2020. \n \nCorrective Action Plans: Management continues to follow the deficit elimination plan submitted to the Georgia Department of Education in March 2016. The deficit was reduced to $780,092.77 in fiscal year 2020, and preliminary numbers submitted for fiscal year 2021 show the elimination of the deficit fund balance. \nEstimated Completion Date: Fiscal year 2021 \nContact Person: Christi Thublin, Assistant Superintendent Telephone: (478.353.8013); E-mail: christi@dcsirish.com \n \n "},{"id":"dlg_ggpd_50557223-2021-04-17","title":"Audit report, City of Dublin Board of Education, Laurens County, 2019 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["\u003c-year ended 1994\u003e-year ended June 30, 1996: Georgia. Department of Audits.","Year ended June 30, 1997- : Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2021-04-17"],"dcterms_description":["Title may fluctuate: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report, City of Dublin Board of Education, Laurens County or Audit report, City of Dublin Board of Education, Laurens County, Georgia. For fiscal year ending June 30, 2000-, audits conducted \"in accordance with auditing standards generally accepted in the United States of America\" are issued as: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ... or City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports). Reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" may be issued as: Review or Management report","Report year covers fiscal year.","\u003cYear ended June 30, 1994\u003e-year ended June 30, 1996 issued by the State of Georgia, Dept. of Audits; year ended June 30, 1997- issued by the State of Georgia, Dept. of Audits and Accounts.","Schedule of salaries and travel supplements for local Georgia Boards of Education, Libraries, etc. ceased to be published in print in 2002. Starting in 2003 this information can be accessed online through the Georgia Government Publications database in GALILEO or in the annual CD-ROM called: Salary and travel compilation reports.","Has supplements: Supplementary information, City of Dublin Board of Education, Laurens County, summary and schedule of salaries and travel ..., -fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2008-","Year ended June 30, 1994, released in 1995? (online surrogate); title from PDF title page (Georgia Government Publications database, viewed August 22, 2016).","Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 29, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits","Atlanta, Ga. : Dept. of Audits and Accounts","[Atlanta, Ga.?] : State of Georgia"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Dublin Board of Education (Dublin, Ga.)--Appropriations and expenditures--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Auditors' reports","Expenditures, Public","Financial statements","Georgia","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, City of Dublin Board of Education, Laurens County, 2019 June 30"],"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_50557223-2021-04-17"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_50557223-2021-04-17"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n(Including Independent Auditor's Reports) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nGOVERNMENT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nH NOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \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 \nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \n1 2 \n4 5 6 7 8 9 \n35 36 37 38 39 40 41 \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n42 43 45 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \n \n SECTION I FINANCIAL \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \n \nINDEPENDENT AUDITOR'S REPORT \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Dublin Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements. We were not engaged to audit the financial statements of the discretely presented component unit. These financial statements collectively comprise the School District's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements \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. \nAuditor's Responsibility \nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we do not express an audit opinion on the discretely presented component unit. \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 \n \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. \n \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nSummary of Opinions \n \nOpinion Unit Governmental Activities Discretely Presented Component Unit General Fund Capital Projects Fund Debt Service Fund Aggregate Remaining Fund Information \n \nType of Opinion Unmodified Disclaimer Unmodified Unmodified Unmodified Unmodified \n \nBasis for Disclaimer of Opinion on the Discretely Presented Component Unit \n \nThe financial statements of Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) have not been audited, and we were not engaged to audit the Charter School's financial statements as part of our audit of the School District's basic financial statements. The Charter School's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nDisclaimer of Opinion \n \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. \nUnmodified Opinions \n \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. \nEmphasis of Matter \n \nSince fiscal year 2011, the School District has maintained a general fund deficit. As of June 30, 2019, the School District had a general fund unassigned deficit fund balance of $2.1 million (Governmental Fund Statements). The School District also had a deficit unrestricted net position of $43.2 million (Government-wide Financial Statements) of which $41.6 million of the deficit is related to the net pension and net OPEB liabilities. The liquidity note discusses the School District's deficit reduction plan as of the report date to address the accumulated fund balance deficit. The School District relies on tax anticipation notes to meet its cash flow needs related to operating expenses. The School District expects to continue obtaining interim financing to meet cash flow needs as appropriate. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. Our opinions are not modified with respect to these matters. \n \n Other Matters \nRequired Supplementary Information \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. \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. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the financial statements taken as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated April 17, 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 \n \n or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nApril 17, 2021 \n \nGreg S. Griffin State Auditor \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF NET POSITION JUNE 30, 2019 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nInterest Taxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Short-Term Debt Interest Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT \nHEART OF GEORGIA COLLEGE \u0026 CAREER \nACADEMY, INC. \n \n$ \n \n1,718,581.98 $ \n \n291.63 962,654.91 1,827,705.78 969,943.88 \n9,448.69 49,216.73 1,969,200.50 54,679,594.15 \n \n62,186,638.25 \n \n17,375.79 \n- \n17,375.79 \n \n4,021,721.34 \n \n- \n \n715,239.00 \n \n- \n \n4,736,960.34 \n \n- \n \n160,912.50 \n \n- \n \n2,267,397.79 \n \n- \n \n580,031.66 \n \n- \n \n2,110,000.00 \n \n- \n \n82,472.86 \n \n- \n \n18,783,588.00 \n \n- \n \n17,166,601.00 \n \n- \n \n- \n \n2,145,721.57 \n \n- \n \n8,008,215.41 \n \n- \n \n51,304,940.79 \n \n- \n \n4,188,120.00 \n \n- \n \n6,212,699.00 \n \n- \n \n10,400,819.00 \n \n- \n \n46,494,857.67 \n374,339.03 1,401,221.51 \n175,012.02 (43,227,591.43) \n \n- \n17,375.79 \n \nTotal Net Position \n \n$ \n \n5,217,838.80 $ \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n17,375.79 - 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2019 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nHeart of Georgia College \u0026 Career Academy, Inc. \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Position \nNet Position - Beginning of Year \nNet Position - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 14,122,789.20 $ \n1,576,958.93 1,874,624.14 \n336,223.07 459,827.72 1,369,771.51 904,089.47 2,264,130.30 884,417.98 323,035.96 \n81,682.19 \n38,817.35 61.55 \n1,737,169.50 481,199.22 \n$ 26,454,798.09 $ \n \n145,651.88 \n- \n14,519.37 - \n160,171.25 \n \n$ \n \n152,189.86 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nPRIMARY GOVERNMENT NET (EXPENSES) \nREVENUES AND CHANGES IN \nNET POSITION \n \nCOMPONENT UNIT \nHEART OF GEORGIA COLLEGE \u0026 CAREER \nACADEMY, INC. \n \n$ 10,854,645.87 $ \n566,375.25 1,652,730.94 \n306,874.00 754,740.65 771,657.00 134,240.27 669,971.87 192,828.09 \n2,665.52 26,826.12 \n1,690,363.96 - \n$ 17,623,919.54 $ \n \n- $ \n154,440.00 - \n- \n154,440.00 \n \n(3,122,491.45) \n(1,010,583.68) (221,893.20) (29,349.07) 294,912.93 (598,114.51) (769,849.20) \n(1,594,158.43) (537,149.89) (320,370.44) (54,856.07) \n(38,817.35) (61.55) \n(32,286.17) (481,199.22) \n(8,516,267.30) \n \n$ \n \n(152,189.86) \n \n9,902,264.83 64,292.04 \n2,797,771.83 113,271.85 13,489.68 825,383.50 \n13,716,473.73 \n5,200,206.43 \n17,632.37 \n \n- \n187,413.36 \n187,413.36 \n35,223.50 \n(17,847.71) \n \n$ \n \n5,217,838.80 $ \n \n17,375.79 \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2019 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nInterest Taxes State Government Federal Government Other Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n297,034.96 $ \n \n733,207.88 1,827,705.78 969,943.88 \n9,448.69 49,216.73 \n \n186,476.67 $ \n- \n \n1,235,070.35 $ \n291.63 229,447.03 \n- \n \n1,718,581.98 \n291.63 962,654.91 1,827,705.78 969,943.88 \n9,448.69 49,216.73 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Short-Term Debt Interest Payable \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Unassigned \nTotal Fund Balances \n \n$ 3,886,557.92 $ \n \n186,476.67 $ \n \n1,464,809.01 $ \n \n5,537,843.60 \n \n$ \n \n149,447.85 $ \n \n2,267,397.79 \n \n580,031.66 \n \n2,110,000.00 \n \n2,947.86 \n \n5,109,825.16 \n \n11,464.65 $ - \n11,464.65 \n \n- $ - \n- \n \n160,912.50 2,267,397.79 \n580,031.66 2,110,000.00 \n2,947.86 \n5,121,289.81 \n \n463,611.93 \n \n- \n \n- \n \n463,611.93 \n \n49,216.73 325,122.30 (2,061,218.20) \n(1,686,879.17) \n \n175,012.02 \n- \n175,012.02 \n \n1,464,809.01 \n- \n1,464,809.01 \n \n49,216.73 1,964,943.33 (2,061,218.20) \n(47,058.14) \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 3,886,557.92 $ \n \n186,476.67 $ \n \n1,464,809.01 $ \n \n5,537,843.60 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2019 \n \nEXHIBIT \"D\" \n \nTotal fund balances - governmental funds (Exhibit \"C\") \nAmounts reported for governmental activities in the Statement of Net Position are different because: \nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \nNet pension liability Net OPEB liability \nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \nRelated to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \nBonds payable Accrued interest payable Capital leases payable Unamortized bond premiums \n \n$ \n \n(47,058.14) \n \n$ \n \n1,686,200.50 \n \n283,000.00 \n \n66,494,609.61 \n \n4,185,896.76 \n \n6,818,289.00 \n \n(22,819,201.22) \n \n56,648,794.65 \n \n$ (18,783,588.00) (17,166,601.00) \n \n(35,950,189.00) \n \n$ \n \n(166,398.66) \n \n(5,497,460.00) \n \n(5,663,858.66) 463,611.93 \n \n$ \n \n(6,940,000.00) \n \n(79,525.00) \n \n(3,065,000.00) \n \n(148,936.98) \n \n(10,233,461.98) \n \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n5,217,838.80 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n10,027,612.16 $ \n \n113,271.85 \n \n12,035,279.12 \n \n5,776,697.42 \n \n160,171.25 \n \n741.42 \n \n825,383.50 \n \n28,939,156.72 \n \n- $ 52.15 - \n52.15 \n \n- $ 2,797,771.83 \n12,696.11 - \n2,810,467.94 \n \n10,027,612.16 2,911,043.68 \n12,035,279.12 5,776,697.42 160,171.25 13,489.68 825,383.50 \n31,749,676.81 \n \n13,791,695.45 \n1,697,756.44 1,990,592.92 \n377,058.42 390,770.32 1,528,129.29 948,374.57 2,294,326.51 1,244,065.70 549,538.65 \n82,788.01 38,817.35 \n61.55 1,663,643.81 \n- \n- \n26,597,618.99 \n2,341,537.73 \n108,730.00 (2,892,698.68) \n(2,783,968.68) \n(442,430.95) \n(1,244,448.22) \n \n- \n20,455.69 \n- \n20,455.69 \n(20,403.54) \n \n- \n- \n2,095,000.00 20,904.12 \n525,475.00 \n2,641,379.12 \n169,088.82 \n \n13,791,695.45 \n1,697,756.44 1,990,592.92 \n377,058.42 390,770.32 1,528,129.29 948,374.57 2,294,326.51 1,244,065.70 549,538.65 \n82,788.01 38,817.35 \n61.55 1,663,643.81 \n20,455.69 \n2,095,000.00 20,904.12 \n525,475.00 \n29,259,453.80 \n2,490,223.01 \n \n246,628.68 - \n246,628.68 226,225.14 (51,213.12) \n \n2,646,070.00 (108,730.00) \n2,537,340.00 2,706,428.82 (1,241,619.81) \n \n3,001,428.68 (3,001,428.68) \n2,490,223.01 (2,537,281.15) \n \nFund Balances - Ending \n \n$ \n \n(1,686,879.17) $ \n \n175,012.02 $ \n \n1,464,809.01 $ \n \n(47,058.14) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2019 \n \nEXHIBIT \"F\" \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \nAmounts reported for governmental activities in the Statement of Activities are different because: \nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \nCapital outlay Depreciation expense \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \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. \nBond principal retirements Capital lease payments Amortization of bond premium \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. \nPension expense OPEB expense \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \nAccrued interest on issuance of bonds \n \n$ \n \n2,490,223.01 \n \n$ \n \n335,464.25 \n \n(1,857,051.20) \n \n(1,521,586.95) (43,752.14) (61,055.29) \n \n$ \n \n2,000,000.00 \n \n198,708.06 \n \n45,721.57 \n \n2,244,429.63 \n \n$ \n \n1,537,885.84 \n \n534,604.00 \n \n2,072,489.84 \n \n19,458.33 \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n5,200,206.43 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2019 \n \nEXHIBIT \"G\" \n \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nAGENCY FUNDS \n \n$ \n \n43,743.26 \n \n$ \n \n43,743.26 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City of Dublin 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) is a jointly authorized start-up charter school pursuant to the Official Code of Georgia (O.C.G.A.) 20-2-2060 et. Seq., the Charter Schools Act of 1998. The Charter is an agreement entered into by and between the City of Dublin and Laurens County Boards of Education and the State Board of Education to serve students in grades 9 through 12. The Charter School's mission is to improve public educational outcomes and ensure a viable 21st century workforce for the Heart of Georgia region. The financial statements of the Charter School have been included as a discretely presented component unit because they provide services to third-parties outside the school system. See notes 4 and 8 for additional component unit disclosures. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGOVERNMENT-WIDE STATEMENTS: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District 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. \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: \n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \n \n- 9 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFUND FINANCIAL STATEMENTS \nThe fund financial statements provide information about the School District's funds, 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. \nThe School District reports the following major governmental funds: \n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \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. \nThe School District reports the following fiduciary fund type: \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. \nBASIS OF ACCOUNTING \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. \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. \n- 10 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \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. \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. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement. The adoption of this statement did not have an impact on the School District's financial statements. \nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The School District included additional information in the Long-term Liabilities note disclosure. \nCASH AND CASH EQUIVALENTS \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \n- 11 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nINVENTORIES \n \nFood Inventories \n \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \n \nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \n \nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \n \nAny Amount $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 50,000.00 \n \nN/A 20 to 80 years 10 to 80 years 5 to 50 years \nDetermined at purchase date \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \n \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \n \n- 12 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \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. \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. \nPENSIONS \nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees 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. \nFUND BALANCES \nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \nThe School District's fund balances are classified as follows: \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \n- 13 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nPROPERTY TAXES \nThe City of Dublin Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on September 24, 2018 (levy date) based on property values as of January 1, 2018. Taxes were due on December 31, 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 Dublin City Clerk bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2019, for maintenance and operations amounted to $9,319,617.33. \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): \n \nSchool Operations \n \n19.705 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $707,994.83 during fiscal year ended June 30, 2019. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,797,771.83 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. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, 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 and function. 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. \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. \n \n- 14 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nThe 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. \nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \nCOLLATERALIZATION OF DEPOSITS \nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \n- 15 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nCATEGORIZATION OF DEPOSITS \n \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 $1,507,028.30, and a bank balance of $2,109,788.80. The bank balances insured by Federal depository insurance were $664,452.42 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $1,445,336.38. \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 1,718,581.98 43,743.26 \n \nTotal cash and cash equivalents \n \n1,762,325.24 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n255,296.94 \n \nTotal carrying value of deposits - June 30, 2019 \n \n$ 1,507,028.30 \n \nCOMPONENT UNIT \nAt June 30, 2019, the Heart of Georgia College \u0026 Career Academy, Inc. had deposits with a carrying amount and bank balance of $17,375.79. The bank balance was insured through Federal Depository Insurance Corporation (FDIC). \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $255,296.94 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2019 was 39 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \n \n- 16 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2018 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2019 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,686,200.50 $ 283,000.00 \n \n- $ - \n \n- $ 1,686,200.50 \n \n- \n \n283,000.00 \n \nTotal Capital Assets Not Being Depreciated \n \n1,969,200.50 \n \n- \n \n- \n \n1,969,200.50 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n66,494,609.61 4,563,399.72 6,818,289.00 \n \n335,464.25 \n- \n \n712,967.21 \n- \n \n66,494,609.61 4,185,896.76 6,818,289.00 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n16,218,435.23 3,281,983.89 2,130,945.97 \n \n1,312,636.57 305,907.80 238,506.83 \n \n669,215.07 \n- \n \n17,531,071.80 2,918,676.62 2,369,452.80 \n \nTotal Capital Assets, Being Depreciated, Net \n \n56,244,933.24 (1,521,586.95) 43,752.14 54,679,594.15 \n \nGovernmental Activity Capital Assets - Net $ 58,214,133.74 $ (1,521,586.95) $ 43,752.14 $ 56,648,794.65 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ \n \n92,852.56 \n \n196,093.38 \n \n79,685.67 \n \n$ 1,350,060.48 \n368,631.61 138,359.11 \n \n$ 1,857,051.20 \n \n- 17 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \nInterfund transfers for the year ended June 30, 2019, consisted of the following: \n \nTransfers to \n \nTransfers From \n \nGeneral Fund \n \nDebt Service Fund \n \nGeneral Fund Capital Projects Fund Debt Service Fund \n \n$ \n \n- \n \n246,628.68 \n \n2,646,070.00 \n \n$ 108,730.00 - \n \nTotal \n \n$ 2,892,698.68 $ 108,730.00 \n \nEXHIBIT \"H\" \n \nA transfer was made from the general fund to cover current year capital outlay, bond, and lease payments paid from the capital projects fund and debt service fund, respectively, and to reimburse expenditures unallowable by the Superior Court. \n \nSPLOST funds were transferred from the debt service fund to the general fund to cover the cost of bus purchases not funded by state grants. \n \nNOTE 7: SHORT-TERM DEBT \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt provides 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. \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes $ 3,635,200.00 $ 3,474,800.00 $ 5,000,000.00 $ 2,110,000.00 \n \n- 18 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nNOTE 8: LONG-TERM LIABILITIES \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2018 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2019 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds $ Unamortized Bond Premiums Capital Leases \n \n8,940,000.00 $ 194,658.55 \n3,263,708.06 \n \n- $ 2,000,000.00 $ 6,940,000.00 $ 2,000,000.00 \n \n- \n \n45,721.57 \n \n148,936.98 \n \n45,721.57 \n \n- \n \n198,708.06 \n \n3,065,000.00 \n \n100,000.00 \n \n$ 12,398,366.61 $ \n \n- $ 2,244,429.63 $ 10,153,936.98 $ 2,145,721.57 \n \nBalance July 1, 2018 \n \nAdditions \n \nComponent Unit \n \nBalance \n \nDeductions \n \nJune 30, 2019 \n \nDue Within One Year \n \nPromissory Note \n \n$ \n \n24,008.62 $ \n \n- $ \n \n24,008.62 $ \n \n- $ \n \n- \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \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. \n \nThe School District's outstanding general obligation bonds related to governmental activities of $6,940,000.00 contain a provision that, in the event of a nonpayment, the State Board is authorized to and must withhold from any state appropriations to which the School District may be entitled and apply so much thereof as shall be necessary to the payment of the principal of and interest on such indebtedness then due. \n \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2010 General Government - Series 2011 \n \n3.0% - 4.0% 2.5% - 4.0% \n \n4/22/2010 12/8/2011 \n \n4/1/2021 $ 9,755,000.00 $ 3,105,000.00 \n \n4/1/2023 \n \n4,085,000.00 \n \n3,835,000.00 \n \n$ 13,840,000.00 $ 6,940,000.00 \n \nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2020 2021 2022 2023 \n \n$ \n \n2,000,000.00 $ \n \n254,350.00 \n \n$ \n \n1,905,000.00 \n \n175,600.00 \n \n1,500,000.00 \n \n106,400.00 \n \n1,535,000.00 \n \n61,400.00 \n \n45,721.57 45,721.57 41,627.22 15,866.62 \n \nTotal Principal and Interest \n \n$ \n \n6,940,000.00 $ \n \n597,750.00 \n \n$ \n \n148,936.98 \n \n- 19 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nCAPITAL LEASES \nThe School District has acquired a solar panel project under the provision of a long-term lease agreement classified as a capital lease for accounting purposes because it provides for a bargain purchase option or a transfer of ownership by the end of the lease term. \nThe following assets were acquired through a capital lease and are reflected in the capital asset note at fiscal year-end: \nGovernmental Activities \n \nLand Improvements \n \n$ 3,585,000.00 \n \nLess: Accumulated Depreciation \n \n(985,875.00) \n \n$ 2,599,125.00 \n \nThe capital lease currently outstanding is as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nSolar Panel Lease \n \n5.00 - 6.50% 1/29/2013 \n \n5/16/2037 $ \n \n3,585,000.00 $ 3,065,000.00 \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \n2020 2021 2022 2023 2024 2025 - 2029 2030 - 2034 2035 - 2037 \n \n$ \n \n100,000.00 $ \n \n105,000.00 \n \n110,000.00 \n \n115,000.00 \n \n120,000.00 \n \n735,000.00 \n \n1,005,000.00 \n \n775,000.00 \n \nTotal Principal and Interest \n \n$ \n \n3,065,000.00 $ \n \nInterest \n190,000.00 185,000.00 179,625.00 173,850.00 166,800.00 711,937.00 439,887.50 \n90,350.00 \n2,137,449.50 \n \nPROMISSORY NOTE - COMPONENT UNIT \n \nThe Heart of Georgia College \u0026 Career Academy, Inc. (Charter School), a component unit of the School District, entered into a lending agreement with a commercial lending institution. The debt associated with this agreement, which was fully repaid by June 30, 2019, is as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nPromissory Note \n \n5.25% \n \n5/5/2015 \n \n7/31/2018 $ 105,520.00 $ \n \n- \n \n- 20 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nNOTE 9: RISK MANAGEMENT \n \nINSURANCE \n \nCommercial Insurance \n \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. \n \nUNEMPLOYMENT COMPENSATION \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2018 $ \n \n- \n \n$ \n \n4,672.16 \n \n$ \n \n4,672.16 \n \n$ \n \n- \n \n2019 $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \nSURETY BOND \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Drivers Education \n \n$ \n \n50,000.00 \n \n$ \n \n10,000.00 \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2019: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nUnassigned \n \n$ \n \n49,216.73 \n \n$ \n \n325,122.30 \n \n175,012.02 \n \n1,464,809.01 \n \n1,964,943.33 (2,061,218.20) \n \nFund Balance, June 30, 2019 \n \n$ \n \n(47,058.14) \n \n- 21 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \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. \n \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nOPERATING LEASES \n \nThe School District leases a bus workshop, fuel disbursement system, and equipment 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 $29,900.00 for governmental activities for the year ended June 30, 2019. The following future minimum lease payments were required under operating leases at June 30, 2019: \n \nYear Ending \n \nGovernmental Funds \n \n2020 2021 2022 2023 \n \n$ \n \n19,200.00 \n \n19,200.00 \n \n19,200.00 \n \n8,000.00 \n \nTotal \n \n$ \n \n65,600.00 \n \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nFEDERAL GRANTS \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nLITIGATION \nThe School District is a defendant in a Class Action case, MMT Holdings, LLC, et al v. City of Dublin School District and City of Dublin, Georgia, in which the Plaintiff filed a complaint for refund of taxes and injunctive relief. The School District filed a motion for summary judgment, and the Plaintiffs filed a motion for partial summary judgment. The School District's motion was denied. The School District appealed that ruling to the Georgia Supreme Court, and the Supreme Court ultimately transferred it to the Georgia Court of Appeals. The Court of Appeals entered an order reversing the judgment and issuing a remittitur to the Superior Court. The School District filed a motion to implement the decision of the Court of Appeals and disburse the proceeds of property taxes collected by the City of Dublin. The court issued an order upon remittitur granting summary judgment to the School District based on sovereign immunity, but leaving in effect the partial summary judgment granted against the City of Dublin finding that the ad valorem tax was illegally and erroneously assessed and collected, and that plaintiffs were entitled to a refund of the ad valorem tax. The School District filed an appeal with the Georgia Court of Appeals that was ultimately dismissed. The estimated amount of property tax that would be returned to the taxpayers is approximately $1,000,000.00. These funds collected by the City of Dublin were not recorded on the School District's financial statements. \n \n- 22 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nThe Plaintiffs filed an amended complaint, MMT Holdings, LLC, et al v. City of Dublin School District, alleging the Education Special Purpose Local Option Sales tax (ESPLOST) was improperly commingled with other funds, used for other purposes before first satisfying the debt service requirements and used for purposes not specified in the joint resolution entered into by the School District and the Laurens County School District. The Superior Court issued a consent judgment on December 19, 2019, that prohibited the School District from (1) using ESPLOST proceeds for purposes other than retirement of previously incurred debt or projects outlined in the joint resolution; (2) depositing and maintaining ESPLOST funds in any account other than the debt service account; (3) commingling ESPLOST with other funds; (4) making transfers into or out of the debt service account; (5) loaning ESPLOST proceeds; or (6) repaying loans, including loans advanced by the general fund, using ESPLOST proceeds. The School District was also ordered to pay $62,500.00 to the Plaintiffs for their attorney fees and litigation expenses. The School District chose not to appeal the court's decision. In fiscal year 2019, the School District removed the interfund payables owed by the capital projects fund and debt service fund to the general fund for $246,628.68 and $2,646,070.00, respectively, and recorded outgoing general fund transfers for the same amounts. \nNOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit 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. \nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $692,013.00 for the year ended June 30, 2019. Active employees are not required to contribute to the School OPEB Fund. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \nAt June 30, 2019, the School District reported a liability of $17,166,601.00 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 0.135067%, which was a decrease of 0.014384% from its proportion measured as of June 30, 2017. \n \n- 23 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nFor the year ended June 30, 2019, the School District recognized OPEB expense of $157,409.00. At June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n- $ 390,472.00 \n \nChanges of assumptions \n \n- \n \n2,908,105.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n23,226.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n2,914,122.00 \n \nSchool District contributions subsequent to the measurement date \nTotal \n \n692,013.00 \n \n- \n \n$ 715,239.00 $ 6,212,699.00 \n \nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 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: \n \nYear Ended June 30: \n \nOPEB \n \n2020 2021 2022 2023 2024 Thereafter \n \n$ (1,204,158.00) $ (1,204,158.00) $ (1,204,158.00) $ (1,205,545.00) $ (992,435.00) $ (379,019.00) \n \n- 24 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \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: \n \nOPEB: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25% - 9.00%, including inflation \n \nLong-term expected rate of return \n \n7.30%, compounded annually, net of investment expense, and including inflation \n \nHealthcare cost trend rate \n \nPre-Medicare Eligible \n \n7.50% \n \nMedicare Eligible \n \n5.50% \n \nUltimate trend rate Pre-Medicare Eligible \n \n4.75% \n \nMedicare Eligible \n \n4.75% \n \nYear of Ultimate trend rate Pre-Medicare Eligible Medicare Eligible \n \n2028 2022 \n \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: \n \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. \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. \n \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. \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. \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \n \n- 25 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. 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: \n \nAsset class \n \nTarget allocation \n \nLong-Term Expected Real Rate of Return* \n \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 \n \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n \n(0.50)% 9.00% \n12.00% 13.50% \n8.00% 12.00% 10.50% \n \nTotal \n \n100.00% \n \n*Net of Inflation \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. \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: \n \nSchool District's proportionate share of the Net OPEB Liability \n \n1% Decrease (2.87%) \n \nCurrent Discount Rate (3.87%) \n \n1% Increase (4.87%) \n \n$ 20,045,207.00 $ \n \n17,166,601.00 $ 14,845,306.00 \n \n- 26 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1percentage-point higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \nSchool District's proportionate share of the Net OPEB Liability \n \n$ 14,432,099.00 $ \n \n17,166,601.00 $ 20,661,193.00 \n \nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report (ACFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \n \nNOTE 14: RETIREMENT PLANS \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 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. \nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. 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. For the current fiscal year, employer contributions to the pension plan were $2,424,191.34 from the School District. \n \n- 27 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \nUpon retirement, the member will receive a monthly benefit of $15.00, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $46,622.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2019, the School District reported a liability of $18,783,588.00 for its proportionate share of the net pension liability for TRS. \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. \nAt June 30, 2018, the School District's TRS proportion was 0.101193%, which was a decrease of 0.011476% from its proportion measured as of June 30, 2017. \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 $235,098.00. \n \n- 28 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \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. \n \nFor the year ended June 30, 2019, the School District recognized pension expense of $844,756.00 for TRS and $54,434.00 for PSERS and revenue of $41,429.00 for TRS and $54,434.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ 1,243,500.00 $ 38,713.00 \n \nChanges of assumptions \nNet difference between projected and actual earnings on pension plan investments \n \n283,438.00 - \n \n513,580.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n70,592.00 \n \n3,635,827.00 \n \nSchool District contributions subsequent to the measurement date \n \n2,424,191.34 \n \n- \n \nTotal \n \n$ 4,021,721.34 $ 4,188,120.00 \n \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: \n \nYear Ended June 30: \n \nTRS \n \n2020 2021 2022 2023 2024 \n \n$ (188,000.00) $ (554,303.00) $ (1,375,528.00) $ (450,726.00) $ (22,033.00) \n \n- 29 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nActuarial assumptions: 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: \n \nTeachers Retirement System: \nInflation Salary increases Investment rate of return \n \n2.75% \n3.25%  9.00%, average, including inflation \n7.50%, net of pension plan investment expense, including inflation \n \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. \n \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. \n \nPublic School Employees Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \nN/A \n \nInvestment rate of return \n \n7.30%, net of pension plan investment expense, including inflation \n \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. \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. \n \n- 30 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nTRS Target allocation \n \nPSERS Target allocation \n \nLong-term expected real rate of return* \n \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 39.80% \n3.70% 1.50% 19.40% 5.60% \n- \n \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n \n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \n \nTotal \n \n100.00% \n \n100.00% \n \n* Rates shown are net of the 2.75% assumed rate of inflation \n \nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.50%. The discount rate used to measure the total PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 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: \n \nTeachers Retirement System: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share of the net pension liability \n \n$ 31,355,187.00 $ \n \n18,783,588.00 $ 8,423,951.00 \n \nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \n \nNOTE 15: TAX ABATEMENTS \nDublin-Laurens County Development Authority enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Laurens County. \n \n- 31 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nFor the fiscal year ended June 30, 2019, City of Dublin abated property taxes due to the School District that were levied on September 24, 2018 and due on December 31, 2018 totaling $472,652.17. Included in that amount abated, the following are individual tax abatement agreements that each exceeded 10 percent of the total amount abated: \n \n A 100 percent property tax abatement to an automotive supplier to construct a new facility and increase employment. The abatement amounted to $178,005.94. \n A 100 percent property tax abatement to an international producer of glass fiber fabrics to open a production facility and increase employment. The abatement amounted to $58,222.01. \n A 100 percent personal property tax abatement to an international group of manufacturing companies to open a manufacturing center and increase employment. The abatement amounted to $132,796.99. \n \nNOTE 16: DEFICIT FUND BALANCE OF INDIVIDUAL FUNDS \nFunds reporting a deficit fund balance at the fiscal year end are as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGeneral Fund \n \n$ 1,686,879.17 \n \nThe School District provided a tentative budget to the Georgia Department of Education outlining anticipated expenditure reductions. The School District submits monthly financial reports and bank reconciliations to the Georgia Department of Education's Financial Review division combined with periodic meetings to monitor the deficit. \nNOTE 17: LIQUIDITY RISK \nLiquidity risk is the risk of not having sufficient liquid financial resources to meet obligations when they fall due. The School District faces liquidity risk regarding operating expenditures and long-term debt payment requirements. \nThe School District has reported operating deficits for multiple years. During fiscal year 2019, the School District's overall governmental fund balance deficit was reduced from a deficit balance of $2.5 million at the end of fiscal year 2018 to a deficit balance of $47 thousand. Deficit balances in both the capital projects and debt service funds were eliminated. The School District accumulated a general fund unassigned fund balance deficit of $2.1 million at June 30, 2019. \nAs part of reporting and monitoring requirements, the School District files annual deficit reduction plans with the Georgia Department of Education. The fiscal year 2020 deficit reduction plan's goal is to reduce the general fund unassigned fund balance deficit by $166 thousand. The general fund deficit fund balance has forced the School District to rely on tax anticipation notes to meet cash flow needs related to operating expenditures. The School District expects to be able to continue to utilize tax anticipation notes to meet current cash flow needs related to operating expenditures. \nNOTE 18: SUBSEQUENT EVENTS \nAt June 30, 2019, the School District was a defendant in ongoing litigation concerning the legality of a bond property tax imposed as well as the use of its Education Special Purpose Local Option Sales Tax (ESPLOST) proceeds. The School District's latest appeal to the Georgia Court of Appeals for the legality of the bond property tax was ultimately dismissed. On December 19, 2019, the Laurens County Superior Court entered a consent judgment that specified how ESPLOST funds could be deposited, maintained, and expended. \n \n- 32 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nThe School District's short-term debt (tax anticipation notes in advance of property tax collections) at July 1, 2019 was $2,110,000.00. An additional $1,890,000.00 was borrowed during the remainder of calendar year 2019, and the $4,000,000.00 was repaid in December 2019. A total of $1,000,000.00 was borrowed by June 30, 2020 and was repaid in December 2020. \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. However, given the School District was required to shut down schools for the last quarter of fiscal year 2020, coupled with federal funding being provided for expenditures incurred to deal with the pandemic, the School District expects the deficit balance in the general fund to be eliminated by the end of fiscal year 2021. \nNOTE 19: COMPONENT UNIT \nThe Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) is a discretely presented component unit of the City of Dublin Board of Education (School District). During the year the School District paid $105,132.99 for instruction expense on behalf of the Charter School. This amount is reflected as expense of the School District and included as revenue and expense of the component unit on the Statement of Activities. The Charter School was not audited and did not prepare official financial statements. \n \n- 33 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"1\" \n \nYear Ended \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the net pension liability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \n \nTotal \n \n2019 2018 2017 2016 2015 \n \n0.101193% $ 18,783,588.00 $ 0.112669% $ 20,939,881.00 $ 0.125867% $ 25,967,766.00 $ 0.130616% $ 19,884,989.00 $ 0.137837% $ 17,413,887.00 $ \n \n1,218.00 74,412.00 \n \n$ 18,783,588.00 $ 20,939,881.00 $ 25,967,766.00 $ 19,886,207.00 $ 17,488,299.00 \n \nSchool District's covered payroll \n$ 12,053,494.83 $ 12,936,988.92 $ 13,808,103.41 $ 13,935,731.79 $ 14,216,882.08 \n \nSchool District's proportionate share of the net pension liability as a percentage of its covered \npayroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n155.84% 161.86% 188.06% 142.69% 122.49% \n \n80.27% 79.33% 76.06% 81.44% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 35 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n2019 2018 2017 2016 2015 \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of \nthe net pension liability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability as a percentage of its covered \npayroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n235,098.00 $ 235,098.00 $ 212,383.00 $ 212,383.00 $ 324,413.00 $ 324,413.00 $ 197,656.00 $ 197,656.00 $ 194,696.00 $ 194,696.00 $ \n \n702,592.87 647,502.46 699,204.85 653,953.49 615,833.23 \n \nN/A \n \n85.26% \n \nN/A \n \n85.69% \n \nN/A \n \n81.00% \n \nN/A \n \n87.00% \n \nN/A \n \n88.29% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 36 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \n \nYear Ended \n2019 2018 \n \nSchool District's proportion of the net OPEB liability \n \nSchool District's proportionate share of the net OPEB liability \n \nState of Georgia's proportionate share of the \nnet OPEB liability associated with the School \nDistrict \n \nTotal \n \n0.135067% $ 17,166,601.00 $ 0.149451% $ 20,997,805.00 $ \n \n- \n \n$ 17,166,601.00 \n \n- \n \n$ 20,997,805.00 \n \nSchool District's covered-employee \npayroll \n$ 11,277,062.55 $ 12,094,905.84 \n \nSchool District's proportionate share of the net OPEB liability as \na percentage of its covered-employee \npayroll \n152.23% 173.61% \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \n2.93% 1.61% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 37 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 \n \nContractually required contribution (1) \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n2,424,191.34 $ \n \n2,424,191.34 $ \n \n- \n \n$ \n \n2,026,192.50 $ \n \n2,026,192.50 $ \n \n- \n \n$ \n \n1,846,108.32 $ \n \n1,846,108.32 $ \n \n- \n \n$ \n \n1,945,074.66 $ \n \n1,945,074.66 $ \n \n- \n \n$ \n \n1,832,548.73 $ \n \n1,832,548.73 $ \n \n- \n \n$ \n \n1,745,833.12 $ \n \n1,745,833.12 $ \n \n- \n \n$ \n \n1,687,641.93 $ \n \n1,687,641.93 $ \n \n- \n \n$ \n \n1,549,293.65 $ \n \n1,549,293.65 $ \n \n- \n \n$ \n \n1,609,593.00 $ \n \n1,609,593.00 $ \n \n- \n \n$ \n \n1,569,706.00 $ \n \n1,569,706.00 $ \n \n- \n \nSchool District's covered payroll \n$ 11,599,001.65 $ 12,053,494.83 $ 12,936,988.92 $ 13,808,103.41 $ 13,935,731.79 $ 14,216,882.08 $ 14,790,902.10 $ 15,070,949.90 $ 15,657,519.46 $ 16,116,078.03 \n \nContribution as a percentage of covered \npayroll \n20.90% 16.81% 14.27% 14.09% 13.15% 12.28% 11.41% 10.28% 10.28% \n9.74% \n \n(1) For years ended 2015 and earlier, the contractually required contribution amount includes the amounts paid by the Georgia Department of Education on behalf of the School District. \n \n- 38 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n2019 2018 2017 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n692,013.00 $ \n \n692,013.00 $ \n \n- \n \n$ \n \n700,040.00 $ \n \n700,040.00 $ \n \n- \n \n$ \n \n779,254.00 $ \n \n779,254.00 $ \n \n- \n \nSchool District's covered-employee \npayroll \n$ 10,619,274.18 $ 11,277,062.55 $ 12,094,905.84 \n \nContribution as a percentage of covered- \nemployee payroll \n6.52% 6.21% 6.44% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 39 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"6\" \n \nTeachers Retirement System \nChanges of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to 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). \nIn 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. \nPublic School Employees Retirement System \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. \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). \nIn 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. \nSchool OPEB Fund \nChanges of benefit terms: There have been no changes in benefit terms. \nChanges of 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 the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. \nThe discount rate was updated from 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018. \n \n- 40 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"7\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Uses Other Sources \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 9,498,229.00 $ 9,498,229.00 $ 10,027,612.16 $ \n \n- \n \n- \n \n113,271.85 \n \n12,073,601.00 \n \n11,946,443.00 \n \n12,035,279.12 \n \n5,399,018.18 \n \n6,057,415.24 \n \n5,776,697.42 \n \n16,875.00 \n \n16,875.00 \n \n160,171.25 \n \n- \n \n- \n \n741.42 \n \n300,000.00 \n \n300,000.00 \n \n825,383.50 \n \n529,383.16 113,271.85 \n88,836.12 (280,717.82) 143,296.25 \n741.42 525,383.50 \n \n27,287,723.18 \n \n27,818,962.24 \n \n28,939,156.72 \n \n1,120,194.48 \n \n14,295,762.24 \n1,412,166.00 1,437,346.00 \n465,066.00 673,608.00 1,585,272.00 817,880.00 2,201,395.00 1,237,613.00 442,937.00 \n55,000.00 - \n1,774,380.00 \n26,398,425.24 \n889,297.94 \n \n14,361,546.24 \n1,370,538.00 2,196,303.00 \n530,966.00 667,417.00 1,585,272.00 817,880.00 2,201,395.00 1,246,945.00 443,983.00 \n55,000.00 - \n1,774,380.00 \n27,251,625.24 \n567,337.00 \n \n13,791,695.45 \n1,697,756.44 1,990,592.92 \n377,058.42 390,770.32 1,528,129.29 948,374.57 2,294,326.51 1,244,065.70 549,538.65 \n82,788.01 38,817.35 \n61.55 1,663,643.81 \n26,597,618.99 \n2,341,537.73 \n \n569,850.79 \n(327,218.44) 205,710.08 153,907.58 276,646.68 \n57,142.71 (130,494.57) \n(92,931.51) 2,879.30 \n(105,555.65) (27,788.01) (38,817.35) (61.55) 110,736.19 \n654,006.25 \n1,774,200.73 \n \n889,297.94 (1,337,430.10) - \n \n567,337.00 (1,337,430.10) 17,107.57 \n \n108,730.00 (2,892,698.68) (2,783,968.68) \n(442,430.95) (1,244,448.22) \n- \n \n108,730.00 (2,892,698.68) (2,783,968.68) (1,009,767.95) \n92,981.88 (17,107.57) \n \n$ \n \n(448,132.16) $ \n \n(752,985.53) $ (1,686,879.17) $ \n \n(933,893.64) \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $439,427.09 and $440,545.71, respectively. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 41 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal U.S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth Rural Education Striving Readers Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n195GA324N1099 $ 195GA324N1099 \n \n508,498.24 1,282,770.99 \n1,791,269.23 \n \n84.027 84.173 \n \nH027A180073 H173A180081 \n \n84.048 84.196 84.358 84.371 84.424A 84.424A 84.367 84.367 84.010 84.010 84.287 84.287 \n \nV048A180010 S196A180011 S365B180010 S371C170002 S424A170011 S424A180011 S367A170001 S367A180001 S010A170010 S010A180010 S287C170010 S287C180010 \n \n574,356.00 18,106.00 \n592,462.00 \n47,725.00 39,213.33 42,401.83 370,305.92 \n2,495.66 108,799.32 \n13,868.94 120,770.05 102,717.32 1,802,206.00 \n25,382.60 646,034.54 \n3,321,920.51 \n3,914,382.51 \n \n60,204.49 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n5,765,856.23 \n \nNotes to the Schedule of Expenditures of Federal Awards \nNote 1. Basis of Presentation \nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the City of Dublin 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. \nNote 2. Summary of Significant Accounting Policies \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. \nNote 3. Indirect Cost Rate \nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 42 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2019 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless State Health Benefit Holiday Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Vocational Education Vocational Construction Related Equipment - State Bonds \nOffice of the State Treasurer Public School Employees Retirement \n \nSCHEDULE \"9\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n564,092.53 \n \n702,300.00 226,323.00 1,695,212.00 320,139.00 871,883.00 158,852.00 1,290,220.00 1,290,226.00 360,102.00 1,584,095.00 116,847.00 \n94,994.00 97,245.00 29,478.00 244,837.00 77,488.00 38,881.00 \n1,226.00 \n390,772.00 616,385.00 528,105.00 \n5,077.00 (126,630.00) 215,548.00 \n159,839.00 48,229.00 \n47,196.00 28,508.23 67,989.00 154,440.00 29,782.00 58,976.36 \n46,622.00 \n$ 12,035,279.12 \n \nSee notes to the basic financial statements. \n \n- 43 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"10\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nSPLOST III PROJECTS (January 1, 2018 - December 31, 2022) \n \nPayment of certain outstanding debt of the City of Dublin School District, including but not limited to payment of General Obligation Sales Tax Bonds, Series 2008, in an amount not to exceed $1,223,640.00; \n \n$ 1,223,640.00 $ \n \nGeneral Obligation Bonds, Series 2010, in an amount not to exceed $6,445,240.00; \n \n6,445,240.00 \n \nGeneral Obligation Bonds, Series 2011, in an amount not to exceed $4,714,950.00; \n \n4,714,950.00 \n \nImprovements, renovations, construction, furnishing and equipping existing school buildings and facilities including, but not limited to, Dublin High School, Dublin Middle School, Moore Street School, Susie Dasher Elementary, Saxon Heights Elementary, Hillcrest Elementary School and the central office building; \n \n1,044,170.00 \n \nThe acquisition of school vehicles, including, but not limited to, school buses and transportation equipment; \n \n250,000.00 \n \nTechnology equipment and upgrades; and \n \n250,000.00 \n \nThe acquisition of certain property and equipment, including any heating and air conditioning equipment upgrades which may be subject to lease by the City of Dublin School District. \n \n250,000.00 \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n1,223,640.00 $ \n \n- $ 1,223,640.00 $ 1,223,640.00 $ \n \n- \n \n6,445,240.00 \n \n1,944,200.00 \n \n1,525,100.00 \n \n- \n \n- \n \n4,714,950.00 \n \n386,400.00 \n \n68,200.00 \n \n- \n \n- \n \n3,500,000.00 \n \n- \n \n- \n \n- \n \n- \n \n250,000.00 \n \n108,730.00 \n \n- \n \n- \n \n- \n \n250,000.00 \n \n- \n \n20,846.34 \n \n- \n \n- \n \n250,000.00 \n \n- \n \n- \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE \nComplete 6/30/2021 6/30/2023 \n6/30/2023 6/30/2023 6/30/2023 \n6/30/2023 \n \n$ 14,178,000.00 $ 16,633,830.00 $ 2,439,330.00 $ 2,837,786.34 $ 1,223,640.00 $ \n \n- \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of Laurens 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. \n \nSee notes to the basic financial statements. \n \n- 45 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \n \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin 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 April 17, 2021. \nThe financial statements of the Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) have not been audited, and we were not engaged to audit the Charter School's financial statements as part of our audit of the School District's basic financial statements. The Charter School's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) 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. \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. \n \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 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 2019-001, that we consider to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS 2019-001. \nSchool District's Response to Findings \nThe School District's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nApril 17, 2021 \n \nGreg S. Griffin State Auditor \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \n \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nReport on Compliance for Each Major Federal Program \nWe have audited the City of Dublin 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, 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. \nManagement's Responsibility \nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \nAuditor's Responsibility \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. \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. \n \n Opinion on Each Major Federal Program \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. \nReport on Internal Control over Compliance \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. \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. \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. \nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \n \nApril 17, 2021 \n \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS-7741-12-02 \n \nAdoption of a Balanced Budget, Deficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nFS 2013-002 \n \nDeficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nFS 2014-002 \n \nDeficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nFS 2015-006 \n \nAdoption of a Balanced Budget, Deficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nFS 2016-006 \n \nAdoption of a Balanced Budget, Deficit Fund Balance \n \nControl Categories: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nFS 2017-004 \n \nAdoption of a Balanced Budget, Deficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2018-002 \n \nAdoption of a Balanced Budget, Deficit Fund Balances \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nDuring fiscal year 2016, the Board developed and presented to the Georgia Department of Education a new deficit elimination plan. As of fiscal year 2019, the Board has reduced its unassigned fund balance deficit by $3.76 million. During fiscal year 2020, the Board anticipates reducing the deficit by $0.166 million. Reporting requirements applicable for deficit fund balances with the Georgia Department of Education are being followed. \n \nFS 2018-001 \n \nInternal Controls over Financial Reporting \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nFinancial Reporting Material Weakness None \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2018-001 \n \nControls over Equipment \n \nCompliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \n \nEquipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education 10.553 and 10.555 Child Nutrition Cluster 18185GA324N1099, 8185GA324N1100 None identified \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \n- 2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information Discretely Presented Component Unit \n \nUnmodified Disclaimer \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nYes None Reported \n \nNoncompliance material to financial statements noted: \n \nYes \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNone Reported No \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with 2 CFR 200.516(a)? \n \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.010 \n \nChild Nutrition Cluster Title I Grants to Local Educational Agencies \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$750,000.00 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2019-001 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nAdoption of a Balanced Budget, Deficit Fund Balances Budget Preparation/Execution Material Weakness Material Noncompliance FS 2018-002, 2017-004, FS 2016-006, FS 2015-006, FS 2014-002, FS 2013-002, FS-7741-12-02 \n \nDescription: At June 30, 2019, the general fund reported a deficit fund balance. The School District also failed to adopt a balanced general fund budget for fiscal year 2019. \n \nCriteria: Chapter II-8, Governmental Fund Deficits of the Financial Management for the Georgia Local Units of Administration states in part: \"The seriousness of the fund balances deficits cannot be overstated. The Georgia Department of Education requires those LUAs with deficit governmental fund balances to meet certain reporting requirements.\" \nChapter IV-2, Preparing Operating Budgets of the Financial Management for the Georgia Local Units of Administration states in part: \"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated essential expenditures, a portion of unassigned fund balance from previous years must be used to fund the shortfall. In the event there is insufficient unassigned fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available unassigned fund balance.\" \n \nThe Department of Audits and Accounts is required to report all instances of budget deficits in accordance with the Official Code of Georgia Annotated 20-2-67(a) which states: \"When an audit by the Department of Audits and Accounts finds and reports irregularities or budget deficits in the fund accounting information regarding a local school system or a school within the local school system, the Department of Audits and Accounts shall report the findings of irregularities or budget deficits to the State Board of Education and the local board of education.\" \n \nCondition: Deficit fund balances for the Capital Projects and Debt Service funds were eliminated during Fiscal Year 2019. However, the School District's general fund reported a deficit unassigned fund balance of $2,061,218.20. In addition, the School District's original and final budgets for the general fund were not balanced. Total anticipated revenues and beginning fund balance did not equal or exceed total estimated expenditures. \n \nCause: In discussing this deficiency with the School District, they stated that they started the 2019 fiscal year with a $1,592,474.71 deficit in the general fund due to a failure to use effective budgeting techniques in prior years. Also, funds collected for a bond property tax assessed in a previous fiscal year could not be disbursed to the School District due to ongoing litigation. \n \nEffect or Potential Effect: The fund balance of the general fund was not sufficient to meet the fund's obligations at June 30, 2019. This is a financial statement irregularity in accordance with the Official Code of Georgia Annotated (O.C.G.A) 20-2-67. \n \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Recommendation: The School District should continue to execute their deficit reduction plan to address the current year budget deficit fund balance. Views of Responsible Officials: We concur with this finding. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None reported. \n- 3 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n  "},{"id":"dlg_ggpd_50557223-2020-02-06","title":"Audit report, City of Dublin Board of Education, Laurens County, 2018 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["\u003c-year ended 1994\u003e-year ended June 30, 1996: Georgia. Department of Audits.","Year ended June 30, 1997- : Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2020-02-06"],"dcterms_description":["Title may fluctuate: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report, City of Dublin Board of Education, Laurens County or Audit report, City of Dublin Board of Education, Laurens County, Georgia. For fiscal year ending June 30, 2000-, audits conducted \"in accordance with auditing standards generally accepted in the United States of America\" are issued as: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ... or City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports). Reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" may be issued as: Review or Management report","Report year covers fiscal year.","\u003cYear ended June 30, 1994\u003e-year ended June 30, 1996 issued by the State of Georgia, Dept. of Audits; year ended June 30, 1997- issued by the State of Georgia, Dept. of Audits and Accounts.","Schedule of salaries and travel supplements for local Georgia Boards of Education, Libraries, etc. ceased to be published in print in 2002. Starting in 2003 this information can be accessed online through the Georgia Government Publications database in GALILEO or in the annual CD-ROM called: Salary and travel compilation reports.","Has supplements: Supplementary information, City of Dublin Board of Education, Laurens County, summary and schedule of salaries and travel ..., -fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2008-","Year ended June 30, 1994, released in 1995? (online surrogate); title from PDF title page (Georgia Government Publications database, viewed August 22, 2016).","Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 29, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits","Atlanta, Ga. : Dept. of Audits and Accounts","[Atlanta, Ga.?] : State of Georgia"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Dublin Board of Education (Dublin, Ga.)--Appropriations and expenditures--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Auditors' reports","Expenditures, Public","Financial statements","Georgia","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, City of Dublin Board of Education, Laurens County, 2018 June 30"],"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_50557223-2020-02-06"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_50557223-2020-02-06"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n(Including Independent Auditor's Reports) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nGOVERNMENT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nH NOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \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 \nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \n1 2 \n4 5 6 7 8 10 \n35 36 37 38 39 40 41 \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY - TABLE OF CONTENTS - \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 \n \nPage \n42 43 45 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \n \n SECTION I FINANCIAL \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 6, 2020 \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S REPORT \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Dublin Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements. We were not engaged to audit the financial statements of the Heart of Georgia College \u0026 Career Academy, Inc. These financial statements collectively comprise the School District's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements \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. \nAuditor's Responsibility \nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Aggregate Discretely Presented Component Units\" paragraph, we do not express an audit opinion on the Heart of Georgia College \u0026 Career Academy, Inc. \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 \n \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. \n \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nSummary of Opinions \n \nOpinion Unit Governmental Activities Discretely Presented Component Unit General Fund Capital Projects Fund Debt Service Fund Aggregate Remaining Fund Information \n \nType of Opinion Unmodified Disclaimer Unmodified Unmodified Unmodified Unmodified \n \nBasis for Disclaimer of Opinion on the Discretely Presented Component Unit \n \nThe financial statements of Heart of Georgia College \u0026 Career Academy (Charter School) have not been audited, and we were not engaged to audit the Charter School's financial statements as part of our audit of the School District's basic financial statements. The Charter School's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nDisclaimer of Opinion \n \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. \nUnmodified Opinions \n \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. \nEmphasis of Matter \n \nAs described in Note 2 to the financial statements, in 2018, the City of Dublin Board of Education \nadopted 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 \nposition for the effect of GASB Statement No. 75. Our opinions are not modified with respect to this \nmatter. \n \nSince fiscal year 2011, the School District has maintained a general fund deficit. As of June 30, 2018, the School District had a general fund unassigned deficit fund balance of $1.6 million, a capital projects fund deficit fund balance of $51 thousand and a debt service fund deficit fund balance of $1.2 million (Governmental Fund Statements). The School District also had a deficit unrestricted \n \n net position of $46.1 million (Government-wide Financial Statements) of which $43.7 million of the deficit is related to the net pension and net OPEB liabilities. The liquidity note discusses the School District's deficit reduction plan as of the report date to address the accumulated fund balance deficit. The School District relies on tax anticipation notes to meet its cash flow needs related to operating expenses. The School District expects to be able to continue to obtain interim financing to meet cash flow needs as appropriate. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. Our opinions are not modified with respect to these matters. \nOther Matters \nRequired Supplementary Information \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. \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. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the united states of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the financial statements taken as a whole. \n \n Other Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated February 6, 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. \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. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF NET POSITION JUNE 30, 2018 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nInterest Taxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Short-Term Debt Interest Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Unrestricted (Deficit) \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT \nHEART OF GEORGIA COLLEGE \u0026 CAREER \nACADEMY, INC. \n \n$ \n \n1,427,370.05 $ \n \n146.06 889,324.70 1,585,066.15 822,276.24 \n13,160.17 50,750.25 1,969,200.50 56,244,933.24 \n \n63,002,227.36 \n \n6,160.91 \n- \n6,160.91 \n \n3,515,568.50 \n \n- \n \n706,181.00 \n \n- \n \n4,221,749.50 \n \n- \n \n74,537.70 2,338,510.68 \n583,335.43 3,635,200.00 \n113,667.07 154,440.00 20,939,881.00 20,997,805.00 \n2,165,324.00 10,233,042.61 \n61,235,743.49 \n \n24,008.62 - \n24,008.62 \n \n3,063,560.00 \n \n- \n \n2,907,041.00 \n \n- \n \n5,970,601.00 \n \n- \n \n45,815,767.13 \n348,026.49 (46,146,161.25) \n \n- \n(17,847.71) \n \nTotal Net Position \n \n$ \n \n17,632.37 $ \n \n(17,847.71) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF ACTIVITIES \nFOR YEAR ENDED JUNE 30, 2018 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nHeart of Georgia College \u0026 Career Academy, Inc. \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Position \nNet Position - Beginning of Year - Restated \nNet Position - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES \n \n$ \n \n15,620,045.12 $ \n \n1,633,300.37 1,348,225.08 \n365,197.26 475,522.76 1,590,333.70 834,816.92 1,769,244.07 1,011,711.38 368,933.46 \n55,033.62 \n \n40,870.16 404.41 \n1,658,067.27 585,743.18 \n \n$ \n \n27,357,448.76 $ \n \n111,635.13 \n- \n16,977.57 - \n128,612.70 \n \n$ \n \n154,742.81 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nPRIMARY GOVERNMENT NET (EXPENSES) \nREVENUES AND CHANGES IN \nNET POSITION \n \nCOMPONENT UNIT \nHEART OF GEORGIA COLLEGE \u0026 CAREER \nACADEMY, INC. \n \n$ \n \n11,064,415.18 $ \n \n566,109.62 953,395.59 301,297.00 872,958.99 757,958.52 \n6,748.21 849,584.99 127,777.05 \n1,898.07 20,923.58 \n \n1,771,620.23 - \n \n$ \n \n17,294,687.03 $ \n \n- $ \n77,216.25 - \n- \n77,216.25 \n \n(4,443,994.81) \n(1,067,190.75) (394,829.49) (63,900.26) 397,436.23 (832,375.18) (828,068.71) (919,659.08) (806,718.08) (367,035.39) (34,110.04) \n(40,870.16) (404.41) \n130,530.53 (585,743.18) \n(9,856,932.78) \n \n$ \n \n(154,742.81) \n \n9,277,106.38 \n2,638,810.05 79,280.42 1,192.58 \n474,694.62 12,471,084.05 \n2,614,151.27 (2,596,518.90) \n \n$ \n \n17,632.37 $ \n \n- \n161,839.82 161,839.82 7,097.01 (24,944.72) \n(17,847.71) \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2018 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nInterest Taxes State Government Federal Government Other Due from Other Funds Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n374,718.70 $ \n \n666,667.40 1,585,066.15 822,276.24 \n13,160.17 2,568,287.64 \n50,750.25 \n \n180,499.52 $ \n- \n \n872,151.83 $ \n146.06 222,657.30 \n- \n \n1,427,370.05 \n146.06 889,324.70 1,585,066.15 822,276.24 \n13,160.17 2,568,287.64 \n50,750.25 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Due to Other Funds Short Term Debt Interest Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Unassigned (Deficit) \nTotal Fund Balances \n \n$ 6,080,926.55 $ \n \n180,499.52 $ 1,094,955.19 $ 7,356,381.26 \n \n$ \n \n74,537.70 $ \n \n2,338,510.68 \n \n583,335.43 \n \n- \n \n3,635,200.00 \n \n14,683.74 \n \n154,440.00 \n \n6,800,707.55 \n \n- $ 231,712.64 - \n231,712.64 \n \n- $ 2,336,575.00 - \n2,336,575.00 \n \n74,537.70 2,338,510.68 \n583,335.43 2,568,287.64 3,635,200.00 \n14,683.74 154,440.00 \n9,368,995.19 \n \n524,667.22 \n \n- \n \n- \n \n524,667.22 \n \n50,750.25 297,276.24 (1,592,474.71) \n(1,244,448.22) \n \n(51,213.12) \n(51,213.12) \n \n(1,241,619.81) \n(1,241,619.81) \n \n50,750.25 297,276.24 (2,885,307.64) \n(2,537,281.15) \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 6,080,926.55 $ \n \n180,499.52 $ 1,094,955.19 $ 7,356,381.26 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nTotal fund balances - governmental funds (Exhibit \"C\") \nAmounts reported for governmental activities in the Statement of Net Position are different because: \nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \nNet pension liability Net OPEB liability \nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \nRelated to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \nBonds payable Accrued interest payable Capital leases payable Unamortized bond premiums \nNet position of governmental activities (Exhibit \"A\") \n \n$ (2,537,281.15) \n \n$ 1,686,200.50 283,000.00 \n66,494,609.61 4,563,399.72 6,818,289.00 \n(21,631,365.09) \n \n58,214,133.74 \n \n$ (20,939,881.00) (20,997,805.00) \n \n(41,937,686.00) \n \n$ \n \n452,008.50 \n \n(2,200,860.00) \n \n(1,748,851.50) 524,667.22 \n \n$ (8,940,000.00) (98,983.33) \n(3,263,708.06) (194,658.55) \n \n(12,497,349.94) \n \n$ \n \n17,632.37 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF RERVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES \nCapital Leases \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n9,327,737.47 $ \n \n79,280.42 \n \n11,985,237.86 \n \n5,388,374.42 \n \n128,612.70 \n \n204.61 \n \n474,694.62 \n \n27,384,142.10 \n \n- $ 40.82 - \n40.82 \n \n- $ 2,638,810.05 \n947.15 - \n2,639,757.20 \n \n9,327,737.47 2,718,090.47 11,985,237.86 5,388,374.42 \n128,612.70 1,192.58 \n474,694.62 \n30,023,940.12 \n \n13,620,586.91 \n1,644,511.95 1,362,728.69 \n369,465.08 479,611.11 1,606,407.42 838,438.80 2,111,183.05 1,090,744.84 274,907.37 \n55,286.57 40,870.16 \n404.41 1,646,229.38 \n13,280.00 \n- \n25,154,655.74 \n2,229,486.36 \n \n- \n127,477.00 - \n48,230.06 - \n6,020.34 \n181,727.40 \n(181,686.58) \n \n- \n- \n2,690,000.00 24,525.14 \n633,134.61 \n3,347,659.75 \n(707,902.55) \n \n13,620,586.91 \n1,644,511.95 1,362,728.69 \n369,465.08 479,611.11 1,606,407.42 838,438.80 2,111,183.05 1,090,744.84 402,384.37 \n55,286.57 40,870.16 \n404.41 1,646,229.38 \n13,280.00 \n2,738,230.06 24,525.14 \n639,154.95 \n28,684,042.89 \n1,339,897.23 \n \n2,229,486.36 (3,473,934.58) \n \n127,477.00 (54,209.58) \n2,996.46 \n \n(707,902.55) (533,717.26) \n \n127,477.00 1,467,374.23 (4,004,655.38) \n \n$ (1,244,448.22) $ \n \n(51,213.12) $ (1,241,619.81) $ (2,537,281.15) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2018 \n \nEXHIBIT \"F\" \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \nAmounts reported for governmental activities in the Statement of Activities are different because: \nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \nCapital outlay Depreciation expense \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \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. \nCapital leases issued Bond principal retirements Capital lease payments Revenue bond payments Amortization of bond premium \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. \nPension expense OPEB expense \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \nAccrued interest on bonds \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ 1,467,374.23 \n \n$ \n \n228,937.00 \n \n(1,821,576.68) \n \n(1,592,639.68) \n \n(50,631.09) \n \n$ \n \n(127,477.00) \n \n1,400,000.00 \n \n138,230.06 \n \n1,200,000.00 \n \n45,721.57 \n \n2,656,474.63 \n \n$ \n \n392,848.18 \n \n(285,470.00) \n \n107,378.18 \n \n26,195.00 $ 2,614,151.27 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2018 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 64,242.45 $ 64,242.45 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City of Dublin 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) is a jointly authorized start-up charter school pursuant to the Official Code of Georgia (O.C.G.A.) 20-2-2060 et. Seq., the Charter Schools Act of 1998. The Charter is an agreement entered into by and between the City of Dublin and Laurens County Boards of Education and the State Board of Education to serve students in grades 9 through 12. The Charter School's mission is to improve public educational outcomes and ensure a viable 21st century workforce for the Heart of Georgia region. The financial statements of the Charter School have been included as a discretely presented component unit because they provide services to third-parties outside the school system. See notes 4 and 8 for additional component unit disclosures. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGOVERNMENT-WIDE STATEMENTS: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District 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. \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: \n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \n- 9 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFUND FINANCIAL STATEMENTS: \nThe fund financial statements provide information about the School District's funds, 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. \nThe School District reports the following major governmental funds: \n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \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. \nThe School District reports the following fiduciary fund type: \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. \nBASIS OF ACCOUNTING \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. \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. \n- 10 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \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. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 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. \nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 81, Irrevocable Split-Interest Agreements. This statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. Furthermore, this statement requires that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interests. This statement requires that a government recognize revenue when the resources become applicable to the reporting period. The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 85, Omnibus 2017. The objective of this statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources--resources other than the proceeds of refunding debt--are placed in an irrevocable \n- 11 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \ntrust for the sole purpose of extinguishing debt. This statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The adoption of this statement does not have a significant impact on the School District's financial statements. \nCASH AND CASH EQUIVALENTS \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \nINVENTORIES \nFood Inventories \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nCAPITAL ASSETS \nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \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. \nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \n \n- 12 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nAny Amount 5,000.00 5,000.00 5,000.00 \n50,000.00 \n \nN/A 20 to 80 years 10 to 80 years \n5 to 50 years Determined at purchase date \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \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. \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. \nPENSIONS \nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees 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. \n \n- 13 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nFUND BALANCES \nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \nThe School District's fund balances are classified as follows: \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nPROPERTY TAXES \nThe City of Dublin Board of Commissioners adopted the property tax levy for the 2017 tax digest year (calendar year) on October 5, 2017 (levy date) based on property values as of January 1, 2017. Taxes were due on December 29, 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 Dublin City Clerk 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 $8,732,980.34. \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): \n \nSchool Operations \n \n19.705 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $594,757.13 during fiscal year ended June 30, 2018. \n \n- 14 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,638,810.05 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. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, 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 and function. 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. \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. \nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \nCOLLATERALIZATION OF DEPOSITS \nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n- 15 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2018, the School District had deposits with a carrying amount of $1,261,949.74, and a bank balance of $1,485,698.02. The bank balances insured by Federal depository insurance were $678,260.23 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $807,437.79. \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 1,427,370.05 64,242.45 \n \nTotal cash and cash equivalents \n \n1,491,612.50 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n229,662.76 \n \nTotal carrying value of deposits - June 30, 2018 \n \n$ 1,261,949.74 \n \nCOMPONENT UNIT \nAt June 30, 2018, the Heart of Georgia College \u0026 Career Academy, Inc. had deposits with a carrying amount and bank balance of $6,160.91. The bank balance was insured through Federal Depository Insurance Corporation (FDIC). \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $229,662.76 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2018, was 10 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \n \n- 16 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the capital assets for governmental during the fiscal year: \n \nBalances July 1, 2017 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2018 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,686,200.50 $ 283,000.00 \n \n- $ - \n \n- $ 1,686,200.50 \n \n- \n \n283,000.00 \n \nTotal Capital Assets Not Being Depreciated \n \n1,969,200.50 \n \n- \n \n- \n \n1,969,200.50 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n66,494,609.61 4,526,770.72 6,818,289.00 \n \n228,937.00 \n- \n \n192,308.00 \n- \n \n66,494,609.61 4,563,399.72 6,818,289.00 \n \n14,905,798.66 3,203,858.61 1,892,439.14 \n \n1,312,636.57 270,433.28 238,506.83 \n \n192,308.00 \n- \n \n16,218,435.23 3,281,983.89 2,130,945.97 \n \nTotal Capital Assets, Being Depreciated, Net \n \n57,837,572.92 \n \n(1,592,639.68) \n \n- \n \n56,244,933.24 \n \nGovernmental Activity Capital Assets - Net $ 59,806,773.42 $ (1,592,639.68) $ \n \n- $ 58,214,133.74 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nGeneral Administration \n \n$ 91,078.83 \n \nMaintenance and Operation of Plant \n \n189,281.22 \n \nStudent Transportation Services \n \n62,567.87 \n \nFood Services \n \n$ 1,341,075.18 \n342,927.92 137,573.58 \n \n$ 1,821,576.68 \n \nNOTE 6: INTERFUND ASSETS AND LIABILITIES \n \nINTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2018, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund \n \n$ 2,568,287.64 $ \n \n- \n \nCapital Projects Fund \n \n- \n \n231,712.64 \n \nDebt Service Fund \n \n- \n \n2,336,575.00 \n \n$ 2,568,287.64 $ 2,568,287.64 \n \n- 17 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nThe capital projects fund plans to reimburse the general fund for loaning funds for allowable SPLOST expenditures. The debt service fund plans to reimburse the general fund for loaning a portion of the bond principal payments. \n \nNOTE 7: SHORT-TERM DEBT \nThe School District issues tax anticipation notes 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. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes $ 4,210,228.00 $ 4,424,972.00 $ 5,000,000.00 $ 3,635,200.00 \n \nNOTE 8: LONG-TERM LIABILITIES \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2017 \n \nGovernmental Activities \n \nBalance \n \nAdditions \n \nDeductions \n \nJune 30, 2018 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds Unamortized Bond Premiums Revenue Bonds Capital Leases \n \n$ 10,340,000.00 $ \n \n- $ 1,400,000.00 $ \n \n240,380.12 \n \n- \n \n45,721.57 \n \n1,200,000.00 \n \n- \n \n1,200,000.00 \n \n3,274,461.12 127,477.00 \n \n138,230.06 \n \n8,940,000.00 $ 2,000,000.00 \n \n194,658.55 \n \n45,721.57 \n \n- \n \n- \n \n3,263,708.06 \n \n119,602.43 \n \n$ 15,054,841.24 $ 127,477.00 $ 2,783,951.63 $ 12,398,366.61 $ 2,165,324.00 \n \nPromissory Note \n \nBalance July 1, 2017 \n \nAdditions \n \nComponent Unit Balance \nDeductions June 30, 2018 \n \nDue Within One Year \n \n$ 51,178.87 $ \n \n- $ 27,170.25 $ \n \n24,008.62 $ 24,008.62 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \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. \nVoters have authorized an additional $3,910,000.00 in general obligation debt which was not issued as of June 30, 2018. \n \n- 18 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2010 3.0% - 4.0% General Government - Series 2011 2.5% - 4.0% \n \n4/22/2010 12/8/2011 \n \n4/1/2021 $ 9,755,000.00 $ 4,855,000.00 \n \n4/1/2023 \n \n4,085,000.00 \n \n4,085,000.00 \n \n$ 13,840,000.00 $ 8,940,000.00 \n \nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2019 2020 2021 2022 2023 \n \n$ 2,000,000.00 $ 2,000,000.00 1,905,000.00 1,500,000.00 1,535,000.00 \n \n330,600.00 $ 254,350.00 175,600.00 106,400.00 \n61,400.00 \n \n45,721.57 45,721.57 45,721.57 45,721.57 11,772.27 \n \nTotal Principal and Interest $ 8,940,000.00 $ \n \n928,350.00 $ \n \n194,658.55 \n \nREVENUE BONDS \nThe School District entered into a contract with the Laurens County Public Facilities Authority, dated April 1, 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 Laurens County Public Facilities Authority issued $4,500,000.00 less issuance costs of $83,500.00 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 recommend to the Mayor and Council of the City of Dublin, Georgia, to exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \nDebt currently outstanding under Revenue Bonds is as follows: \n \nPurpose \n \nInterest Rate \n \nIssue Date Maturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nLaurens County Public Facilities \n \nAuthority Revenue Bonds \n \n3.94% \n \n4/30/2008 \n \n4/1/2018 $ 4,500,000.00 $ \n \n- \n \nCAPITAL LEASES \nThe School District has acquired a solar panel project and equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \n \n- 19 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \nGovernmental Activities \n \nLand Improvements Equipment Less: Accumulated Depreciation \n \n$ 3,585,000.00 248,954.87 (865,640.86) \n \n$ 2,968,314.01 \n \nDuring the current fiscal year, the School District entered into a lease agreement as lessee for financing the acquisition of technology hardware equipment at a cost of $127,477.00. This lease qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. \n \nCapital leases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nSolar Panel Lease \n \n5.00 - 6.50% \n \nTechnology Hardware and Upgrades Lease \n \n3.45% \n \n1/29/2013 9/30/2017 \n \n5/15/2037 $ 3,585,000.00 $ 3,160,000.00 \n \n9/30/2022 \n \n127,477.00 \n \n103,708.06 \n \n$ 3,712,477.00 $ 3,263,708.06 \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2019 2020 2021 2022 2023 2024 - 2028 2029 - 2033 2034 - 2037 \n \n$ \n \n119,602.43 $ \n \n125,465.14 \n \n131,358.11 \n \n137,282.38 \n \n115,000.00 \n \n690,000.00 \n \n945,000.00 \n \n1,000,000.00 \n \n198,067.69 192,329.98 186,437.01 180,137.74 173,850.00 754,912.00 502,287.50 151,775.00 \n \nTotal Principal and Interest $ \n \n3,263,708.06 $ \n \n2,339,796.92 \n \nPROMISSORY NOTE - COMPONENT UNIT \nThe Heart of Georgia College \u0026 Career Academy, Inc. (Charter School), a component unit of the School District, has entered into a lending agreement with a commercial lending institution. The debt currently outstanding, associated with this agreement is as follows: \n \nDescription \n \nInterest Rate \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nPromissory Note \n \n5.25% \n \n5/5/2015 \n \n7/31/2018 $ \n \n105,520.00 $ 24,008.62 \n \n- 20 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nThe following is a schedule of total promissory notes payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2019 \n \n$ \n \n24,008.62 $ \n \n1,260.45 \n \nNOTE 9: RISK MANAGEMENT \n \nINSURANCE \n \nCommercial Insurance \n \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 describe 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. \n \nUNEMPLOYMENT COMPENSATION \n \nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the general fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims within the general fund as 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. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2017 $ \n \n- \n \n$ \n \n2,549.00 \n \n$ \n \n2,549.00 $ \n \n- \n \n2018 $ \n \n- \n \n$ \n \n4,672.16 \n \n$ \n \n4,672.16 $ \n \n- \n \nSURETY BOND \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n50,000.00 \n \nDrivers Education \n \n$ \n \n10,000.00 \n \n- 21 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2018: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs \nUnassigned \n \n$ \n \n50,750.25 \n \n297,276.24 (2,885,307.64) \n \nFund Balance, June 30, 2018 \n \n$ (2,537,281.15) \n \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. \n \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nOPERATING LEASES \n \nThe School District leases a bus workshop, fuel disbursement system and equipment 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 $37,200.00 for governmental activities for the year ended June 30, 2018. The following future minimum lease payments were required under operating leases at June 30, 2018: \n \nYear Ending \n \nGovernmental Funds \n \n2019 2020 2021 2022 2023 \n \n$ 23,700.00 19,200.00 19,200.00 19,200.00 8,000.00 \n \nTotal \n \n$ 89,300.00 \n \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nFEDERAL GRANTS \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nLITIGATION \nThe School District is a defendant in a Class Action case, MMT Holdings, LLC, et al v. City of Dublin School District and City of Dublin, Georgia. which files a complaint for refund of taxes and injunctive relief. The School District filed a motion for summary judgment and Plaintiffs filed a motion for partial summary judgment. The School District's motion was denied. The School District appealed that ruling to the Georgia Supreme Court and the Supreme Court ultimately transferred it to the Georgia Court of Appeals. The Court of Appeals entered an order reversing the judgment and issuing a remittitur to the \n- 22 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nSuperior Court. The School District filed a motion to implement the decision of the Court of Appeals and disburse the proceeds of property taxes collected by the City of Dublin. The court issued an order upon remittitur granting summary judgment to the School District based on sovereign immunity, but leaving in effect the partial summary judgment granted against the City of Dublin finding that the ad valorem tax was illegally and erroneously assessed and collected, and that plaintiffs were entitled to a refund of the ad valorem tax. The School District believed that the court's latest decision failed to implement the decision of the Court of Appeals properly and appealed that decision to the Georgia Court of Appeals. That appeal was ultimately dismissed. The estimated amount of property tax that would be returned to the taxpayers is approximately $1,000,000.00. These funds collected by the City of Dublin but not released to the School District were not recorded on the School District's financial statements. \nNOTE 13: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nP lan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \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. \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 $700,040.00 for the year ended June 30, 2018. Active employees are not required to contribute to the School OPEB Fund. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \nAt June 30, 2018, the School District reported a liability of $20,997,805.00 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 0.149451%, which was a decrease of 0.010414% from its proportion measured as of June 30, 2016. \n \n- 23 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nFor the year ended June 30, 2018, the School District recognized OPEB expense of $985,510.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nChanges of assumptions \n \n$ \n \n- $ 1,598,929.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n6,141.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n1,308,112.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n700,040.00 \n \n- \n \nTotal \n \n$ 706,181.00 $ 2,907,041.00 \n \nSchool District contributions subsequent to the measurement date of $700,040.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2019 2020 2021 2022 2023 2024 \n \n$ (521,313.00) $ (521,313.00) $ (521,313.00) $ (521,313.00) $ (522,849.00) $ (292,799.00) \n \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: \n \nOPEB: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25%  7.00%, average, including inflation \n \nERS \n \n4.50%, including inflation \n \nJRS \n \n4.50%, including inflation \n \nLRS \n \nNone \n \n- 24 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nTRS 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 \n \n3.25 -- 9.00%, including inflation N/A 3.88%, compounded annually, net of investment expense, and including inflation \n7.75% 5.75% \n5.00% 5.00% 2022 \n \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: \n For ERS, JRS and LRS members: The RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \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. \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. \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. \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. \nAdditionally, there was a change that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the School OPEB Fund is based on their current or last employer payroll location. Current and former employees of public school districts, libraries, regional educational service agencies and community colleges are allocated to the School OPEB Fund irrespective of retirement system affiliation. In addition, the discount rate increased from 3.07% to 3.58%. \n \n- 25 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nTarget Allocation \n \nLong-term Expected Real Rate Return* \n \nLocal Government Investment Pool \n \n100.00% \n \n1.13% \n \n*Rate shown in net fo the 2.75% assumed inflation rate. \n \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. \nSensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the 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: \n \n1% Decrease (2.58%) \n \nCurrent Discount Rate (3.58%) \n \n1% Increase (4.58%) \n \nNet OPEB Liability \n \n$ 24,931,132.00 $ \n \n20,997,805.00 $ 17,893,613.00 \n \nSensitivity of the District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \nNet OPEB Liability \n \n$ 17,404,788.00 $ \n \n20,997,805.00 $ 25,675,907.00 \n \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. \n \n- 26 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 14: RETIREMENT PLANS \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \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. \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. \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. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2018. The School District's contractually required contribution rate for the year ended June 30, 2018 was 16.81% of annual School District payroll. For the current fiscal year, employer contributions to the pension plan were $2,026,192.50 from the School District. \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \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. \nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \nUpon retirement, the member will receive a monthly benefit of $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. \n \n- 27 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $44,513.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2018, the School District reported a liability of $20,939,881.00 for its proportionate share of the net pension liability for TRS. \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 and ERS during the fiscal year ended June 30, 2017. \nAt June 30, 2017, the School District's TRS proportion was 0.112669%, which was an decrease of 0.013198% from its proportion measured as of June 30, 2016. \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 $212,383.00. \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. \nFor the year ended June 30, 2018, the School District recognized pension expense of $1,637,002.00 for TRS and $42,804.00 for PSERS and revenue of $42,804.00 for PSERS. The revenue is support provided by the State of Georgia. \n \n- 28 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nDifferences between expected and actual experience \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \n$ \n \n783,281.00 $ \n \n79,025.00 \n \nChanges of assumptions \n \n459,028.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n144,101.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n247,067.00 \n \n2,840,434.00 \n \nSchool District contributions subsequent to the \n \nmeasurement date \n \n2,026,192.50 \n \n- \n \nTotal \n \n$ 3,515,568.50 $ 3,063,560.00 \n \nThe School District contributions subsequent to the measurement date of $2,026,192.50 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \n2019 2020 2021 2022 2023 \n \n$ (792,533.00) \n \n$ \n \n342,174.00 \n \n$ \n \n(79,130.00) \n \n$ (1,012,643.00) \n \n$ \n \n(32,052.00) \n \nActuarial assum ptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25%  9.00%, average, including inflation \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \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' \n- 29 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \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. \n \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. \n \nPublic School Employees Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \nN/A \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \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. \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. \nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nTRS Target allocation \n \nPSERS Target allocation \n \nLong-term expected real rate of return* \n \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 39.80% \n3.70% 1.50% 19.40% 5.60% \n- \n \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n \n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \n \nTotal \n \n100.00% \n \n100.00% \n \n* Rates shown are net of the 2.75% assumed rate of inflation \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 \n- 30 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \npayments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 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: \n \nTeachers Retirement System: \n \nSchool District's proportionate share \n \nof the net pension liability \n \n$ \n \n1% Decrease (6.50%) \n34,364,801.00 \n \nCurrent Discount Rate (7.50%) \n \n$ \n \n20,939,881.00 $ \n \n1% Increase (8.50%) \n9,880,764.00 \n \nP ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publicly available at www.trsga.com/publications and www.ers.ga.gov/formspubs/formspubs.html. \n \nNOTE 15: RESTATEMENT OF PRIOR YEAR NET POSITION \n \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 $22,913,195.00. This change is in accordance with generally accepted accounting procedures. \n \nNet Position, July 1, 2017 as previously reported \n \n$ 20,316,676.10 \n \nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \n \n(23,692,449.00) \n \nDeferred Outflows - School District's Contributions made during fiscal year 2017 \n \n779,254.00 \n \nNet Position, July 1, 2017, as restated \n \n$ (2,596,518.90) \n \nNOTE 16: TAX ABATEMENTS \nDublin-Laurens County Development Authority enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Laurens County. \nFor the fiscal year ended June 30, 2018, City of Dublin abated property taxes due to the School District that were levied on October 5, 2017 and due on December 29, 2017 totaling $769,840.23. Included in that amount abated, the following are individual tax abatement agreements that each exceeded 10 percent of the total amount abated: \n A 100 percent property tax abatement to a biomass-fueled power plant to increase employment and support additional jobs in the forest industry. The abatement amounted to $412,524.86. \n A 100 percent property tax abatement to an automotive supplier to construct a new facility and increase employment. The abatement amounted to $178,005.93. \n \n- 31 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 17: DEFICIT FUND BALANCE OF INDIVIUDAL FUNDS \nFunds reporting a deficit fund balance at the fiscal year end, are as follows: \n \nFund Type/Fund Name \n \nDeficit Balances \n \nGeneral Fund Capital Projects Fund Debt Service Fund \n \n$ 1,244,448.22 51,213.12 \n1,241,619.81 \n \n$ 2,537,281.15 \n \nThe School District provided a tentative budget to the Georgia Department of Education outlining anticipated expenditure reductions. The School District submits monthly financial reports and bank reconciliations to the Georgia Department of Education's Financial Review division combined with periodic meetings to monitor the deficit. \nNOTE 18: LIQUIDITY RISK \nLiquidity risk is the risk of not having sufficient liquid financial resources to meet obligations when they fall due. The School District faces liquidity risk regarding operating expenditures and long-term debt payment requirements. \nAs a result of multiple year operating deficits the School District accumulated a general fund unassigned fund balance deficit of $1.6 million at June 30, 2018. As part of reporting and monitoring requirements, the School District files annual deficit reduction plans with the Georgia Department of Education. The fiscal year 2019 deficit reduction plan's goal is to reduce the general fund unassigned fund balance deficit by $792 thousand. The general fund deficit fund balance has forced the School District to rely on tax anticipation notes to meet cash flow needs related to operating expenditures. The School District expects to be able to continue to utilize tax anticipation notes to meet current cash flow needs related to operating expenditures. \nFor fiscal year 2018, the School District incurred a $1.2 million deficit fund balance in the debt service fund and $51 thousand deficit in the capital projects fund. The annual bond and capital lease debt payment requirements exceeded annual SPLOST collections by $738.6 thousand. However, in fiscal year 2019, SPLOST collections will exceed the annual bond and capital lease debt payment requirements by $149.5 thousand. With annual SPLOST collections remaining stable and no other significant source of funding, the debt service fund will maintain a deficit fund balance through fiscal year 2021. \nThe City of Dublin levied a 2.25 bond property tax millage in fiscal year 2017 to help fund this revenue shortfall. This tax was determined to be illegally and erroneously assessed and collected. The $1.0 million generated from the bond property tax was not disbursed to the School District. The absence of the bond property tax revenue raises risks regarding the School District's ability to meet long-term debt payment requirements without restructuring the long-term debt. \nNOTE 19: SUBSEQUENT EVENTS \nAt June 30, 2018, the School District was a defendant in ongoing litigation concerning the legality of bond property tax imposed as well as the use of its Special Purpose Local Option Sales Tax (SPLOST) proceeds. The School District's latest appeal to the Georgia Court of Appeals for the legality of the bond property tax was ultimately dismissed. The parties are actively engaged in settlement discussions regarding the illegal use of SPLOST proceeds. \nThe School District's short-term debt (tax anticipation notes in advance of property tax collections) at July 1, 2018 was $3,635,200.00. An additional $1,364,800.00 was borrowed during the remainder of calendar year 2018, and the $5,000,000.00 was repaid in December 2018. A total of $2,100,000.00 was borrowed by June 30, 2018 and becomes due on December 31, 2019. \n \n- 32 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 20: COMPONENT UNIT \nThe Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) is a discretely presented component unit of the City of Dublin Board of Education (School District). During the year the School District paid $118,087.56 for instruction expense on behalf of the Charter School. This amount is reflected as expense of the School District and included as revenue and expense of the component unit on the Statement of Activities. The Charter School was not audited and did not prepare official financial statements. \n \n- 33 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"1\" \n \nYear Ended \n \nSchool District's proportion of the \nnet pension liability \n \nSchool District's proportionate share of the \nnet pension liability \n \nState of Georgia's proportionate share of the net pension liability \nassociated with the School District \n \n2018 2017 2016 2015 \n \n0.112669% $ 0.125867% $ 0.130616% $ 0.137837% $ \n \n20,939,881.00 $ 25,967,766.00 $ 19,884,989.00 $ 17,413,887.00 $ \n \n- \n \n$ \n \n- \n \n$ \n \n1,218.00 $ \n \n74,412.00 $ \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n20,939,881.00 $ 25,967,766.00 $ 19,886,207.00 $ 17,488,299.00 $ \n \n12,936,988.92 13,808,103.41 13,935,731.79 14,216,882.08 \n \n161.86% 188.06% 142.69% 122.49% \n \n79.33% 76.06% 81.44% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 35 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n2018 2017 2016 2015 \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the \nnet pension liability \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n212,383.00 $ 324,413.00 $ 197,656.00 $ 194,696.00 $ \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability as a percentage of its covered \npayroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n212,383.00 $ 324,413.00 $ 197,656.00 $ 194,696.00 $ \n \n647,502.47 699,204.85 653,953.49 615,833.23 \n \nN/A \n \n85.69% \n \nN/A \n \n81.00% \n \nN/A \n \n87.00% \n \nN/A \n \n88.29% \n \nThe schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 36 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \n \nYear Ended 2018 \n \nSchool District's proportion of the net OPEB liability \n \nSchool District's proportionate share of the net OPEB liability \n \nState of Georgia's proportionate share of the \nnet OPEB liability associated with the School \nDistrict \n \nTotal \n \nSchool District's covered-employee \npayroll \n \n0.149451% $ \n \n20,997,805.00 $ \n \n- \n \n$ 20,997,805.00 $ 12,094,905.84 \n \nSchool District's proportionate share of the \nnet OPEB liability as a percentage of its covered- \nemployee payroll \n173.61% \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \n1.61% \n \nThe schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 37 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 \n \nContractually required contribution (1) \n \n$ \n \n2,026,192.50 \n \n$ \n \n1,846,108.32 \n \n$ \n \n1,945,074.66 \n \n$ \n \n1,832,548.73 \n \n$ \n \n1,745,833.12 \n \n$ \n \n1,687,641.93 \n \n$ \n \n1,549,293.65 \n \n$ \n \n1,609,593.00 \n \n$ \n \n1,569,706.00 \n \n$ \n \n1,461,107.13 \n \n$ \n \n1,442,489.65 \n \nContributions in relation to the contractually required \ncontribution \n \n$ \n \n2,026,192.50 \n \n$ \n \n1,846,108.32 \n \n$ \n \n1,945,074.66 \n \n$ \n \n1,832,548.73 \n \n$ \n \n1,745,833.12 \n \n$ \n \n1,687,641.93 \n \n$ \n \n1,549,293.65 \n \n$ \n \n1,609,593.00 \n \n$ \n \n1,569,706.00 \n \n$ \n \n1,461,107.13 \n \n$ \n \n1,442,489.65 \n \nContribution deficiency (excess) \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \nSchool District's covered payroll \n \n$ \n \n12,053,494.83 \n \n$ \n \n12,936,988.92 \n \n$ \n \n13,808,103.41 \n \n$ \n \n13,935,731.79 \n \n$ \n \n14,216,882.08 \n \n$ \n \n14,790,902.10 \n \n$ \n \n15,070,949.90 \n \n$ \n \n15,657,519.46 \n \n$ \n \n16,116,078.03 \n \n$ \n \n15,744,688.90 \n \n$ \n \n15,544,069.50 \n \nContribution as a percentage of covered \npayroll \n16.81% 14.27% 14.09% 13.15% 12.28% 11.41% 10.28% 10.28% \n9.74% 9.28% 9.28% \n \n(1) For years ended 2015 and earlier, the contractually required contribution amount includes the amounts paid by the Georgia Department of Education on behalf of the School District. \n \n- 38 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n2018 2017 \n \nContractually required contribution \n \n$ \n \n700,040.00 \n \n$ \n \n779,254.00 \n \nContributions in relation to the contractually required contribution \n \n$ \n \n700,040.00 \n \n$ \n \n779,254.00 \n \nContribution deficiency (excess) \n \n$ \n \n- \n \n$ \n \n- \n \nSchool District's covered-employee \npayroll \n$ 11,277,062.55 $ 12,094,905.84 \n \nContribution as a percentage of covered- \nemployee payroll \n6.21% 6.44% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 39 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"6\" \n \nTeachers Retirement System \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. \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). \nPublic School Employees Retirement System \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. \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). \nSchool OPEB Fund \nChanges of benefit terms: In June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. \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. \nIn the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \nIn the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. \n \n- 40 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"7\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n9,260,384.00 $ \n \n9,260,384.00 $ \n \n9,327,737.47 $ \n \n- \n \n- \n \n79,280.42 \n \n12,039,902.81 \n \n12,000,642.78 \n \n11,985,237.86 \n \n5,162,809.77 \n \n5,603,018.18 \n \n5,388,374.42 \n \n15,050.00 \n \n16,875.00 \n \n128,612.70 \n \n- \n \n- \n \n204.61 \n \n300,000.00 \n \n300,000.00 \n \n474,694.62 \n \n26,778,146.58 \n \n27,180,919.96 \n \n27,384,142.10 \n \n67,353.47 79,280.42 (15,404.92) (214,643.76) 111,737.70 \n204.61 174,694.62 \n203,222.14 \n \n14,652,644.08 \n1,369,630.00 1,413,637.00 \n450,906.00 632,645.00 1,326,547.00 817,880.00 2,105,350.00 1,093,945.00 442,937.00 \n21,000.00 - \n1,391,575.00 - \n25,718,696.08 \n1,059,450.50 \n(3,610,770.41) \n- \n \n14,586,363.80 \n1,391,543.00 1,356,984.00 \n451,181.00 673,608.00 1,337,697.00 817,880.00 2,111,825.00 1,117,702.00 442,937.00 \n55,000.00 - \n1,774,380.00 - \n26,117,100.80 \n1,063,819.16 \n(3,455,137.64) \n(43,679.31) \n \n13,620,586.91 \n1,644,511.95 1,362,728.69 \n369,465.08 479,611.11 1,606,407.42 838,438.80 2,111,183.05 1,090,744.84 274,907.37 \n55,286.57 40,870.16 \n404.41 1,646,229.38 \n13,280.00 \n25,154,655.74 \n2,229,486.36 \n(3,473,934.58) \n- \n \n965,776.89 \n(252,968.95) (5,744.69) 81,715.92 \n193,996.89 (268,710.42) \n(20,558.80) 641.95 \n26,957.16 168,029.63 \n(286.57) (40,870.16) \n(404.41) 128,150.62 (13,280.00) \n962,445.06 \n1,165,667.20 \n(18,796.94) \n43,679.31 \n \n$ (2,551,319.91) $ (2,434,997.79) $ (1,244,448.22) $ 1,190,549.57 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $401,032.86 and $381,600.10, respectively. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 41 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth Improving Teacher Quality State Grants Improving Teacher Quality State Grants Rural Education Student Support and Academic Enrichment Program 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 \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n18185GA324N1099 $ 18185GA324N1100 \n \n496,418.89 1,281,296.35 \n1,777,715.24 \n \n10.582 \n \n185GA324L1903 \n \n848.25 1,778,563.49 \n \n84.027 84.173 \n \nH027A170073 H173A170081 \n \n84.048 84.196 84.367 84.367 84.358 84.424A 84.010 84.010 84.287 84.287 \n \nV048A170010 S196A170011 S367A160001 S367A170001 S365B170010 S424A170011 S010A160010 S010A170010 S287C160010 S287C170010 \n \n603,042.00 17,624.00 \n620,666.00 \n42,142.00 44,668.00 14,203.69 117,292.06 42,924.00 42,765.34 140,494.41 1,779,269.68 36,013.52 674,616.81 \n2,934,389.51 \n3,555,055.51 \n \n98,830.27 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n5,432,449.27 \n \nNotes to the Schedule of Expenditures of Federal Awards \nNote 1. Basis of Presentation \nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the City of Dublin 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. \n \nNote 2. Summary of Significant Accounting Policies \nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 42 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2018 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \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 Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Teacher of the Year Vocational Education \nOffice of the State Treasurer Public School Employees Retirement \n \nSCHEDULE \"9\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n542,062.83 \n \n627,677.00 320,491.00 1,620,966.00 402,711.00 814,320.00 155,275.00 1,224,870.00 1,307,052.00 352,237.00 1,497,211.00 151,883.00 \n84,233.00 95,459.00 240,600.00 75,709.00 38,893.00 \n1,226.00 \n417,318.00 605,982.00 532,268.00 326,644.00 (179,653.00) 222,610.00 \n156,780.00 49,876.00 \n51,958.00 28,324.53 63,593.00 77,216.25 \n507.25 34,425.00 \n44,513.00 \n$ 11,985,237.86 \n \nSee notes to the basic financial statements. \n \n- 43 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"10\" \n \nPROJECT \n \nSPLOST II PROJECTS (January 1, 2013 - December 31,2017) \n \nAcquisition of real property and construction, equipping \n \nand furnishing of new school buildings and facilities, \n \nincluding, but not limited to, a new elementary school \n \nincluding physical education and athletic facilities, and \n \nthe completion of the new Dublin High School and \n \nauditorium; additions, renovations, repairs and \n \nimprovements to existing school buildings and facilities, \n \nincluding, but not limited to Moore Street Elementary, \n \nSusie Dasher Elementary, Saxon Heights Elementary, \n \nDublin Middle School, and Hillcrest Center; new physical \n \neducation and athletic facilities for Dublin High School \n \nand Dublin Middle School, including, but not limited to, \n \na tennis court complex at Dublin High School; technology \n \nequipment, school nutrition program equipment, and \n \nimprovements throughout the City of Dublin School District; \n \nthe acquisition of school vehicles, including, but not limited \n \nto, school buses and equipment; additions renovations, \n \nrepairs and improvements to the central office building \n \nincluding, but not limited to, HVAC; and to retire \n \npreviously incurred general obligation debt. \n \n$ \n \nORIGINAL ESTIMATED \nCOST (1) \n17,750,000.00 $ \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \n22,009,272.40 $ \n \n56,923.67 $ \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n21,952,348.73 $ 22,009,272.40 $ \n \n- \n \nESTIMATED COMPLETION \nDATE \nComplete \n \nSPLOST III PROJECTS (January 1, 2018 - December 31,2022) \nPayment of certain outstanding debt of the City of Dublin School District, including but not limited to payment of General Obligation Sales Tax Bonds, Series 2008, in an amount not to exceed $1,223,640.00; \nGeneral Obligation Bonds, Series 2010, in an amount not to exceed $6,445,240.00; \nGeneral Obligation Bonds, Series 2011, in an amount not to exceed $4,714,950.00; \nImprovements, renovations, construction, furnishing and equipping existing school buildings and facilities including, but not limited to, Dublin High School, Dublin Middle School, Moore Street School, Susie Dasher Elementary, Saxon Heights Elementary, Hillcrest Elementary School and the central office building; \nThe acquisition of school vehicles, including, but not limited to, school buses and transportation equipment; \nTechnology equipment and upgrades; and \nThe acquisition of certain property and equipment, including any heating and air conditioning equipment upgrades which may be subject to lease by the City of Dublin School District. \n \n1,223,640.00 6,445,240.00 4,714,950.00 \n \n1,223,640.00 6,445,240.00 4,714,950.00 \n \n1,223,640.00 1,525,100.00 \n68,200.00 \n \n1,044,170.00 \n250,000.00 250,000.00 \n \n1,044,170.00 \n250,000.00 250,000.00 \n \n- \n20,846.34 \n \n250,000.00 14,178,000.00 \n \n250,000.00 14,178,000.00 \n \n2,837,786.34 \n \n- \n \n1,223,640.00 \n \n- \n \n- \n \n- \n \n- \n \n- \n \nComplete \n \n- \n \n6/30/2021 \n \n- \n \n12/31/2022 \n \n- \n \n- \n \n- \n \n12/31/2022 \n \n- \n \n- \n \n- \n \n12/31/2022 \n \n- \n \n- \n \n- \n \n12/31/2022 \n \n- \n \n- \n \n- \n \n12/31/2022 \n \n- \n \n- \n \n- \n \n$ 31,928,000.00 $ 36,187,272.40 $ 2,894,710.01 $ 21,952,348.73 $ 22,009,272.40 $ \n \n- \n \n(1) \n \nThe School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) \n \nThe School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) \n \nThe voters of Laurens 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 \n \nsales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) \n \nIn addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ \n \n2,092,200.00 \n \nCurrent Year \n \n193,300.00 \n \nTotal \n \n$ \n \n2,285,500.00 \n \nSee notes to the basic financial statements. \n \n- 45 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 6, 2020 \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED \nIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin 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 February 6, 2020. \nThe financial statements of the Heart of Georgia \u0026 Career Academy, Inc. (Charter School) have not been audited, and we were not engaged to audit the Charter School's financial statements as part of our audit of the School District's basic financial statements. The Charter School's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) 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. \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. \n \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 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 2018-001 and FS 2018-002, that we consider to be material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS 2018-002. \nSchool District's Response to Findings \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. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 6, 2020 \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \nReport on Compliance for Each Major Federal Program \nWe have audited the City of Dublin 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. \nManagement's Responsibility \nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \nAuditor's Responsibility \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. \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. \n \n Opinion on Each Major Federal Program \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. \nOther Matters \nThe results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying Schedule of Findings and Questioned Costs as item FA 2018-001. Our opinion on each major federal program is not modified with respect to this matter. \nThe School District's response to the noncompliance 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 compliance and, accordingly, we express no opinion on the response. \nReport on Internal Control over Compliance \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. \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. \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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified a certain deficiency in internal control over compliance, as described in the accompanying Schedule of Findings and Questioned Costs as item FA 2018-001, that we consider to be a significant deficiency. \n \n The School District's response to the internal control over compliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS-7741-12-01 \n \nInternal Controls at the Central Office \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Employee Compensation Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Material Weakness None \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS-7741-12-02 \n \nAdoption of a Balanced Budget, Deficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nDuring fiscal year 2016, the Board developed a new deficit elimination plan and presented it to the Georgia Department of Education. The plan calls for the closure of Saxon Heights Elementary School and moving 5th graders to Dublin Middle School to better use our facilities and resources as well as save money. Non-academic staff positions and operating expenses at Saxon are being eliminated. During fiscal year 2017, the Board anticipates reducing the deficit by over $1.5 million. \n \nFS-7741-12-04 \n \nUse of SPLOST Proceeds \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nExpenditures/Liabilities/Disbursements None Material Noncompliance \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2013-001 \n \nInternal Controls at the Central Office \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Employee Compensation Expenditures/Liabilities/Disbursements Material Weakness None \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nFS 2013-002 \n \nDeficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: Finding Status: \n \nBudget Preparation/Execution Material Weakness None Unresolved \n \nDuring fiscal year 2016, the Board developed a new deficit elimination plan and presented it to the Georgia Department of Education. The plan calls for the closure of Saxon Heights Elementary School, and moving 5th graders to Dublin Middle School to better use our facilities and resources as well as save money. Non-academic staff positions and operating expenses at Saxon are being eliminated. During fiscal year 2017, the Board anticipates reducing the deficit by over $1.5 million. \n \nFS 2013-004 \n \nUse of SPLOST Proceeds \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nExpenditures/Liabilities/Disbursements Significant Deficiency Nonmaterial Noncompliance \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2014-001 \n \nInternal Controls at the Central Office \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Expenditures/Liabilities/Disbursements Employee Compensation Material Weakness None \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2014-002 \n \nDeficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nDuring fiscal year 2016, the Board developed a new deficit elimination plan and presented it to the Georgia Department of Education. The plan calls for the closure of Saxon Heights Elementary School, and moving 5th graders to Dublin Middle School to better use our facilities and resources as well as save money. Non-academic staff positions and operating expenses at Saxon are being eliminated. During fiscal year 2017, the Board anticipates reducing the deficit by over $1.5 million. \n \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nFS 2014-004 \n \nUse of SPLOST Proceeds \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nExpenditures/Liabilities/Disbursements None Nonmaterial Noncompliance \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2015-001 \n \nInternal Controls at the Central Office \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nAccounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation Significant Deficiency None \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2015-002 \n \nInternal Controls Over School Activity Accounts \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2015-004 \n \nUse of SPLOST Proceeds \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nExpenditures/Liabilities/Disbursements Material Weakness Material Noncompliance \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2015-006 \n \nAdoption of a Balanced Budget, Deficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nThe Board submitted a deficit elimination plan to the Georgia Department of Education in March 2016. The plan should reduce the deficit by over $1.6 million each year. The Board has closed Saxon Heights Elementary School and made significant staff reductions. Property values in the City of Dublin were reassessed in 2015, resulting in an additional $500,000.00 in tax revenue that is to be used exclusively for deficit reduction. In fiscal year 2017 the School District is budgeted to receive an \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nincrease in State QBE funding of $627,000 of which 50% is earmarked for deficit reduction. No salary \n \nincreases will be implemented for teachers or staff in fiscal year 2017. Reporting requirements \n \napplicable for deficit fund balances with the Georgia Department of Education are being followed. \n \n. \n \nFS 2016-001 \n \nInternal Controls at the Central Office \n \nControl Categories: \nInternal Control Impact: Compliance Impact: \n \nAccounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2016-002 \n \nInternal Controls over School Activity Accounts \n \nControl Categories: \nInternal Control Impact: Compliance Impact: \n \nAccounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2016-004 \n \nUse of SPLOST Proceeds \n \nControl Categories: Internal Control Impact: Compliance Impact: \n \nExpenditures/Liabilities/Disbursements Material Weakness Material Noncompliance \n \nFinding Status: \n \nPreviously Reported Corrective Action Plan Implemented \n \nFS 2016-006 \n \nAdoption of a Balanced Budget, Deficit Fund Balance \n \nControl Categories: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nThe Board submitted a deficit elimination plan to the Georgia Department of Education in March 2016. The plan should reduce the deficit by over $1.6 million each year. The Board has closed Saxon Heights Elementary School and made significant staff reductions. Property values in the City of Dublin were reassessed in 2015, resulting in an additional $500,000.00 in tax revenue that is to be used exclusively for deficit reduction. In fiscal year 2017 the District is budgeted to receive an increase in State QBE funding of $627,000 of which 50% is earmarked for deficit reduction. No salary increases will be implemented for teachers or staff in fiscal year 2017. Reporting requirements applicable for deficit fund balances with the Georgia Department of Education are being followed. \n \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nFS 2017-001 \n \nInternal Controls at the Central Office \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nPreviously Corrective Action Plan Implemented \n \nFS 2017-002 \n \nInternal Controls Over School Activity Accounts \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nPreviously Corrective Action Plan Implemented \n \nFS 2017-003 \n \nUse of SPLOST Proceeds \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nExpenditures/Liabilities/Disbursements Material Weakness Material Noncompliance \n \nFinding Status: \n \nPreviously Corrective Action Plan Implemented \n \nFS 2017-004 \n \nAdoption of a Balanced Budget, Deficit Fund Balance \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nBudget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nThe management of the School District will continue to follow the deficit elimination plan submitted to the Georgia Department of Education in March 2016. The deficit was reduced by over $2.2 million in fiscal year 2018 and preliminary numbers submitted for fiscal year 2019 show continued significant improvement. No salary step increases were implemented in fiscal year 2018 or fiscal year 2019 for teachers and staff. Reporting requirements to the Georgia Department of Education applicable to school districts with deficit fund balances are being followed. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n- 5 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information Discretely Presented Component Unit \n \nUnmodified Disclaimer \n \nInternal control over financial reporting:  Material weaknesses identified?  Significant deficiency identified? \n \nYes None Reported \n \nNoncompliance material to financial statements noted: \n \nYes \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNone Reported Yes \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with 2 CFR 200.516(a)? \n \nYes \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.010 \n \nChild Nutrition Cluster Title I Grants to Local Educational Agencies \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$750,000.00 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2018-001 Control Category: Internal Control Impact: Compliance Impact: \n \nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \n \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. \n \nCriteria: Management is responsible for having adequate controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \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. \nChapter II Section 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. \n \nCondition: The following errors and omissions were noted in the School District's financial statements, note disclosures and schedules as presented for audit: \n \n A reclassification entry totaling $3,266,147.92 was proposed and accepted by the School District to properly classify net investment in capital assets, net position restricted for continuation of federal programs, net position restricted for capital projects, net position restricted for debt service and unrestricted net position. \n The School District did not properly record a new capital lease. An audit adjustment totaling $103,708.06 was proposed and accepted by the client to correctly record the lease on the government-wide financial statements. A material audit adjustment totaling $127,477.00 was proposed and accepted by the client to record expenditures and other financing sources in the capital projects fund. \n The School District did not record activity of the Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) for the year ended June 30, 2018. An audit adjustment totaling $185,848.44 was proposed and accepted by the client to correctly record cash, longterm liabilities, revenues, expenses and beginning net position for the School District's discretely presented component unit. \n Pension expense was understated by $525,191.14 and deferred outflows related to defined benefit pension plans was overstated by $525,191.14. An audit adjustment was proposed and accepted by the client to correct this error. \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS  The State Board of Education requires all school districts to submit a complete set of financial \nstatements, ready for audit, by December 31. The School District did not submit the government-wide financial statements, note disclosures or supplementary information by this due date.  Numerous other material and/or significant correction and reclassification entries were proposed and accepted by the School District to properly present the School District's financial statements, note disclosures, required supplementary information, and supplementary information. Cause: In discussing this deficiency with the School District, they stated that the cause was a direct result of limited time to accomplish operational duties as well as the preparation of the financial statements. Effect or Potential Effect: Material and significant misstatements were included in the financial statements presented for audit. The lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations. Recommendation: The School District should strengthen procedures over the financial reporting process to ensure that the financial statements presented for audit, including note disclosures and supplemental information, are complete and accurate. These procedures should be performed by properly trained individuals possessing a thorough understanding of the applicable GAAP statements, GASB pronouncements and the School District's operations. The School District should also consider implementing the use of a review checklist to assist in the review process over the financial statements. Views of Responsible Officials: We concur with this finding. \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2018-002 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nAdoption of a Balanced Budget, Deficit Fund Balances Budget Preparation/Execution Material Weakness Material Noncompliance FS 2017-004, FS 2016-006, FS 2015-006, FS FS 2013-002, FS-7741-12-02 \n \n2014-002, \n \nDescription: At June 30, 2018, the general fund, capital projects fund and debt service fund reported deficit fund balances. The School District also failed to adopt a balanced general fund budget for fiscal year 2018. \n \nCriteria: Chapter 25, Governmental Fund Deficits of the Financial Management for the Georgia Local Units of Administration states in part: \"The seriousness of the fund balances deficits cannot be overstated. The Georgia Department of Education requires those LUAs with deficit governmental fund balances to meet certain reporting requirements.\" \nChapter 32, Preparing Operating Budgets of the Financial Management for the Georgia Local Units of Administration states in part: \"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated essential expenditures, a portion of unreserved fund balance from previous years must be used to fund the short fall. In the event there is insufficient unreserved fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available unreserved fund balance.\" \n \nThe Department of Audits and Accounts is required to report all instances of budget deficits in accordance with the Official Code of Georgia Annotated 20-2-67(a) which states: \"When an audit by the Department of Audits and Accounts finds and reports irregularities or budget deficits in the fund accounting information regarding a local school system or a school within a local school system, the Department of Audits and Accounts shall report the findings of irregularities or budget deficits to the State Board of Education and the local board of education.\" \n \nCondition: The School District's general fund, capital projects fund and debt service fund reported a deficit unassigned fund balance of $1,592,474.71, $51,213.12 and $1,241,619.81, respectively. In addition, the School district's original and final budgets for the general fund were not balanced. Total anticipated revenues and beginning fund balance did not equal or exceed total estimated expenditures. \n \nCause: In discussing this deficiency with the School District, they stated that they started the 2018 fiscal year with a $3,473,934.58 deficit in the general fund due to a failure to use effective budgeting techniques in prior years. Also, funds collected for a bond property tax assessed in the previous fiscal year could not be disbursed to the School District due to ongoing litigation. \n \nEffect or Potential Effect: The fund balances of the general fund, capital projects fund and debt service fund were not sufficient to meet the funds' obligations at June 30, 2018. This is a financial statement irregularity in accordance with the Official Code of Georgia Annotated (O.C.G.A) 20-2-67. \n \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Recommendation: The School District should continue to monitor and execute the successful implementation of their deficit reduction plan to ensure that expenditures do not exceed availability of resources so that in future periods the School District does not report a deficit fund balance. In addition, appropriate procedures should be implemented to ensure that the adopted budget for each budgeted fund is balanced as required. Views of Responsible Officials: We concur with this finding. \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2018-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: \nQuestioned Costs: \n \nControls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education 10.553 and 10.555 Child Nutrition Cluster 18185GA324N1099 18185GA324N1100 None Identified \n \nDescription: The policies and procedures of the School District did not provide adequate internal controls over equipment and real property management as it relates to the Child Nutrition Cluster. \n \nCriteria: 2 CFR 200.313(d)(1) states, \"Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.\" In addition, 2 CFR 200.313(d)(2) states, \"A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.\" \n \nCondition: The following deficiencies were noted when reviewing the Child Nutrition Cluster equipment listing and physically locating equipment items: \n \n Eight out of the seventeen equipment items selected from property records for testing could not be physically located. There was no documentation of the items being sold, donated to another entity or scrapped. \n Six equipment items found during a physical inspection of lunchroom equipment were not recorded in the property records. \n Property records did not consistently include the following required components for all items: (1) A serial number or other identification number, (2) the source of funding for the property (including the FAIN), (3) who holds the title, (4) acquisition date, (5) cost of the property, (6) percentage of federal participation in the project costs for the federal award under which the property was acquired, (7) the location, (8) condition of the property, and (9) any ultimate disposition data including the date of disposal and the sale price of the property. \n Although a physical inventory was performed, the property records for the equipment items were not updated to reflect the results. \n \nCause: In discussing this deficiency with the School District, they stated that these issues were a result of turnover at the School District and a lack of communication between the School Nutrition Department and Maintenance Department. \n \n- 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Effect or Potential Effect: Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or Federal funds. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. Recommendation: The School District should strengthen controls over Child Nutrition Cluster equipment to ensure that the equipment records are complete and accurate. Management should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a physical inventory of equipment is performed at least once every two years and that the property records are updated. Views of Responsible Officials: We concur with this finding. \n- 7 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n    "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2016-belec-p-btext","title":"Audit report, City of Dublin Board of Education, Laurens County","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts"],"dcterms_spatial":["United States, Georgia, Laurens County, Dublin, 32.54044, -82.90375"],"dcterms_creator":null,"dc_date":["2016-06-30"],"dcterms_description":["This publication is the annual audit report for the City of Dublin 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":["Dublin (Ga.). Board of Education--Appropriations and expenditures--Periodicals","Auditors' reports--Georgia--Periodicals","Financial statements--Georgia--Periodicals","Auditors' reports","Expenditures, Public","Financial statements","Georgia","Audits","Financial statements","Financial records","Periodicals"],"dcterms_title":["Audit report, City of Dublin Board of Education, Laurens County","City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended June 30, 2015 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2016-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["audits"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n(Including Independent Auditor's Reports) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY - TABLE OF CONTENTS - \n \nINDEPENDENT AUDITOR'S REPORT \n \nSECTION I FINANCIAL \n \nPage \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nGOVERNMENT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n8 \n \nH NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n9 \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n33 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n34 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n35 \n \n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n36 \n \n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 37 \n \n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n38 \n \n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n39 \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n40 41 43 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \n \n (This page left intentionally blank) \n \n SECTION I FINANCIAL \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJanuary 9, 2018 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin 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. \nManagement's Responsibility for the Financial Statements \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. \nAuditor's Responsibility \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. \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 \n \n (This page left intentionally blank) \n \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. \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nBasis for Disclaimer of Opinion on Discretely Presented Component Unit \nThe financial statements of Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) have not been audited, and we were not engaged to audit the Charter School's financial statements as part of our audit of the City of Dublin Board of Education's basic financial statements. The Academy's financial activities are included in the City of Dublin Board of Education's basic financial statements as a discretely presented component unit. \nDisclaimer of Opinion \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, the scope of our work was not sufficient to enable us to express and we do not express an audit opinion on the financial statements of the Discretely Presented Component Unit. \nUnmodified Opinions \nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District, as of June 30, 2016, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matters \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. \nSince fiscal year 2011, the School District has maintained a general fund deficit. As of June 30, 2016, the School District had a general fund unassigned deficit fund balance of $5.8 million (Governmental Fund Statements). The School District also had a deficit unrestricted net position of $25.5 million (Government-wide Financial Statements) of which $20.2 million of the deficit is related to the net pension liability. The deficit fund balance note discusses the School District's deficit reduction plan as of the report date to address the accumulated fund balance deficit. The School District expects to reduce the general fund unassigned fund balance deficit by $1.9 million for fiscal year 2017. As discussed in the subsequent events note, in fiscal year 2017 the School District's levied a 2.25 bond property tax millage rate to help pay general obligation bond debt obligations. The Superior Court of Laurens County found that the property tax was illegally and erroneously assessed and collected. The tax collector will not disburse any of the collected bond property tax proceeds to the School District until further order from the court. The School District has appealed the ruling to the Georgia Supreme Court. The Georgia Supreme Court transferred the appeal to the Georgia Court of Appeals. The School \n \n (This page left intentionally blank) \n \n District awaits a ruling by the court. If annual Special Purpose Local Option Sales Tax (SPLOST) collections remain stable, annual bond and capital lease debt payment requirements will exceed annual SPLOST collections for each of the next four fiscal years. The absence of the bond property tax revenue raises risk regarding the School District's ability to meet the long-term debt payment requirements without restructuring the long-term debt. The School District relies on both tax anticipation notes and temporary borrowing from SPLOST funds to meet its cash flow needs. The School District expects to be able to continue to obtain interim financing to meet cash flow needs as appropriate. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. Our opinions are not modified with respect to these matters. \nOther Matters \nRequired Supplementary Information \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. \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 33 through 40 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, consisting of Schedules 8 through 10, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \n \n (This page left intentionally blank) \n \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. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated January 9, 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. \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. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF NET POSITION JUNE 30, 2016 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nInterest Taxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Short-Term Debt Interest Payable Net Pension Liability Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnearned Grant Revenue Related to Defined Benefit Pension Plans \nTotal Deferred Inflows of Resources \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT \nCHARTER SCHOOL \n \n$ \n \n1,176,119.11 \n \n$ \n \n37.37 913,825.32 1,514,260.00 198,073.53 \n2,326.15 40,235.80 1,969,200.50 59,671,374.47 \n \n65,485,452.25 \n \n17,903.94 \n- \n17,903.94 \n \n2,545,091.66 \n \n- \n \n167,911.69 1,870,563.53 1,937,206.74 4,511,500.00 \n166,233.75 19,884,989.00 \n2,511,091.04 15,054,841.24 \n46,104,336.99 \n \n27,000.00 - \n25,804.44 51,178.87 \n103,983.31 \n \n135,363.79 \n \n- \n \n2,876,341.00 \n \n- \n \n3,011,704.79 \n \n- \n \n44,074,642.69 \n296,710.29 61,754.46 \n(25,518,605.31) \n \n- \n(86,079.37) \n \nTotal Net Position \n \n$ \n \n18,914,502.13 \n \n$ \n \n(86,079.37) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2016 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nCharter School \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Investment Earnings Miscellaneous \nSpecial Item Loss on Transfer of Building \nTotal General Revenues and Special Item \nChange in Net Position \nNet Position - Beginning of Year \nNet Position - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 16,375,586.34 $ \n1,524,403.91 1,694,607.26 \n435,595.96 549,320.45 1,452,694.36 864,014.08 2,306,197.08 1,090,622.40 403,805.54 257,917.24 \n56,348.49 1,280.42 \n1,831,862.39 788,530.42 \n$ 29,632,786.34 $ \n \n127,751.71 \n- \n19,876.77 - \n147,628.48 \n \n$ \n \n386,917.89 \n \n- 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nPRIMARY GOVERNMENT NET (EXPENSES) \nREVENUES AND CHANGES IN \nNET POSITION \n \nCOMPONENT UNIT \n \n$ \n \n11,050,572.28 $ \n \n321,019.25 1,575,311.46 \n327,984.00 748,552.57 934,915.00 \n4,140.21 735,998.21 \n32,211.21 - \n226,694.01 \n \n55.48 - \n1,808,142.87 - \n \n$ \n \n17,765,596.55 \n \n(5,197,262.35) \n(1,203,384.66) (119,295.80) (107,611.96) 199,232.12 (517,779.36) (859,873.87) \n(1,570,198.87) (1,058,411.19) \n(403,805.54) (31,223.23) \n(56,293.01) (1,280.42) (3,842.75) \n(788,530.42) \n(11,719,561.31) \n \n$ \n \n(386,917.89) \n \n9,066,518.54 \n2,475,075.94 120,597.64 583.97 576,776.52 \n- \n12,239,552.61 \n519,991.30 \n18,394,510.83 \n \n- \n331,267.64 \n(3,522,095.12) \n(3,190,827.48) \n(3,577,745.37) \n3,491,666.00 \n \n$ \n \n18,914,502.13 $ \n \n(86,079.37) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2016 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nInterest Taxes State Government Federal Government Other Due from Other Funds Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n778,547.32 $ \n \n698,211.98 1,514,260.00 198,073.53 \n2,326.15 397,194.29 \n40,235.80 \n \n182,827.23 $ \n- \n \n214,744.56 $ \n37.37 215,613.34 \n- \n \n1,176,119.11 \n37.37 913,825.32 1,514,260.00 198,073.53 \n2,326.15 397,194.29 \n40,235.80 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Due to Other Funds Short-Term Debt Interest Payable \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes Unavailable Grant Revenue \nTotal Deferred Inflows of Resources \nFUND BALANCES \nNonspendable Restricted Unassigned (Deficit) \nTotal Fund Balances \n \n$ 3,628,849.07 $ \n \n182,827.23 $ \n \n430,395.27 $ \n \n4,242,071.57 \n \n$ \n \n167,911.69 $ \n \n1,870,563.53 \n \n1,937,206.74 \n \n- \n \n4,511,500.00 \n \n11,960.00 \n \n8,499,141.96 \n \n- $ 144,159.29 - \n144,159.29 \n \n- $ 253,035.00 - \n253,035.00 \n \n167,911.69 1,870,563.53 1,937,206.74 \n397,194.29 4,511,500.00 \n11,960.00 \n8,896,336.25 \n \n523,435.54 \n \n- \n \n135,363.79 \n \n- \n \n658,799.33 \n \n- \n \n- \n \n523,435.54 \n \n- \n \n135,363.79 \n \n- \n \n658,799.33 \n \n40,235.80 256,474.49 (5,825,802.51) \n(5,529,092.22) \n \n38,667.94 \n- \n38,667.94 \n \n177,360.27 \n- \n177,360.27 \n \n40,235.80 472,502.70 (5,825,802.51) \n(5,313,064.01) \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 3,628,849.07 $ \n \n182,827.23 $ \n \n430,395.27 $ \n \n4,242,071.57 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2016 \n \nEXHIBIT \"D\" \n \nTotal fund balances - governmental funds (Exhibit \"C\") \nAmounts reported for governmental activities in the Statement of Net Position are different because: \nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \nNet pension liability \nDeferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \nBonds payable Accrued interest payable Capital leases payable Revenue bonds payable Unamortized bond premiums \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n(5,313,064.01) \n \n$ 1,686,200.50 283,000.00 \n66,494,609.61 4,553,827.22 6,818,289.00 \n(18,195,351.36) \n \n61,640,574.97 \n \n(19,884,989.00) (331,249.34) 523,435.54 \n \n$ (11,590,000.00) (154,273.75) \n(3,389,830.59) (2,300,000.00) \n(286,101.69) \n \n(17,720,206.03) \n \n$ \n \n18,914,502.13 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n9,101,143.12 $ \n \n120,597.64 \n \n12,166,137.79 \n \n5,703,836.46 \n \n147,628.48 \n \n86.67 \n \n576,776.52 \n \n27,816,206.68 \n \n- $ 6.10 - \n6.10 \n \n- $ 2,475,075.94 \n491.20 - \n2,475,567.14 \n \n9,101,143.12 2,595,673.58 12,166,137.79 5,703,836.46 \n147,628.48 583.97 \n576,776.52 \n30,291,779.92 \n \n15,508,077.59 \n1,554,559.58 1,752,123.77 \n451,992.57 476,481.16 1,491,137.50 860,898.59 2,238,049.19 1,046,380.69 301,303.46 269,232.64 \n56,348.49 1,280.42 \n1,737,317.52 - \n9,322.25 - \n13,393.23 \n27,767,898.65 \n48,308.03 \n(5,577,400.25) \n \n- \n38,369.85 93,234.07 \n21,047.22 - \n1,500.25 \n154,151.39 \n(154,145.29) \n192,813.23 \n \n- \n- \n2,080,000.00 24,524.12 \n791,486.94 \n2,896,011.06 \n(420,443.92) \n597,804.19 \n \n15,508,077.59 \n1,554,559.58 1,752,123.77 \n451,992.57 476,481.16 1,491,137.50 860,898.59 2,238,049.19 1,046,380.69 339,673.31 269,232.64 \n56,348.49 1,280.42 \n1,737,317.52 93,234.07 \n2,110,369.47 24,524.12 \n806,380.42 \n30,818,061.10 \n(526,281.18) \n(4,786,782.83) \n \nFund Balances - Ending \n \n$ \n \n(5,529,092.22) $ \n \n38,667.94 $ \n \n177,360.27 $ (5,313,064.01) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2016 \n \nEXHIBIT \"F\" \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \nAmounts reported for governmental activities in the Statement of Activities are different because: \nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \nCapital outlay Depreciation expense \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \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. \nBond principal retirements Capital lease payments and adjustments Revenue bond payments Amortization of bond premium \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. \nPension expense \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \nAccrued interest on bonds and capital leases \n \n$ (526,281.18) \n \n$ \n \n58,990.00 \n \n(1,896,807.25) \n \n(1,837,817.25) \n \n(77,470.13) \n \n(34,624.58) \n \n$ 1,000,000.00 203,052.94 \n1,000,000.00 45,721.57 \n \n2,248,774.51 \n \n729,559.93 17,850.00 \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ 519,991.30 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2016 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n64,989.19 \n \n$ \n \n64,989.19 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City of Dublin 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) is a jointly authorized start-up charter school pursuant to the Official Code of Georgia (O.C.G.A.) 20-2-2060 et. Seq., the Charter Schools Act of 1998. The Charter is an agreement entered into by and between the City of Dublin, Bleckley County, Laurens County, and Wheeler County Boards of Education and the State Board of Education to serve students in grades 9 through 12. The Charter School's mission is to improve public educational outcomes and ensure a viable 21ST century workforce for the Heart of Georgia region. The financial activities of the Charter School have been presented discretely because they provide services to third-parties outside the School System. See Notes 4, 5, and 8 for additional component unit disclosures. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGOVERNMENT-WIDE STATEMENTS: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component unit, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \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: \n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \n- 9 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities \nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFUND FINANCIAL STATEMENTS: \nThe fund financial statements provide information about the School District's funds, 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. \nThe School District reports the following major governmental funds: \n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \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. \nThe School District reports the following fiduciary fund type: \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. \nBASIS OF ACCOUNTING \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. \n \n- 10 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers 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. \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. \nNEW ACCOUNTING PRONOUNCEMENTS \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. \nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68. This statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement No. 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68 for pension plans and pensions that are within their respective scopes. The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 79, Certain External Investment Pools and Pool Participants. This statement addresses accounting and financial reporting for certain external investment pools and pool participants. If an external investment pool meets the criteria in this statement and measures all of its investments at amortized cost, the pool's participants also should measure their investments in that external investment pool at amortized cost for financial reporting purposes. The School District participates in an external investment pool, the State of Georgia local government investment pool (Georgia Fund 1), which does not meet the criteria of this statement. Therefore, the investment in this pool is measured at fair value as provided in paragraph 11 of GASB Statement No. 31, as amended. \n \n- 11 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nCASH AND CASH EQUIVALENTS \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \n \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \n \nINVENTORIES \nFood Inventories \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \n \nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nAny Amount \n \nConstruction in Progress \n \n$ 5,000.00 \n \nLand Improvements \n \n$ 5,000.00 \n \nBuildings and Improvements $ 5,000.00 \n \nEquipment \n \n$ 5,000.00 \n \nN/A N/A 20 to 80 years 10 to 80 years 5 to 50 years \n \n- 12 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that time. \nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \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. \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. \nPENSIONS \nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nFUND BALANCES \nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \nThe School District's fund balances are classified as follows: \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \n \n- 13 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \n \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \n \nPROPERTY TAXES \nThe City of Dublin Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on November 5, 2015 (levy date) based on property values as of January 1, 2015. Taxes were due on February 5, 2016 (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 City of Dublin 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 $8,564,872.62. \n \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): \n \nSchool Operations \n \n19.705 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $536,270.50 during fiscal year ended June 30, 2016. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,475,075.94 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, 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 and function. 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. \n \n- 14 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \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. \nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \nCOLLATERALIZATION OF DEPOSITS \nO.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \n- 15 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2016, the School District had deposits with a carrying amount of $1,016,913.43, and a bank balance of $960,500.41. The bank balances insured by Federal depository insurance were $436,317.27 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $524,183.14. \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nStatement of Net Position Cash and cash equivalents \nStatement of Fiduciary Net Position Cash and cash equivalents \nTotal Cash and cash equivalents \n \n$ 1,176,119.11 \n64,989.19 1,241,108.30 \n \nLess: Investment Pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n224,194.87 \n \nTotal carrying value of deposits - June 30, 2016 \n \n$ 1,016,913.43 \n \nCOMPONENT UNIT \nAt June 30, 2016, the Heart of Georgia College and Career Academy's carrying amount of $17,903.94 was included in the School District's operating bank account that was insured through Federal Depository Insurance Corporation (FDIC). \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $224,194.87 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2016, was 42 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \n \n- 16 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2015 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2016 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,686,200.50 $ 241,000.00 \n \n- $ 42,000.00 \n \n- $ - \n \n1,686,200.50 283,000.00 \n \nTotal Capital Assets Not Being Depreciated \n \n1,927,200.50 \n \n42,000.00 \n \n- \n \n1,969,200.50 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n66,494,609.61 4,647,508.83 6,818,289.00 \n12,280,525.52 2,651,933.84 1,399,286.23 \n \n16,990.00 \n- \n \n110,671.61 \n- \n \n1,312,636.57 334,904.35 249,266.33 \n \n33,201.48 \n- \n \n66,494,609.61 4,553,827.22 6,818,289.00 \n13,593,162.09 2,953,636.71 1,648,552.56 \n \nTotal Capital Assets, Being Depreciated, Net \n \n61,628,661.85 \n \n(1,879,817.25) \n \n77,470.13 \n \n59,671,374.47 \n \nGovernmental Activity Capital Assets - Net $ 63,555,862.35 $ (1,837,817.25) $ 77,470.13 $ 61,640,574.97 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nGeneral Administration \n \n$ \n \n94,840.36 \n \nMaintenance and Operation of Plant \n \n194,120.37 \n \nStudent Transportation Services \n \n86,004.17 \n \nFood Services \n \n$ 1,375,853.38 \n374,964.90 145,988.97 \n \n$ 1,896,807.25 \n \nBalances July 1, 2015 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2016 \n \nComponent Unit \n \nCapital Assets, Not Being Depreciated: \n \nBuilding and Improvements \n \n$ 3,679,575.00 $ \n \n- $ 3,679,575.00 $ \n \n- \n \nLess: Accumulated Depreciation for: \n \nBuilding and Improvements \n \n58,487.00 \n \n98,992.88 \n \n157,479.88 \n \n- \n \nComponent Unit Capital Assets - Net $ 3,621,088.00 $ (98,992.88) $ 3,522,095.12 $ \n \n- \n \n- 17 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 6: INTERFUND ASSETS AND LIABILITIES \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2016, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Capital Projects Fund Debt Service Fund \n \n$ 397,194.29 - \n \n$ \n \n- \n \n144,159.29 \n \n253,035.00 \n \n$ 397,194.29 \n \n$ 397,194.29 \n \nThe capital projects fund plans to reimburse the general fund for loaning funds for allowable SPLOST expenditures. The debt service fund plans to reimburse the general fund for loaning a portion of the revenue bond principal payment. \n \nNOTE 7: SHORT-TERM DEBT \nThe School District issues tax anticipation notes 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. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes $ 4,999,500.00 $ 5,511,500.00 $ 5,999,500.00 $ 4,511,500.00 \n \nNOTE 8: LONG-TERM LIABILITIES \nThe changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \n \nBalance July 1, 2015 \n \nAdditions \n \nGovernmental Activities \n \nDeductions \n \nBalance June 30, 2016 \n \nDue Within One Year \n \nGeneral Obligation Bonds $ 12,590,000.00 $ \n \nUnamortized Bond Premiums \n \n331,823.26 \n \nRevenue Bonds \n \n3,300,000.00 \n \nCapital Leases \n \n3,592,883.53 \n \n- $ 1,000,000.00 $ 11,590,000.00 $ 1,250,000.00 \n \n- \n \n45,721.57 \n \n286,101.69 \n \n45,721.57 \n \n- \n \n1,000,000.00 \n \n2,300,000.00 \n \n1,100,000.00 \n \n- \n \n203,052.94 \n \n3,389,830.59 \n \n115,369.47 \n \n$ 19,814,706.79 $ \n \n- $ 2,248,774.51 $ 17,565,932.28 $ 2,511,091.04 \n \nBalances July 1, 2015 \n \nAdditions \n \nComponent Unit \n \nBalances \n \nDeductions \n \nJune 30, 2016 \n \nDue Within One Year \n \nPromissory Notes \n \n$ 105,520.00 $ \n \n- $ 28,536.69 $ 76,983.31 $ \n \n25,804.44 \n \n- 18 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nGENERAL OBLIGATION DEBT OUTSTANDING \nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2010 General Government - Series 2011 \n \n3.0% - 4.0% 2.5% - 4.0% \n \n4/22/2010 12/8/2011 \n \n4/1/2021 $ 4/1/2023 \n \n9,755,000.00 $ 4,085,000.00 \n \n7,505,000.00 4,085,000.00 \n \n$ 13,840,000.00 $ 11,590,000.00 \n \nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2017 2018 2019 2020 2021 2022 - 2023 \n \n$ \n \n1,250,000.00 $ \n \n424,100.00 $ \n \n1,400,000.00 \n \n386,600.00 \n \n2,000,000.00 \n \n330,600.00 \n \n2,000,000.00 \n \n254,350.00 \n \n1,905,000.00 \n \n175,600.00 \n \n3,035,000.00 \n \n167,800.00 \n \n45,721.57 45,721.57 45,721.57 45,721.57 45,721.57 57,493.84 \n \nTotal Principal and Interest $ \n \n11,590,000.00 $ 1,739,050.00 $ \n \n286,101.69 \n \nREVENUE BONDS \nThe School District entered into a contract with the Laurens County Public Facilities Authority dated April 1, 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 Laurens County Public Facilities Authority issued $4,500,000.00 less issuance costs of $83,500.00 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 recommend to the Mayor and Council of the City of Dublin, Georgia, to exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \nDebt currently outstanding under Revenue Bonds is as follows: \n \nPurpose \n \nInterest Rate Issue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nLaurens County Public Facilities Authority Revenue Bonds \n \n3.94% 4/30/2008 \n \n4/1/2018 $ \n \n4,500,000.00 $ \n \n2,300,000.00 \n \n- 19 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nThe following is a schedule of total revenue bond payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \n2017 2018 \n \n$ \n \n1,100,000.00 $ \n \n1,200,000.00 \n \nTotal Principal and Interest \n \n$ \n \n2,300,000.00 $ \n \nInterest \n90,620.00 47,280.00 \n137,900.00 \n \nCAPITAL LEASES \nThe School District has acquired a solar panel project and equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \nThe following assets were acquired through the capital lease and reflected in the capital asset note at fiscal year-end: \n \nGovernmental Activities \n \nLand Improvements Equipment Less: Accumulated Depreciation \n \n$ \n \n3,585,000.00 \n \n121,477.87 \n \n(470,075.58) \n \n$ \n \n3,236,402.29 \n \nCapital leases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nSolar Panel Lease Phone System CTAE Equipment CSI Server \n \n5.00 - 6.50% 7.13% \n12.40% 21.95% \n \n1/29/2013 10/31/2014 \n12/1/2013 10/17/2013 \n \n5/15/2037 $ 10/31/2018 11/30/2017 \n9/17/2017 \n \n3,585,000.00 $ 84,188.88 25,999.50 11,289.49 \n \n3,335,000.00 42,094.44 9,208.18 3,527.97 \n \n$ 3,706,477.87 $ 3,389,830.59 \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2017 2018 2019 2020 2021 2022 - 2026 2027 - 2031 2032 - 2036 2037 \n \n$ 115,369.47 $ 114,461.12 95,000.00 100,000.00 105,000.00 615,000.00 830,000.00 \n1,140,000.00 275,000.00 \n \n206,683.48 201,369.16 194,875.00 190,000.00 185,000.00 831,225.00 615,162.50 302,575.00 \n13,487.50 \n \nTotal Principal and Interest $ 3,389,830.59 $ 2,740,377.64 \n \n- 20 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nPROMISSORY NOTE  COMPONENT UNIT \nThe Heart of Georgia College and Career Academy (Charter School), a component unit of the School District entered into a lending agreement with a commercial lending institution. The debt currently outstanding associated with this agreement is as follows: \n \nDescription \n \nInterest Rate Issue Date Maturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nPromissory Note \n \n5.25% \n \n5/5/2015 \n \n7/31/2018 $ \n \n105,520.00 $ \n \n76,983.31 \n \nThe following is a schedule of total promissory note payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2017 2018 2019 \n \n$ 25,084.44 $ 4,052.70 \n \n27,170.25 \n \n2,686.89 \n \n24,008.62 \n \n1,260.45 \n \nTotal Principal and Interest $ 76,263.31 $ 8,000.04 \n \nNOTE 9: RISK MANAGEMENT \nINSURANCE \nCommercial Insurance \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 describe 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. \nWORKERS' COMPENSATION \nGeorgia Education Workers' Compensation Trust \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. \nUNEMPLOYMENT COMPENSATION \nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the general fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. 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. \n- 21 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2015 $ \n \n- \n \n$ 12,820.40 $ 12,820.40 $ \n \n- \n \n2016 $ \n \n- \n \n$ \n \n4,841.27 $ \n \n4,841.27 $ \n \n- \n \nSURETY BOND \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Drivers Education \n \n$ \n \n50,000.00 \n \n$ \n \n10,000.00 \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2016: \n \nNonspendable \n \nInventories \n \n$ \n \nRestricted \n \nContinuation of federal programs $ 256,474.49 \n \nDebt service \n \n216,028.21 \n \nUnassigned \n \n40,235.80 \n472,502.70 (5,825,802.51) \n \nFund balance, June 30, 2016 \n \n$ (5,313,064.01) \n \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. \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of not less than 8.3% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with O.C.G.A. 20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. See Note 15 and Note 16 for additional information. \n \n- 22 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 11: SIGNIFICANT COMMITMENTS \nOPERATING LEASES \nThe School District leases a bus workshop, fuel disbursement system and equipment 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 $75,569.85 for governmental activities for the year ended June 30, 2016. The following future minimum lease payments were required under operating leases at June 30, 2016: \n \nYear Ending \n \nGovernmental Funds \n \n2017 2018 2019 2020 2021 2022 - 2023 \nTotal \n \n$ 75,569.85 37,200.00 23,700.00 19,200.00 19,200.00 27,200.00 \n$ 202,069.85 \n \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nFEDERAL GRANTS \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nLITIGATION \nThe School District is a defendant in a Class Action case, MMT Holdings, LLC, et al v. City of Dublin School District and City of Dublin, Georgia. The Plaintiffs' motion was granted and the School District has appealed this ruling to the Georgia Supreme Court and the appeal is in the briefing stage. The estimated amount of the property tax that would be returned to the taxpayers if the School District loses its appeal is approximately $1,000,000.00. These funds, collected by the City of Dublin but not released to the School District are not recorded on the School District's financial statements. \nNOTE 13: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \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. \n \n- 23 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \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. \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. \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: \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 1, 2015  June 30, 2016 For non-certificated school personnel: \nJuly 1, 2015  December 31, 2015 \n \n$945.00 per member per month $596.20 per member per month \n \nJanuary 1, 2016  June 30, 2016 $746.20 per member per month \nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2016 2015 2014 \n \n100% 100% 100% \n \n$ \n \n2,802,332.42 \n \n$ \n \n2,531,592.78 \n \n$ \n \n2,872,907.01 \n \n- 24 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 14: RETIREMENT PLANS \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 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. \nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2016. The School District's contractually required contribution rate for the year ended June 30, 2016 was 14.27% of annual School District payroll, of which 14.09% of payroll was required from the School District and 0.18% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,945,074.66 and $25,341.70 from the School District and the State, respectively. \nEMPLOYEES' RETIREMENT SYSTEM \nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \n \n- 25 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2016 was 24.72% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. For the current fiscal year, employer contributions to the pension plan were $0.00. \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \nUpon retirement, the member will receive a monthly benefit of $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. \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. \n \n- 26 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $49,723.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2016, the School District reported a liability of $19,884,989.00 for its proportionate share of the net pension liability for TRS. \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ \n \n19,884,989.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n1,218.00 \n \nTotal \n \n$ \n \n19,886,207.00 \n \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 and ERS during the fiscal year ended June 30, 2015. \nAt June 30, 2015, the School District's TRS proportion was 0.130616%, which was a decrease of 0.007221% from its proportion measured as of June 30, 2014. At June 30, 2015, the School District's ERS proportion was 0.00%, which was a decrease of 0.000392% from its proportion measured as of June 30, 2014. \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 $197,656.00. \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. \nFor the year ended June 30, 2016, the School District recognized pension expense of $1,194,596.00 for TRS, ($39,698.00) for ERS and $11,787.00 for PSERS and revenue of ($41,100.00) for TRS and $11,787.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 27 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nAt June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ \n \n- $ 174,899.00 $ \n \n- $ \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \nChanges in proportion and differences between School District contributions and proportionate share of contributions \nSchool District contributions subsequent to the measurement date \n \n600,017.00 1,945,074.66 \n \n1,677,320.00 993,718.00 - \n \n- \n \n- \n \n- \n \n30,404.00 \n \n- \n \n- \n \nTotal \n \n$ 2,545,091.66 $ 2,845,937.00 $ \n \n- $ 30,404.00 \n \nThe School District contributions subsequent to the measurement date of $1,945,074.66 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2017 2018 2019 2020 2021 \n \n$ (880,647.00) $ (26,746.00) \n \n$ (880,647.00) $ (3,658.00) \n \n$ (880,648.00) $ \n \n- \n \n$ 451,672.00 $ \n \n- \n \n$ (55,650.00) $ \n \n- \n \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: \n \nTeachers Retirement System: Inflation Salary increases Investment rate of return \n \n3.00% \n3.75%  7.00%, average, including inflation \n7.50%, net of pension plan investment expense, including inflation \n \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. \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. \n \n- 28 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nEmployees' Retirement System: \n \nInflation \n \n3.00% \n \nSalary increases \n \n5.45%  9.25%, average, including inflation \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for the periods after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \n \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. \n \nPublic School Employees Retirement System: \n \nInflation \n \n3.00% \n \nSalary increases \n \nN/A \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \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. \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. \nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \nTotal \n* Rates shown are net of the 3.00% assumed rate of inflation \n \nTarget allocation \n30.00% 39.70% \n3.70% 1.60% 18.90% 6.10% \n100.00% \n \nLong-term expected real rate of return* \n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \n \n- 29 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's \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: \n \nTeachers Retirement System: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share of the net pension liability \n \n$ 34,170,850.00 $ \n \n19,884,989.00 $ 8,110,040.00 \n \nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publically available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \n \nNOTE 15: DEFICIT FUND BALANCE OF INDIVIUDAL FUNDS \nFunds reporting a deficit fund balance at the fiscal year end, are as follows: \n \nFund Type/Fund Name \n \nDeficit Balances \n \nGovernmental Funds General Fund General Fund Title I Special Education Title II-A-Improving Teacher Quality Education for Homeless Children Twenty-First Century R.O.T.C Pre-K \n \n$ 3,911,322.64 305,530.49 659,194.23 14,011.08 73.29 17,890.14 636,018.47 281,762.17 \n \n$ 5,825,802.51 \n \nA deficit reduction plan, including staff eliminations and closing Saxon Heights Elementary School was given to the Georgia Department of Education. Monthly financial reports and bank statements are sent to Financial Review combined with site visits to Dublin and visits to Atlanta to monitor the deficit. \n \n- 30 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 16: LIQUIDITY RISK \nLiquidity risk is the risk of not having sufficient liquid financial resources to meet obligations when they fall due. The School District faces liquidity risk regarding operating expenditures and long-term debt payment requirements. \nAs a result of ongoing operating deficits over the past several years the School District accumulated a general fund unassigned fund balance deficit of $5.8 million at June 30, 2016. As part of reporting and monitoring requirements, the School District files annual deficit reduction plans with the Georgia Department of Education. The fiscal year 2017 deficit reduction plan's goal is to reduce the general fund unassigned fund balance by $1.9 million. The general fund deficit fund balance has forced the School District to rely on tax anticipation notes and temporary borrowing from Special Purpose Local Option Sales Tax (SPLOST) funds to meet cash flow needs related to operating expenditures. The School District expects to be able to continue to utilize tax anticipation notes to meet current cash flow needs related to operating expenditures. \nThe School District's annual bond and capital lease debt payment requirements will exceed annual SPLOST collections for each of the next four fiscal years. The School District levied a 2.25 bond property tax millage in fiscal year 2017 to help fund this revenue shortfall. The funds generated from the tax are being held by the City of Dublin pending the outcome of a lawsuit filed by citizens disputing the bond millage. Without the bond property tax revenue the School District may have to consider restructuring long-term debt. \nNOTE 17: SUBSEQUENT EVENTS \nIn fiscal year 2017, the School District levied a 2.25 bond property tax millage rate to pay general obligation bond debt obligations. This millage rate was levied in addition to the 19.705 maintenance and operations millage rate. On November 7, 2016, a Complaint for Refund of Taxes and Injunctive Relief (Class Action) was filed in the Superior Court of Laurens County, Georgia. The court found that the educational sales tax proceeds must first be used to satisfy the 2010 and 2011 general obligation bond debt service requirements. The court also found that the property tax was illegally and erroneously assessed and collected and that Plaintiffs were entitled to a property tax refund. The parties have entered into a consent order agreeing that the tax collector, City of Dublin, will not disburse any of the collected bond property tax proceeds to the School District until further order from the court. The School District has appealed the ruling to the Georgia Supreme Court. The Georgia Supreme Court transferred the appeal to the Georgia Court of Appeals. \nThe School District's short-term debt (tax anticipation notes in advance of property tax collections) at July 1, 2016 was $4,511,500.00. Another $488,500.00 was borrowed during the remainder of calendar year 2016 and the $5,000,000.00 was paid back in December 2016. A total of $4,210,228.00 was borrowed by June 30, 2017 with additional draws of $775,000.00 during the remainder of calendar year 2017. The $4,985,228.00 is due to be paid back on December 29, 2017. \nAs part of the School District's fiscal year 2018 deficit reduction plan, the Board of Education voted to freeze the fiscal year 2017 salaries for all employees. No salary increases were implemented for teachers or staff in fiscal year 2018. Additionally, thirteen staff positions were eliminated. The School District expects to decrease the general fund unassigned fund balance by $950 thousand as a result of the 2018 deficit reduction plan. \n \n- 31 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"1\" \n \nYear Ended \n2016 2015 \n \nSchool District's proportion of the \nnet pension liability \n \nSchool District's proportionate share of the net pension liability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \n \n0.130616% $ 0.137837% $ \n \n19,884,989.00 $ 17,413,887.00 $ \n \n1,218.00 $ 74,412.00 $ \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the net pension liability as a percentage of its covered \nemployee payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n19,886,207.00 $ 13,935,731.79 17,488,299.00 $ 14,216,882.08 \n \n142.69% 122.49% \n \n81.44% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 33 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n2016 2015 \n \nSchool District's proportion of the net pension liability \n \nSchool District's proportionate share of the net pension \nliability \n \nSchool District's covered-employee \npayroll \n \n0.00% $ 0.000392% $ \n \n- \n \n$ \n \n14,702.00 $ \n \n9,246.18 \n \nSchool District's proportionate share of the net pension liability \nas a percentage of covered payroll \n0.00% 159.01% \n \nPlan fiduciary net position as a \npercentage of total net pension liability \n76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 34 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEMS OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \n \nYear Ended \n2016 2015 \n \nSchool District's proportion of the \nnet pension liability \n \nSchool District's proportionate share of the net pension liability \n \n0.00% $ \n \n- \n \n0.00% $ \n \n- \n \nState of Georgia's proportionate share of the net pension liability \nassociated with the School District \n \n$ \n \n197,656.00 $ \n \n$ \n \n194,696.00 $ \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the net pension \nliability as a percentage of its covered employee \npayroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n197,656.00 $ 194,696.00 $ \n \n653,953.49 615,833.23 \n \nN/A \n \n87.00% \n \nN/A \n \n88.29% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 35 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended (1) \n2016 2015 (1) 2014 (1) 2013 (1) 2012 (1) 2011 (1) 2010 (1) 2009 (1) 2008 (1) 2007 (1) \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n1,945,074.66 $ \n \n1,945,074.66 $ \n \n- \n \n$ \n \n1,832,548.73 $ \n \n1,832,548.73 $ \n \n- \n \n$ \n \n1,745,833.12 $ \n \n1,745,833.12 $ \n \n- \n \n$ \n \n1,687,641.93 $ \n \n1,687,641.93 $ \n \n- \n \n$ \n \n1,549,293.65 $ \n \n1,549,293.65 $ \n \n- \n \n$ \n \n1,609,593.00 $ \n \n1,609,593.00 $ \n \n- \n \n$ \n \n1,569,706.00 $ \n \n1,569,706.00 $ \n \n- \n \n$ \n \n1,461,107.13 $ \n \n1,461,107.13 $ \n \n- \n \n$ \n \n1,442,489.65 $ \n \n1,442,489.65 $ \n \n- \n \n$ \n \n1,478,388.89 $ \n \n1,478,388.89 $ \n \n- \n \nSchool District's covered-employee \npayroll \n$ 13,808,103.41 $ 13,935,731.79 $ 14,216,882.08 $ 14,790,902.10 $ 15,070,949.90 $ 15,657,519.46 $ 16,116,078.03 $ 15,744,688.90 $ 15,544,069.50 $ 15,930,914.76 \n \nContribution as a percentage of covered- \nemployee payroll \n14.09% 13.15% 12.28% 11.41% 10.28% 10.28% \n9.74% 9.28% 9.28% 9.28% \n \n(1) For years 2015 and earlier, the contribution amounts include payments made on-behalf of the School District employees by the Georgia Department of Education. \n \n- 36 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n2016 2015 2014 2013 2012 2011 2010 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n1,706.84 $ \n \n1,706.84 $ \n \n- \n \n$ \n \n8,138.28 $ \n \n8,138.28 $ \n \n- \n \n$ \n \n5,402.16 $ \n \n5,402.16 $ \n \n- \n \n$ \n \n4,704.42 $ \n \n4,704.42 $ \n \n- \n \n$ \n \n4,608.29 $ \n \n4,608.29 $ \n \n- \n \nSchool District's covered-employee \npayroll \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n9,246.18 \n \n$ \n \n54,619.32 \n \n$ \n \n46,450.18 \n \n$ \n \n45,191.37 \n \n$ \n \n44,267.91 \n \nContribution as a percentage of covered- \nemployee payroll \n0.00% 0.00% 18.46% 14.90% 11.63% 10.41% 10.41% \n \nThis schedule is intended to show information for 10 years. The School District started contributing to the Employees Retirement System in fiscal year 2010. The School District made no contributions to the Employees Retirement System during fiscal years 2015 and 2016. Additional years will be displayed as they become available. \n \n- 37 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"6\" \n \nTeachers Retirement System \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. \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: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \n \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 \nexpense, including inflation \n \nEmployees' Retirement System \n \nChanges of assumptions: There were no changes in assumptions or benefits that affect the measurement of the total pension liability since the prior measurement date. \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: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \n \nJune 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% 5.45% - 9.25% 7.50%, net of pension plan investment \nexpense, including inflation \n \nPublic School Employees Retirement System \n \nChanges of assumptions: The last experience investigation was prepared for the five-year period ending June 30, 2009, and based on the results of the investigation various assumptions and methods were revised and adopted by the board on December 16, 2010. The next experience investigation will be prepared for the period July 1, 2009 through June 30, 2014. \n \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: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \nCost-of living adjustments \n \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 \nexpense, including inflation 1.50% semi-annually \n \n- 38 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2016 \n \nSCHEDULE \"7\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n9,029,255.00 $ \n \n9,141,255.00 $ \n \n9,101,143.12 $ \n \n- \n \n- \n \n120,597.64 \n \n12,160,378.01 \n \n12,112,412.38 \n \n12,166,137.79 \n \n5,702,456.00 \n \n6,320,867.00 \n \n5,703,836.46 \n \n16,850.00 \n \n16,850.00 \n \n147,628.48 \n \n- \n \n- \n \n86.67 \n \n300,000.00 \n \n300,000.00 \n \n576,776.52 \n \n27,208,939.01 \n \n27,891,384.38 \n \n27,816,206.68 \n \n(40,111.88) 120,597.64 \n53,725.41 (617,030.54) 130,778.48 \n86.67 276,776.52 \n(75,177.70) \n \n14,649,545.41 \n1,440,087.80 2,420,874.36 \n473,508.68 749,889.32 1,581,126.68 649,076.12 2,155,875.00 1,130,571.00 443,466.32 347,173.00 \n1,656,650.00 - \n27,697,843.69 \n(488,904.68) \n(5,660,642.22) \n15,349.70 \n \n14,622,718.78 \n1,441,905.80 2,154,266.36 \n473,508.68 652,764.32 1,581,126.68 749,076.12 2,130,875.00 1,064,890.00 442,691.32 315,879.00 \n1,656,650.00 - \n27,286,352.06 \n605,032.32 \n(5,651,246.22) \n(4,314.27) \n \n15,508,077.59 \n1,554,559.58 1,752,123.77 \n451,992.57 476,481.16 1,491,137.50 860,898.59 2,238,049.19 1,046,380.69 301,303.46 269,232.64 \n56,348.49 1,280.42 \n1,737,317.52 22,715.48 \n27,767,898.65 \n48,308.03 \n(5,577,400.25) \n- \n \n$ \n \n(6,134,197.20) $ \n \n(5,050,528.17) $ \n \n(5,529,092.22) $ \n \n(885,358.81) \n(112,653.78) 402,142.59 \n21,516.11 176,283.16 \n89,989.18 (111,822.47) (107,174.19) \n18,509.31 141,387.86 \n46,646.36 (56,348.49) \n(1,280.42) (80,667.52) (22,715.48) \n(481,546.59) \n(556,724.29) \n73,845.97 \n4,314.27 \n(478,564.05) \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts and ROTC fund. The actual revenues and expenditures of the various principal accounts are $480,592.32 and $473,783.81, respectively. The actual revenues and expenditures of the ROTC fund are $67,377.67 and $170,121.88, respectively. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 39 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2016 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth Improving Teacher Quality State Grants Rural Education Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n16165GA324N1099 $ 16165GA324N1099 \n \n474,607.04 1,370,799.58 \n1,845,406.62 \n \n84.027 84.173 \n \nH027A150073 H173A150081 \n \n84.048 84.196 84.367 84.358 84.010 84.287 \n \nV048A150010 S196A150011 S367A150001 S358B150010 S010A150010 S287C150010 \n \n559,292.02 17,636.00 \n576,928.02 \n40,693.00 34,309.00 180,387.61 53,104.73 1,984,537.58 717,484.52 3,010,516.44 3,587,444.46 \n67,377.67 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n5,500,228.75 \n \nNotes to the Schedule of Expenditures of Federal Awards \nNote 1. Basis of Presentation \nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award of the City of Dublin 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 Par 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. \nNote 2. Summary of Significant Accounting Policies \nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10percent de minimis indirect cost rate as allowed under the Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 40 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2016 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \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 Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Residential Treatment Centers Grant Teachers Retirement Vocational Education \nOffice of the State Treasurer Public School Employees Retirement \n \nSCHEDULE \"9\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n559,694.16 \n \n794,333.00 240,542.00 1,869,096.00 364,781.00 823,668.00 128,837.00 1,475,438.00 1,328,900.00 385,092.00 1,556,216.00 214,126.00 \n45,066.00 103,203.00 261,839.00 \n82,028.00 42,064.00 \n1,730.00 \n399,527.00 760,451.00 586,837.00 \n49,168.00 (612,286.00) 213,166.00 \n151,295.00 47,018.00 \n43,976.00 2,921.93 \n51,689.00 102,915.00 \n25,341.70 17,742.00 \n49,723.00 \n$ 12,166,137.79 \n \nSee notes to the basic financial statements. \n \n- 41 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2016 \n \nSCHEDULE \"10\" \n \nPROJECT \nAcquiring, constructing, and equipping renovations and improvements to the Dublin Junior High School Auditorium, including partial demolition of Dublin Junior High School, renovations and additions at Dublin High School, the purchase of school buses, the installation of computer cabling on a system-wide basis and technology upgrades, the acquisition of certain property and equipment, including any heating and air conditioning equipment, which may be subject to lease by the Dublin School District, and additions, renovations, and improvements to Central Elementary School, Susie Dasher Elementary School, Saxon Heights Elementary School, Hillcrest Elementary School, Moore Street Elementary School, and Dublin Middle School. \nAcquisition of real property and construction, equipping and furnishing of new school buildings and facilities, including, but not limited to, a new elementary school including physical education and athletic facilities, and the completion of the new Dublin High School and auditorium; additions, renovations, repairs and improvements to existing school buildings and facilities, including, but not limited to Moore Street Elementary, Susie Dasher Elementary, Saxon Heights Elementary, Dublin Middle School, and Hillcrest Center; new physical education and athletic facilities for Dublin High School and Dublin Middle School, including, but not limited to, a tennis court complex at Dublin High School; technology equipment, school nutrition program equipment, and improvements throughout the Dublin School District; the acquisition of school vehicles, including, but not limited to, school buses and equipment; additions renovations, repairs and improvements to the central office building including, but not limited to, HVAC; and to retire previously incurred general obligation debt. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \nESTIMATED COMPLETION \nDATE \n \n$ 14,850,000.00 $ \n \n7,847,109.23 $ \n \n51,183.22 $ 7,795,926.01 $ 7,847,109.23 $ \n \n- \n \nCompleted \n \n17,750,000.00 \n \n20,690,165.37 \n \n1,232,988.17 \n \n19,457,177.20 \n \n- \n \n- \n \n12/31/2017 \n \n$ 32,600,000.00 $ 28,537,274.60 $ 1,284,171.39 $ 27,253,103.21 $ 7,847,109.23 $ \n \n- \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Laurens 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. \n \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: \n \nPrior Years $ 4,168,450.84 \n \nCurrent Year \n \n454,100.00 \n \nTotal $ 4,622,550.84 \n \nSee notes to the basic financial statements. \n \n- 43 - \n \n (This page left intentionally blank) \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJanuary 9, 2018 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \nGOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \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 City of Dublin Board of Education (School District) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements and have issued our report thereon dated January 9, 2018. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) 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. \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 over financial reporting that we consider to be material weaknesses and significant deficiencies. \n \n (This page left intentionally blank) \n \n A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS 2016-003, FS 2016-004, and FS 2016-006, to be material weaknesses. \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, FS 2016-002, and FS 2016-005, to be significant deficiencies. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying Schedule of Findings and Questioned Costs as items FS 2016-004 and FS 2016-006. \nSchool District's Response to Findings \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. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJanuary 9, 2018 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nREPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nReport on Compliance for Each Major Federal Program \nWe have audited City of Dublin 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. \nManagement's Responsibility \nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \nAuditor's Responsibility \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. \n \n (This page left intentionally blank) \n \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. \nOpinion on Each Major Federal Program \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. \nReport on Internal Control over Compliance \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. \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. \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. \nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS-7741-12-01 Control Category: \nInternal Control Impact: Compliance Impact: \n \nInternal Controls at the Central Office Cash and Cash Equivalents Employee Compensation Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Material Weakness None \n \nFinding Status: \n \nPartially Resolved \n \nThe Board has implemented procedures to reconcile all bank accounts on a monthly basis to the general ledger and to have documented management review and approval. Subsidiary listings for accounts payable and accounts receivable are being maintained. State travel regulations are being followed with credit card usage being controlled as well as being paid on a timely basis. \n \nFS-7741-12-02 Control Category: Internal Control Impact: Compliance Impact: \n \nAdoption of a Balanced Budget, Deficit Fund Balance Budget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nDuring fiscal year 2016, the Board developed a new deficit elimination plan and presented it to the Georgia Department of Education. The plan calls for the closure of Saxon Heights Elementary school, and moving 5th graders to Dublin Middle School to better use our facilities and resources as well as save money. Non-academic staff positions and operating expenses at Saxon are being eliminated. During fiscal year 2017, the Board anticipates reducing the deficit by over $1.5 million. \n \nFS-7741-12-03 Control Category: Internal Control Impact: Compliance Impact: \n \nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \n \nFinding Status: \n \nPartially Resolved \n \nThe Board will develop and implement internal controls over financial statement reporting and ensure that activity is properly recorded in the general ledger. We will verify that financial statements (including note disclosures) properly reflect the activity reported in the general ledger and that the financial information presented for audit will be accurate. \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS-7741-12-04 Control Category: Internal Control Impact: Compliance Impact: \n \nUse of SPLOST Proceeds Expenditures/Liabilities/Disbursements None Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nThe Board will review with legal counsel SPLOST referendums prior to the obligation of funds. \n \nFS-7741-12-05 Control Category: Internal Control Impact: Compliance Impact: \n \nMaintenance of Capital Assets Capital Assets Material Weakness None \n \nFinding Status: \n \nPartially Resolved \n \nThe School District will review its capital asset activity and ensure that activity conforms to the approved capital asset policy and generally accepted accounting principles. \n \nFS 2013-001 Control Category: \nInternal Control Impact: Compliance Impact: \n \nInternal Controls at the Central Office Cash and Cash Equivalents Employee Compensation Expenditures/Liabilities/Disbursements Material Weakness None \n \nFinding Status: \n \nPartially Resolved \n \nThe Board has implemented procedures to reconcile all bank accounts on a monthly basis to the general ledger and to have documented management review and approval. Subsidiary listings for accounts payable and accounts receivable are being maintained. State travel regulations are being followed with credit card usage being controlled as well as being paid on a timely basis. \n \nFS 2013-002 Control Category: Internal Control Impact: Compliance Impact: \n \nDeficit Fund Balance Budget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nDuring fiscal year 2016, the Board developed a new deficit elimination plan and presented it to the Georgia Department of Education. The plan calls for the closure of Saxon Heights Elementary school, and moving 5th graders to Dublin Middle School to better use our facilities and resources as well as save money. Non-academic staff positions and operating expenses at Saxon are being eliminated. During fiscal year 2017, the Board anticipates reducing the deficit by over $1.5 million. \n \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2013-003 Control Category: Internal Control Impact: Compliance Impact: \n \nInternal Control over Financial Reporting Process Financial Reporting Material Weakness None \n \nFinding Status: \n \nPartially Resolved \n \nThe Board will develop and implement internal controls over financial statement reporting and ensure that activity is properly recorded in the general ledger. We will verify that financial statements (including note disclosures) properly reflect the activity reported in the general ledger and that the financial information presented for audit will be accurate. \n \nFS 2013-004 Control Category: Internal Control Impact: Compliance Impact: \n \nUse of SPLOST Proceeds Expenditures/Liabilities/Disbursements Significant Deficiency Nonmaterial Noncompliance \n \nFinding Status: \n \nUnresolved \n \nThe Board will review with legal counsel SPLOST referendums prior to the obligation of funds. \n \nFS 2013-005 Control Category: Internal Control Impact: Compliance Impact: \n \nMaintenance of Capital Assets Capital Assets Material Weakness None \n \nFinding Status: \n \nPartially Resolved \n \nThe School District will review its capital asset activity and ensure that activity conforms to the approved capital asset policy and generally accepted accounting principles. \n \nFS 2014-001 Control Category: \nInternal Control Impact: Compliance Impact: \n \nInternal Controls at the Central Office Cash and Cash Equivalents Expenditures/Liabilities/Disbursements Employee Compensation Material Weakness None \n \nFinding Status: \n \nPartially Resolved \n \nThe Board has implemented procedures to reconcile all bank accounts on a monthly basis to the general ledger and to have documented management review and approval. Subsidiary listings for accounts payable and accounts receivable are being maintained. State travel regulations are being followed with credit card usage being controlled as well as being paid on a timely basis. \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2014-002 Control Category: Internal Control Impact: Compliance Impact: \n \nDeficit Fund Balance Budget Preparation/Execution Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nDuring fiscal year 2016, the Board developed a new deficit elimination plan and presented it to the Georgia Department of Education. The plan calls for the closure of Saxon Heights Elementary school, and moving 5th graders to Dublin Middle School to better use our facilities and resources as well as save money. Non-academic staff positions and operating expenses at Saxon are being eliminated. During fiscal year 2017, the Board anticipates reducing the deficit by over $1.5 million. \n \nFS 2014-003 Control Category: Internal Control Impact: Compliance Impact: \n \nInternal Control over Financial Reporting Financial Reporting Material Weakness None \n \nFinding Status: \n \nPartially Resolved \n \nThe Board will develop and implement internal controls over financial statement reporting and ensure that activity is properly recorded in the general ledger. We will verify that financial statements (including note disclosures) properly reflect the activity reported in the general ledger and that the financial information presented for audit will be accurate. \n \nFS 2014-004 Control Category: Internal Control Impact: Compliance Impact: \n \nUse of SPLOST Proceeds Expenditures/Liabilities/Disbursements None Nonmaterial Noncompliance \n \nFinding Status: \n \nUnresolved \n \nThe Board will review with legal counsel SPLOST referendums prior to the obligation of funds. \n \nFS 2014-005 Control Category: Internal Control Impact: Compliance Impact: \n \nMaintenance of Capital Assets Capital Assets Material Weakness None \n \nFinding Status: \n \nPartially Resolved \n \nThe School District will review its capital asset activity and ensure that activity conforms to the approved capital asset policy and generally accepted accounting principles. \n \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2015-001 Control Category: \nInternal Control Impact: Compliance Impact: \n \nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe Board has implemented procedures to reconcile all bank accounts on a monthly basis to the general ledger and to have documented management review and approval. Subsidiary listings for accounts payable and accounts receivable are being maintained. State travel regulations are being followed with credit card usage being controlled as well as being paid on a timely basis. \n \nFS 2015-002 Control Category: \nInternal Control Impact: Compliance Impact: \n \nInternal Controls Over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nWe concur with this finding. The Board has implemented procedures to reconcile all school activity bank accounts monthly at the Board office with school bookkeepers working with the School District Accounts Payable Specialist. Bank accounts will be properly reconciled to the General Ledger. This procedure will ensure the timeliness of performing the reconciliations along with a review of the deposit and disbursement documentation, as well as a separation of duties. Additional training will be provided to the school bookkeepers about properly documenting the receipts and disbursements at the school. School principals will review and sign the monthly bank reconciliations. \n \nFS 2015-003 Control Category: Internal Control Impact: Compliance Impact: \n \nInternal Control over Financial Reporting Financial Reporting Material Weakness None \n \nFinding Status: \n \nUnresolved \n \nThe Board will develop and implement internal controls over financial statement reporting and ensure that activity is properly recorded in the general ledger. We will verify that financial statements (including note disclosures) properly reflect the activity reported in the general ledger and that the financial information presented for audit will be accurate. \n \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2015-004 Control Category: Internal Control Impact: Compliance Impact: \n \nUse of SPLOST Proceeds Expenditures/Liabilities/Disbursements Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nWe concur with the finding. The School District will use SPLOST funds exclusively for the purpose of retiring bond debt and in accordance with the referendum approved by the voters of Laurens County. \n \nFS 2015-005 Control Category: Internal Control Impact: Compliance Impact: \n \nMaintenance of Capital Assets Capital Assets Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nWe concur with this finding. The School District will verify and use the updated, audited capital assets listing provided during the audit and keep it current with future capital asset activity and ensure that it conforms to the approved capital assets policy and generally accepted accounting principles. \n \nFS 2015-006 Control Category: Internal Control Impact: Compliance Impact: \n \nAdoption of a Balanced Budget, Deficit Fund Balance Budget Preparation/Execution Material Weakness Material Noncompliance \n \nFinding Status: \n \nUnresolved \n \nWe concur with this finding. The Board submitted a deficit elimination plan to the Georgia Department of Education in March 2016. The plan should reduce the deficit by over $1.6 million each year. The Board has closed Saxon Heights Elementary School and made significant staff reductions. Property values in the City of Dublin were reassessed in 2015, resulting in an additional $500,000.00 in tax revenue that is to be used exclusively for deficit reduction. In fiscal year 2017 the School District is budgeted to receive an increase in State QBE funding of $627,000.00 of which 50% is earmarked for deficit reduction. No salary increases will be implemented for teachers or staff in fiscal year 2017. Reporting requirements applicable for deficit fund balances with the Georgia Department of Education are being followed. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n- 6 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information Discretely Presented Component Unit \n \nUnmodified Disclaimer \n \nInternal control over financial reporting: \n \n Material weaknesses identified? \n \nYes \n \n Significant deficiencies identified? \n \nYes \n \nNoncompliance material to financial statements noted: \n \nYes \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with 2 CFR 200.516(a)? \n \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.010 \n \nChild Nutrition Cluster Title I Grants to Local Education Agencies \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$750,000.00 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2016-001 Control Categories: \nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None FS 2015-001, FS 2014-001, FS 2013-001, FS-7741-12-01 \n \nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls over operations at the Central Office. \n \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. \n \nCondition: Accounting Controls (Overall) \n The School District does not have adequate logical access controls in place to ensure only appropriate users have access to significant financial applications. 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. \n School District management did not complete a formal risk assessment of significant accounts and processes to ensure that internal controls were well defined, documented, and placed in operation and functioning properly. \n \nCash and Cash Equivalents  The debt service SPLOST bank account reconciliations were performed quarterly rather than monthly and were untimely. Four additional June 2016 bank account reconciliations were not completed and approved until September 2016.  The School District's general ledger reflected an overall balance in the Inter-fund Cash account of $11,771.38. This account should always carry an overall balance of zero. \n \nRevenue/Receivables/Receipts  A review of the federal grant fund activity revealed that the School District did not properly monitor federal grants to ensure that grants were maintained by grant period, revenues and expenditures were properly recorded in the appropriate fiscal year, and that accounts receivable and deferred revenue were recorded when appropriate.  Grants were not properly closed out so that unused grant funds remaining after the end of grant periods were returned to grantors as required and grant over-expenditures were properly funded with local funds. \n \nExpenditures/Liabilities/Disbursements  The general ledger included $5,279.83 of invalid accounts payables over one year old for the School Food Service program. \n \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCause: In discussing these deficiencies with School District management, they stated that these deficiencies were the result of management's failure to ensure that internal controls were established, implemented and functioning. \n \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 could impact its reporting of financial position and results of operations. \n \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 complete a formal risk assessment of significant accounts and processes. Timely bank reconciliations should be performed. Grant activity should be properly recorded on the general ledger and reviewed at the end of the grant periods to determine if refunds are due to grantors or if local funds are necessary to cover deficits. Liabilities should be reviewed at fiscal year-end for validity. Management should establish monitoring processes to provide reasonable assurance that the controls are functioning and financial transactions are properly processed and recorded. \n \nViews of Responsible Officials: The School District concurs with this finding. \n \nFS 2016-002 Control Categories: \nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nInternal Controls over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None FS 2015-002 \n \nDescription: The accounting procedures of the School District were insufficient to provide the adequate internal controls over the school activity accounts. \n \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. \n \nCondition: The following deficiencies related to School Activity Accounts were noted during our audit procedures: \n \nCash and Cash Equivalents  The bank reconciliation function was not separate from the record keeping and voucher payment functions.  Monthly bank reconciliations were not performed for five of the six school activity bank accounts throughout fiscal year 2016. \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Revenues/Receipts/Receivables \n The deposit preparation function was not separated from the record keeping and cash custody functions. \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or check processing functions.  A review ten disbursements revealed five that lacked proper approval. \nCause: In discussing these deficiencies with School District management, they stated that these deficiencies were the result of management's failure to ensure that internal controls were established, implemented and functioning. Effect or Potential Effect: The lack of adequate controls over school activity account cash, revenues and expenditures 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. Recommendation: The School District should implement procedures to ensure that key accounting functions relative to the above control categories are appropriately separated. In addition, the School District should implement procedures to ensure that disbursements are properly reviewed and approvals are documented. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures and that all school activity bank accounts are reconciled in a timely manner. Views of Responsible Officials: The School District concurs with this finding. \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2016-003 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nInternal Controls over Financial Reporting Financial reporting Material Weakness None FS 2015-003, FS 2014-003, FS 2013-003, FS-7741-12-03 \n \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. \n \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). \n \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. \n \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. \n \nCondition: The following errors and omissions in the School District financial statements presented for audit: \n \n The School District did not record activity of the Heart of Georgia College \u0026 Career Academy, Inc. (Charter School) for the year ended June 30, 2016. Material adjustments were proposed by the auditor and accepted by the School District to record the activity of the Component Unit on the government-wide financial statements. \n Beginning net position and expense were each overstated by $493,929.73. Adjustments were proposed by the auditor and accepted by the School District to correct these significant misstatements. \n Unearned revenue was understated and federal revenue was overstated by $135,363.79 for both the government-wide financial statements and the general fund. Adjustments were proposed by the auditor and accepted by the School District to correct these significant misstatements. \n Net position restricted for continuation of federal programs was overstated by $225,820.50, net position restricted for debt service was overstated by $115,605.81, net position restricted for capital projects was overstated by $84,799.14 and unrestricted net position was understated by $426,225.45. An adjustment was proposed by the auditor and accepted by the School District to properly classify net position. \n Equipment in the amount of $77,470.13 was improperly capitalized. An adjustment was proposed by the auditor and accepted by the School District to correct this error. \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n Cash was overstated and due from other funds was understated by $144,159.29 for the general fund. Cash and due to other funds were each understated by $144,159.29 for the capital projects fund. Adjustments were proposed by the auditors and accepted by the School District to correct this significant misstatement to the general fund and material misstatement to the capital projects fund. \n Fund balance restricted for continuation of federal programs was overstated and unrestricted fund balance was understated by $225,820.50 for the general fund. An adjustment was proposed by the auditor and accepted by the School District to properly classify fund balance. \n Capital outlay expenditures were understated and cash was overstated by $46,131.20 for the capital projects fund. An adjustment was proposed by the auditor and accepted by the School District to correct this material error. \n Central support services expenditures was understated and debt service was overstated by $38,369.08 for the capital projects fund. An adjustment was proposed by the auditor and accepted by the School District to correct this material error. \n The School District did not provide all of the required Exhibits to the financial statements. Specifically the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position and the Reconciliation of the Governmental Funds Statements of Revenues and Expenditures and Changes in Fund Balances to the Statement of Activities were not completed and presented for audit by the School District. \n Numerous other significant adjustments and reclassifications were proposed by the auditor and accepted by the School District to properly present the financial statements. \nCause: In discussing these deficiencies with School District management, they stated that they did not implement an adequate system of internal control over the financial reporting process. \nEffect or Potential Effect: Material and significant misstatements and misclassifications were included in the financial statements presented for audit. The lack of controls and monitoring could impact the reporting of the School District's financial position and result of operations. \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 information, are complete and accurate. These controls should include a monitoring process to evaluate the accuracy of the financial statements. These procedures should be performed by properly trained individuals possessing a thorough understanding of the applicable GAAP statements, GASB pronouncements and the School District's operations. \nViews of Responsible Officials: The School District concurs with this finding. \n- 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2016-004 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nUse of SPLOST Proceeds Expenditures/Liabilities/Disbursements Material Weakness Material Noncompliance FS 2015-004, FS 2014-004, FS 2013-004, FS-7741-12-04 \n \nDescription: The School District expended Special Purpose Local Option Sales Tax (SPLOST) proceeds on items which were not specifically identified in the SPLOST project referendum and do not meet the definition of \"capital outlay projects for educational purposes\" in State laws regarding imposition and use of sales taxes for educational purposes. \n \nCriteria: According to Paragraph IV, Section VI, Article VIII of the Constitution of the State of Georgia, \"the purpose or purposes for which the proceeds of the tax are to be used and may be expended include: \n(1) Capital outlay projects for educational purposes; (2) the retirement of previously incurred general obligation debt with respect only to capital projects of the School System...\" Official Code of Georgia Annotated 48-8-121 states, \"The proceeds received from the tax authorized by this part shall be used exclusively for the purpose or purposes specified in the resolution or ordinance calling for imposition of the tax\". \n \nThe Attorney General's Official Opinion 97-7 for O.G.G.A. 20-2-260(b)(5), states, \"capital outlay projects as used in the educational sales tax purposes amendment should be read as well to refer to major, permanent, or long-lived improvements or betterments, such as would be properly chargeable to capital asset account and as distinguished from current expenditures and ordinary maintenance expenses\". \n \nCondition: During the year under review, the School District loaned $2,162,000.00 of SPLOST proceeds to the general fund for general operating expenditures. These expenditures were not approved in the SPLOST referendum. The entire amount was paid back from the general fund before fiscal year-end but still constituted an improper use of SPLOST proceeds. \n \nCause: In discussing this matter with School District management, they indicated that this loan was to cover a shortfall in general operating cash and that they failed to have adequate controls in place to ensure that this interfund activity was properly recorded on the general ledger. \n \nEffect or Potential Effect: Improper use of the Special Purpose Local Option Sales Tax (SPLOST) proceeds, which is a violation of state law. \nRecommendation: The School District should ensure that any use of SPLOST funds is appropriate in accordance with State law and the SPLOST referendum as approved by the voters of Laurens County. \n \n- 7 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nViews of Responsible Officials and Corrective Action Plans: The School District concurs with this finding. \n \nFS 2016-005 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nMaintenance of Capital Assets Capital Assets Significant Deficiency None FS 2015-005, FS 2014-005, FS 2013-005, FS-7741-12-05 \n \nDescription: The School District did not adequately maintain capital assets inventory records. \n \nCriteria: Chapter 37 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration provides that School Districts must establish capital asset policies, define system requirements, implement a capital asset system and maintain capital asset inventory reports. \n \nCondition: A review of the School District's capital assets policies and procedures and the related capital assets records revealed the following exceptions: \n \n Eight items totaling $137,728.11, with accumulated depreciation of 50,100.16, did not meet the capitalization thresholds but were recorded in the capital assets records. \n One equipment purchase that would have had a net book value of $14,429.55 should have been capitalized rather than expensed. \n The School District has not updated their capitalization policy to include the adoption of Governmental Accounting Standards Board (GASB) Statement No. 51, Accounting and Reporting for Intangible Assets. \n \nCause: In discussing these deficiencies with School District management, they indicated that they failed to properly maintain capital assets records in accordance with the School District's approved capital assets policy and requirements set forth in Chapter 37 Implementing a Capital Asset Management System of the Financial Management for Georgia Local Units of Administration. \n \nEffect or Potential Effect: The failure of the School District to maintain a complete and accurate capital assets listing can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. \n \nRecommendation: The School District should review its capital assets records and make appropriate adjustments to ensure that the capital assets are properly maintained and reported according to its policy. In addition, the School District should amend its capital assets policy to include the procedures for recording intangible assets. \n \nViews of Responsible Officials: The School District concurs with this finding. \n \n- 8 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2016-006 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nAdoption of a Balanced Budget, Deficit Fund Balance Budget Preparation/Execution Material Weakness Material Noncompliance FS 2015-006, FS 2014-002, FS 2013-002, FS-7741-12-02 \n \nDescription: At June 30, 2016, the general fund of the School District reported a deficit fund balance. The School District also failed to adopt a balanced general fund budget for fiscal year 2016. \n \nCriteria: Chapter 25 Governmental Fund Deficits of the Financial Management for the Georgia Local Units of Administration states in part: \"The seriousness of the fund balances deficits cannot be overstated. The Georgia Department of Education requires those LUAs with deficit governmental fund balances to meet certain reporting requirements\". \n \nChapter 32, Preparing Operating Budgets of the Financial Management for Georgia Local Units of Administration states in part: \"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated essential expenditures, a portion of unreserved fund balance from previous years must be used to fund the short fall. In the event there is insufficient unreserved fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available unreserved fund balance\". \n \nThe Department of Audits and Accounts is required to report all instances of budget deficits in accordance with the Official Code of Georgia Annotated 20-2-67(a) which states: \"When an audit by the Department of Audits and Accounts finds and reports irregularities or budget deficits in the fund accounting information regarding a local school system or a school within the local school system, the Department of Audits and Accounts shall report the findings of irregularities or budget deficits to the State Board of Education and the local board of education\". \n \nCondition: The School District's general fund reported a deficit unassigned fund balance of $5,825,802.51. In addition, the School District's original and final budgets for the general fund were not balanced. Total anticipated revenues and beginning fund balance did not equal or exceed total estimated expenditures. \n \nCause: In discussing these deficiencies with School District management, they stated that they started the 2016 fiscal year with a $5,577,400.25 deficit, failed to use effective budgeting techniques and continued charging expenditures to state and federal programs after the award amounts had been depleted. \n \nEffect or Potential Effect: The unassigned fund balance of the general fund was not sufficient to meet the fund's obligations for the current year. This a financial statement irregularity in accordance with the Official Code of Georgia Annotated (O.C.G.A.) 20-2-67. \n \n- 9 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Recommendation: The School District should establish policies and procedures to enforce the successful implementation of their deficit reduction plan to ensure that expenditures do not exceed availability of resources, so that in future periods the School District does not report a deficit fund balance. In addition, appropriate procedures should be implemented to ensure that the adopted budget for each budgeted fund is balanced as required. Views of Responsible Officials: The School District concurs with this finding. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n- 10 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2016 \n \nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \n \nFS 2016-001 \n \nInternal Controls at the Central Office \n \nControl Categories: \n \nAccounting Controls (Overall) \n \nCash and Cash Equivalents \n \nRevenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements \n \nInternal Control Impact: Significant Deficiency \n \nCompliance Impact: \n \nNone \n \nRepeat of Prior Year Finding: FS 2015-001, FS 2014-001, FS 2013-001, FS-7741-12-01 \n \nThe accounting procedures of the School District were insufficient to provide for adequate internal controls over operations at the Central Office. \n \nCorrective Action Plans: The debt service SPLOST bank account reconciliations were completed on a monthly basis during fiscal year 2017. The inter-fund cash accounts are now balanced monthly to ensure they carry an overall balance of zero. Federal grants are now being maintained by grant period. The grants were reconciled and closed out at the end of the subsequent fiscal year as recommended. \n \nEstimated Completion Date: June 30, 2017 \n \nContact Person: Christi Thublin, Assistant Superintendent Telephone: (478) 353-8013 E-mail: christi@dcsirish.com \n \nFS 2016-002 Control Categories: \nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nInternal Controls over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None FS 2015-002 \n \nThe accounting procedures of the School District were insufficient to provide the adequate internal controls over the school activity accounts. \n \nCorrective Action Plans: The Board has implemented procedures to reconcile all school activity bank accounts monthly at the Board office with school bookkeepers working with the School District accounts payable specialist. Bank accounts will be properly reconciled to the general ledger. This procedure will ensure the timeliness of performing the reconciliations along with a review of the deposit and disbursement documentation, as well as a separation of duties. Additional training will be provided to the school bookkeepers about properly documenting the receipts and disbursements at the school. School principals will review and sign the monthly bank reconciliations. \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2016 \n \nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \n \nEstimated Completion Date: June 30, 2017 \n \nContact Person: Christi Thublin, Assistant Superintendent Telephone: (478) 353-8013 E-mail: christi@dcsirish.com \n \nFS 2016-003 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nInternal Controls over Financial Reporting Financial reporting Material Weakness None FS 2015-003, FS 2014-003, FS 2013-003, FS-7741-12-03 \n \nThe School District did not have adequate internal controls in place over the financial statement reporting process. \n \nCorrective Action Plans: The Board will continue to develop and implement internal controls over financial statement preparation and reporting and ensure that activity is properly recorded in the general ledger. We will verify that financial statements (including note disclosures) properly reflect the activity reported in the general ledger and that the financial information presented for audit is accurate. \n \nEstimated Completion Date: June 30, 2017 \n \nContact Person: Christi Thublin, Assistant Superintendent Telephone: (478) 353-8013 E-mail: christi@dcsirish.com \n \nFS 2016-004 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nUse of SPLOST Proceeds Expenditures/Liabilities/Disbursements Material Weakness Material Noncompliance FS 2015-004, FS 2014-004, FS 2013-004, FS-7741-12-04 \n \nThe School District expended Special Purpose Local Option Sales Tax (SPLOST) proceeds on items which were not specifically identified in the SPLOST project referendum and do not appear to meet the definition of \"capital outlay projects for educational purposes\" in State laws regarding imposition and use of sales taxes for educational purposes. \n \nCorrective Action Plans: The School District will use SPLOST funds exclusively for the purpose of retiring bond debt and in accordance with the referendum approved by the voters of Laurens County. \n \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2016 \n \nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \n \nEstimated Completion Date: July 1, 2017 \n \nContact Person: Christi Thublin, Assistant Superintendent Telephone: (478) 353-8013 E-mail: christi@dcsirish.com \n \nFS 2016-005 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nMaintenance of Capital Assets Capital Assets Significant Deficiency None FS 2015-005, FS 2014-005, FS 2013-005, FS-7741-12-05 \n \nThe School District did not adequately maintain capital assets inventory records. \n \nCorrective Action Plans: The School District will verify and use the updated, audited capital assets listing provided during the audit and keep it current with future capital asset activity and ensure that it conforms to the approved capital assets policy and generally accepted accounting principles. \n \nEstimated Completion Date: June 30, 2017 \n \nContact Person: Christi Thublin, Assistant Superintendent Telephone: (478) 353-8013 E-mail: christi@dcsirish.com \n \nFS 2016-006 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nAdoption of a Balanced Budget, Deficit Fund Balance Budget Preparation/Execution Material Weakness Material Noncompliance FS 2015-006, FS 2014-002, FS 2013-002, FS-7741-12-02 \n \nAt June 30, 2016, the general fund of the School District reported a deficit fund balance. The School District also failed to adopt a balanced general fund budget for fiscal year 2016. \n \nCorrective Action Plans: The Board presented a deficit elimination plan to the Georgia Department of Education in March 2016. The plan reduces the general fund deficit by over $1.9 million during fiscal year 2017. The Board has closed Saxon Heights Elementary School and made significant staff reductions. Property values in the City of Dublin were reassessed in 2015, resulting in an additional $500,000.00 in tax revenue that is to be used exclusively for deficit reduction. In fiscal year 2018, the School District is budgeted to reduce the deficit by an additional $950 thousand, despite a reduction in State QBE funding of $705,000.00 and an increase in employer costs for TRS and SHBP. No salary increases were implemented for teachers or staff in fiscal year 2018. The Board voted to \"freeze\" fiscal year 2017 salaries for all employees and adopted a new School District salary schedule for all certified staff. Reporting requirements applicable for deficit fund balances with the Georgia Department of Education are being followed. \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION  LAURENS COUNTY AUDITEE'S RESPONSE \nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2016 \nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS Estimated Completion Date: June 30, 2017 Contact Person: Christi Thublin, Assistant Superintendent Telephone: (478) 353-8013 E-mail: christi@dcsirish.com CORRECTIVE ACTION PLANS - FEDERAL AWARD FINDINGS No matters were reported. \n- 4 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2011-h2012-belec-p-btext","title":"City of Dublin Board of Education, Laurens County, 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":["\u003c-year ended 1994\u003e-year ended June 30, 1996: Georgia. Department of Audits.","Year ended June 30, 1997- : Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Laurens County, Dublin, 32.54044, -82.90375"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2012-06-30"],"dcterms_description":["Title may fluctuate: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report, City of Dublin Board of Education, Laurens County or Audit report, City of Dublin Board of Education, Laurens County, Georgia. For fiscal year ending June 30, 2000-, audits conducted \"in accordance with auditing standards generally accepted in the United States of America\" are issued as: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ... or City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports). Reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" may be issued as: Review or Management report","Report year covers fiscal year.","\u003cYear ended June 30, 1994\u003e-year ended June 30, 1996 issued by the State of Georgia, Dept. of Audits; year ended June 30, 1997- issued by the State of Georgia, Dept. of Audits and Accounts.","Schedule of salaries and travel supplements for local Georgia Boards of Education, Libraries, etc. ceased to be published in print in 2002. Starting in 2003 this information can be accessed online through the Georgia Government Publications database in GALILEO or in the annual CD-ROM called: Salary and travel compilation reports.","Has supplements: Supplementary information, City of Dublin Board of Education, Laurens County, summary and schedule of salaries and travel ..., -fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2008-","Year ended June 30, 1994, released in 1995? (online surrogate); title from PDF title page (Georgia Government Publications database, viewed August 22, 2016).","Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 29, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Dublin (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended June 30, 2012 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2011-h2012-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n(Including Independent Auditor's Reports) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \n \nPage \n1 2 4 5 6 7 9 10 \n27 28 30 \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n31 33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE 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 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n  SECTION I FINANCIAL \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nNovember 19, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Dublin Board of Education, as of and for the year ended June 30, 2012, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Dublin Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \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. \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin 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. \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 \n2012ARL-11 \n \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. \nIn accordance with Government Auditing Standards, we have also issued our report dated November 19, 2013, on our consideration of the City of Dublin 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. \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 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Dublin 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. \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. \nRespectfully submitted, \n \nGSG:as 2012ARL-11 \n \nGreg S. Griffin State Auditor \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF NET ASSETS JUNE 30, 2012 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Prepaid Items Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Short-Term Debt Interest Payable Contracts Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal and State Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n$ 2,547,051.49 1,544,436.12 \n1,124,876.98 1,438,009.00 \n363,950.77 188,900.19 \n44,544.18 200,000.00 234,753.54 5,411,619.00 58,320,021.09 \n$ 71,418,162.36 \n \n$ \n \n319,244.50 \n \n2,893,084.98 \n \n3,050,916.66 \n \n185,447.75 \n \n32,782.54 \n \n274,570.10 \n \n2,845,721.57 18,763,266.40 \n \n$ 28,365,034.50 \n \n$ 42,652,362.51 \n848,249.48 1,875,785.61 \n965,238.62 -3,288,508.36 \n$ 43,053,127.86 \n \n$ 71,418,162.36 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2012 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 16,923,454.04 $ \n1,836,701.61 1,886,603.78 \n530,296.09 573,315.87 1,578,844.36 549,991.95 2,061,434.61 1,293,841.96 840,711.26 242,721.53 \n21,524.49 8,868.42 \n1,607,304.33 704,340.46 \n$ 30,659,954.76 $ \n \n173,302.43 \n621.29 69,742.30 243,666.02 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ 11,479,997.37 $ \n245,664.38 1,278,985.22 \n291,287.75 532,099.74 832,569.72 \n3,280.46 783,158.23 \n41,986.78 2,274.56 \n100,162.58 \n1,007.13 \n1,718,566.32 \n$ 17,311,040.24 $ \n \n1,144,722.08 $ -4,125,432.16 \n \n8,325.20 \n8,325.20 76,219.50 \n \n-1,591,037.23 -607,618.56 -239,008.34 -32,890.93 -746,274.64 -546,711.49 \n-1,269,951.18 -1,175,635.68 \n-838,436.70 -142,558.95 \n \n16,650.40 \n \n-20,517.36 -8,247.13 \n197,654.69 -704,340.46 \n \n1,254,242.38 $ -11,851,006.12 \n \n$ 8,126,549.35 \n \n2,738,621.65 11,545.87 \n268,623.00 9,598.66 \n617,688.38 \n \n$ 11,772,626.91 \n \n$ \n \n-78,379.21 \n \n43,131,507.07 \n \n$ 43,053,127.86 \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2012 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Prepaid Items Due from Other Funds \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 1,782,578.62 $ 462,694.40 $ 301,778.47 $ 2,547,051.49 \n \n7,707.39 \n \n2,093.25 1,534,635.48 \n \n1,544,436.12 \n \n900,057.57 1,438,009.00 \n363,950.77 188,900.19 \n44,544.18 \n \n200,000.00 458,746.17 \n \n224,819.41 \n \n1,124,876.98 1,438,009.00 \n363,950.77 188,900.19 \n44,544.18 200,000.00 458,746.17 \n \n$ 4,725,747.72 $ 1,123,533.82 $ 2,061,233.36 $ 7,910,514.90 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Short-Term Debt Due to Other Funds Contracts Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Unassigned (Deficit) \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ 193,731.84 $ 2,893,084.98 3,050,916.66 458,746.17 \n964,663.19 \n \n125,512.66 32,782.54 \n \n$ 7,561,142.84 $ 158,295.20 \n \n$ 319,244.50 2,893,084.98 3,050,916.66 458,746.17 32,782.54 964,663.19 \n$ 7,719,438.04 \n \n$ \n \n44,544.18 $ \n \n803,705.30 \n \n-3,683,644.60 \n \n200,000.00 \n \n$ 244,544.18 \n \n765,238.62 $ 2,061,233.36 \n \n3,630,177.28 \n \n-3,683,644.60 \n \n$ -2,835,395.12 $ 965,238.62 $ 2,061,233.36 $ 191,076.86 \n \n$ 4,725,747.72 $ 1,123,533.82 $ 2,061,233.36 $ 7,910,514.90 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nProperty Taxes that are not available to pay for current period expenditures are deferred in the funds. \nOther Long-Term Assets are not available to pay for current period expenditures and therefore, are deferred on the Statement of Net Assets. \nDeferred Charges - Capitalized Bond Issuance Costs \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: \nBonds Payable Accrued Interest Intergovernmental Contract Unamortized Bond Premiums \nTotal Long-Term Liabilities \n \n$ \n \n191,076.86 \n \n$ 1,590,732.00 3,820,887.00 1,117,340.00 \n66,350,417.00 2,929,339.09 \n-12,077,075.00 \n \n63,731,640.09 \n \n690,093.09 \n \n234,753.54 \n \n$ -16,640,000.00 -185,447.75 \n-4,500,000.00 -468,987.97 \n \n-21,794,435.72 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 43,053,127.86 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds on Bonds Premiums on Bonds Sold Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 7,949,365.26 11,545.87 \n11,612,533.20 $ 6,043,349.54 243,666.02 6,922.14 617,688.38 \n \n$ 7,949,365.26 \n \n$ 2,738,621.65 \n \n2,750,167.52 \n \n832,520.00 \n \n12,445,053.20 \n \n6,043,349.54 \n \n243,666.02 \n \n440.71 \n \n2,235.81 \n \n9,598.66 \n \n617,688.38 \n \n$ 26,485,070.41 $ 832,960.71 2,740,857.46 $ 30,058,888.58 \n \n$ 15,892,922.95 $ \n \n21,175.55 \n \n$ 15,914,098.50 \n \n1,836,701.61 1,892,533.95 \n530,296.09 561,272.83 1,574,792.37 483,249.49 2,050,470.90 1,261,674.07 818,492.59 242,721.53 \n29,023.28 1,369.63 \n1,682,565.19 125.00 \n \n4,051.99 111,063.41 $ \n22,389.64 \n22,218.67 \n \n21,771.59 \n \n2,835,128.72 \n \n1,836,701.61 1,892,533.95 \n530,296.09 561,272.83 1,578,844.36 616,084.49 2,072,860.54 1,261,674.07 840,711.26 242,721.53 \n29,023.28 1,369.63 \n1,682,565.19 2,835,253.72 \n \n59,762.00 2,994.33 \n \n2,500,000.00 713,393.56 \n \n2,559,762.00 716,387.89 \n \n$ 28,858,211.48 $ 3,078,784.31 3,235,165.15 $ 35,172,160.94 \n \n$ -2,373,141.07 $ -2,245,823.60 $ -494,307.69 $ -5,113,272.36 \n \n$ 3,061,863.24 $ 1,023,136.76 $ 4,085,000.00 \n \n232,710.15 \n \n232,710.15 \n \n60,849.05 1,532,404.29 \n \n1,593,253.34 \n \n$ \n \n-60,849.05 -1,532,404.29 \n \n-1,593,253.34 \n \n$ \n \n-60,849.05 $ 1,823,018.15 $ 2,555,541.05 $ 4,317,710.15 \n \n$ -2,433,990.12 $ -422,805.45 $ 2,061,233.36 $ -795,562.21 \n \n-401,405.00 1,388,044.07 \n \n0.00 \n \n986,639.07 \n \n$ -2,835,395.12 $ 965,238.62 $ 2,061,233.36 $ 191,076.86 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2012 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \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: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net assets. \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. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Assets. In the current period, proceeds were received from: \nGeneral Obligation Bonds Issued, Including a Premium of $232,710.15 \nBond issuance costs, deferred gains on refundings and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \nDeferral of Bond Issuance Costs Amortization of Bond Issuance Costs Amortization of Bond Premium \nTotal Bond Issuance Costs \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nInterest expense reported in the Statement of Activities is recorded as incurred, whereas interest expense in the governmental fund statements is reported when paid. \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ -795,562.21 \n \n$ 3,081,658.21 -1,156,606.00 \n \n1,925,052.21 \n \n-50,748.00 \n \n345,502.88 177,184.09 \n \n-4,317,710.15 \n \n$ \n \n110,748.77 \n \n-44,656.23 \n \n29,855.18 \n \n95,947.72 \n \n$ 2,500,000.00 59,762.00 \n \n2,559,762.00 \n \n-17,807.75 \n \n$ \n \n-78,379.21 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n28,165.29 \n \n$ \n \n28,165.29 \n \nThe notes to the basic financial statements are an integral part of this statement. - 9 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City of Dublin 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. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the City of Dublin Board of Education. \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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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. \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. \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. \nThe School District reports the following major governmental funds: \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. \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. \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. \n- 10 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \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. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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. \nCASH AND CASH EQUIVALENTS \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. \nINVESTMENTS \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: \n- 11 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5. Prime banker's acceptances, \n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \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. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nPROPERTY TAXES \nThe City of Dublin fixed the property tax levy for the 2011 tax digest year (calendar year) on November 17, 2011 (levy date). Taxes were due on February 10, 2012 (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 Dublin City Clerk 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 $7,949,365.26. \nThe tax millage rate levied for the 2011 tax year (calendar year) for the City of Dublin Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n19.705 m ills \n \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,738,621.65 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nINVENTORIES \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. \n \n- 12 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2012, are recorded as prepaid items. \n \nCAPITAL ASSETS \n \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. \n \nDuring 1994, the School District became a separate legal entity and the City of Dublin deeded all land and buildings in use by the School District to the School District. A stipulation in the agreement was made that if the property was no longer needed for educational purposes, the property would revert to the City of Dublin. During the year under review, the Johnson Street School was returned to the City of Dublin and removed from the School District's capital asset records. All other property transferred to the School District's possession at that time is being used for educational purposes, therefore these capital assets are considered to be the property of the City of Dublin Board of Education and will be reported on the School District's basic financial statements. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \n \nstatements are as follows: \n \nCapitalization \n \nEstimated \n \nPolicy \n \nUseful Life \n \nLand Construction in Progress Land Improvements Buildings and Improvements Equipment \n \nAny Amount \n \n$ \n \n5,000.00 \n \n$ \n \n5,000.00 \n \n$ \n \n5,000.00 \n \n$ \n \n5,000.00 \n \nN/A N/A 20 to 80 years 10 to 80 years 5 to 50 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \nGENERAL OBLIGATION BONDS \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. \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. \n- 13 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \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. \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. \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. \nFUND BALANCES \nThe School District's fund balances are classified as follows: \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. \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. \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. \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. \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. \n \n- 14 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nFund Balances of the Governmental Funds at June 30, 2012, are as follows: \n \nNonspendable Inventories Prepaid Assets \nRestricted Continuation of Federal and State Programs Capital Projects Debt Service \nUnassigned (Deficit) \n \n$ \n \n44,544.18 \n \n200,000.00 $ \n \n244,544.18 \n \n$ \n \n803,705.30 \n \n765,238.62 \n \n2,061,233.36 \n \n3,630,177.28 -3,683,644.60 \n \nFund Balance, June 30, 2012 \n \n$ \n \n191,076.86 \n \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year end of not less than 8.3% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, net of any committed reserve balance for capital expenditures and assigned fund balances \"to cover unanticipated deficiencies in revenue or unanticipated expenditures\", in compliance with Official Code of Georgia Annotated Section 20-2167(a)5. As a result, the fund balance amount will: \n \n provide adequate funding to cover approximately one (1) month or 8.3% of operating expenses, \n provide the liquidity necessary to accommodate the District's uneven cash flow, which is inherent in its periodic property tax collections, \n provide the liquidity to respond to contingent liabilities, and  provide additional resources for other funds. \n \nIf the total of the unassigned, assigned and committed fund balance at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. Unbudgeted School Activity Funds shall be excluded from the calculation. \n \nWhen both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the School District's policy to use restricted amounts of fund balance first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the School District's policy to use fund balance in the following order: \n \n(i) Committed \n \n(ii) Assigned \n \n(iii) Unassigned DEFICIT FUND BALANCES \n \nThe fund reporting a deficit fund balance at June 30, 2012, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGeneral Fund Unassigned \n \n$ 3,683,644.60 \n \nThe School District plans to eliminate the deficit by implementing furloughs, staff reductions and reducing future expenditures. \n \n- 15 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, 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 function level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of 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. The Superintendent is authorized by the Board to approve adjustments for expenditures in any budget function for any fund. \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. \nNOTE 4: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \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. \nAcceptable security for deposits consists of any one of or any combination of the following: \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n- 16 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \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, \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \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. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2012, the bank balances were $4,458,108.09. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution in the School District's name. \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2012, the carrying value of the School District's total investments was $1,544,436.12, 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. \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, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2012, was 48 days. \nNOTE 5: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2  Inventories \n \n- 17 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNOTE 6: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2011 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2012 \n \nGovernmental Activities Capital Assets, Not B eing Depreciated: \nLand Construction in Progress \n \n$ 1,600,732.00 40,256,985.00 $ \n \n$ \n \n10,000.00 $ \n \n3,820,887.00 \n \n40,256,985.00 \n \n1,590,732.00 3,820,887.00 \n \nTotal Capital Assets Not B eing Depreciated \n \n$ 41,857,717.00 $ 3,820,887.00 $ 40,266,985.00 $ 5,411,619.00 \n \nCapital Assets B eing Depreciated B uildings and Improvements Equipment Land Improvements \n \n$ 27,428,051.00 $ 39,180,312.00 $ \n \n2,394,895.00 \n \n569,425.09 \n \n1,080,634.00 \n \n113,522.00 \n \n257,946.00 $ 34,981.00 76,816.00 \n \n66,350,417.00 2,929,339.09 1,117,340.00 \n \nLess Accumulated Depreciation for: B uildings and Improvements Equipment Land Improvements \n \n9,221,616.00 1,095,582.00 \n932,266.00 \n \n947,819.00 188,050.00 \n20,737.00 \n \n219,771.00 32,408.00 76,816.00 \n \n9,949,664.00 1,251,224.00 \n876,187.00 \n \nTotal Capital Assets, B eing Depreciated, Net $ 19,654,116.00 $ 38,706,653.09 $ \n \n40,748.00 $ 58,320,021.09 \n \nGovernmental Activity Capital Assets - Net \n \n$ 61,511,833.00 $ 42,527,540.09 $ 40,307,733.00 $ 63,731,640.09 \n \nCurrent year depreciation expense by function is as follows: \n \nIn s tru c tio n \n \nSupport Services \n \nGeneral Adm inistration \n \n$ \n \nM aintenance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n$ \n1 0 ,9 6 1 .0 0 9 ,7 7 5 .0 0 \n1 0 2 ,8 3 3 .0 0 \n \n$ \n \n1 ,0 0 6 ,2 2 0 .0 0 \n1 2 3 ,5 6 9 .0 0 2 6 ,8 1 7 .0 0 \n1 ,1 5 6 ,6 0 6 .0 0 \n \nNOTE 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2012, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund District-w ide C apital Projects \n \n$ \n \n4 5 8 ,7 4 6 .1 7 \n \n$ \n \n4 5 8 ,7 4 6 .1 7 \n \n$ \n \n458,746.17 $ \n \n4 5 8 ,7 4 6 .1 7 \n \nAmounts due from the General Fund to the District-wide Capital Projects Fund represent monies deposited into the General Fund which more accurately represent revenues of the District-wide Capital Projects Fund. \n \n- 18 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNOTE 8: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2012, consisted of the following: \n \nTransfer to \n \nTransfers From \n \nDistrict-w ide \n \nGeneral \n \nC a pita l \n \nFund \n \nProjects \n \nDistrict-w ide C apital Projects Debt Service Fund \n \n$ \n \n6 0 ,8 4 9 .0 5 \n \n$ 1,532,404.29 \n \nTotal \n \n$ \n \n60,849.05 $ 1,532,404.29 \n \nTransfers were used to (1) move revenues collected by the General Fund to provide supplemental funding for capital construction projects, and (2) to move Bond Proceeds and Special Purpose Local Option Sales tax revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund to pay principal and interest on bonds. \n \nNOTE 9: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and acts of God. 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. \n \nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. 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. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning \n \nClaim s and \n \nof Year \n \nChanges in \n \nClaim s \n \nEnd of Year \n \nLiability \n \nEstim ates \n \nPaid \n \nLiability \n \n2011 \n \n$ \n \n2012 \n \n$ \n \n0.00 $ 40,045.00 $ \n \n41,101.00 $ 36,688.88 $ \n \n1,056.00 $ 34,542.88 $ \n \n4 0 ,0 4 5 .0 0 4 2 ,1 9 1 .0 0 \n \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 $2 million. \n- 19 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition C overed \n \nAm ount \n \nSuperintendent Drivers Education All Em ployees \n \n$ \n \n5 0 ,0 0 0 .0 0 \n \n$ \n \n2 ,5 0 0 .0 0 \n \n$ \n \n1 0 0 ,0 0 0 .0 0 \n \nNOTE 10: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes 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 revenues 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. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIs s u e d \n \nRedeem ed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ 2,535,874.44 $ 3,515,042.22 $ 3,000,000.00 $ 3,050,916.66 \n \nNOTE 11: LONG-TERM DEBT CAPITAL LEASES \n \nThe City of Dublin Board of Education entered into various lease agreements for equipment. 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. \nINTERGOVERNMENTAL CONTRACT \n \nThe City of Dublin Board of Education entered into a contract with the Laurens County Public Facilities Authority dated April 1, 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 Laurens County Public Facilities Authority issued $4,500,000.00 (less issuance costs of $83,500.00) 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 recommend to the Mayor and the Council of the City of Dublin, Georgia, to exercise its power of taxation on behalf of the School District, to the extent necessary to pay the amounts required to be paid by the contract. \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPu rp o s e \n \nInterest Rates \n \nAm ount \n \nGeneral Governm ent - Series 2007 General Governm ent - Series 2008 General Governm ent - Series 2010 General Governm ent - Series 2011 \n \n2.905% $ 2 .4 0 8 % 3.0% - 4.0% 2.5% - 4.0% \n \n1 ,1 0 0 ,0 0 0 .0 0 1 ,7 0 0 ,0 0 0 .0 0 9 ,7 5 5 ,0 0 0 .0 0 4 ,0 8 5 ,0 0 0 .0 0 \n \n$ 16,640,000.00 \n \n- 20 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nVoters have authorized $3,910,000.00 in general obligation debt for various construction projects which was not issued as of June 30, 2012. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2012, were as follows: \n \nBalance July 1, 2011 \n \nA d d i ti o n s \n \nGovernmental Funds D e d u cti o n s \n \nBalance June 30, 2012 \n \nDue Within One Year \n \nG.O. Bonds \n \n$ \n \nCapital Leases \n \nIntergovernmental Agreement \n \nB ond Premiums Amortized \n \n15,055,000.00 $ 59,762.00 \n4,500,000.00 266,133.00 \n \n4,085,000.00 $ 232,710.15 \n \n2,500,000.00 $ 59,762.00 \n29,855.18 \n \n16,640,000.00 $ 0.00 \n4,500,000.00 468,987.97 \n \n2,800,000.00 45,721.57 \n \n$ 19,880,895.00 $ 4,317,710.15 $ 2,589,617.18 $ 21,608,987.97 $ 2,845,721.57 \n \nAt June 30, 2012, payments due by fiscal year which includes principal and interest for these items \n \nare as follows: \n \nIntergovernmental Agreement \n \nPrincipal \n \nInterest \n \nFiscal Year Ended June 30: \n \n2013 2014 2015 2016 2017 2018 \n \n$ \n \n$ \n \n500,000.00 \n \n700,000.00 \n \n1,000,000.00 \n \n1,100,000.00 \n \n1,200,000.00 \n \n177,300.00 177,300.00 157,600.00 130,020.00 \n90,620.00 47,280.00 \n \nTotal Principal and Interest \n \n$ \n \n4,500,000.00 $ \n \n780,120.00 \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2013 2014 2015 2016 2017 2018 - 2022 2023 \n \n$ \n \n2,800,000.00 $ \n \n564,491.00 $ \n \n500,000.00 \n \n491,600.00 \n \n750,000.00 \n \n476,600.00 \n \n1,000,000.00 \n \n454,100.00 \n \n1,250,000.00 \n \n424,100.00 \n \n8,805,000.00 \n \n1,253,550.00 \n \n1,535,000.00 \n \n61,400.00 \n \n45,721.57 45,721.57 45,721.57 45,721.57 45,721.57 224,513.51 15,866.61 \n \nTotal Principal and Interest \n \n$ 16,640,000.00 $ \n \n3,725,841.00 $ \n \n468,987.97 \n \nNOTE 12: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $1,778,905.04 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $1,744,173.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $14,378.04 \n \n- 21 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \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 $20,354.00 \n \nNOTE 13: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed \n \nby the School District as of June 30, 2012: \n \nUnearned \n \nExecuted \n \nProject \n \nC o n tra cts \n \nAthletic Fields Upgrades \n \n$ \n \n8 3 3 ,8 9 4 .0 0 \n \nThe amount described in this note is not reflected in the basic financial statements. \nNOTE 14: SIGNIFICANT CONTINGENT LIABILITIES \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. \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. \nNOTE 15: SUBSEQUENT EVENTS \nOn August 9, 2012, the Board obtained a line of credit up to $6,000,000.00 which carries an interest rate of 6%. This loan had a maturity date of December 31, 2012. Proceeds were drawn to pay off the $3,050,916.66 commercial loan. The remaining balance was to be used for payroll in anticipation of November 2012 and December 2012 property tax receipts. The School District repaid this loan in February, 2013, after the due date. A new commercial line of credit was obtained from Morris State Bank on March 19, 2013, up to $6,000,520.00 which carries an interest rate of 1.49% and has a maturity date of December 31, 2013. Proceeds of $2,500,000.00 were disbursed to the School District on the date of origination. \nOn January 29, 2013, the School District entered into a sublease agreement with the Laurens County Public Facilities Authority for the development, installation and integration of a 1.08 megawatt solar photovoltaic array electricity generation system at Dublin High School. Total principal payments on the lease amount to $3,585,000.00 and are payable through fiscal year 2037. A pre-paid item of $200,000.00 was disbursed during the year under review and will be applied to lease payments in future periods. \nNOTE 16: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \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. \n \n- 22 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \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. \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. \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: \nFor certificated teachers, librarians and regional educational service agencies and certain other \neligible participants: \n \nJune 2011 July 2011 August 2011 - March 2012 April 2012 - June 2012 \n \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 \n3.958% of covered payroll for May - July coverage \n \nFor non-certificated school personnel: \n \nJuly 2011 - August 2011 \n \n$246.20 per member per month \n \nSeptember 2011 - June 2012 $296.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \n- 23 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nThe School District's combined active and retiree contributions to the health insurance plans, which \n \nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \n \nas follows: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nC o n trib u te d \n \nC o ntrib utio n \n \n2012 2011 2010 \n \n100% 100% 100% \n \n$ 2,204,412.65 $ 2,285,969.00 $ 2,087,957.00 \n \nNOTE 17: RETIREMENT PLANS \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \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. \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. \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. \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. \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. \n \n- 24 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage C o n trib u te d \n \nRequired C o ntrib utio n \n \n2012 2011 2010 \n \n100% 100% 100% \n \n$ 1,549,293.65 $ 1,609,593.00 $ 1,569,705.60 \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \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. \n \n- 25 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Operations Food Services Operation Capital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers From Other Funds Operating Transfers To Other Funds \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 7,969,231.00 $ 7,969,231.00 $ 7,949,365.26 $ \n \n11,545.87 \n \n11,831,574.00 11,892,612.10 11,612,533.20 \n \n6,376,316.20 \n \n6,371,786.87 \n \n6,043,349.54 \n \n96,790.00 \n \n95,370.00 \n \n243,666.02 \n \n7,500.00 \n \n7,500.00 \n \n6,922.14 \n \n103,971.00 \n \n103,671.00 \n \n617,688.38 \n \n-19,865.74 11,545.87 -280,078.90 -328,437.33 148,296.02 \n-577.86 514,017.38 \n \n$ 26,385,382.20 $ 26,440,170.97 $ 26,485,070.41 $ \n \n44,899.44 \n \n$ 15,921,742.69 $ 16,056,031.57 $ 15,892,922.95 $ 163,108.62 \n \n959,278.83 1,554,541.40 \n440,282.32 661,468.00 1,536,940.57 341,118.80 2,031,705.84 501,423.79 262,480.00 113,509.00 \n2,112,177.78 \n \n1,002,755.30 2,033,664.82 \n440,282.32 422,217.96 1,536,940.57 342,548.80 2,031,705.84 511,268.79 262,380.00 \n99,986.00 \n1,398,620.00 \n \n1,836,701.61 1,892,533.95 \n530,296.09 561,272.83 1,574,792.37 483,249.49 2,050,470.90 1,261,674.07 818,492.59 242,721.53 \n29,023.28 1,369.63 \n1,682,565.19 125.00 \n \n-833,946.31 141,130.87 -90,013.77 -139,054.87 -37,851.80 -140,700.69 -18,765.06 -750,405.28 -556,112.59 -142,735.53 -29,023.28 \n-1,369.63 -283,945.19 \n-125.00 \n \n$ 26,436,669.02 $ 26,138,401.97 $ 28,858,211.48 $ -2,719,809.51 \n \n$ \n \n-51,286.82 $ 301,769.00 $ -2,373,141.07 $ -2,674,910.07 \n \n$ 704,780.00 $ 704,780.00 \n \n-704,780.00 \n \n-704,780.00 $ \n \n$ -704,780.00 \n \n-60,849.05 \n \n643,930.95 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n-60,849.05 $ -60,849.05 \n \n$ \n \n-51,286.82 $ 301,769.00 $ -2,433,990.12 $ -2,735,759.12 \n \n-492,800.90 \n \n-486,435.63 \n \n-401,405.00 \n \n85,030.63 \n \n32,238.31 \n \n590,872.96 \n \n-590,872.96 \n \n$ -511,849.41 $ 406,206.33 $ -2,835,395.12 $ -3,241,601.45 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include actual revenues ($446,874.94) or expenditures ($481,435.71) of the various principal accounts. \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. \nSee notes to the basic financial statements. \n- 27 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Educational Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \nTotal Special Education Cluster \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 \nTotal Title I, Part A Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Rural Education Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \nHealth and Human Services, U. S. Department of Child Care and Development Fund Cluster Pass-Through From Bright From the Start Georgia Department of Early Care and Learning Child Care and Development Block Grant \nDefense, U. S. Department of Direct Department of the Air Force J.R.O.T.C. Program \nTotal Expenditures of Federal Awards \nN/A = Not Available \n \n- 28 - \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A $ 1,714,459.34 (1) \n \n$ 1,714,459.34 \n \n10.582 \n \nN/A \n \n45,363.31 \n \n$ 1,759,822.65 \n \n84.318 \n \nN/A $ \n \n3,229.00 \n \n84.391 84.392 84.027 84.173 \n \nN/A $ \n \n11,145.34 \n \nN/A \n \n1,809.51 \n \nN/A \n \n742,691.00 \n \nN/A \n \n19,165.00 \n \n$ 774,810.85 \n \n* 84.389 * 84.010 \n \nN/A $ \n \n9,756.71 \n \nN/A \n \n2,306,492.06 \n \n$ 2,316,248.77 \n \n84.048 84.410 84.367 84.358 84.287 \n \nN/A $ \n \n43,878.00 \n \nN/A \n \n6,510.00 \n \nN/A \n \n224,508.03 \n \nN/A \n \n67,798.00 \n \nN/A \n \n632,882.48 \n \n$ 975,576.51 \n \n$ 4,069,865.13 \n \n93.575 \n \nN/A $ \n \n14,133.34 \n \n$ \n \n59,450.93 \n \n$ 5,903,272.05 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2012 \nNotes to the Schedule of Expenditures of Federal Awards \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $133,135.02. \n(2) Expenditures for the funds earned on the School Breakfast Program ($473,457.51) were not maintained separately and are included in the 2012 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Dublin 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. \n \nSCHEDULE \"2\" \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \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 Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Food Services Other State Programs Dual Enrollment Health Insurance Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Resident Treatment Centers Teachers' Retirement Virtual Schools Grant Vocational Education \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of the State Treasurer Public School Employees' Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 540,497.15 \n \n$ 540,497.15 \n \n829,991.00 105,754.00 1,605,179.00 197,695.00 963,019.00 143,568.00 \n26,322.00 1,153,432.00 1,050,003.00 \n340,683.00 1,230,089.00 \n315,629.00 186,072.00 \n96,525.00 13,883.00 242,002.00 73,173.00 47,704.00 \n384,642.00 666,785.00 608,035.00 \n78,173.00 -1,997,049.00 \n224,823.00 \n152,799.00 55,099.00 \n268,623.00 45,204.00 \n5,450.00 1,744,173.00 \n5,329.10 33,128.00 76,219.50 56,370.00 14,378.04 \n175.00 8,602.41 \n \n829,991.00 105,754.00 1,605,179.00 197,695.00 963,019.00 143,568.00 \n26,322.00 1,153,432.00 1,050,003.00 \n340,683.00 1,230,089.00 \n315,629.00 186,072.00 \n96,525.00 13,883.00 242,002.00 73,173.00 47,704.00 \n384,642.00 666,785.00 608,035.00 \n78,173.00 -1,997,049.00 \n224,823.00 \n152,799.00 55,099.00 \n268,623.00 45,204.00 \n5,450.00 1,744,173.00 \n5,329.10 33,128.00 76,219.50 56,370.00 14,378.04 \n175.00 8,602.41 \n \n$ 832,520.00 20,354.00 \n \n832,520.00 20,354.00 \n \nSee notes to the basic financial statements. \n \n- 30 - \n \n$ 11,612,533.20 $ 832,520.00 $ 12,445,053.20 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \nESTIMATED COMPLETION \nDATE \n \nAcquiring, constructing, and equipping renovations and improvements to the Dublin Junior High School Auditorium, including partial demolition of Dublin Junior High School, renovations and additions at Dublin High School, the purchase of school buses, the installation of computer cabling on a system-wide basis and technology upgrades, the acquisition of certain property and equipment, including any heating and air conditioning equipment, which may be subject to lease by the Dublin School District, and additions, renovations, and improvements to Central Elementary School, Susie Dasher Elementary School, Saxon Heights Elementary School, Hillcrest Elementary School, Moore Street Elementary School, and Dublin Middle School. \n \n$ 14,850,000.00 $ 12,973,018.00 $ 62,756.33 $ 7,409,235.00 \n \n6/30/2014 \n \nAcquisition of real property and construction, equipping and furnishing of new school buildings and facilities, including, but not limited to, a new elementary school including physical education and athletic facilities, and the completion of the new Dublin High School and auditorium; additions, renovations, repairs and improvements to existing school buildings and facilities, including, but not limited to Moore Street Elementary, Susie Dasher Elementary, Saxon Heights Elementary, Dublin Middle School, and Hillcrest Center; new physical education and athletic facilities for Dublin High School and Dublin Middle School, including, but not limited to, a tennis court complex at Dublin High School; technology equipment, school nutrition program equipment, and improvements throughout the Dublin School District; the acquisition of school vehicles, including, but not limited to, school buses and equipment; additions renovations, repairs and improvements to the central office building including, but not limited to, HVAC; and to retire previously incurred general obligation debt. \n \n17,750,000.00 17,750,000.00 5,516,027.98 \n \n8,023,599.00 \n \n6/30/2015 \n \n$ 32,600,000.00 $ 30,723,018.00 $ 5,578,784.31 $ 15,432,834.00 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Laurens 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. \n \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: \n \nPrior Years \n \n$ 1,603,678.00 \n \nCurrent Year \n \n536,093.62 \n \nTotal \n \n$ 2,139,771.62 \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \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 English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n1,024,917.00 $ 1,170,459.53 $ \n \n133,859.00 \n \n133,338.44 \n \n2,043,129.00 \n \n2,341,227.17 \n \n228,208.00 \n \n1,193,146.00 \n \n1,247,744.82 \n \n151,736.00 32,692.00 \n1,435,238.00 1,366,703.00 \n412,924.00 1,517,256.00 \n393,679.00 199,657.00 121,733.00 \n17,243.00 \n \n72,054.81 \n1,940,759.53 2,283,752.56 \n385,681.69 \n27,621.74 372,064.75 706,207.56 112,275.30 501,733.16 264,493.50 \n43,942.16 312,021.69 \n \n$ 10,272,120.00 $ 11,915,378.41 $ \n \n301,467.00 59,198.00 \n \n444,129.87 9,622.93 \n \n21,536.58 $ 39,023.64 \n \n1,191,996.11 133,338.44 \n2,380,250.81 \n \n38,972.94 \n \n1,286,717.76 \n \n659.44 24,663.90 41,056.88 110,371.11 16,252.85 \n \n72,714.25 24,663.90 1,981,816.41 2,394,123.67 401,934.54 \n \n1,168.35 534.04 \n3,655.10 478.31 858.97 \n7,090.47 32.86 \n618.89 10.00 \n \n28,790.09 372,598.79 709,862.66 112,753.61 502,592.13 271,583.97 \n43,975.02 312,640.58 \n10.00 \n \n306,984.33 $ 12,222,362.74 \n \n63,845.23 6,611.14 \n \n507,975.10 16,234.07 \n \nTOTAL QBE FORMULA FUNDS \n \n$ 10,632,785.00 $ 12,369,131.21 $ 377,440.70 $ 12,746,571.91 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nNovember 19, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of City of Dublin Board of Education as of and for the year ended June 30, 2012, which collectively comprise City of Dublin Board of Education's basic financial statements and have issued our report thereon dated November 19, 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. \nInternal Control Over Financial Reporting \nManagement of City of Dublin Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered City of Dublin Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. \nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses and therefore, there can be no assurances that all deficiencies, significant deficiencies or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. \n \n2012YB-60 \n \n  A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider items FS-7741-12-01, FS-7741-12-02, FS-7741-12-03 and FS-7741-12-05 in the accompanying Schedule of Findings and Questioned Costs to be material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether City of Dublin 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 an instance of noncompliance or other matters that is required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7741-12-04. \nWe also noted certain matters that we have reported to management of City of Dublin Board of Education in a separate letter dated November 19, 2013. \nCity of Dublin Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit City of Dublin Board of Education's response and, accordingly, we express no opinion on the response. \nThis report is intended solely for the information and use of management, members of the City of Dublin 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. \nRespectfully submitted, \n \nGSG:as 2012YB-60 \n \nGreg S. Griffin State Auditor \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nNovember 19, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \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 \nLadies and Gentlemen: \nCompliance \nWe have audited City of Dublin Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2012. City of Dublin Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of City of Dublin Board of Education's management. Our responsibility is to express an opinion on City of Dublin Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Dublin Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Dublin Board of Education's compliance with those requirements. \nIn our opinion, the City of Dublin 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. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements, which are described in the accompanying Schedule of Findings and Questioned Costs as items FA-7741-12-01 and FA7741-12-02. \n2012SA-40 \n \n  Internal Control Over Compliance \nManagement of City of Dublin Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered City of Dublin Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or 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. \nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, we identified a certain deficiency in internal control over compliance that we consider to be a significant deficiency as described in the accompanying Schedule of Findings and Questioned Costs as item FA-7741-12-01. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nCity of Dublin Board of Education's responses to the findings identified in our audit are described in the accompanying Schedule of Management's Responses. We did not audit City of Dublin Board of Education's responses and, accordingly, we express no opinion on the responses. \nThis report is intended solely for the information and use of management, members of the City of Dublin 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. \nRespectfully submitted, \n \nGSG:as 2012SA-40 \n \nGreg S. Griffin State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7741-10-01 FS-7741-10-02 FS-7741-10-04 FS-7741-11-01 FS-7741-11-02 FS-7741-11-03 FS-7741-11-04 \n \nFurther Action Not Warranted Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-7741-11-01 \n \nThe Board has begun the process of ensuring proper presentation of financial statements and its reporting process including note disclosures. Procedures will be reviewed and implemented to ensure that all activity is properly recorded in the general ledger. A monitoring process will also be implemented to evaluate the accuracy of the financial statements presented for audit. \n \nCASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Finding Control Number: FS-7741-11-02 \n \nThe Board will establish, revise and/or monitor procedures to ensure that bank accounts are properly reconciled to the general ledger and that the Inter-fund Cash account is accurate. In addition, management will review current policies regarding expenditures and implement controls to ensure that expenditures are properly documented, approved and recorded correctly. Also, the Board will establish sufficient internal control procedures to require that all journal entries are documented and approved prior to posting. \n \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Finding Control Number: FS-7741-11-03 \n \nThe School District will review its capital assets activity and make appropriate adjustments to ensure that the capital assets activity conforms to the Board's approved capital assets policy and generally accepted accounting principles. \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-7741-11-04 \n \nThe Board has implemented a three year plan to reduce deficit fund balances. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFA-7741-08-02 \n \nUnresolved - See Corrective Action/Responses \n \nFA-7741-09-01 \n \nPreviously Reported Corrective Action Implemented \n \nFA-7741-09-02 \n \nUnresolved - See Corrective Action/Responses \n \n(1) \n \nFA-7741-10-01 \n \nPartially Resolved - See Corrective Action/Responses \n \n(1) \n \nFA-7741-10-02 \n \nUnresolved - See Corrective Action/Responses \n \nFA-7741-11-01 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) Questioned Cost: $10,660.02 Finding Control Number: FA-7741-08-02 \n \nManagement will review control procedures in place and implement procedures to ensure that Child Nutrition Cluster Funds are transferred in a timely manner. The School District will follow up with Georgia Department of Education and provide the requested information. \n \nALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized U. S. Department of Education Through Georgia Department of Education Title I, Part A Cluster (84.010) Special Education Cluster (CFDA 84.027, 84.173) Questioned Cost: $33,971.67 (CFDA 84.010), $33,971.67 (CFDA 84.027, 84.173) Finding Control Number: FA-7741-09-02 \n \nThe School District will contact the Georgia Department of Education to determine if a refund is appropriate. \n \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCORRECTIVE ACTION/RESPONSES \nALLOWABLE COSTS/COST PRINCIPLES PERIOD OF AVAILABILITY OF FEDERAL FUNDS Inadequate Internal Control Procedures U. S. Department of Education Through Georgia Department of Education Special Education Cluster (CFDA 84.027, 84.173, CFDA 84.391, CFDA 84.392) Title I, Part A Cluster (CFDA 84.010, CFDA 84.389) Improving Teacher Quality State Grants (CFDA 84.367) Questioned Cost: $3,051.97 (CFDA 84.367), $947.00 (CFDA 84.027) Finding Control Number: FA-7741-10-01 \nThe Board will review control procedures in place and implement procedures to ensure that costs are allowable under OMB Circular A-87 and properly approved by management. The School District will follow up with the Georgia Department of Education and provide the requested information. \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) Questioned Cost: $667.02 Finding Control Number: FA-7741-10-02 \nManagement will review control procedures in place and implement procedures to ensure that Child Nutrition Cluster Funds are transferred in a timely manner. The School District will follow up with the Georgia Department of Education and provide the requested information. \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) Finding Control Number: FA-7741-11-01 \nManagement will review control procedures in place and implement procedures to ensure that Child Nutrition Cluster Funds are transferred in a timely manner. \nAUDITOR'S COMMENTS \n(1) This finding is pending review by the Georgia Department of Education to determine if a refund is appropriate. \n- 3 - \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \n \nInternal control over financial reporting:  Material weaknesses identified?  Significant deficiency identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiencies identified? \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nAny audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510(a)? \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.010, 84.389 \n \nChild Nutrition Cluster Title I, Part A Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nUnqualified Yes No Yes \nNo Yes Unqualified Yes \n$300,000.00 No \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS EMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Material Weakness Finding Control Number: FS-7741-12-01 \nCondition: This is a repeat finding (FS-7741-11-02, FS-7741-10-02 and FS-7741-09-02) from the years ended June 30, 2011, June 30, 2010, and June 30, 2009, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls at the Central Office. \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. \nQuestioned Cost: N/A \nInformation: Cash and Cash Equivalents \n Several bank accounts were not properly reconciled to the General Ledger.  Reconciling items were not investigated and adjusted timely.  The School District's general ledger reflected an overall balance in the Interfund Cash \naccount of $240,419.87. This account should always carry an overall balance of zero.  The School District failed to reconcile four bank accounts at year end.  Only two of the School District's twenty-two bank accounts contained evidence of \nmanagement's review and approval of the bank reconciliations.  Auditor was unable to determine if bank accounts were reconciled in a timely manner.  Original bank statements for school activity accounts were not included with reconciliations \nreviewed by the Central Office.  Reconciliation and reimbursements of petty cash accounts were not performed timely. Petty \ncash maintained a negative cash balance of $2,120.81 at year end.  Two bank accounts were omitted from the School District's general ledger.  One bank account was reported under the School District's Federal Identification Number \nthat was not owned by the School District. \nEmployee Compensation  Based on a review of payroll records for ten employees, the following deficiencies were noted: o One employee was underpaid $569.26 due to an incorrect calculation for extended year pay and an error in supplement pay. o Two employees were overpaid $132.00 and $187.09, respectively due to data entry and calculation errors.  The salaries and benefits payable listing contained $116,239.06 in invalid salaries payables at year end. \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n The detailed listing of salary and travel paid to employees as submitted to the Georgia Department of Audits and Accounts was not reconciled to the financial statements. Unidentified variances in salaries and travel were noted in the amount of $731,369.77 and $1,200.96, respectively. \nExpenditures/Liabilities/Disbursements  A subsidiary listing of accounts payable was not maintained.  The general ledger contained $53,675.42 in invalid accounts payables over one year old.  A review of voucher packages revealed the following deficiencies: o Several voucher packages were missing adequate documentation and/or proper approval. o Several transactions were not recorded on the general ledger in a timely manner, were charged to the incorrect account codes and/or had invoices that did not support the amounts paid.  A review of credit card transactions revealed the following deficiencies: o Several credit card transactions were missing adequate documentation and proper approval. o The auditor could not determine if the School District complied with travel regulations due to lack of supporting documentation related to meal purchases. o The School District incurred late fees for failure to make timely payments on credit cards. o Procedures were not in place to adequately monitor fuel card purchases. Large, irregular fluctuations from month-to-month were noted on fuel card purchases. Additionally, several non-fuel purchases were made on fleet cards that circumvent travel regulations. Supporting documentation was not available to determine the actual amount of allowable and unallowable charges made on the fuel cards. \nRevenues/Receivables/Receipts  A subsidiary listing of Accounts Receivable was not maintained.  The general ledger contained $37,399.81 of invalid accounts receivables over one year old. \nGeneral Ledger  The Capital Projects Fund was not adequately maintained by funding source or project.  A review of journal entries revealed the following deficiencies: o Journal entries were not reviewed by someone independent of the General Ledger posting function. o Numerous journal entries lacked sufficient supporting documentation and/or approval. Due to this lack of documentation, several journal entries could not be determined to be valid or appropriate.  During fiscal year 2012, the School District reopened prior year accounting periods and made over $15.9 million in adjusting entries in an attempt to correct erroneous information. \nCause: These deficiencies were the result of management's failure to ensure that internal controls were established, implemented and functioning. \nEffect: Errors and/or irregularities may not be detected in a timely manner. \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nRecommendation: The School District should establish, revise and/or monitor procedures to ensure bank accounts are properly reconciled to the general ledger; the Interfund Cash account is accurate; the Petty Cash account is accurate; all School District bank accounts are recorded on the general ledger; subsidiary listings are maintained for Accounts Receivable and Accounts Payable accounts; expenditures and journal entries are properly documented, approved, processed timely and recorded accurately; and the Capital Projects Fund is maintained by funding source and/or project. Management should also review current policies and implement controls to ensure prior accounting periods are not reopened. \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Failure to Adopt a Balanced Budget Material Weakness Finding Control Number: FS-7741-12-02 \nCondition: This is a repeat finding (FS-7741-11-04) from the year ended June 30, 2011. At June 30, 2012, the General Fund of the City of Dublin Board of Education reported a deficit fund balance and failed to abide by reporting regulations related to the June 30, 2011, deficit. In addition, the School district also failed to adopt a balanced General Fund budget for fiscal year 2012. \nCriteria: Chapter 25, Governmental Fund Deficits of the Financial Management for Georgia Local Units of Administration states in part: \"The seriousness of fund balance deficits cannot be overstated. The Georgia Department of Education requires those LUAs with deficit governmental fund balances to meet certain reporting requirements.\" \nThe Official Code of Georgia Annotated (O.C.G.A.) 20-2-67 Local school system or school subject to corrective action plan for budget deficit; financial operations form; publication; mailing to Department of Education and local governing body, states in part, \"(b)..From the time such irregularity or budget deficit is discovered until the time it is eliminated, the local school superintendent shall present to each member of the local board of education for his or her review and written acknowledgement a monthly report containing all anticipated expenditures by budget function for such school or school system during the current month...(c) Not later than September 30 of the year, each local board of education shall cause to be published in the official county organ wherein the local school system is located once a week for two weeks a statement of the actual financial operations for such schools or school system identified by the Department of Audits and Accounts as having financial irregularities...(d) A copy of the actual financial operations form required to be published by subsection (c) of this code section shall be mailed by each local board of education to the Department of Education and the local county board of commissioners or local municipal governing authority...\" \nChapter 32, Preparing Operating Budgets of the Financial Management for Georgia Local Units of Administration states in part: \"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated essential expenditures, a portion of unreserved fund balance from previous years must be used to fund the short fall. In the event there is insufficient unreserved fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available unreserved fund balance\". \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nQuestioned Cost: N/A \nInformation: The School District's General Fund reported an unassigned deficit fund balance of $3,683,644.60 and failed to abide by reporting regulations related to the prior year deficit fund balance. In addition, the School District's original budget for the General Fund reflected a deficit fund balance in the amount of $511,849.41. \nCause: The School District's General Fund incurred expenditures in excess of revenues during the year under review. Management did not properly monitor the financial situation during the fiscal year and make necessary adjustments to decrease expenditures. The School District failed to follow deficit reporting regulations. Management adopted an unbalanced original budget for the General Fund. \nEffect: A financial statement irregularity and failure to follow reporting requirements in accordance with the Official Code of Georgia Annotated (O.C.G.A.) 20-2-67. \nRecommendation: The School District should establish policies and procedures designed to ensure that expenditures do not exceed available resources, so that in future periods the School District does not report deficit fund balances. Management should monitor these procedures and always adopt balanced budgets. In addition, the School District should comply with reporting requirements applicable for deficit fund balances. \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7741-12-03 \nCondition: This is a repeat finding (FS-7741-11-01, FS-7741-10-01 and FS-7741-09-01) from the years ended June 30, 2011, June 30, 2010, and June 30, 2009, respectively. The School District did not have adequate controls in place over the financial statement reporting process. \nCriteria: Management is responsible for having adequate controls over the financial reporting process, which not only includes proper recording of transactions to the general ledger, but extends to accurate preparation and presentation of the financial statements, including note disclosures and Special Purpose Local Option Sales Tax (SPLOST) reporting requirement set forth in O.C.G.A. 48-8-122. \nQuestioned Cost: N/A \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nInformation: During the audit, numerous errors and misclassifications (both material and nonmaterial) were noted with the financial statements presented for audit. These errors are summarized as follows: \n The School District failed to record SPLOST and property tax accounts receivable and the related tax revenue at year end in the amount of $224,819.41 and $11,388.16, respectively. In addition, Federal accounts receivable and the related Federal revenue in the amount of $312,970.92 was not recorded. Audit adjustments were proposed and accepted by the School District to record this activity on the District-wide and Governmental Fund financial statements. \n The School District did not correctly record delinquent property taxes and the related deferred revenue of $690,093.09 in the General Fund. In addition, the amount of delinquent taxes reported on the District-wide financial statements were overstated by $58,584.09. Audit adjustments were proposed and accepted by the School District to properly record this activity. \n The School District failed to report prepaid assets in the amount of $200,000.00. An audit adjustment was proposed and accepted by the School District to properly report the activity on the District-wide and Governmental Fund financial statements. \n The School District failed to properly record a Capital Asset and the associated E-rate revenue. An audit adjustment for $383,892.09 was proposed and accepted by the School District to properly record this Capital Asset on the District-wide financial statements. \n Items that did not meet the School District's capitalization policy were erroneously reported as capital assets. An audit adjustment of $2,240,737.09 was proposed and accepted by the School District to properly reflect Capital Assets on the District-wide financial statements. \n Deferred revenue related to Federal grants was omitted from the financial statements. Audit adjustments in the amount of $274,570.10 were proposed and accepted by the School District to properly record deferred revenue on the District-wide and Governmental Fund financial statements. \n The School District incorrectly recorded proceeds on bonds. Audit adjustments were proposed and accepted by the School District to properly record issuance costs of $110,748.77 and the bond premium of $232,710.15 in the Capital Projects Fund. In addition, audit adjustments were proposed and accepted to properly record the transfer of capitalized interest of $179,214.44 and bond proceeds of $1,023,136.76 in the Debt Service Fund. \n Long-Term Liabilities were not properly recorded on the District-wide financial statements. The School District does not maintain a long-term debt fund on the general ledger as required by the Georgia Department of Education. Audit adjustments totaling $1,528,821.15 were proposed and accepted by the School District to properly state LongTerm Liabilities. \n The School District failed to properly record GSFIC revenue in the amount of $832,520.00. An audit adjustment was proposed and accepted to properly record this revenue on the District-wide financial statements and in the Capital Projects Fund. \n Beginning net assets reported on the Statement of Activities presented for audit did not agree to the prior year ending net assets. Numerous audit adjustments totaling $699,634.00 were proposed and accepted by the School District to tie beginning net assets to the prior year audited financial statements. \n Several school activity accounts which were custodial in nature were recorded in the General Fund in error. An audit adjustment of $12,433.59 was proposed and accepted by the School District to properly report funds held for others in Fiduciary Funds. \n- 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \n \nII \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \n Numerous reclassification entries were proposed by the auditors and accepted by the School District to improve financial statement presentation of Cash, Investments, Accounts Receivable, Capital Assets, Contracts Payable, Short-Term Debt Liability, Long-Term Liabilities, State Revenues, Federal Revenues, Sales Tax Revenues, Miscellaneous Revenues and Fund Balance Reserves. \n The School District failed to provide all of the required Exhibits to the financial statements. Specifically, the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets, Reconciliation of the Governmental Funds Statements of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities and the Notes to the Financial Statements were not completed and presented for audit by the School District. \n The School District's SPLOST schedule as submitted to the Georgia Department of Audits and Accounts was inaccurate. Corrections were proposed the auditors and accepted by the School District. \n \nCause: The School District did not implement an adequate system of internal control over the financial statement reporting process. Management failed to properly review the year-end financial statements to ensure that the financial statements as presented for audit were accurate. \n \nEffect: The School District's lack of adequate controls over the financial statement reporting process could place the School District in a situation where incorrect reporting of financial position could occur. Numerous audit adjustments were necessary in order for the School Districts financial statements to be materially correct and in conformity with generally accepted accounting principles. \n \nRecommendation: The School District should develop and implement internal controls over the financial statement reporting process to ensure that all activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. In addition, the School District should ensure the SPLOST projects collections and expenditures are reported based on the requirements set forth in O.C.G.A. Code 48-8-122. \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Use of SPLOST Proceeds Material Noncompliance Finding Control Number: FS-7741-12-04 \n \nCondition: The School District expended Special Purpose Local Option Sales Tax (SPLOST) proceeds on items which were not specifically identified in the SPLOST project referendum and do not appear to meet the definition of \"capital outlay projects for educational purposes\" in State laws regarding imposition and use of sales taxes for educational purposes. \n \n- 7 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCriteria: According to Paragraph IV, Section VI, Article VIII of the Constitution of the State of Georgia, \"the purpose or purposes for which the proceeds of the tax are to be used and may be expended include\" (1) Capital Outlay projects for educational purposes; (2) the retirement of previously incurred general obligation debt with respect only to capital outlay projects of the school system...\"Official Code of Georgia Annotated (O.C.G.A.) 48-8-121 states, \"The proceeds received from the tax authorized by this part shall be used...exclusively for the purpose or purposes specified in the resolution or ordinance calling for imposition of the tax\". \nQuestioned Cost: $206,579.95 \nInformation: During the year under review, the School District expended $206,579.95 of SPLOST proceeds for routine cleaning services, consulting fees and office supplies. These expenditures were not part of an approved SPLOST Capital Outlay project. \nCause: The School District failed to ensure that all SPLOST expenditures were allowable. \nEffect: Improper use of the Special Purpose Local Option Sales Tax (SPLOST) proceeds and violation of State law. \nRecommendation: The School District's General Fund should reimburse the SPLOST Capital Project Fund for the total cost of these unallowable expenditures. In addition, management should establish appropriate procedures to ensure that all future expenditures paid for with SPLOST proceeds are an appropriate use of SPLOST funds in accordance with State law and the SPLOST referendum as approved by the voters of Laurens County. \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-7741-12-05 \nCondition: This is a repeat finding (FS-7741-11-03, FS-7741-10-04 and FS-7741-09-04) from the years ended June 30, 2011, June 30, 2010, and June 30, 2009, respectively. The School District did not adequately maintain capital assets inventory records. \nCriteria: Chapter 37 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration provides that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system, and maintain fixed asset inventory records. \n- 8 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nQuestioned Cost: N/A \nInformation: A review of the School District's capital assets policies, procedures and the related capital assets records revealed the following deficiencies: \n Twelve buses with individual values ranging from $2,000.00 to $4,500.00 (combined value of $42,000.00) were capitalized even though they did not meet the $5,000.00 capitalization threshold. \n Valuation documentation revealed that twelve additional buses were undervalued by a combined $92,578.52 when capitalized and added to the capital assets listing. \n Six current year equipment purchases were undervalued by a combined $8,712.00 when capitalized and added to the capital assets listing. \n Current year kitchen equipment purchases that met the $5,000.00 capitalization threshold (combined value of $60,618.98) were not capitalized nor included on the capital assets listing. \n Shelving (combined value of $41,864.00), a $6,823.00 fryer that no longer exists and two kitchen equipment items that did not meet the capitalization threshold (combined value of $9,733.00) were erroneously capitalized and added to the capital assets listing. \n Thirty-one food service equipment items (combined value of $347,965.11) were erroneously omitted from the District-wide capital assets listing. \n Construction in-progress additions and deletions were not calculated properly resulting in a likely net overstatement at year-end of $420,337.51. \n Depreciation expense was overstated by $25,789.51 and Accumulated Depreciation was overstated by $73,462.39 as a result of errors to Capital Assets. \n A sample of thirty-six capital assets revealed that ten assets could not be located.  The School District has not updated their capitalization policy to include the adoption of \nGovernmental Accounting Standards Board (GASB) Statement No. 51, Accounting and Reporting for Intangible Assets.  The subsidiary ledger did not agree to the Financial Statements.  A physical inventory of capital assets has not been performed in several years. \nCause: The School District failed to properly maintain its capital assets records in accordance with the School District's approved capital assets policy and requirements set-forth in Chapter 37 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration. \nEffect: The failure of the School District to properly account for capital assets activity can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. \nRecommendation: The School District should develop and implement controls over the Capital Asset function to ensure that capital assets are accurate and conform to the School District's approved capital assets policy and generally accepted accounting principles. In addition, appropriate adjustments should be made to correct the errors listed. \n- 9 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCASH MANAGEMENT Excessive Cash Balances Failure to Refund Interest Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education Through Georgia Department of Education Title I, Part A Cluster (CFDA 84.010, 84.389) Finding Control Number: FA-7741-12-01 \nCondition: A review of the cash management procedures for the Title I, Part A Cluster disclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. \nCriteria: In accordance with 34 CFR 80.21 when funds are advanced, local education agencies must follow procedures to minimize the time elapsing between the transfer of funds from the grantor agency and disbursement of such funds by the local government grantees. Interest earned in excess of $100.00 on advances by local government grantees is required to be submitted promptly to the Federal grantor agency. \nQuestioned Cost: $990.59 \nInformation: The Title I, Part A Cluster had an average cash balance of $529,558.04. The School District made cash draws in advance of cash needs resulting in excessive ending monthly cash balances for eight months. An estimated $1,990.59 in interest was earned on these advances. \nCause: Management failed to base cash draws on an accurate forecast of the actual cash needs of the Title I, Part A Cluster program. \nEffect: Failure to ensure cash draws were based on an accurate forecast of cash needs resulted in excessive cash balances on hand, noncompliance with the requirements of the Federal grant and questioned cost. \nRecommendation: The School District should implement procedures to accurately forecast the cash needs of the program, base cash draws on this forecast and minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the School District. In addition, the Georgia Department of Education should review this matter to determine if a reclaim of grant funds is appropriate. \n- 10 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely Nonmaterial Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Food Services  School Breakfast Program (CFDA 10.553) Food Services  National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-12-02 \nCondition: This is a repeat finding (FA-7741-11-01, FA-7741-10-02 and FA-7741-09-03) from the years ended June 30, 2011, June 30, 2010, and June 30, 2009, respectively. The School District failed to transfer School Breakfast Program (CFDA 10.553) and National School Lunch Program (CFDA 10.555) funds to the School Food Service account in a timely manner. \nCriteria: U. S. Department of Agriculture (USDA) Policy 210.14-06 states that USDA funds should be entered into the School Food Service account as soon as possible on receipt and that any interest on these funds must also be credited to the school food service account. \nQuestioned Cost: N/A \nInformation: Two months of receipts reviewed were not transferred to the School Food Service account in a timely manner. \nCause: The School District failed to implement appropriate procedures to ensure compliance in accordance with Federal guidelines. \nEffect: Failure to ensure appropriate transfers resulted in noncompliance with the requirements of the Federal grant. \nRecommendation: The School District should ensure that funds are transferred promptly in compliance with Federal guidelines. \n- 11 - \n \n  SECTION V MANAGEMENT'S RESPONSES \n \n  CITY OF DUBLIN BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2012 \n \nFinding Control Number: FS-7741-12-01 \n \nWe concur with this finding. The Board has implemented procedures to reconcile all bank accounts on a monthly basis to the general ledger and to have documented management review and approval. The Interfund Cash account is also being reconciled to maintain an overall zero balance. Additionally, all journal entries are properly documented, reviewed and approved by management. Subsidiary listings for accounts payable and accounts receivable are being maintained. State travel regulations are being followed with credit card usage being controlled as well as being paid on a timely basis. \n \nFinding Control Number: FS-7741-12-02 \n \nWe concur with this finding. The Board has implemented a three year plan to reduce our negative fund balance, which includes staff reductions and reduction in days for staff. Properly tax revenue is anticipated to increase during this three year period as property is re-assessed and taxes are levied accordingly. Reporting requirements applicable for deficit fund balances with the Georgia Department of Education are being followed. \n \nFinding Control Number: FS-7741-12-03 \n \nWe concur with this finding. The Board will develop and implement internal controls over financial statement reporting and ensure that activity is properly recorded in the general ledger. We will verify that financial statements (including note disclosures) properly reflect the activity reported in the general ledger and that the financial information presented for audit will be accurate. The Board hired a new Director of Finance in fiscal year 2013. \n \nFinding Control Number: FS-7741-12-04 \n \nWe concur with the finding. The School District will review with legal counsel SPLOST referendums prior to the obligation of funds. \n \nFinding Control Number: FS-7741-12-05 \n \nWe concur with this finding. The School District will review its capital assets activity and ensure that activity conforms to the approved capital assets policy and generally accepted accounting principles. \n \nFinding Control Number: FA-7741-12-01 \n \nWe concur with the finding. Management will implement procedures to more accurately forecast the cash needs and base quarterly cash draws on the forecast. \n \nFinding Control Number: FA-7741-12-02 \n \nWe concur with this finding. The Board has implemented a procedure to transfer School Food Service USDA funds promptly in compliance with Federal guidelines. \n \nContact Person: Title: Telephone: Fax: E-mail: \n \nChristi Thublin Director of Finance (478) 277-4017 (478) 272-1249 christi@dublincityschools.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2010-h2011-belec-p-btext","title":"City of Dublin Board of Education, Laurens County, 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":["\u003c-year ended 1994\u003e-year ended June 30, 1996: Georgia. Department of Audits.","Year ended June 30, 1997- : Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Laurens County, Dublin, 32.54044, -82.90375"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2011-06-30"],"dcterms_description":["Title may fluctuate: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report, City of Dublin Board of Education, Laurens County or Audit report, City of Dublin Board of Education, Laurens County, Georgia. For fiscal year ending June 30, 2000-, audits conducted \"in accordance with auditing standards generally accepted in the United States of America\" are issued as: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ... or City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports). Reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" may be issued as: Review or Management report","Report year covers fiscal year.","\u003cYear ended June 30, 1994\u003e-year ended June 30, 1996 issued by the State of Georgia, Dept. of Audits; year ended June 30, 1997- issued by the State of Georgia, Dept. of Audits and Accounts.","Schedule of salaries and travel supplements for local Georgia Boards of Education, Libraries, etc. ceased to be published in print in 2002. Starting in 2003 this information can be accessed online through the Georgia Government Publications database in GALILEO or in the annual CD-ROM called: Salary and travel compilation reports.","Has supplements: Supplementary information, City of Dublin Board of Education, Laurens County, summary and schedule of salaries and travel ..., -fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2008-","Year ended June 30, 1994, released in 1995? (online surrogate); title from PDF title page (Georgia Government Publications database, viewed August 22, 2016).","Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 29, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Dublin (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2010-h2011-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n(Including Independent Auditor's Reports) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \n \nPage \n1 2 4 5 6 7 8 9 \n27 28 30 \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n31 33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE 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 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n  SECTION I FINANCIAL \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 3, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Dublin Board of Education, as of and for the year ended June 30, 2011, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Dublin Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \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. \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin 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. \n \n2011ARL-11 \n \n  The City of Dublin 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. \nIn accordance with Government Auditing Standards, we have also issued our report dated October 3, 2012, on our consideration of the City of Dublin 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. \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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Dublin 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. \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. \nRespectfully submitted, \n \nGSG:as 2011ARL-11 \n \nGreg S. Griffin State Auditor \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF NET ASSETS JUNE 30, 2011 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Short-Term Debt Interest Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n5,235,554 \n \n899,735 \n \n929,019 1,735,731 \n179,779 126,063 \n43,147 168,661 41,857,717 19,654,116 \n \n$ \n \n70,829,522 \n \n$ \n \n383,494 \n \n3,438,185 \n \n2,535,874 \n \n167,640 \n \n858,529 \n \n65,995 \n \n367,403 \n \n2,584,328 17,296,567 \n \n$ \n \n27,698,015 \n \n$ \n \n43,047,192 \n \n661,523 167,641 -744,849 \n \n$ \n \n43,131,507 \n \n$ \n \n70,829,522 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2011 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n17,291,153 $ \n \n1,423,115 1,575,894 \n445,186 707,695 1,577,536 426,504 2,423,557 1,239,530 334,600 139,235 \n \n17,994 1,492 \n1,181,242 680,950 \n \n$ \n \n29,465,683 $ \n \n241,369 \n4,586 68,930 314,885 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n12,757,288 $ \n \n354,887 1,296,049 \n349,838 749,528 1,014,565 \n1,599 780,654 \n13,970 1,826 \n107,962 \n \n5,238 \n \n1,611,622 \n \n$ \n \n19,045,026 $ \n \n429,360 $ \n6,264 5,152 76,292 \n17,970 535,038 $ \n \n-3,863,136 \n-1,068,228 -279,845 -95,348 48,097 -562,971 -424,905 \n-1,637,751 -1,149,268 \n-332,774 -31,273 \n-12,756 3,094 \n517,280 -680,950 \n-9,570,734 \n \n$ \n \n7,636,796 \n \n2,496,208 60,834 \n285,344 21,504 \n734,988 \n \n$ \n \n11,235,674 \n \n$ \n \n1,664,940 \n \n41,466,567 \n \n$ \n \n43,131,507 \n \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2011 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Due from Other Funds \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3,824,889 $ 7,698 \n692,501 1,735,731 \n179,779 126,063 \n43,147 629,401 \n \n781,346 $ 891,955 236,518 \n458,746 \n \n629,319 $ 82 \n \n5,235,554 899,735 \n929,019 1,735,731 \n179,779 126,063 \n43,147 1,088,147 \n \n$ 7,239,209 $ 2,368,565 $ \n \n629,401 $ 10,237,175 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Short-Term Debt Due to Other Funds Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ \n \n327,497 $ \n \n3,438,185 \n \n2,535,874 \n \n458,746 \n \n880,312 $ 7,640,614 $ \n \n55,997 \n$ 858,529 \n65,995 \n980,521 $ \n \n$ 629,401 \n629,401 $ \n \n383,494 3,438,185 2,535,874 1,088,147 \n858,529 65,995 \n880,312 \n9,250,536 \n \n$ \n \n43,147 \n \n618,376 $ \n \n-1,062,928 \n \n$ -401,405 $ \n \n$ 1,388,044 \n1,388,044 $ \n \n0 $ \n \n43,147 \n \n2,006,420 \n \n-1,062,928 \n \n0 $ \n \n986,639 \n \n$ 7,239,209 $ 2,368,565 $ \n \n629,401 $ \n \n10,237,175 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2011 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nProperty Taxes that are not available to pay for current period expenditures are deferred in the funds. \nOther Long-Term Assets are not available to pay for current period expenditures and therefore, are deferred on the Statement of Net Assets \nDeferred Charges - Capitalized Bond Issuance Costs \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: \nBonds Payable Accrued Interest Capital Leases Payable Intergovernmental Contract Unamortized Bond Premiums \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ \n \n986,639 \n \n$ 1,600,732 40,256,985 1,080,634 27,428,051 2,394,895 -11,249,464 \n \n61,511,833 512,909 \n \n168,661 \n \n$ -15,055,000 -167,640 -59,762 \n-4,500,000 -266,133 \n \n-20,048,535 \n \n$ \n \n43,131,507 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 7,944,380 60,834 $ \n12,554,508 6,852,154 314,885 10,790 734,988 \n \n2,496,208 \n9,325 $ 458,746 \n \n$ 28,472,539 $ 2,964,279 \n \n$ 1,389 \n \n7,944,380 2,557,042 12,554,508 6,852,154 \n314,885 21,504 \n1,193,734 \n \n1,389 $ 31,438,207 \n \n$ 17,690,808 $ \n \n246,477 \n \n$ 17,937,285 \n \n1,423,115 1,575,894 \n418,214 698,213 1,575,150 425,979 2,430,838 1,239,458 334,353 139,235 \n17,994 1,492 \n1,165,407 \n \n26,972 2,386 $ \n493,679 247 \n5,573,124 \n \n1,423,115 \n \n1,575,894 \n \n445,186 \n \n698,213 \n \n1,577,536 \n \n525 \n \n426,504 \n \n2,430,838 \n \n1,733,137 \n \n334,600 \n \n139,235 \n \n17,994 \n \n1,492 \n \n1,165,407 \n \n5,573,124 \n \n5,432 26 \n \n56,911 5,845 \n \n2,300,000 709,201 \n \n2,362,343 715,072 \n \n$ 29,141,608 $ 6,405,641 $ 3,009,726 $ 38,556,975 \n \n$ -669,069 $ -3,441,362 $ -3,008,337 $ -7,118,768 \n \n$ \n \n27,670 \n \n$ 2,135,492 $ 2,163,162 \n \n$ -2,163,162 \n \n-2,163,162 \n \n$ \n \n27,670 $ -2,163,162 $ 2,135,492 $ \n \n0 \n \n$ -641,399 $ -5,604,524 $ -872,845 $ -7,118,768 \n \n239,994 \n \n6,992,568 \n \n872,845 \n \n8,105,407 \n \n$ -401,405 $ 1,388,044 $ \n \n0 $ \n \n986,639 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2011 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \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: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \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: \nAmortization of Bond Issuance Costs Amortization of Bond Premium \nTotal Bond Issuance Costs \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: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nInterest expense reported in the Statement of Activities is recorded as incurred, whereas interest expense in the governmental fund statements is reported when paid. \n \n$ \n \n-7,118,768 \n \n$ \n \n7,389,267 \n \n-694,441 \n \n6,694,826 -307,584 \n \n$ \n \n-42,137 \n \n24,566 \n \n-17,571 \n \n$ \n \n2,300,000 \n \n62,343 \n \n2,362,343 51,694 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ \n \n1,664,940 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2011 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n25,100 \n \n$ \n \n25,100 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City of Dublin 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. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the City of Dublin Board of Education. \nDistrict-wide Statements: \nThe Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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. \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. \nFund Financial Statements: \nThe fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \nThe School District reports the following major governmental funds: \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. \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. \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. \n- 9 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \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. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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. \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. \nNEW ACCOUNTING PRONOUNCEMENTS \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. \n \n- 10 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nCASH AND CASH EQUIVALENTS Composition of Deposits \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. \nINVESTMENTS Composition of Investments \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: \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5. Prime banker's acceptances, \n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \nThe School District does not have a formal policy regarding investment policies that address credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nPROPERTY TAXES \nThe City of Dublin fixed the property tax levy for the 2010 tax digest year (calendar year) on November 18, 2010 (levy date). Taxes were due on January 31, 2011 (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 Dublin City Clerk 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 \n- 11 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nreporting level, during the fiscal year ended June 30, 2011, for maintenance and operations amounted to $7,944,380. \nThe tax millage rate levied for the 2010 tax year (calendar year) for the City of Dublin Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n19.705 m ills \n \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,496,208 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. \nINVENTORIES \nFood Inventories \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (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. \nCAPITAL ASSETS \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. \nDuring 1994, the School District became a separate legal entity and the City of Dublin deeded all land and buildings in use by the School District to the School District. A stipulation in the agreement was made that if the property was no longer needed for educational purposes, the property would revert to the City of Dublin. Currently, all property transferred to the School District's possession at that time is being used for educational purposes, therefore these capital assets are considered to be the property of the City of Dublin Board of Education and will be reported on the School District's basic financial statements. \n \n- 12 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nC a pita liz a tio n Policy \n \nEstim ate d Useful Life \n \nLand Construction in Progress Land Im provem ents Buildings and Im provem ents Equipm e nt \n \nAny Amount \n \n$ \n \n5 ,0 0 0 \n \n$ \n \n5 ,0 0 0 \n \n$ \n \n5 ,0 0 0 \n \n$ \n \n5 ,0 0 0 \n \nN/A N/A 20 to 80 years 10 to 80 years 5 to 50 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \nGENERAL OBLIGATION BONDS \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. \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. \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \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. \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. \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. \nFUND BALANCES \nThe School District's fund balances are classified as follows: \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. \n \n- 13 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \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. \n \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. \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. \n \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. \n \nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \n \nN o nspe nda ble In v e n to rie s \nRestricted Continuation of Federal Program s Capital Projects Debt Service \nUnassigned \n \n$ \n \n$ \n \n6 1 8 ,3 7 6 \n \n1 ,0 5 2 ,7 6 3 \n \n3 3 5 ,2 8 1 \n \n4 3 ,1 4 7 \n2 ,0 0 6 ,4 2 0 -1 ,0 6 2 ,9 2 8 \n \nFund Balance, June 30, 2011 \n \n$ \n \n9 8 6 ,6 3 9 \n \nIt is the goal of the School District to achieve and maintain unassigned, assigned and committed fund balances in the general fund at fiscal year end of not less than 8.3% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, net of any committed reserve balance for capital expenditures and assigned fund balances \"to cover unanticipated deficiencies in revenue or unanticipated expenditures\", in compliance with Official Code of Georgia Annotated Section 20-2167(a)5. As a result, the fund balance amount will: \n provide adequate funding to cover approximately one (1) month or 8.3% of operating expenses, \n provide the liquidity necessary to accommodate the District's uneven cash flow, which is inherent in its periodic property tax collections, \n provide the liquidity to respond to contingent liabilities, and  provide additional resources for other funds. \nIf the total of the unassigned, assigned and committed fund balances (net of previous allowances) at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. Unbudgeted School Activity Funds shall be excluded from the calculation. \n \n- 14 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nWhen both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the School District's policy to use restricted amounts of fund balance first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the School District's policy to use fund balance in the following order: \n(i) Committed \n \n(ii) Assigned \n \n(iii) Unassigned DEFICIT FUND BALANCES \n \nThe fund reporting a deficit fund balance at June 30, 2011, is as follows: \n \nFund Type/Fund Nam e \n \nDeficit Balance \n \nGeneral Fund \n \n$ \n \n1 ,0 6 2 ,9 2 8 \n \nThe School District plans to eliminate the deficit by implementing furloughs, staff reductions and reducing future expenditures. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNOTE 3: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS \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. \nAcceptable security for deposits consists of any one of or any combination of the following: \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \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, \n \n- 15 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \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. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2011, the bank balances were $9,651,727. 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. \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2011, the carrying value of the School District's total investments was $899,735, 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 are 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. \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, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2011, was 59 days. \nNOTE 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2  Inventories \n \n- 16 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS The following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1, 2010 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2011 \n \n$ \n \n1,600,732 \n \n33,762,708 $ \n \n6,494,277 $ \n \n$ 0 \n \n1,600,732 40,256,985 \n \nTotal Capital Assets, Not Being Depreciated $ \n \n35,363,440 $ \n \n6,494,277 $ \n \n0$ \n \n41,857,717 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n$ \n \n27,428,051 \n \n1,499,905 $ \n \n1,080,634 \n \n$ 894,990 \n \n0$ \n \n27,428,051 2,394,895 1,080,634 \n \nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n8,687,979 952,677 914,367 \n \n533,637 142,905 \n17,899 \n \n9,221,616 1,095,582 \n932,266 \n \nTotal Capital Assets, Being Depreciated, Net $ \n \n19,453,567 $ \n \n200,549 $ \n \n0$ \n \n19,654,116 \n \nGovernmental Activity Capital Assets - Net $ \n \n54,817,007 $ \n \n6,694,826 $ \n \n0$ \n \n61,511,833 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nGeneral Administration \n \n$ \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n$ \n9,482 7,799 59,619 \n$ \n \n590,338 \n76,900 27,203 694,441 \n \nNOTE 6: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2011, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund District-wide Capital Projects Debt Service Fund \n \n$ \n \n629,401 $ \n \n4 5 8 ,7 4 6 \n \n4 5 8 ,7 4 6 6 2 9 ,4 0 1 \n \n$ \n \n1,088,147 $ \n \n1 ,0 8 8 ,1 4 7 \n \n- 17 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nAmounts due from the Debt Service Fund to the General Fund represent interest paid on outstanding bonds. Amounts due from the General Fund to the District-wide Capital Projects Fund represent monies deposited into the General Fund which more accurately represent revenues of the Districtwide Capital Projects Fund. \nNOTE 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2011, consisted of the following: \n \nTransfer to \n \nTransfers From District-w id e C a pita l Projects \n \nGeneral Fund Debt Service Fund \n \n$ \n \n2 7 ,6 7 0 \n \n2 ,1 3 5 ,4 9 2 \n \nTotal \n \n$ \n \n2 ,1 6 3 ,1 6 2 \n \nTransfers are used to (1) reimburse the General Fund for construction expenditures incurred, and (2) to move Special Purpose Local Option Sales Tax revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund to pay principal and interest on bonds. \nNOTE 8: RISK MANAGEMENT \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. \nThe School District has obtained commercial insurance for risk of loss associated with automobiles. The School District has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. 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. \n \n- 18 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estim ate s \n \nC laim s Paid \n \nEnd of Year Liability \n \n2010 \n \n$ \n \n2011 \n \n$ \n \n0$ 0$ \n \n777 $ 41,101 $ \n \n777 $ 1,056 $ \n \n0 4 0 ,0 4 5 \n \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 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 $2,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Drivers Education All Em ployees \n \n$ \n \n5 0 ,0 0 0 \n \n$ \n \n2 ,5 0 0 \n \n$ \n \n1 0 0 ,0 0 0 \n \nNOTE 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes 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. \n \nShort-term debt activity for the fiscal year is as follows: \n \nB e gi n n i n g Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ \n \n0$ \n \n5,035,874 $ \n \n2,500,000 $ \n \n2,535,874 \n \nNOTE 10: LONG-TERM DEBT \nCAPITAL LEASES \nThe City of Dublin Board of Education entered into various lease agreements for equipment. 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. \n \n- 19 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nINTERGOVERNMENTAL CONTRACT \n \nThe City of Dublin Board of Education entered into a contract with the Laurens County Public Facilities Authority dated April 1, 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 Laurens County Public Facilities Authority issued $4,500,000 (less issuance costs of $83,500) in revenue bonds on behalf of the School District. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will recommend to the Mayor and the Council of the City of Dublin, Georgia, to exercise its power of taxation on behalf of the School District, to the extent necessary to pay the amounts required to be paid by the contract. \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAm ount \n \nGeneral Governm ent - Series 2007 General Governm ent - Series 2008 General Governm ent - Series 2010 \n \n2 .9 0 5 % 2 .4 0 8 % 3.0% - 4.0% \n \n$ \n \n2 ,1 0 0 ,0 0 0 \n \n3 ,2 0 0 ,0 0 0 \n \n9 ,7 5 5 ,0 0 0 \n \n$ \n \n1 5 ,0 5 5 ,0 0 0 \n \nINTERGOVERNMENTAL CONTRACT \n \nThe debt at June 30, 2011, associated with this agreement was as follows: \n \nPurpose \n \nInterest Rate \n \nLaurens County Public Facility Authority \n \n3 .9 4 % \n \n$ \n \nAm ount 4 ,5 0 0 ,0 0 0 \n \nVoters have authorized $7,995,000 in general obligation debt for various construction projects which was not issued as of June 30, 2011. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2011, were as follows: \n \nBalance July 1, 2010 \n \nAdditions \n \nGovernmental Funds \n \nBalance \n \nDeductions \n \nJune 30, 2011 \n \nDue Within One Year \n \nG. O. Bonds \n \n$ \n \nCapital Leases \n \nIntergovernmental Contract \n \nBond Premiums Amortized \n \n17,355,000 $ 122,105 \n4,500,000 290,699 \n \n0$ \n \n2,300,000 $ 62,343 \n24,566 \n \n15,055,000 $ 59,762 \n4,500,000 266,133 \n \n2,500,000 59,762 \n24,566 \n \n$ 22,267,804 $ \n \n0$ \n \n2,386,909 $ 19,880,895 $ \n \n2,584,328 \n \n- 20 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nAt June 30, 2011, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30: \n \nCapital Leases \n \nPrincipal \n \nInterest \n \nIntergovernmental Contract \n \nPrincipal \n \nInterest \n \n2012 2013 2014 2015 2016 2017 - 2021 \n \n$ \n \n59,762 $ \n \n2,994 $ \n \n$ \n500,000 700,000 1,000,000 2,300,000 \n \n177,300 177,300 177,300 157,600 130,020 137,900 \n \nTotal Principal and Interest \n \n$ \n \n59,762 $ \n \n2,994 $ \n \n4,500,000 $ \n \n957,420 \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2012 2013 2014 2015 2016 2017 - 2021 \n \n$ \n \n2,500,000 $ \n \n2,800,000 \n \n500,000 \n \n750,000 \n \n1,000,000 \n \n7,505,000 \n \n493,261 $ 428,091 355,200 340,200 317,700 904,500 \n \n24,566 24,566 24,566 24,566 24,566 143,303 \n \nTotal Principal and Interest \n \n$ 15,055,000 $ \n \n2,838,952 $ \n \n266,133 \n \nNOTE 11: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $63,600 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certificated Personnel In the amount of $38,867 \n \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $14,252 \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 $10,481 \n \n- 21 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2011: \n \nProject \n \nUnearned Executed C o ntra cts \n \nDublin High School Track and Tennis \n \n$ \n \nSaxon Elem entary School, Hillcrest Elem entary School \n \nand Susie Dasher Elem entary School Renovations \n \n6 3 8 ,1 4 0 1 ,2 4 8 ,2 1 0 \n \n$ \n \n1 ,8 8 6 ,3 5 0 \n \nThe amounts described in this note are not reflected in the basic financial statements. \nNOTE 13: SIGNIFICANT CONTINGENT LIABILITIES \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. \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. \nNOTE 14: SUBSEQUENT EVENTS \nOn December 8, 2011, the School District issued Series 2011 general obligation bonds in the amount of $4,085,000. The proceeds from these bonds will be used to partially refund the Series 2007 general obligation bonds. The bonds mature in years 2019 through 2023 and carry interest rates ranging from 2.5% to 4.0%. \nOn January 1, 2012, the School District issued a tax anticipation note for up to $6,000,000 in anticipation of property tax collections. This note carried an interest rate of 3.25% and matured on April 1, 2012. A total of $6,000,000 was drawn on this note, of which $3,000,000 was repaid on April 3, 2012. The note was converted to a commercial loan on April 16, 2012, for $3,050,917, which included unpaid interest. The new loan had a maturity date of December 31, 2012, and carried an interest rate of 6.5%. On August 13, 2012, the Board obtained a line of credit up to $6,000,000 which carries an interest rate of 6%. Proceeds were drawn to pay off the $3,050,917 commercial loan. The remaining balance is to be used for payroll in anticipation of November 2012 and December 2012 property tax receipts. \nNOTE 15: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \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 \n \n- 22 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nauthority 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. \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. \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. \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: \nFor certificated teachers, librarians and regional educational service agencies: \n \nJuly 2010 - April 2011 May 2011 - June 2011 \n \n21.955% of covered payroll for August - May Coverage 1.429% of covered payroll for June - July Coverage \n \nFor non-certificated school personnel: \n \nJuly 2010 - December 2010 January 2011 - May 2011 June 2011 \n \n$162.72 per member per month $218.20 per member per month $246.20 per member per month \n \nThe Department of Education was appropriated an additional $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \n \nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage C o ntrib ute d \n \nRequired C o ntrib utio n \n \n2011 2010 2009 \n \n100% 100% 100% \n \n$ 2,285,969 $ 2,087,957 $ 1,660,486 \n \n- 23 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 16: RETIREMENT PLANS TEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \n \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. \n \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. \n \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. \n \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. \n \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. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage C o ntrib ute d \n \nRequired C o ntrib utio n \n \n2011 2010 2009 \n \n100% 100% 100% \n \n$ 1,609,593 $ 1,569,706 $ 1,461,107 \n \n- 24 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \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. \n \n- 25 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Operations Food Services Operation Debt Services \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers From Other Funds \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n8,131,566 $ \n \n8,131,566 $ \n \n7,944,380 \n \n60,834 \n \n12,575,852 \n \n12,575,852 \n \n12,554,508 \n \n7,520,220 \n \n6,929,221 \n \n6,852,154 \n \n96,790 \n \n96,790 \n \n314,885 \n \n10,500 \n \n10,500 \n \n10,790 \n \n166,900 \n \n166,900 \n \n734,988 \n \n$ \n \n28,501,828 $ \n \n27,910,829 $ \n \n28,472,539 \n \n$ \n \n17,324,052 $ \n \n17,436,647 $ \n \n17,690,808 \n \n849,897 1,621,098 \n422,471 529,358 1,467,557 267,115 1,990,493 993,202 243,387 115,104 \n1,658,417 \n \n852,797 1,571,613 \n422,471 660,263 1,465,161 267,115 1,990,493 996,202 245,887 135,486 \n1,658,417 \n \n1,423,115 1,575,894 \n418,214 698,213 1,575,150 425,979 2,430,838 1,239,458 334,353 139,235 \n17,994 1,492 \n1,165,407 5,458 \n \n$ \n \n27,482,151 $ \n \n27,702,552 $ \n \n29,141,608 \n \n$ \n \n1,019,677 $ \n \n208,277 $ \n \n-669,069 \n \n$ \n \n1,019,677 $ \n \n-211,830 \n \n-230,606 \n \n208,277 $ -211,830 \n-29,851 \n \n27,670 -641,399 239,994 \n \n$ \n \n577,241 $ \n \n-33,404 $ \n \n-401,405 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Education of Homeless Children and Youth Cluster Pass-Through From Georgia Department of Education Education for Homeless Children and Youth \nEducational Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \nTotal Special Education Cluster \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 \nTotal Title I, Part A Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Rural Education Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n(2) 1,641,577 (1) \n1,641,577 \n \n10.582 \n \nN/A $ \n \n67,245 1,708,822 \n \n84.196 \n \nN/A \n \n$ \n \n84.318 \n \nN/A \n \n$ \n \n14,174 38,038 \n \n* 84.391 * 84.392 * 84.027 * 84.173 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nN/A \n \n$ \n \n224,610 12,295 \n512,928 18,309 \n768,142 \n \n* 84.389 * 84.010 \n \nN/A \n \n$ \n \nN/A \n \n$ \n \n848,269 2,500,402 \n3,348,671 \n \n84.048 * 84.410 * 84.367 \n84.358 * 84.287 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n52,240 544,655 246,260 102,139 336,161 \n1,281,455 \n5,450,480 \n \n- 28 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nDefense, U. S. Department of Direct Department of the Air Force J.R.O.T.C. Program \nTotal Expenditures of Federal Awards \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n$ \n \n58,203 \n \n$ \n \n7,217,505 \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $71,539. \n(2) Expenditures for the funds earned on the School Breakfast Program ($426,665) were not maintained separately and are included in the 2011 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Dublin 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. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \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 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 Mid-term Adjustment Hold-Harmless Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Health Insurance Math and Science Supplements Preschool Handicapped Program Resident Treatment Centers State Bonds for Buses Teachers' Retirement Virtual Schools Grant \nOffice of State Treasurer Public School Employees' Retirement \n \nSee notes to the basic financial statements. \n \n- 30 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n738,585 \n \n959,952 135,002 2,266,559 137,173 1,165,123 \n-268 34,585 1,369,312 1,722,845 332,219 1,395,190 379,587 18,529 123,906 16,510 289,289 90,327 49,693 \n452,029 796,002 646,534 \n158,834 55,817 \n191,258 7,318 \n285,344 49,350 \n301,459 -1,892,469 \n6,481 38,867 16,054 35,171 81,266 76,292 14,252 \n50 \n10,481 \n \n$ \n \n12,554,508 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"4\" \n \nPROJECT \nAcquiring, constructing, and equipping renovations and improvements to the Dublin Junior High School Auditorium, including partial demolition of Dublin Junior High School, renovations and additions at Dublin High School, the purchase of school buses, the installation of computer cabling on a system-wide basis and technology upgrades, the acquisition of certain property and equipment, including any heating and air conditioning equipment, which may be subject to lease by the Dublin School District, and additions, renovations, and improvements to Central Elementary School, Susie Dasher Elementary School, Saxon Heights Elementary School, Hillcrest Elementary School, Moore Street Elementary School, and Dublin Middle School. \nAcquire, construct, and equip a New Dublin High School, including land acquisition, renovations to the existing gymnasium, construction of tennis courts and a track, and demolition of existing buildings, make renovations and improvements to the Shamrock Bowl, make renovations and improvements at Susie Dasher Elementary School, Moore Street Elementary School, and Saxon Heights Elementary School, purchase food service equipment, and acquire school buses and maintenance vehicles. \nAcquisition of real property and construction, equipping and furnishing of new school buildings and facilities, including, but not limited to, a new elementary school including physical education and athletic facilities, and the completion of the new Dublin High School and auditorium; additions, renovations, repairs and improvements to existing school buildings and facilities, including, but not limited to Moore Street Elementary, Susie Dasher Elementary, Saxon Heights Elementary, Dublin Middle School, and Hillcrest Center; new physical education and athletic facilities for Dublin High School and Dublin Middle School, including, but not limited to, a tennis court complex at Dublin High School; technology equipment, school nutrition program equipment, and improvements throughout the Dublin School District; the acquisition of school vehicles, including, but not limited to, school buses and equipment; additions renovations, repairs and improvements to the central office building including, but not limited to, HVAC; and to retire previously incurred general obligation debt. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \n$ 14,850,000 $ 12,973,018 $ \n \n62,756 $ 7,346,479 Ongoing \n \n13,562,200 33,556,517 \n \n584,173 \n \n32,972,344 Completed \n \n17,750,000 17,750,000 \n \n5,299,966 \n \n2,723,633 Ongoing \n \n$ 46,162,200 $ 64,279,535 $ 5,946,895 $ 43,042,456 \n \n- 31 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2011 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Laurens 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. \n \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: \n \nPrior Years \n \n$ 894,477 \n \nCurrent Year \n \n709,201 \n \nTotal \n \n$ 1,603,678 \n \nSCHEDULE \"4\" \n \nSee notes to the basic financial statements. \n \n- 32 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \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 English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \nTOTAL QBE FORMULA FUNDS \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n1,147,232 $ 1,140,117 $ \n \n169,067 \n \n121,196 \n \n2,645,165 \n \n2,544,326 \n \n161,983 \n \n77,336 \n \n1,357,765 \n \n859,185 \n \n20,201 37,675 1,670,002 1,944,762 407,421 1,689,496 \n459,688 47,009 \n151,226 19,908 \n \n150,674 \n1,613,053 2,009,259 \n422,484 \n26,988 183,060 472,963 151,158 758,545 269,692 \n41,242 241,928 \n63 \n \n$ \n \n11,928,600 $ 11,083,269 $ \n \n349,358 59,758 \n \n402,962 219 \n \n1,697 $ \n38,798 900 \n12,205 \n298 25,237 38,122 174,829 27,395 \n-1,124 \n5,652 \n313 13,781 \n952 \n339,055 $ \n13,631 12,306 \n \n1,141,814 121,196 \n2,583,124 78,236 \n871,390 \n150,972 25,237 \n1,651,175 2,184,088 \n449,879 \n25,864 183,060 478,615 151,158 758,858 283,473 \n41,242 242,880 \n63 \n11,422,324 \n416,593 12,525 \n \n$ \n \n12,337,716 $ 11,486,450 $ \n \n364,992 $ \n \n11,851,442 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 3, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Dublin Board of Education as of and for the year ended June 30, 2011, which collectively comprise City of Dublin Board of Education's basic financial statements and have issued our report thereon dated October 3, 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. \nInternal Control Over Financial Reporting \nManagement of City of Dublin Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered City of Dublin Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. \nOur consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses and therefore, there can be no assurances that all deficiencies, significant deficiencies or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses. \n \n2011YB-42 \n \n  A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider items FS-7741-11-01, FS-7741-11-02, FS-7741-11-03, and FS-7741-11-04 to be material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether City of Dublin 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. \nWe noted certain matters that we have reported to management of City of Dublin Board of Education in a separate letter dated October 3, 2012. \nCity of Dublin Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit City of Dublin Board of Education's response and, accordingly, we express no opinion on it. \nThis report is intended solely for the information and use of management, members of the City of Dublin 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. \nRespectfully submitted, \n \nGSG:as 2011YB-42 \n \nGreg S. Griffin State Auditor \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 3, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \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 \nLadies and Gentlemen: \nCompliance \nWe have audited City of Dublin Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. City of Dublin Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of City of Dublin Board of Education's management. Our responsibility is to express an opinion on City of Dublin Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Dublin Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Dublin Board of Education's compliance with those requirements. \nIn our opinion, the City of Dublin 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. \n \n2011SA-10 \n \n  Internal Control Over Compliance \nManagement of City of Dublin Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered City of Dublin Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or 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. \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. \nThis report is intended solely for the information and use of management, members of the City of Dublin 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. \nRespectfully submitted, \n \nGSG:as 2011SA-10 \n \nGreg S. Griffin State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS-7741-09-01 \n \nFurther Action Not Warranted \n \nFS-7741-09-02 \n \nFurther Action Not Warranted \n \nFS-7741-09-03 \n \nFurther Action Not Warranted \n \nFS-7741-09-04 \n \nFurther Action Not Warranted \n \nFS-7741-10-01 \n \nPartially Resolved - See Corrective Action/Responses \n \nFS-7741-10-02 \n \nPartially Resolved - See Corrective Action/Responses \n \nFS-7741-10-03 \n \nFurther Action Not Warranted \n \n(1) \n \nFS-7741-10-04 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-7741-10-01 \n \nThe Board has begun the process of ensuring proper presentation of financial statements and its reporting process including note disclosures. Procedures will be reviewed and implemented to ensure that all activity is properly recorded in the general ledger. A monitoring process will also be implemented to evaluate the accuracy of the financial statements presented for audit. \n \nCASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Finding Control Number: FS-7741-10-02 \n \nThe Board will establish, revise and/or monitor procedures to ensure that bank accounts are properly reconciled to the general ledger and that the Inter-fund Cash account is accurate. In addition, management will review current policies regarding expenditures and implement controls to ensure that expenditures are properly documented, approved and recorded correctly. Also, the Board will establish sufficient internal control procedures to require that all journal entries are documented and approved prior to posting. \n \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Finding Control Number: FS-7741-10-04 \n \nThe School District will review its capital assets activity and make appropriate adjustments to ensure that the capital assets activity conforms to the Board's approved capital assets policy and generally accepted accounting principles. \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nAUDITOR'S COMMENTS \n(1) This deficiency was materially resolved in fiscal year 2011. The remaining unresolved discrepancies do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book) will be communicated in a management letter. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFA-7741-08-01 \n \nFurther Action Not Warranted \n \nFA-7741-08-02 \n \nUnresolved - See Corrective Action/Responses \n \nFA-7741-09-01 \n \nPartially Resolved - See Corrective Action/Responses \n \n(2) \n \nFA-7741-09-02 \n \nUnresolved - See Corrective Action/Responses \n \n(2) \n \nFA-7741-09-03 \n \nPreviously Reported Corrective Action Implemented \n \nFA-7741-10-01 \n \nUnresolved - See Corrective Action/Responses \n \n(2) \n \nFA-7741-10-02 \n \nUnresolved - See Corrective Action/Responses \n \nFA-7741-10-03 \n \nPreviously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) Questioned Cost: $10,660.02 Finding Control Number: FA-7741-08-02 \n \nManagement will review control procedures in place and implement procedures to ensure that Child Nutrition Cluster Funds are transferred in a timely manner. The School District will transfer $10,660.02 to the Child Nutrition Program from the General Fund. \n \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCORRECTIVE ACTION/RESPONSES \nALLOWABLE COSTS/COST PRINCIPLES PERIOD OF AVAILABILITY OF FEDERAL FUNDS Inadequate Internal Control Procedures U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) U. S. Department of Education Through Georgia Department of Education Special Education Cluster (CFDA 84.027, 84.173) Questioned Cost: $520.00 (CFDA 84.027 and 84.173) Finding Control Number: FA-7741-09-01 \nManagement will review control procedures in place and implement procedures to ensure that costs are allowable under OMB Circular A-87 and properly approved by management. The School District will contact the Georgia Department of Education to determine if a refund is appropriate. \nALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized U. S. Department of Education Through Georgia Department of Education Title I, Part A Cluster (84.010) Special Education Cluster (CFDA 84.027, 84.173) Questioned Cost: $33,971.67 (CFDA 84.010), $33,971.67 (CFDA 84.027, 84.173) Finding Control Number: FA-7741-09-02 \nThe School District will contact the Georgia Department of Education to determine if a refund is appropriate. \nALLOWABLE COSTS/COST PRINCIPLES PERIOD OF AVAILABILITY OF FEDERAL FUNDS Inadequate Internal Control Procedures U. S. Department of Education Through Georgia Department of Education Special Education Cluster (CFDA 84.027, 84.173, 84.391, 84.392) Title I, Part A Cluster (CFDA 84.010, 84.389) Improving Teacher Quality State Grants (CFDA 84.367) Questioned Cost: $3,051.97 (CFDA 84.367), $947.00 (CFDA 84.027) Finding Control Number: FA-7741-10-01 \nThe Board will review control procedures in place and implement procedures to ensure that costs are allowable under OMB Circular A-87 and properly approved by management. The School District will contact the Georgia Department of Education to determine if a refund is appropriate. \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES SPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) Questioned Cost: $667.02 Finding Control Number: FA-7741-10-02 Management will review control procedures in place and implement procedures to ensure that Child Nutrition Cluster Funds are transferred in a timely manner. The School District will transfer $667.02 to the Child Nutrition Program from the General Fund. AUDITOR'S COMMENTS (2) This finding is pending review by the Georgia Department of Education to determine if a refund is appropriate. \n- 4 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \n \nUnqualified \n \nInternal control over financial reporting:  Material weaknesses identified?  Significant deficiency identified? \n \nYes None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \nAny audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510(a)? \n \nUnqualified No \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n84.010, 84.389 84.027, 84.173, 84.391, 84.392 84.410 84.287 84.367 \n \nTitle I, Part A Cluster Special Education Cluster Education Jobs Fund Twenty-First Century Community Learning Centers Improving Teacher Quality State Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$300,000 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7741-11-01 \n \nCondition: This is a repeat finding (FS-7741-10-01, FS-7741-09-01 and FS 7741-08-01) from the years ended June 30, 2010, June 30, 2009, and June 30, 2008, respectively. The School District did not have adequate controls in place over the financial statement reporting process. \n \n- 1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCriteria: Management is responsible for having adequate controls over the financial reporting process, which not only includes proper recording of transactions to the general ledger, but extends to accurate preparation and presentation of the financial statements, including note disclosures and SPLOST reporting requirement set forth in Official Code of Georgia Annotated (O.C.G.A.) 48-8-122. \nQuestioned Cost: N/A \nInformation: During the audit, numerous errors and misclassifications (both material and nonmaterial) were noted with the financial statements presented for audit. These errors are summarized as follows: \n Several entries were proposed and accepted by the client to properly record Cash, Accounts Receivable, Capital Assets, Accounts Payable, Deferred Revenue, Salary and Benefits Payable, State Revenues, Federal Revenues and Property Tax Revenues. \n Several accounts which were not custodial in nature were recorded as Agency Funds Held for Others. Due to the materiality of the balances of these accounts, an adjustment was proposed and accepted by the client to properly report Funds Held for Others. \n Numerous reclassification entries were made to improve financial statement presentation of Accounts Receivable, Accounts Payable, Short-Term Debt Liability, Long-Term Liabilities, State Revenues, Federal Revenues, Charges for Services, Revenues, Miscellaneous Revenues and Fund Balance. \n The School District's SPLOST schedule as submitted to the Georgia Department of Audits and Accounts was inaccurate. \nCause: The School District did not implement an adequate system of internal control over the financial statement reporting process. \nEffect: The School District did not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \nRecommendation: The School District should develop and implement internal controls over financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. In addition, the School District should ensure the SPLOST projects collections and expenditures are reported based on the requirements set forth in O.C.G.A. 48-8-122. \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Material Weakness Finding Control Number: FS-7741-11-02 \nCondition: This is a repeat finding (FS-7741-10-02, FS-7741-09-02 and FS-7741-08-02) from the years ended June 30, 2010, June 30, 2009, and June 30, 2008, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls at the Central Office. \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. \nQuestioned Cost: N/A \nInformation: Cash and Cash Equivalents \n Several bank accounts were not properly reconciled to the general ledger.  Reconciling items were not investigated and adjusted timely.  The School District's general ledger reflected an overall balance in the Interfund Cash \naccount of $57,264. This amount should always carry an overall balance of zero.  The School District failed to perform a monthly reconciliation for several bank accounts \nthroughout the year.  Management failed to document their review and approval of the bank reconciliations. \nAuditor was unable to determine if accounts were reconciled in a timely manner.  Petty cash had a negative cash balance of $2,121. \nExpenditures/Liabilities/Disbursements A review of voucher packages revealed the following deficiencies:  Several voucher packages were missing adequate documentation or proper approval.  Several voucher packages were charged to the wrong account codes and/or improper period. \nA review of credit card transactions revealed the following deficiencies:  Several credit card transactions were missing adequate documentation and proper approval.  Certain credit card transactions were determined to be in violation of state travel regulations.  The School District incurred late fees for failure to make timely payments on credit cards. \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEmployee Compensation  No subsidiary listing of Salary and Benefits Payable was provided.  The portion of the Salaries and Benefits Payable account balance related to the School Nutrition Program contained invalid prior years' accruals that were never reversed when the salaries were paid. \nRevenues/Receivables/Receipts  No subsidiary listing of Accounts Receivable was provided. \nGeneral Ledger The Capital Projects Funds were not adequately maintained by funding source or project. \nA review of journal entries revealed the following deficiencies:  Journal entries were not reviewed by someone independent of the general ledger posting function.  Numerous journal entries did not have sufficient supporting documentation. Due to this lack of documentation, several journal entries could not be determined to be valid or appropriate. \nCause: These deficiencies were the result of management's failure to ensure that internal controls were established, implemented and functioning. \nEffect: Errors and/or irregularities may not be detected in a timely manner. \nRecommendation: The School District should establish, revise and/or monitor procedures to ensure that bank accounts are properly reconciled to the general ledger and that the Interfund Cash account is accurate. In addition, management should review current policies regarding expenditures, including credit card transactions and implement controls to ensure that expenditures are properly documented, approved and recorded correctly. Subsidiary listings should be available for Accounts Receivable and Salaries and Benefits Payable. Also, the School District should establish sufficient internal control procedures to require that all journal entries are documented and approved prior to posting. \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-7741-11-03 \nCondition: This is a repeat finding (FS-7741-10-04 and FS-7741-09-04) from the years ended June 30, 2010, and June 30, 2009, respectively. The School District did not adequately maintain capital assets inventory records. \nCriteria: Chapter 37 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration provides that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system, and maintain fixed asset inventory records. \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nQuestioned Cost: N/A \nInformation: A review of the School District's capital assets policies and procedures and the related capital assets records noted the following deficiencies: \n The School District has not updated their capitalization policy to include the adoption of Governmental Accounting Standards Board (GASB) Statement No. 51, Accounting and Reporting for Intangible Assets. \n The subsidiary ledger did not agree to the financial statements. \n Construction in Progress additions were not calculated properly. An audit entry was proposed and accepted by the client for the governmental activities financial statements. \n Depreciation expense and the related Accumulated Depreciation for the year under review were not recorded properly. \n A physical inventory of capital assets has not been performed in several years. \nCause: The School District failed to properly maintain its capital assets records in accordance with the School District's approved capital assets policy and requirements set-forth in Chapter 37 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration. \nEffect: The failure of the School District to properly account for capital assets activity can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. \nRecommendation: The School District should review its capital assets activity and make appropriate adjustments to ensure that the capital assets activity conforms to the School District's approved capital assets policy and generally accepted accounting principles. \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Material Weakness Finding Control Number: FS-7741-11-04 \nCondition: At June 30, 2011, the General Fund of the City of Dublin Board of Education reported a deficit fund balance. In addition, the School District failed to adopt a balanced budget for the General Fund. \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCriteria: Chapter 25, Governmental Fund Deficits of the Financial Management for Georgia Local Units of Administration states in part: \"The seriousness of fund balance deficits cannot be overstated. The Georgia Department of Education requires those LUAs with deficit governmental fund balances to meet certain reporting requirements.\" Chapter 32, Preparing Operating Budgets, of the Financial Management for Georgia Local Units of Administration states (FMGLUA) states in part: \"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated essential expenditures, a portion of unreserved fund balance from the previous years must be used to fund the shortfall. In the event there is insufficient unreserved fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available unreserved fund balance\". \nQuestioned Cost: N/A \nInformation: The School District's General Fund reported a deficit fund balance of $1,062,928. \nCause: The School District's General Fund incurred expenditures in excess of revenues during the year under review. In addition, management failed to use effective budgeting techniques and continued charging expenditures to State and Federal programs after the award amounts had been depleted. Management also approved a final budget for the General Fund that budgeted a deficit fund balance in the amount of $33,904. \nEffect: A financial statement irregularity in accordance with the Official Code of Georgia Annotated (O.C.G.A.) 20-2-67. \nRecommendation: The School District should establish policies and procedures designed to ensure that expenditures do not exceed available resources, so that in future periods the School District does not incur a deficit fund balance. In addition, appropriate procedures should be implemented to ensure that the adopted budget for each budgeted fund is balanced as required. \n- 6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely Nonmaterial Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Food Services  School Breakfast Program (CFDA 10.553) Food Services  National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-11-01 \nCondition: This is a repeat finding (FA-7741-10-02, FA-7741-09-03 and FA-7741-08-02) from the years ended June 30, 2010, June 30, 2009, and June 30, 2008, respectively. The School District failed to transfer School Breakfast Program (CFDA 10.553) and National School Lunch Program (CFDA 10.555) funds to the School Food Service account in a timely manner. \nCriteria: USDA Policy 210.14-06 states that USDA funds should be entered into the school food service account as soon as possible on receipt and that any interest on these funds must also be credited to the school food service account. \nQuestioned Cost: N/A \nInformation: Two months of receipts reviewed were not transferred to the School Food Service account in a timely manner. \nCause: The School District failed to implement appropriate procedures to ensure compliance in accordance with Federal guidelines. \nEffect: Failure to ensure appropriate transfers can result in noncompliance with the requirements of the Federal grant. \nRecommendation: The School District should ensure that funds are transferred promptly in compliance with Federal guidelines. \n- 7 - \n \n  SECTION V MANAGEMENT'S RESPONSES \n \n  CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2011 \n \nFinding Control Number: FS-7741-11-01 \n \nWe concur with this finding. The Board will develop and implement internal controls over financial statement reporting and ensure that activity is properly recorded in the general ledger. We will verify that financial statements (including note disclosures) properly reflect the activity reported in the general ledger and that the financial information presented for audit will be accurate. The Board hired a new Director of Finance in July 2012 and anticipates immediate implementation and improvement in FY13. \n \nFinding Control Number: FS-7741-11-02 \n \nWe concur with this finding. The Board has implemented procedures to reconcile all bank accounts on a monthly basis to the general ledger and to have documented management review and approval. The Interfund Cash account is also being reconciled on a monthly basis to maintain an overall zero balance. Additionally, all journal entries are properly documented, reviewed and approved by management. State travel regulations are being followed with credit card usage being controlled as well as being paid on a timely basis. \n \nFinding Control Number: FS-7741-11-03 \n \nWe concur with this finding. The Board will review its capital assets activity and ensure that activity conforms to the approved capital assets policy and generally accepted accounting principles. A physical inventory of capital assets will be performed in FY13. \n \nFinding Control Number: FS-7741-11-04 \n \nWe concur with this finding. The Board has implemented a three year plan to reduce our negative fund balance, which includes staff reductions and reduction in days for staff. Properly tax revenue is anticipated to increase during this three year period as property is re-assessed and taxes are levied accordingly. \n \nFinding Control Number: FA-7741-11-01 \n \nWe concur with this finding. The Board has implemented a procedure to transfer School Food Service USDA funds promptly in compliance with Federal guidelines. \n \nContact Person: Telephone: Fax: Email: \n \nChristi Schien, Director of Finance (478) 277-4017 (478) 272-1249 Christi.schien@dublincityschools.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2009-h2010","title":"City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended June 30, 2010 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["\u003c-year ended 1994\u003e-year ended June 30, 1996: Georgia. Department of Audits.","Year ended June 30, 1997- : Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Laurens County, Dublin, 32.54044, -82.90375"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2010-06-30"],"dcterms_description":["Title may fluctuate: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report, City of Dublin Board of Education, Laurens County or Audit report, City of Dublin Board of Education, Laurens County, Georgia. For fiscal year ending June 30, 2000-, audits conducted \"in accordance with auditing standards generally accepted in the United States of America\" are issued as: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ... or City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports). Reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" may be issued as: Review or Management report","Report year covers fiscal year.","\u003cYear ended June 30, 1994\u003e-year ended June 30, 1996 issued by the State of Georgia, Dept. of Audits; year ended June 30, 1997- issued by the State of Georgia, Dept. of Audits and Accounts.","Schedule of salaries and travel supplements for local Georgia Boards of Education, Libraries, etc. ceased to be published in print in 2002. Starting in 2003 this information can be accessed online through the Georgia Government Publications database in GALILEO or in the annual CD-ROM called: Salary and travel compilation reports.","Has supplements: Supplementary information, City of Dublin Board of Education, Laurens County, summary and schedule of salaries and travel ..., -fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2008-","Year ended June 30, 1994, released in 1995? (online surrogate); title from PDF title page (Georgia Government Publications database, viewed August 22, 2016).","Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 29, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Dublin (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended June 30, 2010 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2009-h2010"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2009-h2010"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED \nJUNE 30,2010 \n(Including lndependent Auditor's Reports) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURESOF FEDERALAWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL \nGENERAL FUND \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY -TABLE OF CONTENTS - \nSECTION I FINANClAL SCHEDULES SUPPLEMENTARY INFORMATION 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER M A l l E R S BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WlTH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WlTH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WlTH OMB CIRCULAR A-133 \nSECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY -TABLE OF CONTENTS - \nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 066-2174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 24,2011 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Dublin Board of Education, as of and for the year ended June 30, 2010, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Dublin Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nExcept as discussed in the following paragraph, 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 GovernmentAuditngStandards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nManagement did not provide an adequate accounting of the amounts reported as capital assets, current year depreciation expense or accumulated depreciation in the governmental activities. The School District's records did not provide sufficient information for the application of other auditing procedures to reasonably determine whether capital assets, depreciation expense or accumulated depreciation were fairly stated. \nIn our opinion, except for the inability to examine documentation supporting capital assets, as well as the related accumulated depreciation, and depreciation expense in the governmental activities as described in the preceding paragraph, the financial statements referred to previously present fairly, in all material respects, the financial position of the governmental activities of the City of Dublin Board of Education, as of June 30, 2010, and the changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n \n In addition, in our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of each major fund, and the aggregate remaining fund information of the City of Dublin Board of Education, as of June 30, 2010, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nThe City of Dublin 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. \nIn accordance with Government Auditing Standards,we have also issued our report dated October 24, 2011, on our consideration of the City of Dublin 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 assessingthe results of our audit. \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 the accounting principles generally accepted in the United States of America. 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 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 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Dublin 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, Audib of States, Local Governmen\u0026, and Non-Profit Organizations, are presented for purposes of additional analysis and are nat a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the financial statements as a whole. \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. \nRespectfully submitted, \n~ u k s e lWl . Hinton, CPA, CGFM State Auditor \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF NET ASSETS JUNE 3 0 , 2 0 1 0 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capitalized Bond and Other Debt Issuance Costs Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholding Payable Interest Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT \"A\" \nGOVERNMENTAL ACTIVITIES \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 1- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nSTATEMENT OF ACTIVITIES FOR THE YEAR ENDEDJUNE 30,2010 \n \nEXHIBIT \"B\" \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Sewices \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 Servlces Enterprise Operations Community Services Food Services Interest on Short-Term and Long-TermDebt \nTotal Governmental Activities \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 Speciflc Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginningof Year \n \nEXPENSES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCHARGES FOR \n \nGRANTS AND \n \nSERVICES \n \nCONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \nNet Assets - End of Year \n \nThe notesto the basic financial statements are an integral part of this statement. \n- 2 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nBALANCE SHEET GOVERNMENTAL FUNDS \nJUNE 30,2010 \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable. Net \nTaxes State Government Federal Government Other Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \nTotal Assets \n \nLIABILITIESAND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Depositsand Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuanon of Federal Programs Debt Service Capital Projects \nUnreserved Designatedfor Student Activities UndesignatedReported in: General Fund \nTotal Fund Balances \n \nTotal Liabilltles and Fund Balances \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 3 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEEl \nTO THE STATEMENT OF NET ASSETS JUNE 30,2010 \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") Amounts reported for Governmental Activ~tiesin the Statement of Net Assets are \ndifferent because: Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: Land Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation Total Capital Assets Taxes that are not available to pay for current period expenditures are deferred In the funds. Long-Term Liab~lities,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 a t year-end consist of: Bonds Payable Accrued Interest Intergovernmental Contract Capital Leases Payable Capitalized Bond and Other Debt IssuanceCosts Unamortized Bond Premiums Total Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nSTATEMENTOF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS \nYEAR ENDED JUNE 30,2010 \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Chargesfor Services Investment Earnings Miscellaneous \nTotal Revenues \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nCurrent Instruction Support Services Pup11Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Adm~nistration Maintenance and Operatlonof Plant Student Transportation Services Central Support Services Other Support Services EnterpriseOperations Community Services Food Services Operatlon \nCapital Outlay Debt Services \nPrlnc~pal Interest \nTotal Expenditures \nExcessof Revenuesover (under) Expenditures \nQTHER FINANCING SOURCES (USES) \nProceedsof Bonds Premiums on Bonds Sold Transfers In Transfers Out \nTotal Other FinancingSources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nTOTAL \n \nThe notesto the baslc financial Statementsare an integral part of thls statement. \n- 5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATIONOF THE GOVERNMENTAL FUNDSSTATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30.2010 \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") Amounts reported for Governmental Activit~esIn the Statement of Activit~esare different because: \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: Capital Outlay Depreciation Expense Excess of Capital Outlay over Depreciation Expense \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nBond proceeds provide current financial resourcesto Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Assets. In the current per~odp, roceeds were receivedfrom: General Obligation Bonds Issued, Includinga Premium of $294,793.25 \nBond issuance costs, deferred gains on refundings and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: Deferral of Bond lssuance Costs Amortization of Bond lssuance Costs Amortization of Premium of Bondssold Total Bond lssuance Costs \nRepaymentof Lon\u0026Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: Bond Principal Retirements Capital Lease Payments Total Long-Term Debt Repayments \nInterest expense reported in the Statement of Activities is recorded as incurred, whereas interest expense in the governmental fund statements is reported when paid. \nChange in Net Assets of GovernmentalActivit~es(Exhibit \"B\") \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30.2010 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nOther \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"Go \nAGENCY FUNDS \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City of Dublin 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. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the City of Dublin Board of Education. \nDistrict-w i d 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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund financial Statements 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. \nThe School District reports the following major governmental funds: \nGeneral Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30.2010 \n \nEXHIBIT \"H\" \n \nDistrict-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST)and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \nDebt Service Fund accounts for taxes (sales) legally restricted for the payment of general longterm principal, interest and payingagent's fees. \nThe School District reports the following fiduciary fund type: \nAgency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \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. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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. \nThe State of Georgia reimburses the School District for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are contracted for the school year (July 1- June 30) and paid over a twelve month contract period, generally September 1through August 31. In accordance with the respective rules and regulations \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \nof the QBEprogram, the State of Georgia reimburses the School District over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School District recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2010, the School District adopted the Governmental Accounting and Standards Board (GASB) Statement No. 51, Accounting and Reporting for Intangible Assee. The provisions of this Statement generally require retroactive reportingfor intangible assets acquired after June 30, 1980, with the exception of those intangible assets that have indefinite useful lives and those that are considered internally generated. \nIn addition, the School District adopted GASB Statement No. 53, Accounting and Financial Repofling for Derivative Instruments. The provisions of this Statement impacts disclosure regarding derivative instruments entered into by the state and local governments. Derivative disclosures, if any, will be identified in Note 3. \nCASH AND CASH EQUIVALENTS \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. \nl NVESTM ENTS \nComposition of Investments lnvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1)Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \n(6) The Georgia Fund 1administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \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. \n \nRECEIVABLES \n \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. \n \nPROPERTY TAXES \n \nThe City of Dublin Board of Commissioners fixed the property tax levy for the 2009 tax digest year (calendar year) on June 3, 2010 (levy date). Laurens County was performing a revaluation, which was eventually discontinued, and the digest had to be corrected for 2009 calendar year, resulting in a lien date after fiscal year end. Taxes were due on August 31, 2010 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2009 tax digest are reported as revenue in the governmental funds for fiscal year 2010. The Dublin City Clerk bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2010, for maintenance and operations amounted to $7,926,517.98. \n \nThe tax millage rate levied for the 2009 tax year (calendar year) for the City of Dublin Board of Education was as follows (a mill equals $ 1 per thousand dollars of assessed value): \n \nSchool Operations \n \n16.77 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,663,426.62 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. \n \nINVENTORIES \n \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 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30.2010 \n \nEXHIBIT \"H\" \n \nreceived, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \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. \n \nDuring 1994, the School District became a separate legal entity and the City of Dublin deeded all land and buildings in use by the School District to the School District. A stipulation in the agreement was made that if the property was no longer needed for educational purposes, the property would revert to the City of Dublin. Currently, all property transferred to the School District's possession at that time is being used for educational purposes, therefore these capital assets are considered to be the property of the City of Dublin Board of Education and will be reported on the School District's basic financial statements. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \n \nstatements are as follows: \n \nCapitalization \n \nEstimated \n \nPolicy \n \nUseful Life \n \nLand Land Improvements Buildings and Improvements Equipment Construction in Progress \n \nAll \n$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 \n \nN/A \n20 years 50 years 5 to 25 years \nN/A \n \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. \nGENERAL OBLIGATION BONDS \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. \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 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \nother 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. \nN ET ASSETS \nThe School District's net assets in the District-wideStatements are classified as follows: \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. \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal programs, and debt service in accordance with restrictions imposed by external third parties. \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. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \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 1 1 0 percent of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1)Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) lnsurance on accounts provided by the Federal Deposit lnsurance Corporation, \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2010, the bank balances were $9,777,230.36. The bank balances were entirely covered by Federal depository insurance. \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2010, the carrying value of the School District's total investments was $426,024.20, 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 Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Georgia Fund 1(Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at htt~://www.audits.aa.aov/SGD/cafr.html. \nThe Primary Liquidity Portfolio consists of Georgia Fund 1which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1may not exceed 6 0 days. The weighted average maturity for Georgia Fund 1on June 30,2010, was 46 days. \nNote 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded a t their Federally assigned value. See Note 2 - Inventories \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 3 0 , 2 0 1 0 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS The following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1, 2009 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2010 \n \n$ 1,600,732.00 \n \n$ \n \n24,364,224.48 $ 9,398,483.07 \n \n0.00 $ 1,600,732.00 33,762,707.55 \n \nTotal Capital Assets, Not Being Depreciated $ 25,964,956.48 $ 9,398,483.07 $ \n \n0.00 $ 35,363,439.55 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n$ 27,425,189.10 $ 1,379,480.00 1,080,634.00 \n \n2,861.96 $ 120,425.00 \n \n0.00 $ \n \n27,428,051.06 1,499,905.00 1,080,634.00 \n \nLess: Accumulated Depreciation: Buildings and Improvements Ecluipment Land Improvements \n \n8,170,376.00 861,616.00 896,468.00 \n \n517,603.00 91,061.00 17,899.00 \n \n8,687,979.00 952,677.00 914,367.00 \n \nTotal Capital Assets, Being Depreciated, Net $ 19,956,843.10 $ -503,276.04 $ \n \n0.00 $ 19,453,567.06 \n \nGovernmental Activity Capital Assets - Net $ 45,921,799.58 $ 8,895,207.03 $ \n \n0.00 $ 54,817,006.61 \n \nCurrent year depreciation expense by function is as follows: \nInstruction Support Services \nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \nNote 6: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2010, consisted of the following: \n \nTransfers From \n \nTransfer to Debt Service Fund \n \nCapital Projects \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \nTransfers are used to move Special Purpose Local Option Sales Tax revenues collected by the District-wide Capital Projects Fund and capitalized interest from the sale of bonds to the Debt Service Fund to pay principal and interest on bonds. \n \nNote 7: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk of loss associated with automobiles. 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. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1,1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. 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. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as \n \nfollows: \n \nClaims and \n \nBeginningof Year \n \nChanges in \n \nClaims \n \nEnd of Year \n \nLiability \n \nEstimates \n \nPaid \n \nLiability \n \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 Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $700,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Fund in excess of $700,000.00 loss per occurrence, up t o $1,000,000.00, with an aggregate limit of $2,000,000.00. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \nNote 8: SHORT-TERM DEBT \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt was to provide cash for operations until property tax collections were received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 3 1of the calendar year in which the debt was incurred. \nShort-term debt activity for the fiscal year is as follows: \n \nBegjnning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ \n \n0.00 $ 4,325,000.00 $ 4,325,000.00 $ \n \n0.00 \n \nNote 9: LONG-TERM DEBT \n \nCAPITAL LEASES \n \nThe City of Dublin Board of Education entered into various lease agreements for equipment. 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. \n \nl NTERGOVERNMENTAL CONTRACT \n \nThe City of Dublin Board of Education entered into a contract with the Laurens County Public Facilities Authority, dated April 1,2008, 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 $4,500,000.00 (less issuance costs of $83,500.00) 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 recommend to the Mayor and the Council of the City of Dublin, Georgia, to exercise its power of taxation on behalf of the School District, to the extent necessary to pay the amounts required to be paid by the contract. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nlnterest Rates \n \nGeneral Government - Series 2007 General Government - Series 2008 General Government - Series 2010 \n \nlNTERGOVERNMENTAL CONTRACT The debt at June 30, 2010, associated with this agreement is as follows: \nInterest Rate Lauarens County Public FacilityAuthority \n \nAmount $ 17,355,000.00 \nAmount \n \nVoters have authorized $7,995,000.00 in general obligation debt for various construction projects which was not issued as of June 30,2010. \nThe changes in Long-Term Debt duringthe fiscal year ended June 30,2010, were as follows: \n \nBalance \nJuly 1,2009 \n \nAdditions \n \nGovernmental Funds \n \nBalance \n \nDeductions \n \nJune 30,2010 \n \nDue Within One Year \n \nG. 0.Bonds \nCapital Leases Intergovernmental Contract Bond Premiums Amortized \n \n$ 9,100,000.00$ 9,755,000.00$ l.500.000.00 $ 17,355,000.00$ 2,300,000.00 \n \n198,596.00 \n \n76,491.00 \n \n122,105.00 \n \n62,343.00 \n \n4,500,000.00 \n \n4,500,000.00 \n \n0.00 \n \n294,793.25 \n \n4,094.35 \n \n290,698.90 \n \n24,566.10 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \nAt June 30, 2010, payments due by fiscal year which includes principal and interest for these items \n \nare as follows: \n \nCapital Leases \n \nIntergovernmental Contract \n \nPrincipal \n \nInterest \n \nPrincipal \n \nInterest \n \nFiscal Year Ended June 30: \n \nTotal Principal and Interest Fiscal Year Ended June 30: \n \n$ 122,105.00 $ \n \n8,866.00 $ 4,500,000.00 $ 1,134.720.00 \n \nGeneral Obligation Debt \n \n~ - ~-- - \n \nPrincipal \n \nInterest \n \nUnamort~zed Bond Premium \n \nTotal Principal and lnterest \nNote 10: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $57,689.13 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $35,214.52 \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $14,757.28 \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $7,717.33 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \nNote 11: SIGNIFICANT COMMITMENTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2010, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nDublin High School \n \nThe amounts described in this note are not reflected in the basic financial statements. \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \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. \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. \nNote 13: RELATED PARTY TRANSACTIONS \nThe School District employs the services of the Law Office of Mitchell Warnock, LLC, as legal counsel for the City of Dublin Board of Education. Mitchell Warnock is the son of Charles Warnock, who served as Assistant Superintendent during the year under audit. Current year expenditures to Mitchell Warnock, LLC, totaled $3,975.00. \nNote 14: SUBSEOUENT EVENTS \nOn July 1,2010, the School District issued a tax anticipation note for cash flow purposes for an amount not to exceed $6,000,000.00. Draws, totaling $5,000,000.00 were required to meet the cash flow needs of the School District. The note was repaid on December 3, 2010. \nNote 15: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL EMPLOYEES POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-Employment Health Benefit Fund (School \nOPEB 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). \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30.2010 \n \nEXHIBIT \"H\" \n \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. \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. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2010: \n \nFor certificated teachers, librarians and regional educational service agencies: \n \nJuly 2009 August 2009 - October 2009 November 2009 -June 2010 \n \n18.534% of covered payroll for August Coverage 14.492% of covered payroll for September - November Coverage 18.534% of covered payroll for December - July Coverage \n \nFor non-certificated school personnel: \n \nJuly 2 0 0 9 -June 2 0 1 0 \n \n$162.72 per member per month plus Department of Education contribution of $22,838,311.00 \n \nNo additional contribution was required by the Board for fiscal year 2010 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \n \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 \n \nas follows: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nContributed \n \nContribution \n \nNote 16: RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \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. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2010 \n \nEXHIBIT \"H\" \n \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. \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 3 0 years of creditable service, regardless of age, or after 1 0 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 4 0 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 6 0 or by 7% for each year or fraction thereof by which the member has less than 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. \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 1 0 years of service. If a member terminates with less than 1 0 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2010, were 5.25% of annual salary. The member contribution rate will increase to 5.53% effective July 1,2010. Employer contributions required for fiscal year 2010 were 9.74% of annual salary as required by the June 30, 2007, actuarial valuation. The employer contribution rate will increase to 10.28% effective July 1,2010. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNW GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDEDJUNE 30.2010 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Chargesfor Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operat~onof Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCINGSOURCES (USES) \nOther Sources Other Uses \nTotal Other FinancingSources (Uses) \nNet Change in Fund Balances \n- Fund Balances Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nFund Balances - Ending \n \nNotesto the Schedule of Revenues. ExDendituresand Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanyingschedule 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. \nSee notes to the basicfinancial statements. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNlY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30,2010 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Fresh Fru~atnd Vegetable Program Food Sewlces ARRA- Child Nutrition D~scretionaryGrants Limited Availability \nTotal Other Programs \nTotal U. S. Department of Agriculture \nEducation, U.S. Department of Education of HomelessChildren and Youth Cluster Pass-Through From Georg~aDepartment of Education Educationfor Homeless Ch~ldrenand Youth \nEducation Technology State Grants Cluster Pass-Through From Georgia Department of Educatlon Education Technology State Grants \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education \nARRA - Grants to States \nARRA- Preschool Grants Grants to States Preschool Grants \nTotal Special Education Cluster \nState FiscalStab~lizationFund Cluster Pass-ThroughFrom Georgia Department of Education ARRA - Education State Grants \nntle I, PartA Cluster Pass-ThroughFrom Georgia Department of Education ARRA - Title I Grants to Local Educational Agencies Title I Grants to Local EducationalAgenc~es \nTotal Title I. Part A Cluster \nOther Programs Pass-ThroughFrom Georgia Department of Education Career and Technical Education- Basic Grants to States Irnprov~ngTeacher QualityState Grants Rural Educatlon \nTotal Other Programs \nTotal U. S. Deoartment of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNW \nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDEDJUNE 30.2010 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services, U. S. Department of Child Care and Development Fund Cluster Pass-ThroughFrom Bright Fromthe Start: Georgia Department of Early Care and Learning \n- ARRA Child Care and Development Block Grant \nDefense. U. S. Department of Direct Department of the Marines R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \nTotal Federal Financial Assistance \nN/A = ~ oAvt ailable \nNotesto the Schedule of Exwendituresof FederalAwards \n(1) Includesthe Federallyassigned value of donated commodities for the Food Donation Program in the amount of $91,657.09. \n(2) Expendituresfor the funds earned on the School Breakfast Program ($420,788.68) were not maintained separately and are included in the 2010 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District dld not provide Federal Assistance to any Subrecipient. \nThe accompanyingschedule of expenditures of Federal awards includes the Federal grant activity of the City of Dublin 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. \n \nSee notes to the basic financ~asl tatements. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nSCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,2010 \nGRANTS Bright From the Stan: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program \nPrimary Grades - Early Intervention (1-3) Program \nUpper Elementary Grades (4-5) Program \n- Upper Elementary Grades Early Intervention (4-5) Program \nMiddle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities \nCategory 1 Gifted Student - CategoryVI Remedial 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 Sparsity Nursing Services Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Alternative Program Apprenticeship Program Duel Enrollment Health Insurance National Teacher Certification Preschool Handicapped State Grant Residential Treatment Centers Grant Teachers' Retirement \nOfficeof Treasury and FiscalServices Public School Empioyees Retirement \n \nSCHEDULE\" 3 \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \nSee notes to the basic financial statements \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30.2010 \n \nSCHEDULE \"4\" \n \nPROJECT \nAcquiring, constructing, and equipping renovations and ~mprovementsto the Dublin Junior High School Auditorium. including partial demolition of Dublin Junior High School, renovations and additions at Dublin High School. the purchase of school buses, the installation of computer cabling on a system-wide basis and technolow upgrades, the acquisition of certaln property and equipment. including any heating and air conditioning equipment, which may be subject to lease by the Dublin School District, and additions, renovations, and improvementsto Central ElementarySchool, Susie Dasher ElementarySchool, Saxon Heights Elementaty School, Hillcrest Elementary School. Moore Street Elementary School. and Dublln Middle School. \nAcquire, construct, and equip a New Dublin High School, including land acquisition, renovations to the existing gymnasium, construction of tennis courts and a track, and demolition of existing buildings, make renovations and improvements to the Shamrock Bowl, make renovations and improvements at Susie Dasher Elementary School. Moore Street ElementarySchool, and Saxon Heights ElementarySchool. Purchasefood selvice equipment, and acquire schooi buses and maintenance vehicles. \nAcquisition of real property and construction, equipping and furnishing of new schooi buildings and facilities, including, but not limited to, a new elementary school including physical education and athletic facilities, and the completion of the new Dublin High School and auditorium; additions, renovations, repairs and improvements to existingschool buildings and facilities. including, but not limited to Moore Street Elementary, Susie Dasher Elementaty, Saxon Heights Elementary, Dublin Middle School, and Hilicrest Center; new physical education and athletic facilities for Dublin High School and Dublin Middle School, including, but not limited to. a tennis court complex at Dublin High School; technology equipment, school nutrition program equipment, and improvements throughout the Dublin School District; the acquisition of school vehicles, including, but not limited to, schooi buses and equipment: additions renovations. repairs and improvements to the central office building including, but not limited to. HVAC; and to retire previously incurred general obligation debt. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT EST1MATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \n5 14,850.000.00 $ 14,850,000.00 5 \n \n62.756.33 5 7,283.722.20 Ongoing \n \n13,562,200.00 \n \n32,972,343.64 \n \n7,315,967.52 \n \n25,656.376.12 Ongoing \n \n17.750.000.00 \n \n17.750,OOO.OO \n \n2,723,632.68 \n \nOngoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of LaurensCounty 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. \n \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: \n \nPrior Years \n \n$ \n \n480,654.01 \n \nCurrent Year \n \n413.823.00 \n \nTotal \n \nSee notes to the basic financial statements \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nGENERAL FUND - QUALIN BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES- BY PROGRAM \nYEAR ENDED JUNE 30,2010 \n \nSCHEDULE\" 5 \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-EarlyIntervention Program Primary Grades (1-3) Program Primaty Grades-EarlyIntervention (1-3) Program Upper Elementaty Grades (4-5) Program Upper ElementaryGrades-EarlyIntervention (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 Categoty I1 Category Ill Categoty IV Category V \nGifted Student - Category VI \nRemedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONALPROGRAMS \nMedia Center Program Staff and Professional Development \nTOTAL QBE FORMULA FUNDS \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION(1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amendedformula adjustment. \n \nSee notes to the basic financial statements. \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 666-2174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 24, 2 0 1 1 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Dublin Board of Education as of and for the year ended June 30, 2010, which collectively comprise City of Dublin Board of Education's basic financial statements and have issued our report thereon dated October 24, 2011. The report on governmental activities was qualified for a scope limitation. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Re~orting \nIn planning and performing our audit, we considered City of Dublin Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. \nOur consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses and therefore, there can be no assurances that all deficiencies, significant deficiencies or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses. \n \n A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material w~knessis a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider items FS-7741-10-01, FS-7741-10-02, FS-7741-10-03 and FS-7741-10-04 t o be material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether City of Dublin 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. \nWe noted certain matters that we have reported to management of City of Dublin Board of Education in a separate letter dated October 24, 2011. \nCity of Dublin Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit City of Dublin Board of Education's response and, accordingly, we express no opinion on it. \nThis report is intended solely for the information and use of management, members of the City of Dublin 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. \nRespectfully submitted, a \n~ u s \u0026 l lW. Hinton, CPA, CGFM State Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 666-2174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1 - 1 56 Atlanta, Georgia 30334-8400 \nOctober 24,2011 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENTAUDITOR'S REPORT ON COMPLIANCE WlTH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WlTH OMB CIRCULAR A-133 \nLadies and Gentlemen: \n \nWe have audited City of Dublin Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2010. City of Dublin Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of City of Dublin Board of Education's management. Our responsibility is to express an opinion on City of Dublin Board of Education's compliance based on our audit. \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, \nAudits o f States, Local Governments, and Nun-Profit Organiations. Those standards and 0MB Circular \nA-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Dublin Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Dublin Board of Education's compliance with those requirements. \nAs described in item FA-7741-10-01 in the accompanying Schedule of Findings and Questioned Costs, City of Dublin Board of Education did not comply with requirements regarding Allowable Costs/Cost Principles and Period of Availability that are applicable to its Improving Teacher Quality State Grants program (CFDA 84.367). Compliance with such requirements is necessary, in our opinion, for City of Dublin Board of Education to comply with requirements applicable to that program. \n \n In our opinion, except for the noncompliance described in the preceding paragraph, the City of Dublin Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2010. The results of our auditing procedures also disclosed other instances of noncompliance with those requirements, which are described in the accompanying Schedule of Findings and Questioned Costs as items FA-7741-10-02, and FA-7741-10-03. \nInternal Control Over Com~liance \nManagement of City of Dublin Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered City of Dublin Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OM6 Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over compliance. \nOur consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified a certain deficiency in internal control over compliance that we consider to be a material weakness. \nA deficiency in internal control over cornpfiance 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 mntrol over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as item FA-7741-10-01to be a material weakness. \nCity of Dublin Board of Education's responses to the findings identified in our audit are described in the accompanying Schedule of Management's Responses. We did not audit City of Dublin Board of Education's responses and, accordingly, we express no opinion on the responses. \nThis report is intended solely for the information and use of management, members of the City of Dublin 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. \nRespectfully submitted, \n \n*- . \n \nd*\u0026 Ru ell W. Hinton, CPA, CGFM \nstate Auditor \n \n SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONEDCOSTS YEAR ENDEDJUNE 30,2010 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nFINDING CONTROL NUMBER AND STATUS \nFurther Action Not Warranted Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \nCORRECTIVE ACTION/RESPONSES \nFINANCIAL REPORTING lnadequate Controls over Financial Reporting Finding Control Number: FS-7741-09-01 \nThe Board has begun the process of ensuring proper presentation of financial statements and its reporting process including note disclosures. Procedures will be reviewed and implemented to ensure that all activity is properly recorded in the general ledger. A monitoring process will also be implemented to evaluate the accuracy of the financial statements presented for audit. \nCASH AND CASH EQUIVALENTS EXPENDITURES/LlABILlTlES/DISBURSEMENTS GENERAL LEDGER lnadequate Internal Controls at the Central Office Finding Control Number: FS-7741-09-02 \nThe Board will establish, revise and/or monitor procedures to ensure that bank accounts properly reconciled to the general ledger and that the Interfund Cash account is accurate. In addition, management will review current policies regarding expenditures and implement controls to ensure that expenditures are properly documented, approved and recorded correctly. Also, the Board will establish sufficient internal control procedures to require that all journal entries are documented and approved prior to posting. \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS lnadequate Internal Controls over School Activity Accounts Finding Control Number: FS-7741-09-03 \nThe Board will revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. The Board will implement additional procedures to ensure that key accounting functions of custody, record keeping and authorization are separated and that proper controls are established at the various schools. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONEDCOSTS YEAR ENDED JUNE 30,2010 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Finding Control Number: FS-7741-09-04 \n \nThe Board will review its capital assets activity and make appropriate adjustments to ensure that the capital assets activity conforms to the Board's approved capital assets policy and generally accepted accounting principles. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-7741-08-01 FA-7741-08-02 FA-7741-09-01 FA-7741-09-02 FA-7741-09-03 \n \nUnresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) Finding Control Number: FA-7741-08-01 \n \nThe Board will review control procedures in place and implement procedures to ensure that costs are allowable under OMB Circular A-87 and properly approved by management. \n \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) Finding Control Number: FA-7741-08-02 \n \nThere continue to be times when cash flow problems make it unfeasible to transfer the funds in a timely manner. The School District is in the process of contacting Georgia Department of Education to determine if a refund is appropriate. \n \n CITY OF DUBLIN BOARD OF EDUCATION - WURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS \nFINDING CONTROL NUMBER AND STATUS \nALLOWABLE COSTS/COST PRINCIPLES PERIOD OF AVAILABILITY OF FEDERAL FUNDS Inadequate Internal Control Procedures U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) U. S. Department of Education Through Georgia Department of Education Special Education Cluster (CFDA 84.027,84.173) Finding Control Number: FA-7741-09-01 \nThe Board will review control procedures in place and implement procedures to ensure that costs are allowable under OMB Circular A-87 and properly approved by management. \nALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized U. S. Department of Education Through Georgia Department of Education Title I, Part A Cluster (84.010) Special Education Cluster (CFDA 84.027,84.173) Finding Control Number: FA-7741-09-02 \nThe School District is in the process of contacting Georgia Department of Education to determine if a refund is appropriate. \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) Finding Control Number: FA-7741-09-03 \nThere continue to be times when cash flow problems make it unfeasible to transfer the funds in a timely manner. The School District is in the process of contacting Georgia Department of Education to determine if a refund is appropriate. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information Governmental Activities \n \nInternal control over financial reporting: Material weaknesses identified? Significant deficiencies identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal Control over major programs: Material weakness identified? Significant deficiencies identified? \n \nType of auditor's report issued on compliance for major programs: Unqualified for all major programs except for lmprovingTeacher Quality State Grants, which was qualified. \n \nAny audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510(a)? \n \nIdentification of major programs: \n \nCFDA Number(s) \n \nName of Federal Program or Cluster \n \n84.367 \n \nChild Nutrition Cluster Title I, Part A Cluster Special Education Cluster State Fiscal Stabilization Fund Cluster Improving Teacher Quality State Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nUnqualified Qualified Yes \nNone Reported \nYes None Reported \nYes \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \nII FINANCIAL STATEMENT FINDINGSAND QUESTIONEDCOSTS \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7741-10-01 \nCondition: This is a repeat finding (FS-7741-09-01, FS-7741-08-01and FS-7741-07-01) from the years ended June 30, 2009, June 30, 2008, and June 30, 2007, respectively. The School District did not have adequate controls in place over the financial statement reporting process. \nCriteria: Management is responsible for having adequate controls over the financial reporting process, which not only includes proper recording of transactions to the general ledger, but extends to accurate preparation and presentation of the financial statements, including note disclosures and SPLOST reporting requirement set for in Official Code of Georgia Annotated (O.C.G.A.) 548-8-122. \nQuestioned Cost: N/A \nInformation: Duringthe audit, numerous errors and misclassifications (both material and nonmaterial) were noted with the financial statements presented for audit. These errors are summarized as follows: \nSeveral entries were proposed and accepted by the client to properly record Cash, Contracts and Retainages Payable, Funds Held for Others, Capital Outlay expense, Taxes Receivable, Property Tax Revenues, and SPLOST revenues. \nNumerous reclassification entries were made to improve financial statement presentation of Cash, Investments, Receivables and Fund Balance Reserves. \nSupplemental Schedules and Notes to the Basic Financial Statements were prepared by the auditor. \nThe School District did not submit their SPLOST project collections and expenditures as required in O.C.G.A. 548-8-122. \nCause: The School District did not implement an adequate system of internal control over the financial statement reporting process. \nEffect: \nThe School District did not have adequate controls in place to ensure that the financial statements \nwere properly prepared in accordance with generally accepted accounting principles. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \nII FINANCIAL STATEMENT FINDINGSAND QUESTIONEDCOSTS \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7741-10-01 \nRecommendation: The School District should develop and implement internal controls over financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. In addition, the School District should ensure the SPLOST projects collections and expenditures are reported based on the requirements set forth in O.C.G.A. 548-8-122. \nCASH AND CASH EQUIVALENTS EXPENDITURES/LIABILlTlES/DISBURSEMENTS EMPLOYEE COMPENSATION REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Material Weakness Finding Control Number: FS-7741-10-02 \nCondition: This is a repeat finding (FS-7741-09-02, FS-7741-08-02, and FS-7741-07-02) from the years ended June 30, 2009, June 30, 2008, and June 30, 2007, respectively. The accounting procedures of the School District were insufficient to providefor adequate internal controls at the Central Office. \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. \nQuestioned Cost: N/A \nInformation: Cash and Cash Equivalents \nThe Payroll bank account was not reconciled to the General Ledger. The School District's general ledger reflected an overall balance in the Interfund Cash account of $50,762.01. This amount should always carry an overall balance of zero. \nExpenditures/Liabilities/Disbursements A review of voucher packages revealed the following deficiencies: Numerous voucher packages could not be located. Several voucher packages were missing adequate documentation or proper approval. Several voucher packages were charged to the wrong object codes or improper period. No subsidiary listing of Accounts Payable was provided. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGSAND QUESTIONEDCOSTS YEAR ENDED JUNE 30,2010 \nII FINANCIALSTATEMENT FINDINGSAND QUESTIONEDCOSTS \nCASH AND CASH EQUIVALENTS EXPENDlTURES/LIABILlTlES/DISBURSEMENTS EMPLOYEE COMPENSATION REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Material Weakness Finding Control Number: FS-7741-10-02 \nEmployee Compensation No subsidiary listing of Salary and Benefits Payable or Payroll Withholdings Payable was provided. \nRevenues/Receiva bles/Receipts No subsidiary listing of Accounts Receivable was provided. \nGeneral Ledger A review of journal entries revealed the following deficiencies: a Journal entries were not reviewed by someone independent of the General Ledger posting function. a Numerous journal entries did not have sufficient supporting documentation. Due to this lack of documentation, severaljournal entries could not be determined to be valid or appropriate. \nCause: These deficiencies were the result of management's failure to ensure that internal controls were established, implemented and functioning. \nEffect: Errors and/or irregularities may not be detected in a timely manner. \nRecommendation: The School District should establish, revise and/or monitor procedures to ensure that bank accounts are properly reconciled to the general ledger and that the Interfund Cash account is accurate. In addition, management should review current policies regarding expenditures and implement controls to ensure that expenditures are properly documented, approved and recorded correctly. Subsidiary listings should be available for Accounts Receivable, Accounts Payable, Salary and Benefits Payable and Payroll Withholdings Payable. Also, the School District should establish sufficient internal control proceduresto require that all journal entries are documented and approved prior to posting. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGSAND QUESTIONEDCOSTS YEAR ENDED JUNE 30,2010 \nII FINANCIAL STATEMENT FINDINGSAND QUESTIONEDCOSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS Inadequate Internal Controls over School Activity Accounts Material Weakness Finding Control Number: FS-7741-10-03 \nCondition: This is a repeat finding (FS-7741-09-03 and FS-7741-08-03)from the years ended June 30, 2009, and June 30, 2008, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \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. \nQuestioned Cost: N/A \nInformation: Cash and Cash Equivalents \nThe following deficiencies were noted: Several bank accounts were not reconciled t o the General Ledger. \nr Several bank reconciliations showed no evidence of review by someone other than the preparer. The bank reconciliation function was not separated from the record keeping and voucher payment functions. \nRevenues/Receivables/Receipts Based on a review of receipts, the following deficiencies were noted: Several athletic gate receipt reconciliations were missing. Expenses were paid out of athletic gate receipts prior to being deposited and recorded. The deposit preparation function was not separated from the record keeping and cash custody functions. \nSeveral accounts which were not custodial in nature were recorded as agency Funds Held for Others. Due to the materiality of the balances of these accounts, an adjustment was proposed and accepted by the client to properly report Funds Held for Others. \nCause: These deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \nEffect: Errors and/or irregularities may not be detected in a timely manner. \nRecommendation: Management should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. Management should implement additional procedures to ensure that the key accounting functions of custody, recordkeeping and authorization are separated and that proper controls are established a t the various schools. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \nI1 FINANCIALSTATEMENT FINDINGSAND QUESTIONEDCOSTS \nCAPITAL ASSETS Failureto Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-7741-10-04 \nCondition: This is a repeat finding (FS-7741-09-04) from the year ended June 30, 2009. The School District did not adequately maintain capital assets inventory records. \nCriteria: Chapter 37 Implementing a Cap/al Asset;s Management System of the Financial Management for Georgia Local Units of Administration provides that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system, and maintain fixed asset inventory records. \nQuestioned Cost: N/A \nInformation: A review of the School District's capital assets policies and procedures and the related capital assets records noted the following deficiencies: \nThe School District has not updated their capitalization policy to include the adoption of Governmental Accounting Standards Board (GASB) Statement No. 51, Accounting and Reporting for IntangibleAssets. The subsidiary ledger did not agree to the Financial Statements. Construction in Progress additions were not calculated properly. An audit entry was proposedand accepted by the client for the governmental activities financial statements. Capital assets additions were not capitalized in the year under review. Depreciation expense and the related Accumulated Depreciation for the year under review were not recorded properly. A physical inventory of capital assets has not been performed in several years. \nCause: The School District failed to properly maintain its capital assets records in accordance with the School District's approved capital assets policy and requirements set-forth in Chapter 37 Implementing a \u0026pita1 Assets Management System of the Financial Management for Geor~iaLocal Units of Administration. \nEffect: The failure of the School District t o properly account for capital assets activity can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. \nRecommendation: The School District should review its capital assets activity and make appropriate adjustments to ensure that the capital assets activity conforms to the School District's approved capital assets policy and generally accepted accounting principles. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \nIll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nALLOWABLE COSTS/COST PRINCIPLES PERIOD OF AVAILABILITY OF FEDERAL FUNDS Inadequate Internal Control Procedures Material Weakness Material Noncompliance U. S. Department of Education Through Georgia Department of Education Special Education Cluster (CFDA 84.027, CFDA 84.173, CFDA 84.391, CFDA 84.392) Title I, Part A Cluster (CFDA 84.010, CFDA 84.389) lmproving Teacher Quality State Grants (CFDA 84.367) Finding Control Number: FA-7741-10-01 \nCondition: This is a repeat finding (FA-7741-09-01 and FA-7741-08-01) from the years ended June 30, 2009, and June 30, 2008, respectively. There were deficiencies in internal controls related to vendor payments for the Special Education Cluster (CFDA 84.391, CFDA 84.392, CFDA 84.027, and CFDA 84.173), Title I, Part A Cluster (CFDA 84.010 and CFDA 84.389) and the lmproving Teacher Quality State (CFDA 84.367) grants. \nCriteria: Provisions of the OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments require that \"governmental units are responsible for efficient and effective administration of Federal awards through the application of sound management practices\" and \"to be allowable under Federal awards, costs must be adequately documented\". \nQuestioned Cost: $3,051.97 (CFDA 84.367) $947.00 (CFDA 84.027) \nInformation: A review of voucher packages of the Title I, Part A Cluster revealed that two voucher packages did not have approved requisitions or purchase orders. \nA review of voucher packages of the lmproving Teacher Quality State Grant program revealed that one voucher package was missing the original invoice, one expense reimbursement report lacked the Superintendent's approval, three voucher packages were charged to the improper object code and two were not in the proper period. \nA review of voucher packages of the Special Education Cluster revealed that two voucher packages did not have original invoices, three were charged to the improper object code and one was not in the proper period. \nCause: Management failed to implement controls for monitoring compliance with Federal guidelines to ensure that items purchased for the Special Education Cluster, Title I, Part A Cluster and lmproving Teacher Quality State Grants program were properly reviewed and approved as allowable expenditures prior to being charged to the applicable program. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \nIll FEDERALAWARD FINDINGS AND QUESTIONEDCOSTS \nALLOWABLE COSTS/COST PRINCIPLES PERIOD OF AVAILABILITY OF FEDERAL FUNDS Inadequate Internal Control Procedures Material Weakness Material Noncompliance U. S. Department of Education Through Georgia Department of Education Special Education Cluster (CFDA84.027, CFDA 84.173, CFDA 84.391, CFDA 84.392) Title I, Part A Cluster (CFDA 84.010, CFDA 84.389) lmproving Teacher QualityState Grants (CFDA 84.367) Finding Control Number: FA-7741-10-01 \nEffect: Failure to adequately monitor disbursements for the Special Education Cluster, Title I, Part A Cluster and lmproving Teacher Quality State Grants program funds could result in noncompliance with the requirements of these Federal grants. \nRecommendation: The School District should review control procedures in place and implement procedures to ensure that costs are allowable under OMB Circular A-87 and properly approved by management. \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U. S. Department of Agriculture Through Georgia Department of Education Food Services - School Breakfast Program (CFDA 10.553) Food Services - National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-10-02 \nCondition: This is a repeat finding (FA-7741-09-03, FA-7741-08-02, and FA-7741-07-01) from the years ended June 30, 2009, June 30, 2008, and June 30, 2007, respectively. The School District failed to transfer School Breakfast Program (CFDA 10.553) and National School Lunch Program (CFDA 10.555) funds to the School Food Service account in a timely manner. \nCriteria: USDA Policy 210.14-06 states that USDA funds should be entered into the school food service account as soon as possible on receipt and that any interest on these funds must also be credited to the school food service account. \nQuestioned Cost: $667.00 \nInformation: 2 4 of the 27 receipts reviewed were not transferred to the School Food Service account in a timely manner. Our calculations indicate that approximately $667.00 in interest was earned by the general operating bank account on school food service funds. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30.2010 \nIll FEDERALAWARD FINDINGS AND QUESTIONEDCOSTS \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U. S. Department of Agriculture Through Georgia Department of Education Food Services - School Breakfast Program (CFDA 10.553) Food Services - National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-10-02 \nCause: The School District failed to implement appropriate procedures to ensure compliance in accordance with Federal guidelines. \nEffect: Failure to ensure appropriate transfers can result in noncompliance with the requirements of the Federal grant. \nRecommendation: The School District should ensure that funds are transferred promptly in compliance with Federal guidelines. In addition, the School District should transfer the questioned cost from their general operating bank account into their school food bank account. \nSPECIAL TESTS AND PROVISIONS-SCHOOLWIDE PROGRAMS Inadequate Schoolwide Program Plans U. S. Department of Education Through Georgia Department of Education Title I, Part A Cluster (CFDA 84.010 and CFDA 84.389) ImprovingTeacher QualityState Grants (CFDA 84.367) Finding Control Number: FA-7741-10-03 \nCondition: Schoolwide plans for the participating schools did not include all the required components and were not sufficient to meet the requirements of Title I, Part A Cluster (CFDA 84.010 and CFDA 84.389) or lmprovingTeacher QualityState Grants (CFDA 84.367). \nCriteria: Title I, Section 1114(b) (1) states in part: \na) To operate a schoolwide program, a school must include the following three core elements: 1) Comprehensive needs assessment of the entire school. 2) Comprehensive plan based on data from the needs assessment. 3) Annual evaluation of, and results achieved by, the schoolwide program and revision of the schoolwide plan based on that evaluation. \nb) A schoolwide plan must also include the following components: 1) Schoolwide reform strategies. 2) Instruction by highly qualified professional staff. 3) Strategies to increase parental involvement. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNN SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \nIll FEDERAL AWARD FINDINGSAND QUESTIONEDCOSTS \nSPECIAL TESTS AND PROVISIONS-SCHOOLWIDEPROGRAMS Inadequate Schoolwide Program Plans U. S. Department of Education Through Georgia Department of Education Title I, Part A Cluster (CFDA 84.010 and CFDA 84.389) ImprovingTeacher QualityState Grants (CFDA 84.367) Finding Control Number: FA-7741-10-03 \n4) Additional support to students experiencing difficulty. 5) Transition plans for assisting preschool children in the successful transition to the \nschoolwide program. \nQuestioned Cost: N/A \nInformation: Our review of the participating facility schoolwide plans revealed that the required components of a schoolwide plan, as outlined on the Georgia Department of Education Schoolwide Plan Checklist, were not sufficiently addressed, or in some cases not included or easily identifiable. \nCause: These deficiencies were a result of management's failure to ensure that Federal award guidelines were followed. \nEffect: Failure to implement adequate schoolwide plans may result in noncompliance with the Federal program. \nRecommendation: Management should ensure that schoolwide plans are developed to address each component of a schoolwide program as outlined in Title I, Section 1114(b)(l). \n \n SECTION V MANAGEMENT'S RESPONSES \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30,2010 \nFinding Control Number: FS-7741-10-01 \nWith the recent change in the finance directorship, the district has begun the process of implementing the controls necessary to ensure that the financial statements are properly prepared in accordance with generally accepted accounting principles and standards. Since the change in leadership, the district has recognized significant strides in its financial reporting. We are confident that this progression will be reflected in upcoming audits. This repeat finding was anticipated given that the change in leadership did not occur until almost midyear of FY 2011, which was after the audit period. \nFinding Control Number: FS-7741-10-02 \nBeginning with the change in administration in the finance department, the workflow of the department was restructured to address much of the concerns noted in the audit report. These changes include but are not limited to the performance of monthly reconciliations of the various bank accounts to the general ledger, segregation of the accounts payable and fund ledger duties, and implementation of other internal controls and procedures to ensure that all balance sheet and income statement accounts are properly documented, authorized, and recorded in accordance with recommended state, Federal, and local financial policies and procedures. \nFinding Control Number: FS-7741-10-03 \nThe district has revised the school activity accounts recordkeeping process to ensure that the athletic gate receipts and revenues are properly recorded and accounted for in the financial accounting system. In addition, every effort is made to ensure that the controls in place over school activity accounts provide reasonable assurance that all balance sheet and income statement accounts are properly accounted for and recorded. \nFinding Control Number: FS-7741-10-04 \nTo improve the accountability of capital assets, a physical inventory count was performed, which will serve as the base count for future adjustments. Annual reviews of the capital assets will be performed and appropriate adjustments made for the recording of additions, retirements, and depreciation expense in accordance with generally accepted accounting principles and procedures and district policy. This review will include appropriate adjustments to the district's asset capitalization policy. \nFinding Control Number: FA-7741-10-01 \nThe controls referenced above for Financial Statement: Finding Control Nos. FS-7741-10-01and FS7741-10-02 were implemented to address this finding as well. The district has made a concerted effort to improve the internal controls and procedures throughout the organization, regardless of funding source. The district will continue with this process to ensure that Federally funded expenditure purchases are expended in compliance with Federal guidelines. This includes ensuring that the purchases are properly documented, authorized, and expended in accordance with district initiatives and programmatic needs prior to being charged to the applicable Federal program. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nSCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30,2010 \n \nFinding Control Number: FA-7741-10-02 \n \nLike most districts across the state, the Dublin City Schools continue to be challenged with cash flow concerns. As a result, we are unable to consistently perform the transfers from the general fund bank account to the school food service bank account in a timely fashion. The district is committed to improving this process and will make every effort to comply with this requirement. Additional interest due for failure to make the timely transfers will be remitted to school food service. \n \nFinding Control Number: FA-7741-1@03 \n \nWith the recent change in the administration of the Title I Federal programs, the new administrator has worked closely with the appropriate state level program managers to make the necessary adjustments to ensure that going forward all plans include the required components and meet the required deadlines. \n \nContact Person: Telephone: Fax: Email: \n \nTheresa Thornton, Director of Finance (478) 277-4017 (478) 272-1249 theresa.thornton@dublincityschools.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2008-h2009","title":"City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended June 30, 2009 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["\u003c-year ended 1994\u003e-year ended June 30, 1996: Georgia. Department of Audits.","Year ended June 30, 1997- : Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Laurens County, Dublin, 32.54044, -82.90375"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2009-06-30"],"dcterms_description":["Title may fluctuate: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report, City of Dublin Board of Education, Laurens County or Audit report, City of Dublin Board of Education, Laurens County, Georgia. For fiscal year ending June 30, 2000-, audits conducted \"in accordance with auditing standards generally accepted in the United States of America\" are issued as: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ... or City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports). Reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" may be issued as: Review or Management report","Report year covers fiscal year.","\u003cYear ended June 30, 1994\u003e-year ended June 30, 1996 issued by the State of Georgia, Dept. of Audits; year ended June 30, 1997- issued by the State of Georgia, Dept. of Audits and Accounts.","Schedule of salaries and travel supplements for local Georgia Boards of Education, Libraries, etc. ceased to be published in print in 2002. Starting in 2003 this information can be accessed online through the Georgia Government Publications database in GALILEO or in the annual CD-ROM called: Salary and travel compilation reports.","Has supplements: Supplementary information, City of Dublin Board of Education, Laurens County, summary and schedule of salaries and travel ..., -fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2008-","Year ended June 30, 1994, released in 1995? (online surrogate); title from PDF title page (Georgia Government Publications database, viewed August 22, 2016).","Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 29, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts, 2009-06-30"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Dublin (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended June 30, 2009 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2008-h2009"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2008-h2009"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED \nJUNE 30,2009 \n(Including Independent Auditor's Reports) \n1t'! \nI1 - \nbhr - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \n- TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL \nSTATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF \nEXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE S E E T \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARYINFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n3 1 \n \nSECTION I1 \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL \nSTATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING \nSTANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A- 133 \n \nSECTION 111 AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV \nFINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \n- TABLE OF CONTENTS - \nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nAugust 9,2010 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL \nSTATEMENTS AND SUPPLEMENTARYINFORMATION - SCHEDULE OF \nEXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Dublin Board of Education, as of and for the year ended June 30, 2009, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Dublin Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted ow 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 City of Dublin Board of Education'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. \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 \n \n the aggregate remaining fund information of the City of Dublin Board of Education, as of June 30, 2009, 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. \nThe City of Dublin 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. \nIn accordance with Government Auditing Standards, we have also issued our report dated August 9, 2010, on our consideration of the City of Dublin 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. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as \npresented on page 27, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Dublin Board of Education's basic financial statements. The accompanying supplementary information which consist 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 basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \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. \nRespectfully submitted, \nI \nRussell W. Hinton, CPA, CGFM State Auditor \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nSTATEMENT OF NET ASSETS JUNE 30,2009 \n \nEXHIBIT \" A \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Other Current Liabilities Long-Term Debt \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nGOVERNMENTAL ACTlVlTl ES \n \nThe notes to the basic financial statements are an integral part of this statement. \n-1 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30,2009 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvementof InstructionalServices Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student TransportationServices Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Enterprise Operations Community Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital ProjectsIDebt Services Grants and ContributionsNot Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChanges in Net Assets \nNet Assets - Beginning of Year (Restated) \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 2- \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nBALANCE SHEET GOVERNMENTAL FUNDS \nJUNE 30.2009 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 4,345,381.04 $ 10,335,448.07 $ 3,112.13 $ 14,683,941.24 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Deferred Revenue Contracts Payable Retainages Payable Other Current Liabilities \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Capital Projects \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund \nTotal Fund Balances \n \nTotal Liabilities and Fund Balances \n \n$ 4,345,381.04 $ 10,335,448.07 $ 3,112.13 $ 14,683,941.24 \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30.2009 \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reportedfor Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction In Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \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: \nBonds Payable IntergovernmentalContract Capitalized Bond and Other Debt Issuance Costs Capital Leases \nTotal Long-Term Liabilities \nNet Assets of GovernmentalActivities (Exhibit \" A ) \n \nEXHIBIT \"D\" \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30.2009 \n \nEXHIBIT \" E \n \nREVENUES \nProperly Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Eamings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of InstructionalServices Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 27,130,978.10 $ 10,218,094.02 $ \n \n328.84 $ 37,349,400.96 \n \n$ 27,740,143.65 $ 20,976,982.10 $ 1,426,105.14 $ 50,143,230.89 $ -609,165.55 $ -10,758,888.08 $ -1,425,776.30 $ -12,793,829.93 \n \n$ -1,426,020.00 $ 1,426,020.00 $ \n \n0.00 \n \n$ -609,165.55 $ -12,184,908.08 $ \n \n243.70 $ -12,793,829.93 \n \n977,375.54 \n \n19,399,360.28 \n \n2,868.43 \n \n20,379,604.25 \n \nFund Balances - Ending \n \n$ 368,209.99 $ 7,214,452.20 $ \n \nThe notes to the basic financial statements are an integral part of this statement \n \n3,112.13 $ 7,585,774.32 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATIONOF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30,2009 \nTotal Net Change in Fund Balances -Governmental Funds (Exhibit \"E) \nAmounts reportedfor GovernmentalActivities in the Statement of Activities are different because: \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: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nBond issuance costs, deferred gains on refundings and similar items when debt is first issued are reported as expenditures 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: \nAmortization of Bond Issuance Costs \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilitiesin the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \nEXHIBIT \"F\" \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nSTATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30,2009 \n \nEXHIBIT \"G\" \n \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nOther \nTotal Assets \nLIABILITIES Funds Held for Others \n \nAGENCY FUNDS \n \nThe notes to the basic financial statements are an integral part of this statement \n- 8- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nNOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City of Dublin 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. \nNote 2: SUMMARY OF SIGNIFICANTACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the City of Dublin Board of Education. \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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: 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. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANTACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \nGeneral Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund. \nDistrict-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \nDebt Service Fund accounts for taxes (sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \nAgency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \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 fiom grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers 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 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nNOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nare recorded when the related f'und liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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. \nRESTATEMENT OF PRIOR YEAR NET ASSETS \nFor fiscal year 2009, the School District restated Construction in Progress due to a change in the capitalization policy and errors and omissions. The School District had previously not included architect payments as capitalizable expenditures; however, the Finance Director requested that the Board change the policy to specifically include these expenditures. The result is an increase in Net Assets at July 1, 2008, of $1,115,554.70. This change is in accordance with generally accepted accounting principles. \nCASH AND CASH EQUIVALENTS \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 h d s in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \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: \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nNOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANTACCOUNTING POLICIES \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations hlly insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Georgia Fund 1 administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \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. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nPROPERTY TAXES \nThe City of Dublin Board of Commissioners fixed the property tax levy for the 2008 tax digest year (calendar year) on October 2, 2008 (levy date). Taxes were due on January 6, 2009 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2008 tax digest are reported as revenue in the governmental funds for fiscal year 2009. The Dublin City Clerk 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, 2009, for maintenance and operations amounted to $7,893,553.00. \nThe tax millage rate levied for the 2008 tax year (calendar year) for the City of Dublin Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \n - CITY OF DUBLIN BOARD OF EDUCATION LAURENS COUNTY \nNOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSchool Operations \n \n16.270 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,503,373.32 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. \n \nINVENTORIES \n \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. \n \nCAPITAL ASSETS \n \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. \n \nDuring 1994, the School District became a separate legal entity and the City of Dublin deeded all land and buildings in use by the School District to the School District. A stipulation in the agreement was made that if the property was no longer needed for educational purposes, the property would revert to the City of Dublin. Currently, all property transferred to the School District's possession at that time is being used for educational purposes, therefore these capital assets are considered to be the property of the City of Dublin Board of Education and will be reported on the School District's basic financial statements. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nNOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Estimated \n \nPolicv \n \nUseful Life \n \nLand Land Improvements Buildings and Improvements Equipment Construction in Progress \n \nAll \n \nN/A \n \n$ 5,000.00 \n \n20 years \n \n$ 5,000.00 \n \n50 years \n \n$ 5,000.00 5 to 25 years \n \n$ 5,000.00 \n \nN/ A \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \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. \n \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. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total \ninvestment 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. \nRestricted net assets - These represent resources for which the School District is legally or \ncontractually 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. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nUnrestricted net assets - Unrestricted net assets represent resources derived from property \ntaxes, 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. \n \nDEFICIT FUND BALANCE \n \nThe fund reporting a deficit fund balance at June 30,2009, is as follows: \n \nFund TvpeIFund Name \n \nDeficit Balance \n \nGeneral Fund The School District's plan to eliminate this deficit is as follows: \n \n$ 63,808.86 \n \na A reduction in force plan is in place to eliminate 20 positions through attrition during fiscal year 2010. \na The millage rate will be increased by 0.50 mills in fiscal year 2010. In-System Travel will be eliminated. \na Furlough days will be enforced for all employees - 6 in fiscal year 2010 and 6 in fiscal \nyear 201 1. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official 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 \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nNOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS Custodial 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 formal deposit policy for managing custodial credit risk. At June 30, 2009, the bank balances were $1,947,636.28. The bank balances were entirely covered by Federal depository insurance. \nCATEGORIZATION OF INVESTMENTS At June 30, 2009, the carrying value of the School District's total investments was $10,021,082.55, 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 Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 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 htt~://www.audits.state.~a.us/intemet~searchR~ts.html. \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, $1.OO per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30,2009, was 41 days. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nNOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of \nAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded \nat their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \nTotal Capital Assets Not Being Depreciated \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \nTotal Capital Assets, Being Depreciated, Net \n- Governmental Activity Capital Assets Net \n \nBalances July 1, 2008 (Restated) \n \nIncreases \n \nDecreases \n \nBalances June 30.2009 \n \n$ 1,600,732.00 \n \n$ \n \n3,992.5 13.60 $20.371.710.88 \n \n$ 5,593,245.60 $20,371,710.88 $ \n \n0.00 $ 1,600,732.00 24.364.224.48 \n0.00 % 25,964,956.48 \n \n$20,596,587.10 $ -639,744.00 $ \n \n0.00 $ 19,956.843.10 \n \n$26,189:832.70 $ 19.731.966.88 S o . 0 0 $4532139958 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \nNote 6: RESTRICTED ASSETS \nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30,2009, were as follows: \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ \n$ 14,506.28 \n$ 203,799.37 $ $ 8,973,666.36 $ 814,972.00 \n \n2,127.83 984.30 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2009, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide Capital Projects \n \nDebt Service Fund \n \n$ 1.426.020.00 \n \nTransfers are used to move Special Purpose Local Option Sales Tax revenue from the District-wide Capital Projects Fund to the Debt Service Fund to service bond debt. \n \nNote 8: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk of loss associated with automobiles. 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. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 8: RISK MANAGEMENT \n \npremium 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. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probably that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liabilitv \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liabilitv \n \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 Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $700,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Fund in excess of $700,000.00 loss per occurrence, up to $1,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 9: SHORT-TERM DEBT \n \nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-termdebt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTemporary Loans \n \n$ \n \n0.00 $ 3,250,000.00 $ 3,250,000.00 $ \n \n0.00 \n \nNote 10: LONG-TERM DEBT \n \nCAPITAL LEASES The City of Dublin Board of Education entered into various lease agreements for equipment. 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. \n \nINTERGOVERNMENTAL CONTRACT The City of Dublin Board of Education entered into a contract with the Laurens County Public Facilities Authority, dated April 1, 2008, for the issuance of revenue bonds to provide funds to acquire, construct, and equip capital outlay projects of the School District. Under the terns of the contract, the Authority issued $4,500,000.00 (less issuance costs of $83,500.00) 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 recommend to the Mayor and the Council of the City of Dublin, Georgia, to exercise its power of taxation on behalf of the School District, to the extent necessary to pay the amounts required to be paid by the contract. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2007 General Government - Series 2008 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \nNOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 10: LONG-TERM DEBT \n \nINTERGOVERNMENTAL CONTRACT The debt at June 30,2009, associated with this agreement is as follows: \n \nPurpose \n \nInterest Rate \n \nLaurens County Public Facility Authority \n \n3.94% \n \nAmount $ 4,500,000.00 \n \nVoters have authorized $17,750,000.00 in general obligation debt for various construction projects which was not issued as of June 30,2009. \n \nThe changes in Long-Tern Debt during the fiscal year ended June 30,2009, were as follows: \n \nBalance July 1,2008 \n \nGovernmental Funds \n \nAdditions \n \nBalance Deductions June 30,2009 \n \nDue \nWithin One Year \n \nG.O. Bonds \n \n$ lO,lOO,OOO.OO $ \n \nIntergovernmental Contract 4,500,000.00 \n \nCapital Leases \n \n308.401.00 \n \n0.00 $ 1,000,000.00 $ 9,100,000.00 $ 1,500,000.00 \n \n4,500,000.00 \n \n109,805.00 198.596.00 \n \n76,491.00 \n \nAt June 30, 2009, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nPrincipal \n \nInterest \n \nTotal Principal and Interest \nFiscal Year Ended June 30 \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nLaurens County \n \nPublic Facility Authority \n \nPrincipal \n \nInterest \n \nTotal Principal and Interest \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30,2009 \n \nEXHIBIT \"H\" \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $201,717.08 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $178,413.50 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $12,822.58 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $10,481.OO \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30,2009, together with funding available: \n \nProi ect \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nDublin High School \n \n$ 6.491,520.22 $ 1,324,986.20 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \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 terns. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \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. \n \n                                      "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2007-h2008","title":"City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["\u003c-year ended 1994\u003e-year ended June 30, 1996: Georgia. Department of Audits.","Year ended June 30, 1997- : Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Laurens County, Dublin, 32.54044, -82.90375"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2008-06-30"],"dcterms_description":["Title may fluctuate: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report, City of Dublin Board of Education, Laurens County or Audit report, City of Dublin Board of Education, Laurens County, Georgia. For fiscal year ending June 30, 2000-, audits conducted \"in accordance with auditing standards generally accepted in the United States of America\" are issued as: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ... or City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports). Reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" may be issued as: Review or Management report","Report year covers fiscal year.","\u003cYear ended June 30, 1994\u003e-year ended June 30, 1996 issued by the State of Georgia, Dept. of Audits; year ended June 30, 1997- issued by the State of Georgia, Dept. of Audits and Accounts.","Schedule of salaries and travel supplements for local Georgia Boards of Education, Libraries, etc. ceased to be published in print in 2002. Starting in 2003 this information can be accessed online through the Georgia Government Publications database in GALILEO or in the annual CD-ROM called: Salary and travel compilation reports.","Has supplements: Supplementary information, City of Dublin Board of Education, Laurens County, summary and schedule of salaries and travel ..., -fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2008-","Year ended June 30, 1994, released in 1995? (online surrogate); title from PDF title page (Georgia Government Publications database, viewed August 22, 2016).","Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 29, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Dublin (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n27 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n29 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT 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 \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 12, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Dublin Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe City of Dublin Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica 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 City of Dublin Board of Education'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. \n \n2008ARL-11 \n \n In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position ofthe governmental activities, each major fund, and the aggregate remaining fund information ofthe City of Dublin Board of Education, as of June 30, 2008, 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. \n \nThe City of Dublin 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. \n \nIn accordance with Government Auditing Standards, we have also issued our report dated October 12, 2009, on our consideration of the City of Dublin 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 ofthat 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. \n \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 the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \n \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Dublin Board of Education's basic financial statements. The accompanying supplementary information which consist 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 ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \n \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. \n \nRespectfully submitted, \n \n... \n \n-:i)--\u003cK2 ~-~-~~ell W. Hinton, CPA, CGFM State Auditor \n \nRWH:as 2008ARL-ll \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF NET ASSETS \nJUNE 30, 2008 \n \n.EXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Deferred Charges Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nSalaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n727,782.24 \n \n20,384,431.00 \n \n922,455.88 1,916,975.79 \n728,504.48 116,260.19 107,713.44 215,233.33 \n \n1,600,732.00 2,876,958.90 1,080,634.00 27,425,189.10 1,379,480.00 -9,288,716.00 \n \n$ =====5=0,=19=3=,6=3=4..3..5= \n \n$ \n \n2,693,338.39 \n \n714,683.21 \n \n768,232.87 \n \n137,088.22 \n \n635.39 \n \n1,109,805.00 13,798,596.00 \n \n$ 19,222,379.08 \n \n$ 22,177,949.00 \n301,252.33 221,707.87 7,483,395.84 786,950.23 \n$ 30,971,255.27 \n \n$ =====50:!:1' =9=3,=63=4=.3=5 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2008 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 19,088,915.51 $ \n1,599,363.89 912,493.67 464,979.20 577,404.40 \n1,682,393.23 259,260.11 \n2,360,071.61 885,935.94 250,384.70 111,103.96 \n43,834.85 1,060.04 \n1,758,714.81 172,222.34 \n$ 30,168,138.26 $ \n \n167,785.93 \n24,422.79 129,421.71 321,630.43 \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ 14,178,693.52 \n446,513.23 189,774.06 325,810.07 534,310.81 748,434.82 \n10,711.66 805,022.44 206,603.71 $ \n10,711.66 853.14 \n1,533,709.64 \n$ 18,991,148.76 $ \n \n$ 34,419.00 34 419.00 $ \n \n-4,742,436.06 \n-1,152,850.66 -722,719.61 -139,169.13 -43,093.59 -933,958.41 -248,548.45 \n-1,555,049.17 -644,913.23 -239,673.04 -110,250.82 \n-43,834.85 23,362.75 -95,583.46 -172,222.34 \n-10,820,940.07 \n \n$ \n \n7,823,874.73 \n \n2,945,070.14 1,082,675.00 \n477,629.01 330,825.52 \n \n$ \n \n12,660,074.40 \n \n$ \n \n1,839,134.33 \n \n29,132,120.94 \n \n$ ====30='=97=1=,2=5=5.=27= \n \n-3- \n \n CITY OF DUBLIN BOARD OF EDUCATION- LAURENS COUNTY BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2008 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nSalaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Capital Projects \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 711,092.47 $ \n \n13,821.34 $ 2,868.43 $ 727,782.24 \n \n584,345.60 19,800,085.40 \n \n20,384,431.00 \n \n221,140.56 1,916,975.79 \n728,504.48 116,260.19 107 713.44 \n \n490,774.63 \n \n711,915.19 1,916,975.79 \n728,504.48 116,260.19 107 713.44 \n \n$ 4,386,032.53 $ 20,304,681.37 $ 2,868.43 $ 24,693,582.33 \n \n$ 2,693,338.39 714,683.21 $ \n635.39 \n$ 3,408,656.99 $ \n \n768,232.87 137,088.22 \n905,321.09 \n \n$ 2,693,338.39 714,683.21 768,232.87 137,088.22 635.39 \n$ 4,313,978.08 \n \n$ 301,252.33 \n \n$ 301,252.33 \n \n$ 218,839.44 $ 2,868.43 \n \n221,707.87 \n \n19,180,520.84 \n \n19,180,520.84 \n \n202,915.05 \n \n202,915.05 \n \n473,208.16 \n \n473,208.16 \n \n$ 977,375.54 $ 19,399,360.28 $ 2,868.43 $ 20,379,604.25 \n \n$ 4,386,032.53 $ 20,304,681.37 $ 2,868.43 $ 24,693,582.33 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources \nand therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nOther Long-Term Assets are not available to pay for current period expenditures and therefore, are deferred on the Statement of Net Assets. \nDeferred Charges - Bond Issuance Costs \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: \nBonds Payable Intergovernmental Contract Capital Leases \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 20,379,604.25 \n \n$ 1,600,732.00 2,876,958.90 1,080,634.00 \n27,425,189.10 1,379,480.00 -9,288, 716.00 \n \n25,074,278.00 \n \n210,540.69 \n \n215,233.33 \n \n$ -10, 100,000.00 -4,500,000.00 -308.401.00 \n \n-14,908,401.00 \n \n$ 30,971,255.27 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest Dues and Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nProceeds of General Obligation Bonds Proceeds of Intergovernmental Contract Capital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 7,805,406.04 $ \n15,931,392.21 4,176,850.55 \n321,630.43 57,107.61 \n330,825.52 \n \n2,945,070.14 372,791.49 $ \n \n$ 28,623,212.36 $ 3,317,861.63 $ \n \n$ 47,729.91 \n \n7,805,406.04 2,945,070.14 15,931,392.21 4,176,850.55 \n321,630.43 477,629.01 330,825.52 \n \n47,729.91 $ 31,988,803.90 \n \n$ 17,431,210.62 \n \n$ 17,431,210.62 \n \n1,599,363.89 912,493.67 464,979.20 569,899.48 \n1,682,393.23 259,257.95 $ \n2,359,265.43 867,323.04 250,384.70 111,103.96 43,834.85 1,060.04 \n1,759,161.94 \n \n2.16 0.27 \n4,306,670.82 \n \n1,599,363.89 912,493.67 464,979.20 569,899.48 \n1,682,393.23 259,260.11 \n2,359,265.70 867,323.04 250,384.70 111,103.96 43,834.85 1,060.04 \n1,759,161.94 4,306,670.82 \n \n160,635.00 11,966.00 \n \n49,148.00 $ 13,608.33 65,500.00 \n \n1,285,000.00 81,148.01 \n \n1,494,783.00 106,722.34 65,500.00 \n \n$ 28,484,333.00 $ 4,434,929.58 $ 1,366,148.01 $ 34,285,410.59 \n \n$ 138,879.36 $ -1,117,067.95 $ -1,318,418.10 $ -2,296,606.69 \n \n$ 10,100,000.00 \n \n$ 10,100,000.00 \n \n4,500,000.00 \n \n4,500,000.00 \n \n$ \n \n72,349.00 \n \n72,349.00 \n \n$ 1,262,303.00 \n \n1,262,303.00 \n \n-1,262,303.00 \n \n-1,262,303.00 \n \n$ \n \n72,349.00 $ 13,337,697.00 $ 1,262,303.00 $ 14,672,349.00 \n \n$ 211,228.36 $ 12,220,629.05 $ \n \n-56,115.10 $ 12,375,742.31 \n \n766 147.18 \n \n7,178,731.23 \n \n58,983.53 \n \n8,003,861.94 \n \nFund Balances - Ending \n \n$ 977,375.54 $ 19,399,360.28 $ \n \nThe notes to the basic financial statements are an integral part of this statement. -6 - \n \n2,868.43 $ 20,379,604.25 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \n \n$ 12,375,742.31 \n \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \n \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: \n \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \n \n$ 3,026,450.00 -619, 194.00 \n \n2,407,256.00 \n \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \n \n18,468.69 \n \nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Assets. In the current period, proceeds were received from: \n \nGeneral Obligation Bonds Issued \n \n-14,600,000.00 \n \nBond issuance costs and similar items when debt is first issued are reported as expenditures 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: \n \nDeferral of Bond Issuance Costs \n \n215,233.33 \n \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \n \n-72,349.00 \n \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: \n \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \n \n$ 1,285,000.00 209,783.00 \n \n1,494,783.00 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 1,839,134.33 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION- LAURENS COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2008 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nOther \nTotal Assets \nLIABILITIES Funds Held for Others \n \nAGENCY FUNDS \n$ 34,717.40 7.50 \n$ 34,724.90 \n$ 34,724.90 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City ofDublin Board ofEducation (School District) was established under the laws ofthe 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. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \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 ofthe City ofDublin Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe 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. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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 ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program.  Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal 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. \nThe School District reports the following major governmental funds: \n- 10 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting 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 ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. 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 ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \n- 11 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District funds certain programs by a combination ofspecific 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. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash 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 authorize 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. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone 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 ofGeorgia 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 ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n- 12 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \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. \n \nPROPERTY TAXES \n \nThe City ofDublin Board ofCommissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on October 18, 2007 (levy date). Taxes were due on December 20, 2007 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2007 tax digest are reported as revenue in the governmental funds for fiscal year 2008. The Dublin City Clerk bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2008, for maintenance and operations amounted to $7,805,406.04. \n \nThe tax millage rate levied for the 2007 tax year (calendar year) for the City of Dublin Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n16.270 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,945,070.14 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. \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported \n \n- 13 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nat cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \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 ofassets 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 ofart. 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. \n \nDuring 1994, the School District became a separate legal entity and the City of Dublin deeded all land and buildings in use by the School District to the School District. A stipulation in the agreement was made that ifthe property was no longer needed for educational purposes, the property would revert to the City of Dublin. Currently, all property transferred to the School District's possession at that time is being used for educational purposes, therefore these capital assets are considered to be the property ofthe City of Dublin Board of Education and will be reported on the School District's basic financial statements. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Improvements Other than Buildings Buildings and Improvements Equipment Construction in Progress \n \nAll \n \nNIA \n \n$ 5,000.00 \n \n20 years \n \n$ 5,000.00 \n \n50 years \n \n$ 5,000.00 5 to 25 years \n \n$ 5,000.00 \n \nNIA \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \n- 14 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. \nIn the District-wide and fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, bond premiums and discounts, as well as issuance costs, should be deferred and amortized over the life ofthe bonds using the straight-line method. The effect ofthis deviation is deemed to be immaterial to the fair presentation of the basic financial statements. 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. \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding 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. \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. \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. \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS 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 ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value ofsuch surety bond and the market value of securities pledged shall be equal to not less than \n- 15 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \nNote 3: DEPOSITS AND INVESTMENTS \n110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13. I) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $1,887,731.83. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \n- 16 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n1,522,774.56 \n \n3 \n \n0.00 \n \nTotal \n \n$ 125222774.56 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2008, the carrying value ofthe School District's total investments was $20,384,431.00, 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 Treasury and Fiscal Services which are 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 ofTreasury and Fiscal Services for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State ofGeorgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.state.ga.us/intemet/searchRpts.html. \n \nThe Primary Liquidity Portfolio consists ofGeorgia 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, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 17 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 5: CAPITAL ASSETS \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \nTotal Capital Assets Not Being Depreciated \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \nTotal Capital Assets, Being Depreciated, Net \nGovernmental Activity Capital Assets - Net \n \nBalances July I, 2007 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2008 \n \n$ 1,600,732.00 \n \n$ 1,600,732.00 \n \n943,595.00 $ 3,008,452.00 $ 1,075,088.10 2,876,958.90 \n \n$ 2,544,327.00 $ 3,008,452.00 $ 1,075,088.10 $ 4,477,690.90 \n \n$26,350,101.00 $ 1,075,088.10 \n \n1,375,617.00 \n \n17,998.00 $ \n \n1,080,634.00 \n \n$27,425,189.10 14,135.00 1,379,480.00 \n1,080,634.00 \n \n7,115,810.00 707,177.00 860,670.00 \n \n516,687.00 84,608.00 17,899.00 \n \n14,135.00 \n \n7,632,497.00 777,650.00 878,569.00 \n \n$20,122,695.00 $ 473,892.10 $ \n \n0.00 $20,596,587.10 \n \n$ 22 66Z 022.QQ $ 3 482 344 IQ $ I QZS 088.lQ $ 2S,QZ4 278 QQ \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 536,895.00 \n \n$ 9,482.00 7,397.00 \n42,037.00 \n \n58,916.00 23,383.00 \n \n$ 619,194.00 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2008, were as follows: \n \n- 18 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ \n$ 13,821.34 \n$ 218,839.44 $ 7,884,120.96 $ 11,697,125.00 \n \n2,868.43 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2008, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide Capital Projects \n \nDebt Service Fund \n \n$ 1,262,303.00 \n \nTransfers are used to move Special Purpose Local Option Sales Tax revenue from the District-wide Capital Projects Fund to the Debt Service Fund to service bond debt. \n \nNote 8: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk ofloss associated with automobiles. The School District has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by \n \n- 19 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 8: RISK MANAGEMENT \n \nthe 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. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n2007 2008 \n \n$ \n \n0.00 $ \n \n8,894.00 $ \n \n8,894.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n7,157.60 $ \n \n7,157.60 $ \n \n0.00 \n \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 Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ 20,000.00 $ 300,000.00 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-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. \n \n- 20- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 9: SHORT-TERM DEBT \n \nShort-term debt activity for the fiscal year is as follows: \n \nTemporary Loans \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \n$==o==.o===o $2,3so,ooo.oo $2,3so,ooo.oo $.====\"'o~.o=o \n \nNote 10: LONG-TERM DEBT \n \nCAPITAL LEASES The City of Dublin Board of Education has entered into various lease agreements for equipment. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. \n \nINTERGOVERNMENTAL CONTRACT The City of Dublin Board of Education entered into a contract with the Laurens County Public Facilities Authority, dated April 1, 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 $4,500,000.00 (less issuance costs of$83,500.00) in revenue bonds on behalfofthe School District. The obligation ofthe School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will recommend to the Mayor and Council of the City of Dublin, Georgia, to exercise its power of taxation on behalf of the School District, to the extent necessary to pay the amounts required to be paid by the contract. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2007 General Government - Series 2008 \n \n2.905% 2.408% \n \n$ 4,000,000.00 6,100,000.00 \n \n$ 10.100,000.00 \n \nINTERGOVERNMENTAL CONTRACT The debt at June 30, 2008, associated with this agreement is as follows: \n \nPurpose \n \nInterest Rate \n \nAmount \n \nLaurens County Public Facilities Authority \n \n3.94% \n \n$ 4,500,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \n \n- 21 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 10: LONG-TERM DEBT \n \nBalance July 1, 2007 \n \nGovernmental Funds \n \nAdditions \n \nDeductions \n \nBalance June 30. 2008 \n \nDue Within One Year \n \nG.O. Bonds \n \n$ 1,285,000.00 $ I0, I00,000.00 $ 1,285,000.00 $ J0,I00,000.00 $ 1,000,000.00 \n \nIntergovernmental Contract \n \n0.00 4,500,000.00 \n \n4,500,000.00 \n \nCapital Leases \n \n445,835.00 \n \n72.349.00 \n \n209.783.00 \n \n308.401.00 \n \n109,805.00 \n \n$ 1.730.835 00 $ 14 672 349 00 $ 1.494.783.00 $ 14.908 401 00 $ I 109.805.00 \n \nAt June 30, 2008, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n2009 2010 2011 2012 \nTotal Principal and Interest \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n$ 109,805.00 $ 76,491.00 62,343.00 59,762.00 \n \n15,429.00 8,968.00 5,872.00 2,994.00 \n \n$ 308,401.00 $ 33,263.00 \n \nFiscal Year Ended June 30 \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nLaurens County \n \nPublic Facilities Authority \n \nPrincipal \n \nInterest \n \n2009 2010 201 l 2012 2013 2014 - 2018 \n \n$ l ,000,000.00 $ 1,500,000.00 2,300,000.00 2,500,000.00 2,800,000.00 \n \n263,088.00 \n \n$ \n \n236,523.00 \n \n197,421.00 \n \n138,061.00 \n \n72,891.00 \n \n$ 4,500,000.00 \n \n163,017.50 177,300.00 177,300.00 177,300.00 177,300.00 602,820.00 \n \nTotal Principal and Interest \n \n$10,100,000.00 $ 201,284.00 $ 4,500,000.00 $ 1,~15,031.50 \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $463,881.06 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$448,831.91 \n \n- 22 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 11: ON-BEHALF PAYMENTS \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $12,804.15 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$2,245.00 \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2008: \n \nProject \n \nUnearned Executed Contracts \n \nDublin High School \n \n$ 26,160,848.68 \n \nThe amount described in this note is not reflected in the basic financial statements. \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \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. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 14: SUBSEQUENT EVENTS \n \nIn the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $17,750,000.00. The proceeds from these bonds will be used for various construction projects. \n \n- 23 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 15: POSTEMPLOYMENT BENEFITS \n \nGeorgia Retiree Health Benefit Fund \n \nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (\"GRHBF\"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department ofCommunity Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code ofGeorgia Annotated, the authority to establish and amend the benefit provisions ofthe plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department ofCommunity Health at 2 Peachtree Street, Atlanta, Georgia 30303. \n \nFunding Policy. The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. 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 twenty-five percent (25%) of the cost of health insurance coverage. \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: \n \nTeachers Non-Certificated Employees \n \n18.534% of state-based salaries $162.72 per month \n \nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $2,460,902.33, which equaled the required contribution. \n \nNote 16: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n-24- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \n \nNote 16: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2008 2007 2006 \n \n100% 100% 100% \n \n$ 1,442,489.65 $ 1,478,388.89 $ 1,457,355.00 \n \n- 25 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL {1 l \n \nFINAL {1) \n \nACTUAL AMOUNTS \n \n$ \n \n7,758,213.00 $ \n \n7,758,213.00 $ \n \n7,805,406.04 \n \n15,268,537.00 \n \n15,305,629.00 \n \n15,931,392.21 \n \n4,274,129.00 \n \n4,248,422.00 \n \n4,176,850.55 \n \n125,800.00 \n \n125,800.00 \n \n321,630.43 \n \n58,500.00 \n \n58,500.00 \n \n57,107.61 \n \n182,250.00 \n \n182,250.00 \n \n330,825.52 \n \n$ 27,667,429.00 $ 27,678,814.00 $ 28,623,212.36 \n \n$ 17,917,406.99 $ 18,924,307.52 $ 17,431,210.62 \n \n1,055,926.87 807,471.74 456,769.00 465,342.00 \n1,650,267.11 271,818.00 \n2,292,780.00 872,817.00 249,100.00 19,691.00 \n1,480,236.22 \n \n1,055,926.87 1,053,577.74 \n456,769.00 647,077.00 1,650,267.11 271,818.00 2,292,780.00 874,916.99 249,100.00 \n22,167.00 \n1,480,236.22 \n \n1,599,363.89 912,493.67 464,979.20 569,899.48 \n1,682,393.23 259,257.95 \n2,359,265.43 867,323.04 250,384.70 111,103.96 43,834.85 1,060.04 \n1,759,161.94 172,601.00 \n \n$ 27,539,625.93 $ 28,978,943.45 $ 28,484,333.00 \n \n$ \n \n127,803.07 $ -1,300, 129.45 $ \n \n138,879.36 \n \n$ \n \n$ \n \n-62,756.00 $ \n \n-62,756.00 \n \n72,349.00 \n \n$ \n \n-62,756.00 $ \n \n-62,756.00 $ \n \n72,349.00 \n \n$ \n \n65,047.07 $ -1,362,885.45 $ \n \n211,228.36 \n \n905,374.18 \n \n905,374.18 \n \n766,147.18 \n \n30,866.39 \n \nFund Balances - Ending \n \n$ \n \n970,421.25 $ \n \n-426,644.88 $ \n \n977,375.54 \n \nNotes to the Schedule of Revenues, Ex11enditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n-27- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program Ne!ional School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants Enhancing Education Through Technology Program Improving Teacher Quality State Grants Rural Education State Grants for Innovative Programs Title I Grants to Local Educational Agencies \nTotal U. S. Department of Education \ns. Defense, U. Department of \nDirect Department of the Marines R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A $ 1,621,434.09 \n \n$ 1,621,434.09 \n \n10.550 \n \nN/A \n \n82,216.07 \n \n$ 1.703,650.16 \n \n84.027 84.173 \n \nNIA $ \nN/A \n$ \n \n513,548.47 19,300.92 \n532,849.39 \n \n84.048 84.196 84.365 84.318 84.367 84.358 \n. 84.298 84.010 \n \nN/A \n \n49,049.00 \n \nN/A \n \n12,907.74 \n \nN/A \n \n672.00 \n \nN/A \n \n50,971.00 \n \nN/A \n \n253,703.52 \n \nN/A \n \n87,697.00 \n \nN/A \n \n6,668.00 \n \nN/A \n \n1,676,021.67 \n \n$ 2,670,539.32 \n \n$ _ _..,_13\"-4:.i.:,3c.=3;.=.3.\"'62=- \n \nTotal Federal Financial Assistance \nN/A = Not Available \n \n$ ====4,,..50.,.8..,,5..,2,..3..,1o= \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($478,483.79) were not maintained separately and are included in the 2008 National School Lunch Program. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Dublin 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. \n \nSee notes to the basic financial statements. \n \n-28- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \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 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 Bus Replacement Sparsity Nursing Services Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Academic Coach Children's Intervention Services Comprehensive Academic Performance Health Insurance High School Graduation Coach Middle School Graduation Coach Middle School Remediation and Intervention Grant Preschool Handicapped Program Residential Treatment Center Grant Teachers' Retirement Virtual Schools Grant \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nSee notes to the basic financial statements. \n \n-29- \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n804,464.23 \n \n1,146,034.00 236,096.00 \n2,241,197.00 184,999.00 950,145.00 83,027.00 \n1,686,947.00 1,756,839.00 \n372,030.00 \n1,402,200.00 251,522.00 85,612.00 142,215.00 28,618.00 306,567.00 97,782.00 53,113.00 \n453,074.00 679,520.00 707,480.00 \n170,677.00 34,419.00 20,000.00 65,168.00 17,327.00 47,577.00 \n1,082,675.00 76,660.00 80,143.00 \n-255, 194.00 \n86,500.00 64,616.92 61,538.00 448,831.91 64,628.00 42,096.00 \n2,315.00 77,713.00 58,946.00 12,804.15 \n225.00 \n2,245.00 \n$ ====15='=93=1.,.,3..,9.2....2...1.. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nPROJECT \nAcquiring, constructing, and equipping renovations and improvements to the Dublin Junior High School Auditorium, including partial demolition of Dublin Junior High School, renovations and additions at Dublin High School, the purchase of school buses, the installation of computer cabling on a system-wide basis and technology upgrades, the acquisition of certain property and equipment, including any heating and air conditioning equipment, which may be subject to lease by the Dublin School District, and additions, renovations, and improvements to Central Elementary School, Susie Dasher Elementary School, Saxon Heights Elementary School, Hillcrest Elementary School, Moore Street Elementary School, and Dublin Middle School. \nAcquire, construct, and equip a new Dublin High School, including land acquisition, renovations to the existing gymnasium, construction of tennis courts and a track, and demolition of existing buildings, make renovations and improvements to the Shamrock Bowl, make renovations and improvements at Susie Dasher Elementary School, Moore Street Elementary School, and Saxon Heights Elementary School, purchase food service equipment, and acquire school buses and maintenance vehicles. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 14,850,000.00 $ 14,850,000.00 $ 91,374.11 $ 7,127,092.00 Ongoing \n \n13,562,200.00 13,562,200.00 4,370, 154.97 \n \nOngoing \n \n$ 28,412,200.00 $ 28,412,200.00 $ 4,461,529.08 $ 7,127,092.00 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of Laurens 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. \n \nSee notes to the basic financial statements. \n \n- 30- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle Grades (6-8) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nCategoryV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n1,318,151.00 $ 283,128.00 \n2,595,521.00 207,959.00 \n1,107,478.00 \n \n1,312,101.97 $ 262,886.92 \n2,441,668.18 221,913.94 \n1,301,559.48 \n \n90,765.00 36,285.00 1,940,334.00 2,031,175.00 458,887.00 1,727,594.00 \n \n151,294.20 \n2,102,939.74 2,569,286.68 \n422,249.15 \n \n300,804.00 90,522.00 \n166,410.00 28 746.00 \n \n103,150.77 816,074.56 128,585.56 882,806.16 160,915.64 \n81,578.07 94,304.39 \n9 719.45 \n \n21,604.64 $ 1,509.24 \n50,714.94 3,642.50 \n36,622.83 \n \n1,333,706.61 264,396.16 \n2,492,383.12 225,556.44 \n1,338,182.31 \n \n440.30 \n \n151,734.50 \n \n43,668.28 53,876.31 15,871.12 \n \n2,146,608.02 2,623,162.99 \n438,120.27 \n \n400.40 2,948.83 13,334.07 \n415.61 698.07 3,436.82 160.58 1,787.85 \n12.00 \n \n400.40 106,099.60 829,408.63 129,001.17 883,504.23 164,352.46 \n81,738.65 96,092.24 \n9 731.45 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n12,383,759.00 $ 13,063,034.86 $ 251,144.39 $ 13,314,179.25 \n \nMedia Center Program Staff and Professional Development \n \n357,415.00 62 351.00 \n \n427,000.71 \n \n28,143.29 \n \n455,144.00 55,072.74 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n12,803,525.00 $ 13,490,035.57 $ 279,287.68 $ 13,824,395.99 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 12, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City ofDublin Board of Education \nREPORT 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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Dublin Board of Education as of and for the year ended June 30, 2008, which collectively comprise City of Dublin Board of Education's basic financial statements and have issued our report thereon dated October 12, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered City of Dublin 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 ofexpressing an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. \nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \n2008YB-40 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City ofDublin Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe City of Dublin Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the City ofDublin Board ofEducation's internal control. We consider items FS-7741-08-01, FS-7741-08-02 and FS-7741-08-03 in the accompanying Schedule ofFindings and Questioned Costs to be significant deficiencies in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the City of Dublin Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, of the significant deficiencies described above, we consider items FS-7741-08-01 and FS-7741-08-02 to be material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether City of Dublin Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, 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. \nWe noted certain matters that we have reported to management of City of Dublin Board of Education in a separate letter dated October 12, 2009. \nCity of Dublin Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit City ofDublin Board of Education's response and, accordingly, we express no opinion on it. \n2008YB-40 \n \n This report is intended solely for the information and use of management, members of the City of Dublin 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. \nRespectfully submitted, \n~~~-~n~~.~~ State Auditor \nRWH:as 2008YB-40 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 12, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City ofDublin Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of City ofDublin Board of Education with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2008. City of Dublin Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of City of Dublin Board of Education's management. Our responsibility is to express an opinion on City of Dublin Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City ofDublin Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Dublin Board of Education's compliance with those requirements. \n2008SA-40 \n \n In our opinion, the City of Dublin Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2008. The results ofour auditing procedures disclosed an instance ofnoncompliance with those requirements, which is required to be reported in accordance with 0MB Circular A-133 and which is described in the accompanying Schedule ofFindings and Questioned Costs as item FA77 41-08-02. \nInternal Control Over Compliance \nThe management of City of Dublin Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City ofDublin Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose ofexpressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over compliance. \nOur consideration ofthe internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified a deficiency in internal control over compliance that we consider to be a significant deficiency. \nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiency in internal control over compliance described in the accompanying Schedule ofFindings and Questioned Costs as item FA-7741-08-01 to be a significant deficiency. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. We do not consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs to be a material weakness. \nCity of Dublin Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit City ofDublin Board of Education's response and, accordingly, we express no opinion on it. \n2008SA-40 \n \n This report is intended solely for the information and use of management, members of the City of Dublin 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. \nRespectfully submitted, \n~ ..J...h \nRus ell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008SA-40 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7741-06-03 FS-7741-06-05 FS-7741-07-01 FS-7741-07-02 FS-7741-07-03 \n \nFurther Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-7741-07-01 \n \nWe have contracted with a consultant for the preparation of our financial statements. We will implement procedures to ensure that the financial statements are properly prepared in accordance with generally accepted accounting principles. \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Finding Control Number: FS-7741-07-02 \n \nWe continue to work with CSI+ to resolve the issue ofbank statements not reconciling to the interfund cash account. In addition, corrective action involving the Disbursement process and Journal entries should be noted in fiscal year 2009. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-7741-06-03 FA-7741-07-01 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \n \n- 1- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES SPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely U.S. Department ofAgriculture Through Georgia Department of Education Food Services - School Breakfast Program (CFDA 10.553) Food Services - National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-07-01 There continue to be times when cash flow problems make it unfeasible to transfer the funds in a timely manner. The School District is in the process of contacting Georgia Department of Education to determine if a refund is appropriate. \n-2- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City of Dublin Board of Education's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the City of Dublin Board of Education disclosed financial statement significant deficiencies related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts Financial Reporting \n \nExpenditures/Liabilities/Disbursements General Ledger \n \nOf the significant deficiencies described above, Cash and Cash Equivalents, Expenditures/Liabilities/Disbursements, General Ledger and Financial Reporting are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe City ofDublin Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the City ofDublin Board ofEducation disclosed a significant deficiency in internal control over major programs for the following compliance requirement. \n \nAllowable Costs/Cost Principles \n \nThe significant deficiency described above is not considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the City ofDublin Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The City of Dublin Board of Education's audit disclosed audit findings required to be reported by section .510(a) ofOMB Circular A-133. These audit findings are included in section IV of this report. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.010 Title I Grants to Local Educational Agencies \n \n- 1- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The City of Dublin Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7741-08-01 \n \nCondition: \n \nThis is a repeat finding (FS-7741-07-01) from the year ended June 30, 2007. The School District did not have adequate controls in place over the financial statement reporting process. \n \nCriteria: \n \nManagement is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nDuring the audit, numerous errors and misclassifications (both material and nonmaterial) were noted with the financial statements presented for audit. These errors are summarized as follows: \n \n Several entries were proposed and accepted by the client to properly record Cash, Contracts and Retainages Payable, Capital Outlay Expense, Taxes Receivable, and SPLOST Revenues. \n \n Numerous reclassification entries were made to improve financial statement presentation ofCash, Investments, Construction in Progress, Buildings, and Fund Balance Reserves. \n \n-2- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7741-08-01 \n \n Supplemental Schedules and Notes to the Basic Financial Statements required extensive auditor revision. \n \nSeveral immaterial errors were also noted, and while these were not corrected, they were included on the Summary ofUncorrected Misstatements reported to management \n \nCause: \n \nThe School District did not implement an adequate system ofinternal control over the financial statement reporting process. \n \nEffect: \n \nThe School District did not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \n \nRecommendation: \n \nThe School District should develop and implement internal controls over financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financial statements presented for audit. \n \nCASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Material Weakness Finding Control Number: FS-7741-08-02 \n \nCondition: \n \nThis is a repeat finding (FS-7741-07-02 and FS-7741-06-03) from the years ended June 30, 2007, and June 30, 2006, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls at the Central Office. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \n-3- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Material Weakness Finding Control Number: FS-7741-08-02 \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents \n The General Fund (Operating) bank account, Payroll bank account and School Food Services bank accounts were not reconciled to the General Ledger. In addition, documentation of all reconciling items was not available upon request and had to be recreated. \n The School District's general ledger reflected an overall balance in the Interfund Cash account of $45,509.00. This amount should always carry an overall balance of zero. \n \nExpenditures/Liabilities/Disbursements A review of voucher packages revealed the following deficiencies:  Some voucher packages were missing signed requisitions or equivalent.  Voucher packages did not always contain evidence of receipt.  Voucher packages totaling $150,463.55 could not be located. \n \nGeneral Ledger A review ofjournal entries revealed the following deficiencies:  Journal entries were not reviewed by someone independent of the General Ledger posting function.  Numerous journal entries did not have sufficient supporting documentation. \n \nCause: \n \nThese deficiencies were the result of management's failure to ensure that internal controls were established, implemented and functioning. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should establish, revise and/or monitor procedures to ensure that bank accounts are properly reconciled to the general ledger and that the lnterfund Cash account is accurate. In addition, management should review current policies regarding expenditures and implement controls to ensure that expenditures are properly documented, approved and recorded correctly. Also, the School District should establish sufficient internal control procedures to require that all journal entries are documented and approved prior to posting. \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUESIRECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-7741-08-03 \n \nCondition: \n \nThe accounting procedures ofthe School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents: The following deficiencies were noted:  Seven bank accounts were not reconciled to the General Ledger.  Three bank accounts were not recorded on the General Ledger.  The outstanding check list for one of the school accounts could not be recreated or verified.  The bank reconciliation function was not separated from the record keeping and voucher payment functions. \n \nRevenues/Receivables/Receipts: Based on a review of receipts, the following deficiencies were noted:  Several athletic gate receipt reconciliations were missing.  The deposit preparation function was not separated from the record keeping and cash custody functions. \n \nExpenditures/Liabilities/Disbursements: Based upon a review of voucher packages, the following deficiencies were noted:  Numerous purchase orders or equivalent were missing.  Several voucher packages were missing evidence of receipt. \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \n-5- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-7741-08-03 \n \nRecommendation: \n \nManagement should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. Management should implement additional procedures to ensure that the key accounting functions of custody, recordkeeping and authorization are separated and that proper controls are established at the various schools. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Significant Deficiency U.S. Department of Agriculture Through Georgia Department of Education Food Services - School Breakfast Program (CFDA 10.553) Food Services - National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-08-01 \n \nCondition: \n \nThere were deficiencies in internal controls related to vendor payments for the Food Services- School Breakfast Program (CFDA 10.553) and the Food Services - National School Lunch Program (CFDA 10.555). \n \nCriteria: \n \nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs require that \"governmental units are responsible for efficient and effective administration of Federal awards through the application of sound management practices\" and \"to be allowable under Federal awards, costs must be adequately documented\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nA review of voucher packages revealed that one voucher package was missing and two voucher packages did not contain signed requisitions or the equivalent. \n \n-6 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Significant Deficiency U.S. Department of Agriculture Through Georgia Department of Education Food Services - School Breakfast Program (CFDA 10.553) Food Services - National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-08-01 \n \nCause: \n \nManagement failed to implement controls for monitoring compliance with Federal guidelines to ensure that items purchased for the School Breakfast Program and the National School Lunch Program were properly reviewed and approved as allowable expenditures prior to being charged to the applicable program. \n \nEffect: \n \nFailure to adequately monitor disbursements for the School Breakfast Program and the National School Lunch Program funds could result in noncompliance with the requirements of these Federal grants. \n \nRecommendation: \n \nThe School District should review controls in place and implement procedures to ensure that costs are allowable under 0MB Circular A-87 and properly approved by management. \n \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely Nonmaterial Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Food Services - School Breakfast Program (CFDA 10.553) Food Services - National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-08-02 \n \nCondition: \n \nThis is a repeat finding (FA-7741-07-01 and FA-7741-06-03) from the years ended June 30, 2007, and June 30, 2006, respectively. The School District failed to transfer School Breakfast Program (CFDA 10.553) and National School Lunch Program (CFDA 10.555) funds to the School Food Service account in a timely manner. \n \nCriteria: \n \nUSDA Policy 210.14-06 states that USDA funds should be entered into the School Food Service account as soon as possible on receipt and that any interest on these funds must also be credited to the School Food Service account. \n \n-7- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely Nonmaterial Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Food Services - School Breakfast Program (CFDA 10.553) Food Services - National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-08-02 \n \nQuestioned Cost: $10,660.02 \n \nInformation: \n \nNo receipts were transferred to the School Food Service account in a timely manner. Our calculations indicate that approximately $10,660.00 in interest was earned by the general operating bank account on school food service funds. \n \nCause: \n \nThe School District failed to implement appropriate procedures to ensure compliance in accordance with Federal guidelines. \n \nEffect: \n \nFailure to ensure appropriate transfers can result in noncompliance with the requirements of the Federal grant. \n \nRecommendation: \n \nThe School District should ensure that funds are transferred promptly in compliance with Federal guidelines. In addition, the School District should transfer the interest earned on these funds from the general operating bank account into the school food bank account. \n \n-8- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2008 \nFinding Control Number: FS-7741-08-01 \nWe concur with this finding. The Board has begun the process of ensuring proper preparation of financial statements and its reporting process including note disclosures. Procedures will be reviewed and implemented to ensure compliance over financial reporting in all areas. Internal controls will be developed and implemented to ensure that all activity is properly recorded in the general ledger. A monitoring process will also be implemented to evaluate the accuracy of the financials presented for audit. \nFinding Control Number: FS-7741-08-02 \nCash and Cash Equivalents: We concur with this finding. The Board is revising and monitoring procedures to ensure bank accounts are properly reconciled to the general ledger. \nExpenditures/Liabilities/Disbursements: We concur with this finding. The School District will monitor and revise procedures to ensure that the expenditure voucher package is properly documented, approved and recorded. \nGeneral Ledger: We concur with this finding. Internal controls are in place to ensure procedures that all journal entries are documented and approved prior to posting. \nFinding Control Number: FS-7741-08-03 \nCash and Cash Equivalents: We concur with this finding. The Board is revising and monitoring procedures at the School level to ensure bank accounts are properly reconciled to the general ledger. \nRevenues/Receivables /Receipts: We concur with this finding. The School System management is reviewing to revise the procedures to ensure receipts are accurately prepared, deposited and reconciled at the school level. These functions will be separate from the record keeping and cash custody functions. \nExpenditures/Liabilities/Disbursements: We concur with this finding. The Board will monitor and revise procedures to ensure that the expenditure voucher package is properly documented, approved and recorded to include purchase orders at the school level. \nFinding Control Number: FA-7741-08-01 \nWe concur with this finding. The Board will ensure that controls will be implemented or revised to monitor compliance with the Federal Guidelines for the School Breakfast Program and the National School Lunch Program. The control procedures will be reviewed to ensure that costs are allowable under 0MB Circular A-87 and management approved. \n- 1- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2008 \nFinding Control Number: FA-7741-08-02 We concur with this finding. The school system will implement procedures to ensure compliance with Federal requirements over the process for the transfer ofFederal reimbursements. General fund will transfer to the school food service bank account the interest earned on these funds. Contact Person: Shirley W. Bowen Title: Director of Finance Telephone: 478-277-4017 Fax:478-272-1249 E-mail: Shirley.bowen@dublincityschools.us \n-2 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2006-h2007","title":"City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["\u003c-year ended 1994\u003e-year ended June 30, 1996: Georgia. Department of Audits.","Year ended June 30, 1997- : Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Laurens County, Dublin, 32.54044, -82.90375"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2007-06-30"],"dcterms_description":["Title may fluctuate: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report, City of Dublin Board of Education, Laurens County or Audit report, City of Dublin Board of Education, Laurens County, Georgia. For fiscal year ending June 30, 2000-, audits conducted \"in accordance with auditing standards generally accepted in the United States of America\" are issued as: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ... or City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports). Reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" may be issued as: Review or Management report","Report year covers fiscal year.","\u003cYear ended June 30, 1994\u003e-year ended June 30, 1996 issued by the State of Georgia, Dept. of Audits; year ended June 30, 1997- issued by the State of Georgia, Dept. of Audits and Accounts.","Schedule of salaries and travel supplements for local Georgia Boards of Education, Libraries, etc. ceased to be published in print in 2002. Starting in 2003 this information can be accessed online through the Georgia Government Publications database in GALILEO or in the annual CD-ROM called: Salary and travel compilation reports.","Has supplements: Supplementary information, City of Dublin Board of Education, Laurens County, summary and schedule of salaries and travel ..., -fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Dublin Board of Education, Dublin, Ga.), fiscal year ended June 30, 2008-","Year ended June 30, 1994, released in 1995? (online surrogate); title from PDF title page (Georgia Government Publications database, viewed August 22, 2016).","Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 29, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Dublin (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bd82-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CITY OF DUBLIN BOARD OF EDUCATION \nLAURENS COUNTY, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n9 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERALFUND \n \n25 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n26 \n \n3 SCHEDULE OF STATE REVENUE \n \n28 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n29 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 16, 2008 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Dublin Board of Education, as of and for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Dublin Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe 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 City of Dublin Board of Education'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. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin Board ofEducation, as of June 30, 2007, and the \n2007ARL-11 \n \n respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nThe City of Dublin 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. \nIn accordance with Government Auditing Standards, we have also issued our report dated September 16, 2008, on our consideration ofthe City ofDublin Board ofEducation'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 ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part ofan audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \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 the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Dublin Board of Education's basic financial statements. The accompanying supplementary information which consist 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 ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated section 506-24. \nRespectfully submitted, \nw..Jd~ \nRus ell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007ARL-11 \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF NET ASSETS JUNE 30, 2007 \n \nEXHIBIT\"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n1,028,685 \n \n7,476,428 \n \n908,899 1,829,418 \n299,029 48,051 74,188 \n \n1,600,732 943,595 \n1,080,634 26,350,101 \n1,375,617 -8,683,657 \n \n$ ===3=4,=33=1=,7=20.., \n \n$ \n \n826,646 \n \n2,510,241 \n \n126,877 \n \n5,000 \n \n1,472,357 258 478 \n \n$ \n \n5,199,599 \n \n$ \n \n22,667,022 \n \n384,903 58,984 \n5,893,731 127 481 \n \n$ \n \n29,132,121 \n \n$ ===3=4=,3=3-1,,..72=0= \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2007 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n18,243,643 $ \n \n1,702,760 1,053,864 \n392,764 544,436 1,715,303 243,899 2,329,246 883,905 364,234 109,117 \n \n41,585 2,290 \n1,455,387 87 124 \n \n$ \n \n29,169,557 $ \n \n26,332 664,755 \n21,751 75 \n46,598 2,566 \n136,579 898 656 \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n14,403,919 \n \n403,367 218,124 298,687 482,886 754,369 \n3,870 713,156 202,948 $ \n \n2,187 \n \n1,275,351 \n \n$ \n \n18,758,864 $ \n \n$ 167,869 167 869 $ \n \n-3,813,392 \n-634,638 -835,740 \n-94,077 -61,550 -939,183 -240,029 -1,616,015 -513,088 -364,234 -106,930 \n5,013 276 \n-43,457 -87 124 \n-9,344,168 \n \n$ \n \n7,536,758 \n \n2,836,611 40,844 \n1,001,614 508,586 344 356 \n \n$ \n \n12,268,769 \n \n$ \n \n2,924,601 \n \n26,207,520 \n \n$ =====29='=13=2.!aa1, =2=1 \n \n-3- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2007 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n571,717 $ 1,717,492 \n \n$ \n \n1,057,310 \n \n5,099,610 $ 1,319,508 \n \n223,321 1,829,418 \n299,029 48,051 74188 \n \n493,506 \n \n2,289,209 7,476,428 \n716,827 1,829,418 \n299,029 48,051 74188 \n \nTotal Assets \n \n$ 4,103,034 $ 7,310,608 $ 1,319,508 $ ===1=2=!=7,=3=3'=15=0= \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund \nTotal Fund Balances \n \n$ \n \n826,646 \n \n2,510,241 \n \n$ \n \n$ 3,336,887 $ \n \n$ \n126,877 5 000 \n131 877 $ \n \n$ \n \n310,715 \n \n$ \n \n74,188 \n \n$ 7,178,731 \n \n324,072 \n \n57172 \n \n$ \n \n766147 $ 7 178 731 $ \n \n1,260,524 $ 1,260.524 $ \n$ 58,984 \n58 984 $ \n \n1,260,524 826,646 \n2,510,241 126,877 5 000 \n4,729,288 \n310,715 58,984 74,188 7,178,731 \n324,072 \n57172 \n8,003,862 \n \nTotal Liabilities and Fund Balances \n \n$ 4,103,034 $ 7,310,608 $ 1,319.508 $ ===12....7=3=3,,,,.15=0= \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \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: \nBonds Payable Capital Leases \nTotal Long-Term Liabilities \n \n$ \n \n8,003,862 \n \n$ \n \n1,600,732 \n \n943,595 \n \n1,080,634 \n \n26,350,101 \n \n1,375,617 \n \n-8,683,657 \n \n22,667,022 \n \n192,072 \n \n$ -1,285,000 -445 835 \n \n-1,730,835 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 29,132,121 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCapital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 7,598,011 \n \n40,844 $ 2,836,611 \n \n15,798,045 \n \n4,130,302 \n \n898,656 \n \n116,199 \n \n350,146 $ \n \n487130 \n \n$ 29,069,187 $ 3,186,757 $ \n \n$ \n42,241 42 241 $ \n \n7,598,011 2,877,455 15,798,045 4,130,302 \n898,656 508,586 487130 \n32,298,185 \n \n$ 17,838,352 \n \n$ \n \n1,702,760 1,060,127 \n392,764 536,221 1,715,303 243,889 $ 2,322,837 1,029,936 364,234 109,117 41,585 \n2,290 1,439,694 \n34,526 \n \n10 3,643,790 \n \n112,967 19,008 \n \n46,803 $ 1,235,000 \n \n15,953 \n \n52,163 \n \n$ 28,965,610 $ 3,706,556 $ 1,287,163 $ \n \n$ \n \n103,577 $ -519,799 $ -1,244,922 $ \n \n17,838,352 \n1,702,760 1,060,127 \n392,764 536,221 1,715,303 243,899 2,322,837 1,029,936 364,234 109,117 41,585 \n2,290 1,439,694 3,678,316 \n1,394,770 87124 \n33,959,329 \n-1,661,144 \n \n$ \n \n26,886 \n \n$ \n \n26,886 \n \n$ 1,277,757 \n \n1,277,757 \n \n$ -1,277,757 \n \n-1,277,757 \n \n$ \n \n26,886 $ -1,277,757 $ 1,277,757 $ \n \n26,886 \n \n$ \n \n130,463 $ -1,797,556 $ \n \n32,835 $ -1,634,258 \n \n635,684 \n \n8,976,287 \n \n26,149 \n \n9,638,120 \n \nFund Balances - Ending \n \n$ \n \n766147 $ 7,178,731 $ \n \n58,984 $ =:=i8,,;;,;00~3.,8~62= \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \n \n$ -1,634,258 \n \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \n \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: \n \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \n \n$ 3,938,602 -543,600 \n \n3,395,002 \n \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \n \n-61,253 \n \nIn the Statement of Activities, only the loss on the sale of land and equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the cost of the land and carrying value of the equipment sold. \n \n-142,774 \n \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \n \n-26,886 \n \nRepayment of Long-Term Debt is reported as an expenditure in Governmental \n \nFunds, but the repayment reduces Long-Term Liabilities in the Statement of \n \nNet Assets. In the current year, these amounts consist of: \n \n-;- \n \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \n \n$ 1,235,000 159 770 \n \n1394770 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ ======2,=92=4=,6=0=1 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2007 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nAGENCY FUNDS \n$ ===4=9'=00=5= \n$==4=9==,0=05= \n \nThe notes to the basic financial statements are an integral part of this statement. \n-8- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe City ofDublin Board ofEducation (School District) was established under the laws ofthe 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. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \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 ofthe City of Dublin Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe 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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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 ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal 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. \n-9- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting 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 ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. 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 \n- 10 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nas expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific 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. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash 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 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone 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 ofGeorgia 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 ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n- 11 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \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. \n \nPROPERTY TAXES \n \nThe City ofDublin Board of Commissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on October 5, 2006 (levy date). Taxes were due on December 28, 2006 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2006 tax digest are reported as revenue in the governmental funds for fiscal year 2007. The Dublin City Clerk bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2007, for maintenance and operations amounted to $7,598,011. \n \nThe tax millage rate levied for the 2006 tax year (calendar year) for the City of Dublin Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n16.277 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,836,611 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. \n \n- 12 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nINVENTORIES \nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals 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. \nCAPITAL ASSETS \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 ofart. 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. \nDuring 1994, the School District became a separate legal entity and the City of Dublin deeded all land and buildings in use by the School District to the School District. A stipulation in the agreement was made that ifthe property was no longer needed for educational purposes, the property would revert to the City of Dublin. Currently, all property transferred to the School District's possession at that time is being used for educational purposes, therefore these capital assets are considered to be the property of the City of Dublin Board of Education and will be reported on the School District's basic financial statements. \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n- 13 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Improvements Other than Buildings Buildings and Improvements Equipment Construction in Progress \n \nAll \n \nNIA \n \n$ \n \n5,000 \n \n20 years \n \n$ \n \n5,000 \n \n50 years \n \n$ \n \n5,000 5 to 25 years \n \n$ \n \n5,000 \n \nNIA \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. 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. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding 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. \n \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. \n \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. \n \n- 14 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS 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 ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $1,421,270. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or \n- 15 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 3 - Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0 \n \n2 \n \n1,130,643 \n \n3 \n \n0 \n \nTotal \n \n$ 1,130,643 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2007, the carrying value ofthe School District's total investments was $7,476,428, which is materially the same as fair value. This investment consisted entirely offunds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Local Government Investment Pool is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department ofAudits and Accounts at http://www.audits.state.ga.us/internet/searchRpts.html. \n \nThe Primary Liquidity Portfolio consists ofGeorgia 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, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2007, was 15 days. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 16 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1. 2006 \n \nIncreases \n \nBalances Decreases June 30. 2007 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,121,060 $ 1.344,266 \n \n500,000 $ \n \n20,328 $ 1,600,732 \n \n943,595 \n \n1,344,266 \n \n943,595 \n \nTotal Capital Assets Not Being Depreciated $ 2,465,326 $ 1.443,595 $ 1,364,594 $ 2,544.327 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 24,123,380 $ 1,075,234 1,057,660 \n \n3,445,785 $ 360,998 32,490 \n \n1,219,064 $ 26,350,101 \n \n60,615 \n \n1,375,617 \n \n9,516 \n \n1,080,634 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n7,740,321 712,574 853,911 \n \n472,647 54,678 16,275 \n \n1,097,158 60,075 9 516 \n \n7,115,810 707,177 860,670 \n \nTotal Capital Assets, Being Depreciated, Net $ 16.949,468 $ 3,295,673 $ 122,446 $ 20,122,695 \n \nGovernmental Activity Capital Assets - Net $ 19,414.794 $ 4.739.268 $ 1,487.040 $ 22,667.022 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 479,440 \n \n$ \n \n9,482 \n \n7,397 \n \n29,169 \n \n46,048 18,112 \n \nNote 6: RESTRICTED ASSETS \n \n$==5=='43\"\"\"',6\"\"'0\"=0 \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2007, were as follows: \n \n- 17 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ 1,717,492 \n$ 1,319,508 $ 3,814,610 $ 1,285,000 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2007, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide \nCapital Projects \n \nDebt Service Fund \n \n$ 1,277,757 \n \nTransfers are used to move Special Purpose Local Option Sales Tax revenue from the District-wide Capital Projects Fund to the Debt Service Fund to service bond debt. \n \nNote 8: RISK MANAGEMENT \n \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. \n \nThe School District has obtained commercial insurance for risk ofloss associated with automobiles. The School District has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups ofself-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 \n \n- 18 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 8: RISK MANAGEMENT \n \naccording 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 and crime. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2006 2007 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n$ \n \n0 $ \n \n1 550 $ \n \n1 550 $ \n \n0 \n \n$ \n \n0 $ \n \n8 894 $ \n \n8 894 $ \n \n0 \n \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 Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000 loss per occurrence, up to $2,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ \n \n20,000 \n \n$ 300,000 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-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. \n \n- 19 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 9: SHORT-TERM DEBT \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTemporary Loans \n \n$=====0 $ 1,500,000 $ 1,500,000 $==~0 \n \nNote 10: LONG-TERM DEBT \n \nCAPITAL LEASES The City of Dublin Board of Education has entered into various lease agreements for equipment. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rate \n \nAmount \n \nGeneral Government - Series 2004 \n \n2.07% \n \n$ 1,285,000 \n \nVoters have authorized $10,100,000 in general obligation debt for various construction projects which was not issued as of June 30, 2007. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \n \nGovernmental Funds \n \nGeneral \n \nCapital \n \nObligation \n \nLeases \n \nBonds \n \nTotal \n \nBalance July I, 2006 \n \n$ 578,719 $ 2,520,000 $ 3,098,719 \n \nAdditions Capital Leases \n \n26,886 \n \n26,886 \n \nDeductions Debt Retired \n \n159 770 \n \n1,235,000 \n \n1,394,770 \n \nBalance June 30, 2007 \n \n$ 445,835 $ 1,285,000 $ 1,730,835 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 187,357 $ 1,285,000 $ 1,472,357 \n \n- 20 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 10: LONG-TERM DEBT \n \nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2008 2009 2010 2011 2012 \n \n$ 187,357 $ 87,609 54,196 56,911 59,762 \n \n25,575 13,802 8,561 5,845 2,994 \n \nTotal Principal and Interest \n \n$ 445,835 $ \n \n56,777 \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2008 \n \n$ 1,285,00Q ., $ \n \n26,600 \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $405,753 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $391,262 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $12,108 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$2,383 \n \n- 21 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2007: \n \nProject \n \nUnearned Executed Contracts \n \nSusie Dasher Elementary Renovations \n \n$====2-,0===7==1 \n \nThe amount described in this note is not reflected in the basic financial statements. \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \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. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 14: SUBSEQUENT EVENTS \n \nIn the subsequent fiscal year, the School District issued general obligation bonds in the amount of $4,000,000 on December 19, 2007, and $6,100,000 on January 28, 2008. In addition, the School District signed a construction contract with Dublin Construction Company to build a new high school for $28,902,613. \n \nNote 15: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 22- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \n \nNote 15: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2007 2006 2005 \n \n100% 100% 100% \n \n$ 1,478,389 $ 1,457,355 $ 1,374,281 \n \n- 23 - \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL(1) \n \nACTUAL AMOUNTS \n \n$ \n \n7,347,041 $ \n \n7,347,041 $ \n \n7,598,011 \n \n40,844 \n \n15,102,739 \n \n15,213,612 \n \n15,798,045 \n \n4,292,338 \n \n4,292,338 \n \n4,130,302 \n \n146,130 \n \n146,130 \n \n898,656 \n \n32,500 \n \n32,500 \n \n116,199 \n \n203 000 \n \n203 000 \n \n487 130 \n \n$ \n \n27 123 748 $ \n \n27,234,621 $ \n \n29,069,187 \n \n$ \n \n17,399,630 $ \n \n17,632,249 $ \n \n17,838,352 \n \n1,088,918 1,200,572 \n416,803 486,489 1,721,475 263,575 2,042,041 1,004,239 249,020 112,864 \n1,480,641 30,000 \n \n1,141,278 1,081,343 \n416,803 526,343 1,643,921 263,574 2,042,041 998,039 249,020 121,500 \n1,480,641 30,000 \n \n1,702,760 1,060,127 \n392,764 536,221 1,715,303 243,889 2,322,837 1,029,936 364,234 109,117 \n41,585 2,290 \n1,439,694 34,526 \n131 975 \n \n$ \n \n27,496,267 $ \n \n27,626,752 $ \n \n28,965,610 \n \n$ \n \n-372 519 $ \n \n-392 131 $ \n \n103 577 \n \n$ \n \n26,886 \n \n$ \n \n-62 756 $ \n \n-62 756 \n \n$ \n \n-62 756 $ \n \n-62 756 $ \n \n26886 \n \n$ \n \n-435,275 $ \n \n-454,887 $ \n \n130,463 \n \n736,909 \n \n736,909 \n \n635,684 \n \n46 020 \n \n46 020 \n \nFund Balances - Ending \n \n$ \n \n347 654 $ \n \n328,042 $ \n \n766147 \n \nNotes to the Schedule of Revenues, Ex12enditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 25 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U.S. Department of Agriculture \nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Enhancing Education Through Technology Program Improving Teacher Quality State Grants Rural Education State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of.Education \nDefense, U. S. Department of Direct Department of the Marines R.O.T.C. Program \nTotal Federal Financial Assistance \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nNIA \n \nN/A \n \n$ \n \n$ \n \n(2) 1,290,595 \n1,290,595 \n \n10.550 \n \nN/A $ \n \n70 010 1,360,605 \n \n84.027 84.173 \n \nN/A $ N/A \n$ \n \n546,500 20400 \n566,900 \n \n84.332 84.318 84.367 84.358 84.298 * 84.010 84.048 \n \nN/A N/A N/A N/A \nN/A \nN/A N/A \n$ \n \n50,000 168,906 261,626 90,110 \n6,961 1,718,988 \n55,206 \n2,918,697 \n \n$ \n \n111 931 \n \n$ =====4,=39=1='=,2=3=3 \n \n- 26 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($331,414) were not maintained separately and are included in the 2007 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Dublin 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. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n CITY OF DUBLIN BOARD OF EDUCATION- LAURENS COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \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 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 Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs 4-8 Statewide After School Program Academic Coach Comprehensive Academic Performance Health Insurance Middle School Remediation and Intervention Grant National Teacher Certification Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nSee notes to the basic financial statements. \n \n- 28- \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n804,711 \n \n1,007,551 279,476 \n2,051,420 134,072 907,734 42,897 \n1,665,180 1,587,300 \n507,431 \n1,856,916 278,417 19,067 139,670 -1,253 290,645 92,051 52,252 \n455,747 662,163 697,351 \n175,274 17,869 20,000 64,823 9,164 18,859 \n335,998 999,700 \n77,712 60,279 -276,045 \n43,445 32,198 40,075 391,262 \n1,913 10,063 80,167 150,000 12,108 \n2 383 \n$ =====15==,7=9=8,..,0=45= \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"4\" \n \nPROJECT \nAcquiring, constructing, and equipping renovations and improvements to the Dublin Junior High School Auditorium, including partial demolition of Dublin Junior High School, renovations and additions at Dublin High School, the purchase of school buses, the installation of computer cabling on a system-wide basis and technology upgrades, the acquisition of certain property and equipment, including any heating and air conditioning equipment, which may be subject to lease by the Dublin School District, and additions, renovations, and improvements to Central Elementary School, Susie Dasher Elementary School, Saxon Heights Elementary School, Hillcrest Elementary School, Moore Street Elementary School, and Dublin Middle School. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 14,850,000 $ 14,850,000 $ 3?58,719 $ \n \n3,368,373 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Laurens County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n \nSee notes to the basic financial statements. \n \n- 29- \n \n (This page left intentionally blank) \n \n CITY OF DUBLIN BOARD OF EDUCATION- LAURENS COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \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 Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES OPERATIONS \n \nTOTAL \n \n$ \n \n1,147,167 $ 1,365,934 $ \n \n12,487 $ \n \n1,378,421 \n \n316,321 \n \n130,985 \n \n1,046 \n \n132,031 \n \n2,365,397 \n \n2,537,936 \n \n31,691 \n \n2,569,627 \n \n151,834 \n \n133,356 \n \n3,566 \n \n136,922 \n \n1,052,292 \n \n1,317,806 \n \n10,859 \n \n1,328,665 \n \n50,487 1,939,930 1,828,356 \n598,026 2,201,177 \n331,543 30,841 \n161,993 \n \n56,676 2,139,124 2,357,204 \n540,909 \n52 258,956 1,538,063 191,989 257,130 271,889 \n75,908 114,688 \n4 010 \n \n28,887 96,475 45,057 \n1,306 2,533 16,064 \n315 1,088 4,441 \n526 962 810 \n \n56,676 2,168,011 2,453,679 \n585,966 \n1,358 261,489 1,554,127 192,304 258,218 276,330 \n76,434 115,650 \n4 820 \n \n$ \n \n12,175,364 $ 13,292,615 $ \n \n258,113 $ \n \n13,550,728 \n \n336,954 61 047 \n \n408,527 8 394 \n \n26,244 43 760 \n \n434,771 52154 \n \nTOTALQBEFORMULAFUNDS \n \n$ \n \n12,573,365 $ 13,709,536 $ \n \n328, 117 $ ====1=4,.0.3..,.7,..,6.,.5..,3 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 16, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nREPORT 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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Dublin Board of Education as of and for the year ended June 30, 2007, which collectively comprise City of Dublin Board of Education's basic financial statements and have issued our report thereon dated September 16, 2008. 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 AuditingStandards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered City of Dublin 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 ofexpressing an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over financial reporting. \nOur consideration ofinternal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \n2007YB-60 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the City ofDublin Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe City of Dublin Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the City ofDublin Board ofEducation's internal control. We consider items FS-7741-07-01 and FS-7741-07-02 in the accompanying Schedule ofFindings and Questioned Costs to be significant deficiencies in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the City of Dublin Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, of the significant deficiencies described above, we consider all items to be material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether City of Dublin Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying Schedule of Findings and Questioned Costs as item FS-7741-07-03. \nWe also noted certain matters that we have reported to management of City of Dublin Board of Education in a separate letter dated September 16, 2008. \nCity of Dublin Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit City ofDublin Board of Education's response and, accordingly, we express no opinion on it. \n2007YB-60 \n \n This report is intended solely for the information and use ofthe management, members ofthe City of Dublin Board ofEducation, 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. \nRespectfully submitted, \n~~W.~~ Russell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007YB-60 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 16, 2008 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the City of Dublin Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofCity ofDublin Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2007. City of Dublin Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of City of Dublin Board of Education's management. Our responsibility is to express an opinion on City of Dublin Board of Education's compliance based on our audit. \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 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Dublin Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2007SA-15 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Dublin Board of Education's compliance with those requirements. \nIn our opinion, the City of Dublin Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2007. However, the results of our auditing procedures disclosed an instance of noncompliance with those requirements, which is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7741-07-01. \nInternal Control Over Compliance \nThe management of City of Dublin Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City ofDublin Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Dublin Board of Education's internal control over compliance. \nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. \nOur consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be 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. \nCity of Dublin Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit City ofDublin Board of Education's response and, accordingly, we express no opinion on it. \n2007SA-15 \n \n This report is intended solely for the information and use ofthe management, members ofthe City of Dublin Board ofEducation, 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. \n \nRWH:gp 2007SA-15 \n \nRespectfully submitted, \n~n,*~!!~ State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS-7741-05-01 Further Action Not Warranted \n \nFS-7741-05-02 Previously Reported Corrective Action Implemented \n \nFS-7741-06-01 Previously Reported Corrective Action Implemented \n \nFS-7741-06-02 Further Action Not Warranted \n \n(1) \n \nFS-7741-06-03 Partially Resolved - See Corrective Action/Responses \n \nFS-7741-06-04 Previously Reported Corrective Action Implemented \n \nFS-7741-06-05 Unresolved - See Corrective Action Responses \n \nFS-7741-06-06 Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls at the Central Office Finding Control Number: FS-7741-06-03 \n \nWe have continued to work with CSI+ to resolve the issue of the bank statements not reconciling to the interfund cash account. Well into the fiscal year 2007 year this issue was identified and corrected. There are still some issues with the software regarding this issue. \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Use of SPLOST Proceeds Finding Control Number: FS-7741-06-05 \n \nThe Board feels that it was complying with the wishes of the citizens of Dublin, who specifically approved the stadium additions and renovations in the SPLOST starting January 1, 2008. In having to postpone the project for the new High School because of inflated costs, it was decided to proceed with the stadium project. Before proceeding with future projects the Board ofEducation will secure the legal opinion ofits attorney before proceeding with each project. \n \n- 1- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nAUDITOR'S COMMENTS \n \n(1) Findings/internal control deficiencies ofthis nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter in subsequent periods. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFA-7741-06-01 Previously Reported Corrective Action Implemented \n \nFA-7741-06-02 Further Action Not Warranted \n \n(1) \n \nFA-7741-06-03 Unresolved- See Corrective Action Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nSPECIAL TESTS AND PROVISIONS Federal Reimbursement Transfer Not Timely Finding Control Number: FA-7741-06-03 \n \nThere continue to be times when cash flow problems make it unfeasible to transfer the funds in a timely manner. \n \nAUDITOR'S COMMENTS \n \n(1) Findings/internal control deficiencies of this nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Office of Management and Budget (0MB) Circular A-133, will be communicated in a management letter in subsequent periods. \n \n-2- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City of Dublin Board of Education's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the City of Dublin Board of Education disclosed financial statement significant deficiencies related to the following control categories. \n \nCash and Cash Equivalents Revenues/Recei vab les/Recei pts Financial Reporting \n \nExpenditures/Liabilities/Disbursements General Ledger \n \nAll ofthe significant deficiencies described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe City ofDublin Board ofEducation disclosed one instance ofnoncompliance deemed material to the financial statements. This noncompliance involved the Board's improper use of SPLOST Proceeds. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the City ofDublin Board of Education did not disclose any significant deficiencies in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the City ofDublin Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The City of Dublin Board of Education's audit did not disclose an audit finding required to be reported by section .5 lO(a) ofOMB Circular A-133, however, we noted a certain instance of noncompliance which is included in section IV of this report. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.010 Title I Grants to Local Educational Agencies \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n \n- 1- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n9. Low Risk Auditee The City of Dublin Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7741-07-01 \n \nCondition: \n \nThe School District did not have adequate controls in place over the financial statement reporting process. \n \nCriteria: \n \nManagement is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation ofboth fund level and entity-wide level statements in the School District's financial statements. During the audit, numerous correcting entries were proposed by the auditor and accepted by the client to properly present the entity's fund level and entity-wide level financial statements. \n \nCause: \n \nThe School District did not implement an adequate system ofinternal control over the financial statement reporting process. \n \nEffect: \n \nThe School District did not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \n \nRecommendation: \n \nThe School District should develop and implement internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \n \n-2- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Material Weakness Finding Control Number: FS-7741-07-02 \n \nCondition: \n \nThis is a repeat finding (FS-7741-06-03 and FS-7741-05-01) from the years ended June 30, 2006, and June 30, 2005. The accounting procedures ofthe School District were insufficient to provide for adequate internal controls at the Central Office. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The General Fund (Operating) bank account, Payroll bank account and School Food Services bank account were not reconciled to the cash amounts listed on the general ledger at June 30, 2007.  The School District's general ledger reflected an overall balance in the Interfund Cash account of$65,203. This account should always carry an overall balance of zero. \n \nRevenues/Receivables/Receipts When reconciling the revenue accounts the following items were noted:  2 property tax checks in the amount of $20,753 received in May 2007 (fiscal year 2007) were not deposited or recorded until July 2007 (fiscal year 2008).  1 property tax check in the amount of $26,638 that was received in July 2007 was shown as being deposited in June 2007. \n \nExpenditures/Liabilities/Disbursements A review of 127 vouchers revealed the following:  12 voucher packages could not be located.  7 voucher packages were missing approved purchased orders.  1 voucher package included a purchase order that was approved after the invoice date. \n \n-3- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Controls at the Central Office Material Weakness Finding Control Number: FS-7741-07-02 \n \n A grant payment from the Georgia Department ofEducation in the amount of $100,922, transmitted July 26, 2007 was shown as being deposited in June 2007. \n \nGeneral Ledger  Journal entries were not reviewed by someone independent of the General Ledger posting function. \n \nCause: \n \nThese deficiencies were the result of management's failure to ensure that internal controls were established, implemented and functioning. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should establish, revise and/or monitor procedures to ensure that bank accounts are properly reconciled to the general ledger and that the Interfund Cash account is accurate. In addition, management should review current policies regarding expenditures and revenues and implement controls to ensure that expenditures and revenues are properly documented, approved and recorded correctly. Also, the School District should establish sufficient internal control procedures to require that all journal entries are approved prior to posting. \n \n-4 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Use of SPLOST Proceeds Material Noncompliance Finding Control Number: FS-7741-07-03 \n \nCondition: \n \nThis is a repeat finding (FS-7741-06-05) from fiscal year June 30, 2006. The School District spent Special Purpose Local Option Sales Tax (SPLOST) proceeds on stadium renovations which were not specifically identified in the SPLOST project referendum and do not appear to meet the definition of \"capital outlay projects for educational purposes\" in State laws regarding imposition and use of sales taxes for educational purposes. \n \nCriteria: \n \nAccording to Paragraph IV, Section VI, Article VIII of the Constitution of the State ofGeorgia, \"the purpose or purposes for which the proceeds ofthe tax are to be used and may be expended include: (1) Capital outlay projects for educational purposes; (2) the retirement of previously incurred general obligation debt with respect only to capital outlay projects of the school system... \" O.C.G.A. 48-8-121 states, \"The proceeds received from the tax authorized by this part shall be used . . . exclusively for the purpose or purposes specified in the resolution or ordinance calling for imposition ofthe tax\". \n \nThe Attorney General's Official Opinion 97-7 for O.C.G.A. 20-2-260 (b)(5) states, \"The definition of educational facilities specifically excludes swimming pools, tracks, stadiums, and other facilities or portions offacilities used primarily for athletic competition\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nDuring the year under review, the School District spent $1,485,516 for the equipping and renovating of the Dublin High School stadium. \n \nCause: \n \nThe School District believed this project was covered by references of \"renovations and additions at Dublin High School\" and \"acquisition of certain property and equipment\" in its referendum. \n \n-5 - \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Use of SPLOST Proceeds Material Noncompliance Finding Control Number: FS-7741-07-03 \n \nEffect: \n \nExpenditures of SPLOST funds for stadium renovations appear to be in conflict with State laws regarding imposition and use ofSPLOST funds after considering that Paragraph IV, Section VI, Article VIII ofthe Constitution of the State ofGeorgia indicates SPLOST proceeds should be spent on \"capital outlay projects for educational purposes\" and the Attorney General has ruled that facilities used primarily for athletic competition do not meet the definition of educational facilities. \n \nRecommendation: \n \nThe School District should research this issue, consult with legal counsel and verify if expenditures ofthis nature are an appropriate use ofSPLOST funds in accordance with State law and the SPLOST referendum as approved by the voters of Laurens County. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely Nonmaterial Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Food Services - School Breakfast Program (CFDA 10.553) Food Services - National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-07-01 \n \nCondition: \n \nThis is a repeat finding (FA-7741-06-03) from fiscal year ended June 30, 2006. The School District failed to transfer School Breakfast Program (CFDA 10.553) and National School Lunch Program (CFDA 10.555) funds to the school food service account in a timely manner. \n \nCriteria: \n \nUSDA Policy 210.14-06 states that USDA funds should be entered into the school food service account as soon as possible on receipt and that any interest on these funds must also be credited to the school food service account. \n \nQuestioned Cost: $5,334.68 \n \n-6- \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nSPECIAL TESTS AND PROVISIONS Failure to Transfer Funds Timely Nonmaterial Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Food Services - School Breakfast Program (CFDA 10.553) Food Services - National School Lunch Program (CFDA 10.555) Finding Control Number: FA-7741-07-01 \n \nInformation: \n \nTen receipts were not transferred to the school food service account in a timely manner. \n \nCause: \n \nThe School District failed to implement appropriate procedures to ensure compliance in accordance with Federal guidelines. \n \nEffect: \n \nFailure to ensure appropriate transfers results in noncompliance with the requirements of the Federal grant. \n \nRecommendation: \n \nThe School District should ensure that funds are transferred promptly in compliance with Federal guidelines. In addition, the School District should transfer the interest earned on these funds from the general operating bank account into the school food service account. \n \n-7- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n CITY OF DUBLIN BOARD OF EDUCATION - LAURENS COUNTY SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2007 \nFinding Control Number: FS-7741-07-01 \nWe concur with this finding. The School District will implement procedures to ensure that the financial statements are properly prepared in accordance with generally accepted accounting principals. \nFinding Control Number: FS-7741-07-02 \nWe concur with this finding. However, we do not feel that it is a matter of Inadequate Internal Controls at the Central Office. The matter of the bank statements not reconciling to the cash accounts again is a repeat ofprevious years ending June 2005, and June 2006, items hitting Interfund Cash. The Central Office staff working in conjunction with CSI hopes to soon have this rectified. Therefore, this problem will persist into the audit for the year ending June 30, 2008. Receivables and Receipts will be reviewed to ensure they are processed timely. The Disbursement process will be reviewed, and controls put into place to ensure all vouchers contain the appropriate documentation. Journal entries will also be reviewed carefully to ensure proper procedures. \nFinding Control Number: FS-7741-07-03 \nWe concur with this finding. This is a repeat finding beginning fiscal year 2006, due to this project spanning over a two year fiscal period it should be resolved in this audit year. The Board felt that it was complying with the wishes of the citizens of Dublin, who specifically approved the stadium additions and renovations in the SPLOST starting January 1, 2008. After postponing the project for the new High School because of inflated costs, it was decided to proceed with the stadium project. Before proceeding with future projects, the Board of Education will secure the legal opinion of its attorney before proceeding with each project. \nFinding Control Number: FA-7741-07-01 \nWe concur with this finding. The School District will implement procedures to ensure compliance with Federal requirements over the process for the transfer of Federal reimbursements. \nContact Person: Shirley W. Bowen, Finance Director Phone: (478) 277-4017 Fax: (478) 272-1249 E-mail: bowens@dublinirish.org \n \n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":3,"limit_value":10,"offset_value":0,"total_count":23,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":23}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits","hits":19}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Auditors' reports--Georgia","hits":19},{"value":"Dublin (Ga.). Board of Education--Appropriations and expenditures","hits":19},{"value":"Financial statements--Georgia","hits":19},{"value":"Auditors' reports","hits":4},{"value":"Expenditures, Public","hits":4},{"value":"Financial statements","hits":4},{"value":"Georgia","hits":4},{"value":"Auditors' reports--Georgia--Periodicals.","hits":3},{"value":"City of Dublin Board of Education (Dublin, Ga.)--Appropriations and expenditures--Periodicals.","hits":3},{"value":"Financial statements--Georgia--Periodicals.","hits":3},{"value":"Georgia Government Documents--Serial","hits":3}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"location_facet","items":[{"value":"United States, Georgia, Laurens County, Dublin, 32.54044, -82.90375","hits":20},{"value":"United States, Georgia, 32.75042, -83.50018","hits":3}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"counties_facet","items":[{"value":"Laurens","hits":20}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"year_facet","items":[{"value":"1994","hits":1},{"value":"1995","hits":1},{"value":"1996","hits":1},{"value":"1997","hits":1},{"value":"1998","hits":1},{"value":"1999","hits":1},{"value":"2000","hits":1},{"value":"2001","hits":1},{"value":"2002","hits":1},{"value":"2003","hits":1},{"value":"2004","hits":1},{"value":"2005","hits":1},{"value":"2006","hits":1},{"value":"2007","hits":1},{"value":"2008","hits":1},{"value":"2009","hits":1},{"value":"2010","hits":1},{"value":"2011","hits":1},{"value":"2012","hits":1},{"value":"2016","hits":1},{"value":"2020","hits":1},{"value":"2021","hits":1},{"value":"2022","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null},"min":"1994","max":"2022","count":23,"missing":0},{"name":"medium_facet","items":[{"value":"state government records","hits":22},{"value":"audits","hits":1}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"fulltext_present_b","items":[{"value":"true","hits":22},{"value":"false","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"rights_facet","items":[{"value":"http://rightsstatements.org/vocab/InC/1.0/","hits":23}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"collection_titles_sms","items":[{"value":"Georgia Government Publications","hits":23}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"serial_titles_sms","items":[{"value":"Audit report, City of Dublin Board of Education, Laurens County.","hits":23},{"value":"Fiscal year ended June 30, 2000-fiscal year ended June 30, 2002 have at head of title: State of Georgia Department of Audits and Accounts","hits":23},{"value":"Fiscal year ended June 30, 2000-fiscal year ended June 30, 2008 lack title page; have cover title: City of Dublin Board of Education, Laurens County, Georgia, report on audit of the financial statements for the fiscal year ended ...","hits":23},{"value":"Fiscal year ended June 30, 2009- lack title page; have cover title: City of Dublin Board of Education, Laurens County, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports)","hits":23},{"value":"Year ended June 30, 1997-year ended June 30, 1999 have title: Audit report, City of Dublin Board of Education, Laurens County, Georgia","hits":23}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"provenance_facet","items":[{"value":"University of Georgia. Map and Government Information Library","hits":23}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"call_numbers_sms","items":[{"value":"A800 .R1 E33 D82/","hits":23},{"value":"A800 .R1 E33 D82 1993-94","hits":1},{"value":"A800 .R1 E33 D82 1994-95","hits":1},{"value":"A800 .R1 E33 D82 1995-96","hits":1},{"value":"A800 .R1 E33 D82 1996-97","hits":1},{"value":"A800 .R1 E33 D82 1997-98","hits":1},{"value":"A800 .R1 E33 D82 1998-99","hits":1},{"value":"A800 .R1 E33 D82 1999-2000","hits":1},{"value":"A800 .R1 E33 D82 2000-2001","hits":1},{"value":"A800 .R1 E33 D82 2001-2002","hits":1},{"value":"A800 .R1 E33 D82 2002-2003","hits":1},{"value":"A800 .R1 E33 D82 2003-2004","hits":1},{"value":"A800 .R1 E33 D82 2004-2005","hits":1},{"value":"A800 .R1 E33 D82 2005-2006","hits":1},{"value":"A800 .R1 E33 D82 2006-2007","hits":1},{"value":"A800 .R1 E33 D82 2007-2008","hits":1},{"value":"A800 .R1 E33 D82 2008-2009","hits":1},{"value":"A800 .R1 E33 D82 2009-2010","hits":1},{"value":"A800 .R1 E33 D82 2010-2011","hits":1},{"value":"A800 .R1 E33 D82 2011-2012","hits":1},{"value":"A800 .R1 E33 D82 2016","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"class_name","items":[{"value":"Item","hits":23}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"geojson","items":[{"value":"{\"type\":\"Feature\",\"geometry\":{\"type\":\"Point\",\"coordinates\":[-82.90375, 32.54044]},\"properties\":{\"placename\":\"United States, Georgia, Laurens County, Dublin\"}}","hits":20},{"value":"{\"type\":\"Feature\",\"geometry\":{\"type\":\"Point\",\"coordinates\":[-83.50018, 32.75042]},\"properties\":{\"placename\":\"United States, Georgia\"}}","hits":3}],"options":{"sort":"index","limit":-2,"offset":0,"prefix":null}},{"name":"placename","items":[{"value":"United States, Georgia, Laurens County, Dublin","hits":20},{"value":"United States, Georgia","hits":3}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}}]}}