{"response":{"docs":[{"id":"dlg_ggpd_931532782-2024-09-05","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended 2023 June 30 (including independent auditor's reports).","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2024-09-05"],"dcterms_description":["Began with fiscal year ended June 30, 2009, released in 2010?","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 8/4/15 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 4, 2015).","Latest issue consulted: Fiscal year ended June 30, 2014 (Georgia Government Publications database, viewed September 4, 2015)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["[Atlanta, Georgia?] : State of Georgia"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Ben Hill County Board of Education (Ben Hill County, Ga.)--Appropriations and expenditures--Periodicals.","Ben Hill County Board of Education (Ben Hill County, Ga.)","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Auditors' reports","Expenditures, Public","Financial statements","Georgia","Georgia Government Documents--Serial"],"dcterms_title":["Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended 2023 June 30 (including independent auditor's reports)."],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_931532782-2024-09-05"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_931532782-2024-09-05"],"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":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2023 \nBen Hill County Board of Education \nFitzgerald, Georgia \nIncluding Independent Auditor's Report \nGreg S. Griffin | State Auditor \n \n Ben Hill County Board of Education \n \nTable of Contents \n \nSection I Financial \nIndependent Auditor's Report \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 in Fund Balances \n \nGovernmental Funds \n \n5 \n \nF \n \nReconciliation of the Governmental Funds Statement of \n \nRevenues, Expenditures and Changes in Fund Balances \n \nto the Statement of Activities \n \n6 \n \nG \n \nStatement of Fiduciary Net Position \n \nFiduciary Funds \n \n7 \n \nH \n \nStatement of Changes in Fiduciary Net Position \n \nFiduciary Funds \n \n8 \n \nI Notes to the Basic Financial Statements \n \n10 \n \nSchedules \n \nRequired Supplementary Information \n \n1 Schedule of Proportionate Share of the Net Pension Liability \n \nTeachers Retirement System of Georgia \n \n39 \n \n2 Schedule of Contributions  Teachers Retirement System of Georgia \n \n40 \n \n3 Schedule of Proportionate Share of the Net Pension Liability \n \nEmployees' Retirement System of Georgia \n \n41 \n \n4 Schedule of Contributions  Employees' Retirement System of Georgia \n \n42 \n \n5 Schedule of Proportionate Share of the Net Pension Liability Public \n \nSchool Employees Retirement System of Georgia \n \n43 \n \n Required Supplementary Information (Continued) \n \n6 Schedule of Proportionate Share of the Net OPEB Liability \n \nSchool OPEB Fund \n \n44 \n \n7 Schedule of Contributions  School OPEB Fund \n \n45 \n \n8 Notes to the Required Supplementary Information \n \n46 \n \n9 Schedule of Revenues, Expenditures and Changes in Fund \n \nBalances - Budget and Actual General Fund \n \n48 \n \nSupplementary Information \n \n10 Schedule of Expenditures of Federal Awards \n \n49 \n \n11 Schedule of State Revenue \n \n51 \n \n12 Schedule of Approved Local Option Sales Tax Projects \n \n52 \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 \nSummary Schedule of Prior Audit Findings \n \nSection IV Findings and Questioned Costs \nSchedule of Findings and Questioned Costs \n \n Section I Financial \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT \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 Ms. Dawn Clements, Superintendent and Members of the Ben Hill County Board of Education \nReport on the Audit of the Financial Statements \nOpinions \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and fiduciary activities of the Ben Hill County Board of Education (School District) as of and for the year ended June 30, 2023, 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. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and fiduciary activities of the School District as of June 30, 2023, 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. \nBasis for Opinions \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nResponsibilities of Management for the Financial Statements \nManagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \nAuditor's Responsibilities for the Audit of the Financial Statements \nOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. \nIn performing an audit in accordance with GAAS and Government Auditing Standards, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. \n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, no such opinion is expressed. \n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. \n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. \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 \n \n 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. \nSupplementary 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 supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated September 5, 2024 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. \n \n A 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. Respectfully submitted, \nGreg S. Griffin State Auditor \nSeptember 5, 2024 \n \n Ben Hill County Board of Education \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2023 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES Accounts Payable Salaries and Benefits Payable Interest Payable Retainages 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 Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION Net Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n8,815,109.68 \n \n991,481.93 2,835,800.06 2,496,516.54 \n57,108.27 37,941.19 6,008,627.30 79,230,799.02 100,473,383.99 \n \n24,156,302.00 5,228,431.00 \n29,384,733.00 \n \n568,400.40 4,441,390.44 \n267,592.36 436,453.82 \n1,947.04 47,104,146.00 18,960,335.00 \n1,607,892.96 25,488,134.64 98,876,292.66 \n \n392,046.00 11,613,629.00 12,005,675.00 \n \n59,887,224.45 \n \n882,150.77 267,592.36 4,707,476.48 (46,768,294.73) \n \n$ \n \n18,976,149.33 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2023 \n \nEXHIBIT \"B\" \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \nGOVERNMENTAL ACTIVITIES Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \nTotal Governmental Activities \n \n$ 33,971,229.95 $ \n1,518,241.63 472,035.40 268,515.49 \n1,837,390.72 3,149,119.44 \n850,343.02 2,889,842.19 2,120,500.67 \n146,710.49 10,000.00 \n10,610.37 2,788,331.24 \n785,005.49 \n$ 50,817,876.10 $ \n \n394,679.96 $ \n \n23,108,710.05 $ \n \n48,000.00 - \n \n274,441.48 503,077.36 427,275.56 797,057.35 1,500,289.58 \n18,894.33 1,612,785.19 \n671,339.27 595.89 \n8,346.92 \n \n25,822.00 \n- \n \n2,534,324.50 \n- \n \n468,501.96 $ \n \n31,457,137.48 $ \n \n11,740.00 $ \n176,220.00 - \n- \n187,960.00 \n \n(10,456,099.94) \n(1,243,800.15) 31,041.96 \n158,760.07 (1,040,333.37) (1,648,829.86) \n(831,448.69) (1,229,057.00) (1,272,941.40) \n(146,114.60) (1,653.08) \n(10,610.37) (228,184.74) (785,005.49) \n(18,704,276.66) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Total General Revenues \nChange in Net Position \n \n7,999,257.60 \n3,018,492.26 86,996.21 \n4,838,544.00 72,990.93 \n1,084,954.51 17,101,235.51 \n(1,603,041.15) \n \nNet Position - Beginning of Year Net Position - End of Year \n \n20,579,190.48 \n \n$ \n \n18,976,149.33 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n BEN HILL COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2023 \n \nEXHIBIT \"C\" \n \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Due from Other Funds Inventories \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable Due to Other Funds Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - Federal Funds \nTotal Deferred Inflows of Resources \nFUND BALANCES Nonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE FUND \n \nTOTAL \n \n$ \n \n1,716,175.86 $ \n \n7,098,933.82 $ \n \n708,030.52 2,835,800.06 2,496,516.54 \n57,108.27 67,780.00 37,941.19 \n \n283,451.41 - \n \n$ \n \n7,919,352.44 $ \n \n7,382,385.23 $ \n \n- $ \n- \n- $ \n \n8,815,109.68 \n991,481.93 2,835,800.06 2,496,516.54 \n57,108.27 67,780.00 37,941.19 \n15,301,737.67 \n \n$ \n \n564,900.40 $ \n \n4,441,390.44 \n \n- \n \n179,116.82 \n \n1,947.04 \n \n5,187,354.70 \n \n3,500.00 $ - \n67,780.00 257,337.00 \n328,617.00 \n \n- $ - \n \n568,400.40 4,441,390.44 \n67,780.00 436,453.82 \n1,947.04 5,515,971.70 \n \n549,566.21 \n \n- \n \n181,214.93 \n \n- \n \n730,781.14 \n \n- \n \n- \n \n549,566.21 \n \n- \n \n181,214.93 \n \n- \n \n730,781.14 \n \n37,941.19 662,994.65 826,675.55 473,605.21 2,001,216.60 \n \n7,053,768.23 \n7,053,768.23 \n \n- \n \n37,941.19 \n \n- \n \n7,716,762.88 \n \n- \n \n826,675.55 \n \n- \n \n473,605.21 \n \n- \n \n9,054,984.83 \n \n$ \n \n7,919,352.44 $ \n \n7,382,385.23 $ \n \n- $ \n \n15,301,737.67 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2023 \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. Land 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. Net 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. Related to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nFederal grants 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. Bonds payable Accrued interest payable Unamortized bond premiums \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n9,054,984.83 \n \n$ \n \n3,744,153.28 \n \n2,264,474.02 \n \n95,193,828.61 \n \n7,990,054.66 \n \n2,994,268.28 \n \n(26,947,352.53) \n \n85,239,426.32 \n \n$ \n \n(47,104,146.00) \n \n(18,960,335.00) \n \n(66,064,481.00) \n \n$ \n \n23,764,256.00 \n \n(6,385,198.00) \n \n17,379,058.00 549,566.21 181,214.93 \n \n$ \n \n(23,550,000.00) \n \n(267,592.36) \n \n(3,546,027.60) \n \n(27,363,619.96) \n \n$ \n \n18,976,149.33 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023 \n \nEXHIBIT \"E\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Proceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out Total Other Financing Sources (Uses) \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 \n7,775,782.75 $ \n \n86,996.21 \n \n25,936,546.73 \n \n12,229,289.74 \n \n468,501.96 \n \n8,565.21 \n \n1,074,954.51 \n \n47,580,637.11 \n \n- $ 3,018,492.26 \n249,014.36 - \n64,425.72 10,000.00 3,341,932.34 \n \n- $ - \n \n7,775,782.75 3,105,488.47 26,185,561.09 12,229,289.74 \n468,501.96 72,990.93 \n1,084,954.51 50,922,569.45 \n \n31,610,040.32 \n1,459,661.33 468,202.52 251,356.49 \n1,710,065.65 3,024,247.16 \n697,923.96 2,951,554.18 2,164,290.80 \n127,218.37 10,000.00 10,610.37 \n2,828,430.87 1,911,465.15 \n49,225,067.17 (1,644,430.06) \n \n- \n7,537.50 20,000.00 111,841.52 1,680,449.51 \n1,819,828.53 1,522,103.81 \n \n- \n- \n1,080,000.00 1,020,150.00 2,100,150.00 (2,100,150.00) \n \n31,610,040.32 \n1,459,661.33 468,202.52 251,356.49 \n1,717,603.15 3,044,247.16 \n809,765.48 2,951,554.18 2,164,290.80 \n127,218.37 10,000.00 10,610.37 \n2,828,430.87 3,591,914.66 \n1,080,000.00 1,020,150.00 53,145,045.70 (2,222,476.25) \n \n(2,500,000.00) (2,500,000.00) \n \n1,990,000.00 190,279.55 \n2,500,000.00 (2,100,150.00) 2,580,129.55 \n \n2,100,150.00 2,100,150.00 \n \n1,990,000.00 190,279.55 \n4,600,150.00 (4,600,150.00) 2,180,279.55 \n \n(4,144,430.06) \n \n4,102,233.36 \n \n- \n \n(42,196.70) \n \n6,145,646.66 \n \n2,951,534.87 \n \n- \n \n9,097,181.53 \n \n$ \n \n2,001,216.60 $ \n \n7,053,768.23 $ \n \n- $ \n \n9,054,984.83 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2023 \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. Capital 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. \nGeorgia State Financing and Investment Commission grants reported in the funds are not reported as revenue in the Statement of Activities during the current period. \nFederal grants that are not available to pay current period expenditures are deferred 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. General obligation bonds issued, including a premium of $190,279.55 Bond principal retirements Amortization of bond premium \nDistrict pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Net increase in accrued interest \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n(42,196.70) \n \n$ \n \n4,066,698.88 \n \n(1,686,178.18) \n \n2,380,520.70 223,474.85 \n \n(249,014.36) (1,811,745.60) \n \n$ \n \n(2,180,279.55) \n \n1,080,000.00 \n \n247,699.37 \n \n(852,580.18) \n \n$ \n \n(2,986,771.00) \n \n1,747,826.00 \n \n(1,238,945.00) \n \n(12,554.86) \n \n$ \n \n(1,603,041.15) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2023 \nASSETS Cash and Cash Equivalents NET POSITION Restricted \nHeld in Trust for Private Purposes \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n10,491.92 \n \n$ \n \n10,491.92 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDCUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2023 \nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \nDEDUCTIONS Scholarships Change in Net Position \nNet Position - Beginning Net Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n5,000.00 \n \n10.43 5,010.43 \n \n5,000.00 \n \n10.43 \n \n10,481.49 \n \n$ \n \n10,491.92 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nReporting Entity \nThe Ben Hill County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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, 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. \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. \n- 10 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \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), bond proceeds, and grants from the Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \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 longterm principal and interest. \nThe School District reports the following fiduciary fund type: \n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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- 11 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \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 certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities 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 2023, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. This statement defines subscription-based information technology arrangements and provides uniform guidance for accounting and financial reporting for transactions that meet that definition. Under this Statement, a government is required to recognize a subscription liability and an intangible right-to-use asset for contracts that meet the definition of a subscription-based information technology arrangement. The adoption of this statement did not have a material 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. \n- 12 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \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 \nAny Amount \n \nLand Improvements \n \n$ \n \n50,000.00 \n \nBuildings and Improvements $ \n \n50,000.00 \n \nEquipment \n \n$ \n \n5,000.00 \n \nConstruction in Progress \n \n$ \n \n50,000.00 \n \nIntangible Assets - Software $ \n \n100,000.00 \n \nIntangible Assets - All Other $ \n \n10,000.00 \n \nN/A 15 years \n60 to 75 years 5 to 25 years N/A 10 years 20 years \n \n- 13 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \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 straightline 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. \nPost-Employment 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 Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \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. \n \n- 14 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \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. \n \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. \n \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 \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 \n \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 \n \nThe Ben Hill County Board of Commissioners adopted the property tax levy for the 2022 tax digest year (calendar year) on July 28, 2022 (levy date) based on property values as of January 1, 2022. Taxes were due on December 20, 2022 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2022 tax digest are reported as revenue in the governmental funds for fiscal year 2023. The Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2023, for maintenance and operations amounted to $6,962,912.14. \n \nThe tax millage rate levied for the 2022 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.232 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $812,870.61 during fiscal year ended June 30, 2023. \n \n- 15 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nSales Taxes \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $3,018,492.26 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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- 16 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \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, 2023, the School District had deposits with a carrying amount of $6,734,798.94, and a bank balance of $9,258,225.40. The bank balances insured by Federal depository insurance were $500,000.00 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 $6,812,462.86. \nAt June 30, 2023, $1,945,762.54 of the School District's bank balances was in the State's Secure Deposit Program (SDP). \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \n- 17 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 8,815,109.68 10,491.92 \n \nTotal cash and cash equivalents \n \n8,825,601.60 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n2,090,802.66 \n \nTotal carrying value of deposits - June 30, 2023 \n \n$ 6,734,798.94 \n \nCategorization of Cash Equivalents \nThe School District reported cash equivalents of $2,090,802.66 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, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Fitch. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2023 was 28 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \n- 18 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nGovernmental Activities Capital Assets, \nNot Being Depreciated: Land Construction in Progress \n \nBalances July 1, 2022 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2023 \n \n$ 3,744,153.28 $ 45,495,005.16 \n \n- $ \n \n- $ \n \n2,230,214.30 \n \n45,460,745.44 \n \n3,744,153.28 2,264,474.02 \n \nTotal Capital Assets Not Being Depreciated \n \n49,239,158.44 \n \n2,230,214.30 \n \n45,460,745.44 \n \n6,008,627.30 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n49,398,031.48 7,132,499.07 2,994,268.28 \n \n45,795,797.13 1,501,432.89 - \n \n17,578,208.45 5,599,607.98 2,727,235.22 \n \n1,251,870.44 328,250.72 106,057.02 \n \n643,877.30 \n- \n \n95,193,828.61 7,990,054.66 2,994,268.28 \n \n643,877.30 \n- \n \n18,830,078.89 5,283,981.40 2,833,292.24 \n \nTotal Capital Assets, Being Depreciated, Net \n \n33,619,747.18 \n \n45,611,051.84 \n \n- \n \n79,230,799.02 \n \nGovernmental Activities Capital Assets - Net \n \n$ 82,858,905.62 $ 47,841,266.14 $ 45,460,745.44 $ 85,239,426.32 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nPupil Services \n \n$ \n \nEducational Media Services \n \nGeneral Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nFood Services \n \n404.17 14,201.85 \n1,750.00 5,870.15 13,856.64 217,311.77 3,276.09 \n \n$ 1,364,570.77 \n256,670.67 64,936.74 \n \n$ 1,686,178.18 \n \n- 19 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS \n \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, 2023, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Capital Projects Fund \n \n$ \n \n67,780.00 \n \n- \n \n$ \n \n- \n \n67,780.00 \n \n$ \n \n67,780.00 \n \n$ \n \n67,780.00 \n \nFunds are due to the general fund from the capital projects fund to reimburse bus purchase expenditures. \n \nInterfund Transfers Interfund transfers for the year ended June 30, 2023, consisted of the following: \n \nTransfers to \n \nGeneral Fund \n \nTransfers From Capital Projects \nFund \n \nTotal \n \nCapital Projects Fund Debt Service Fund \n \n2,500,000.00 - \n \n2,100,150.00 \n \n2,500,000.00 2,100,150.00 \n \nTotal \n \n$ 2,500,000.00 $ \n \n2,100,150.00 $ 4,600,150.00 \n \nTransfers are used to move property tax revenues collected by the general fund to the capital projects fund as required match or supplemental funding source for capital construction projects. Transfers are also used to move sales tax revenues collected by the capital projects fund to the debt service fund to provide funding to service debt. \n \n- 20 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nNOTE 7: LONG-TERM LIABILITIES \n \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2022 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2023 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds $ 22,640,000.00 $ 1,990,000.00 $ 1,080,000.00 $ 23,550,000.00 $ \n \nUnamortized Bond Premiums \n \n3,603,447.42 \n \n190,279.55 \n \n247,699.37 \n \n3,546,027.60 \n \n1,350,000.00 257,892.96 \n \n$ 26,243,447.42 $ 2,180,279.55 $ 1,327,699.37 $ 27,096,027.60 $ 1,607,892.96 \n \nGeneral Obligation Bonds \n \nThe School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \n \nThe School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2023. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \n \nOf the total amounts originally authorized, $730,000.00 remains unissued. General 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 2019 General Government - Series 2023 \n \n3% to 5% 12/12/2019 \n \n5.00% \n \n4/6/2023 \n \n4/1/2037 $ 24,680,000.00 $ 21,560,000.00 \n \n4/1/2037 \n \n1,990,000.00 \n \n1,990,000.00 \n \n$ 26,670,000.00 $ 23,550,000.00 \n \n- 21 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \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 \n2024 2025 2026 2027 2028 2029 - 2033 2034 - 2037 \n \n$ 1,350,000.00 $ 1,073,409.72 $ 257,892.96 \n \n1,390,000.00 \n \n1,008,950.00 \n \n257,892.96 \n \n1,430,000.00 \n \n939,450.00 \n \n257,892.96 \n \n1,475,000.00 \n \n892,750.00 \n \n257,892.96 \n \n1,520,000.00 \n \n819,000.00 \n \n257,892.96 \n \n8,440,000.00 \n \n2,900,500.00 \n \n1,289,464.80 \n \n7,945,000.00 \n \n817,400.00 \n \n967,098.00 \n \nTotal Principal and Interest $ 23,550,000.00 $ 8,451,459.72 $ 3,546,027.60 \n \nNOTE 8: 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 $2.0 million in aggregate coverage to the Trust, attaching at 107% of the loss fund and based on the Fund's annual normal. \n \n- 22 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nUnemployment Compensation \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nThe School District has not incurred any liabilities for unemployment compensation during the past two years. \n \nSurety Bond \n \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \nMilitary Property Custodian \n \n$ \n \nEach Principal \n \n$ \n \nDirector of Budget and Finance \n \n$ \n \nEach Lunchroom Manager and Assistant Manager \n \n$ \n \nEach Secretary and Bookkeeper \n \n$ \n \nPayroll Administrator \n \n$ \n \n99,000.00 24,000.00 \n9,000.00 8,000.00 4,000.00 4,000.00 3,000.00 \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2023: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nAssigned School Activity Accounts Donated Funds \nUnassigned \n \n$ \n \n37,941.19 \n \n$ \n \n662,994.65 \n \n6,518,583.51 \n \n535,184.72 \n \n7,716,762.88 \n \n$ \n \n441,756.26 \n \n384,919.29 \n \n826,675.55 473,605.21 \n \nFund Balance, June 30, 2023 \n \n$ 9,054,984.83 \n \nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \n- 23 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nNOTE 10: SIGNIFICANT COMMITMENTS \n \nCommitments under Construction Contracts \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2023, together with funding available: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2023 (2) \n \nFunding Available From State (1) \n \n22-609-001 - Primary School \n \n$ \n \n1,086,345.81 $ \n \n953,884.03 $ 622,819.00 \n \n22-609-002 - Middle School \n \n1,669,508.95 \n \n1,310,589.99 \n \n329,559.00 \n \n$ \n \n2,755,854.76 $ 2,264,474.02 $ 952,378.00 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year-end. \nNOTE 11: 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 various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \nNOTE 12: 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 post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \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 \n- 24 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nRetirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \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 $782,610.00 for the year ended June 30, 2023. 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, 2023, the School District reported a liability of $18,960,335.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2022. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2021. An expected total OPEB liability as of June 30, 2022 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2021. At June 30, 2022, the School District's proportion was 0.191457%, which was an increase of 0.005012% from its proportion measured as of June 30, 2021. \n \n- 25 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nFor the year ended June 30, 2023, the School District recognized OPEB expense of ($965,216.00). At June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ 756,813.00 $ 7,451,986.00 \n \nChanges of assumptions \n \n2,887,698.00 \n \n3,834,754.00 \n \nNet difference between projected and \n \nactual earnings on OPEB plan \n \ninvestments \n \n115,653.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n685,657.00 \n \n326,889.00 \n \nSchool District contributions subsequent \n \nto the measurement date \n \n782,610.00 \n \n- \n \nTotal \n \n$ 5,228,431.00 $ 11,613,629.00 \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, 2024. 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 \n2024 2025 2026 2027 2028 2029 \n \n$ (2,123,855.00) \n \n$ (1,621,073.00) \n \n$ (1,210,644.00) \n \n$ (1,485,372.00) \n \n$ \n \n(666,161.00) \n \n$ \n \n(60,703.00) \n \n- 26 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nActuarial Assumptions: The total OPEB liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021 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, 2022: \n \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, including inflation \n \nLong-term expected rate of return \nHealthcare cost trend rate \n \n7.00%, compounded annually, net of investment expense, and including inflation \n \nPre-Medicare Eligible \n \n6.50% \n \nMedicare Eligible \n \n5.00% \n \nUltimate trend rate \n \nPre-Medicare Eligible \n \n4.50% \n \nMedicare Eligible \n \n4.50% \n \nYear of Ultimate trend rate \n \nPre-Medicare Eligible \n \n2029 \n \nMedicare Eligible \n \n2023 \n \nThe Plan currently uses mortality tables that vary by age, gender, and health status (i.e. disabled or not disabled) as follows: \n \n For TRS members: Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP- 2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General Employee Mortality Table, with no adjustment, with the MP-2019 Projections scale applied generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 101% for males and 103% for females) with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and \n- 27 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nadjusted 103% for males and 106% for females) with the MP-2019 Projections scaled applied generationally. Post-retirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjust 104% for males and 99% for females) with the MP-2019 Project scale applied generationally. \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \n \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, 2021 valuation were based on a review of recent plan experience done concurrently with the June 30, 2021 valuation. \n \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 \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 of Return* \n \nFixed income Equities \n \n30.00% 70.00% \n \n2.00% 9.40% \n \nTotal \n \n100.00% \n \n*Net of Inflation \nDiscount Rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.57% was used as the discount rate, as compared with last year's rate of 2.20%. The plan's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate as used for the long-term rate of return was applied to all periods of projected benefit payments to determine total OPEB liability. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation bonds with an average rating of AA or higher (3.54% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employers will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2128. \n- 28 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \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 3.57%, 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 (2.57%) or 1-percentage-point higher (4.57%) than the current discount rate: \n \n1% Decrease (2.57%) \n \nCurrent Discount Rate (3.57%) \n \n1% Increase (4.57%) \n \nSchool District's proportionate share of the Net OPEB liability \n \n$ 21,446,415.00 $ \n \n18,960,335.00 $ 16,853,273.00 \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 1percentage-point lower or 1-percentage-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$ 16,336,595.00 $ \n \n18,960,335.00 $ 22,184,900.00 \n \nOPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \nNOTE 13: RETIREMENT PLANS \n \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) \n \nPlan Description: All teachers of the School District as defined in O.C.G.A. 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \n \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 \n \n- 29 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \ncompensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2023. The School District's contractually required contribution rate for the year ended June 30, 2023 was 19.98% of annual School District payroll, of which 19.71% of payroll was required from the School District and 0.27% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $4,091,924.00 and $55,696.39 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/financials. \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. \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 4.00% of annual compensation, up to $4,200.00, plus 6.00% 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 \n- 30 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \ncomputation 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 total required contribution rate for the year ended June 30, 2023 was 31.01% of annual covered payroll for old and new plan members and 27.47% for GSEPS members. The rates include the annual actuarially determined employer contribution rate of 24.67% of annual covered payroll for old and new plan members and 21.59% for GSEPS members, plus 6.34% adjustment to the old and new plan and a 5.88% adjustment to the GSEPS plan for the commencement of cost-of-living adjustments (COLA) prefunding for certain retired ERS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $0.00 for the current fiscal year. \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/financials. \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 $15.75, 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. \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 $65,753.00. \n \n- 31 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \n \nAt June 30, 2023, the School District reported a liability of $47,104,146.00 for its proportionate share of the net pension liability for TRS ($46,926,165.00) and ERS ($177,981.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 46,926,165.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n618,590.00 \n \nTotal \n \n$ 47,544,755.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 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, 2022. \nAt June 30, 2022, the School District's TRS proportion was 0.144513%, which was an increase of 0.010334% from its proportion measured as of June 30, 2021. At June 30, 2022, the School District's ERS proportion was 0.002665%, which was a decrease of 0.000057% from its proportion measured as of June 30, 2021. \nAt June 30, 2023, 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 $492,225.00. \nThe PSERS net pension liability was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 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, 2022. \nFor the year ended June 30, 2023, the School District recognized pension expense of $7,160,060.00 for TRS, $45,939.00 for ERS and $123,696.00 for PSERS and revenue of $127,304.00 for TRS and $123,696.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 32 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nAt June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nERS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience \n \n$ 1,947,917.00 $ 244,262.00 \n \n$ \n \n382.00 $ 1,614.00 \n \nChanges of assumptions \n \n7,063,885.00 \n \n- \n \n31,638.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n9,219,656.00 \n \n- \n \n20,680.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n1,779,078.00 \n \n144,954.00 \n \n1,142.00 \n \n1,216.00 \n \nSchool District contributions subsequent \n \nto the measurement date \n \n4,091,924.00 \n \n- \n \n- \n \n- \n \nTotal \n \n$ 24,102,460.00 $ 389,216.00 $ 53,842.00 $ 2,830.00 \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, 2024. 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 \n2024 2025 2026 2027 \n \n$ 5,288,283.00 $ 27,225.00 \n \n$ 4,224,698.00 $ 7,367.00 \n \n$ 3,151,594.00 $ \n \n516.00 \n \n$ 6,956,745.00 $ 15,904.00 \n \n- 33 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nActuarial Assumptions: The total pension liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \n \nInflation Salary increases Investment rate of return \nPost-retirement benefit increases \n \n2.50% 3.00%  8.75%, average, including inflation 6.90%, net of pension plan investment expense, including inflation 1.50% semi-annually \n \nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018, with the exception of the investment rate of return and payroll growth assumption. \n \nEmployees' Retirement System: \n \nInflation \n \n2.50% \n \nSalary increases Investment rate of return \n \n3.00%  6.75%, including inflation \n7.00%, net of pension plan investment expense, including inflation \n \n- 34 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \n \nMortality rates are as follows: \n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type Membership Table \n \nSet Forward (+)/ Setback (-) Adjustment to Rates \n \nService Retirees General Healthy Annuitant Male: +1; Female: +1 \n \nMale: 105%; Female: 108% \n \nDisability Retirees General Disabled \n \nMale: -3; Female: 0 \n \nMale: 103%; Female: 106% \n \nBeneficiaries \n \nGeneral Contingent Survivors \n \nMale: +2; Female: +2 \n \nMale: 106%; Female: 105% \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \n \nPublic School Employees Retirement System: \n \nInflation \n \n2.50% \n \nSalary increases Investment rate of return \n \nN/A \n7.00%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases \n \n1.50% semi-annually \n \nMortality rates are as follows: \n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type \n \nMembership Table \n \nSet Forward (+)/ Setback (-) Adjustment to Rates \n \nService Retirees \n \nGeneral Healthy Below- Male: +2; Female: +2 Median Annuitant \n \nMale: 101%; Female: 103% \n \nDisability Retirees \n \nGeneral Disabled \n \nMale: -3; Female: 0 \n \nMale: 103%; Female: 106% \n \nBeneficiaries \n \nGeneral Below-Median Male: +2; Female: +2 Contingent Survivors \n \nMale: 104%; Female: 99% \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \n \n- 35 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \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 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 small stocks International developed market stocks International emerging market stocks Alternative \nTotal \n \nTRS/ERS/PSERS Target \nallocation \n30.00% 46.30% \n1.20% 12.30% \n5.20% 5.00% \n100.00% \n \nLong-term expected real rate of return* \n0.20% 9.40% 13.40% 9.40% 11.40% 10.50% \n \n* Rates shown are net of inflation \nDiscount Rate: The discount rate used to measure the total TRS pension liability was 6.90%. The discount rate used to measure the total ERS and PSERS pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n- 36 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"I\" \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 6.90% and 7.00%, 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 (5.90% and 6.00%) or 1-percentage-point higher (7.90% and 8.00%) than the current rate: \n \nTeachers Retirement System: \n \n1% Decrease (5.90%) \n \nCurrent Discount Rate (6.90%) \n \n1% Increase (7.90%) \n \nSchool District's proportionate share of the net pension liability \n \n$ 70,796,042.00 $ \n \n46,926,165.00 $ 27,433,253.00 \n \nEmployees' Retirement System: \nSchool District's proportionate share of the net pension liability \n \n1% Decrease (6.00%) \n \nCurrent Discount Rate (7.00%) \n \n1% Increase (8.00%) \n \n$ \n \n236,926.00 $ \n \n177,981.00 $ \n \n128,413.00 \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 publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. \n \n- 37 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"1\" \n \nFor the Year Ended \nJune 30 \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \nSchool District's proportion \nof the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \n0.144513% $ 46,926,165.00 $ 0.134179% $ 11,867,238.00 $ 0.132896% $ 32,192,613.00 $ 0.130262% $ 28,009,852.00 $ 0.133661% $ 24,810,345.00 $ 0.140963% $ 26,198,408.00 $ 0.142743% $ 29,449,472.00 $ 0.147075% $ 22,390,708.00 $ 0.154807% $ 19,557,823.00 $ \n \n618,590.00 159,375.00 120,635.00 107,729.00 116,570.00 213,917.00 244,066.00 189,996.00 160,953.00 \n \n$ 47,544,755.00 $ 12,026,613.00 $ 32,313,248.00 $ 28,117,581.00 $ 24,926,915.00 $ 26,412,325.00 $ 29,693,538.00 $ 22,580,704.00 $ 19,718,776.00 \n \nSchool District's covered payroll \n \nSchool District's proportionate share \nof the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a percentage of \nthe total pension liability \n \n$ 19,752,813.79 $ 17,711,587.22 $ 17,203,475.45 $ 15,963,784.68 $ 15,994,439.37 $ 16,314,149.47 $ 15,786,646.73 $ 15,656,895.31 $ 15,932,172.02 \n \n237.57% 67.00% \n187.13% 175.46% 155.12% 160.59% 186.55% 143.01% 122.76% \n \n72.85% 92.03% 77.01% 78.56% 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- 39 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"2\" \n \nFor the Year Ended June 30 \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n4,091,924.00 $ \n \n4,091,924.00 $ \n \n- \n \n$ \n \n3,862,006.00 $ \n \n3,862,006.00 $ \n \n- \n \n$ \n \n3,331,133.00 $ \n \n3,331,133.00 $ \n \n- \n \n$ \n \n3,623,230.00 $ \n \n3,623,230.00 $ \n \n- \n \n$ \n \n3,323,640.00 $ \n \n3,323,640.00 $ \n \n- \n \n$ \n \n2,676,096.72 $ \n \n2,676,096.72 $ \n \n- \n \n$ \n \n2,309,164.92 $ \n \n2,309,164.92 $ \n \n- \n \n$ \n \n2,234,505.20 $ \n \n2,234,505.20 $ \n \n- \n \n$ \n \n2,041,552.01 $ \n \n2,041,552.01 $ \n \n- \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n$ \n \n20,761,649.07 \n \n$ \n \n19,752,813.79 \n \n$ \n \n17,711,587.22 \n \n$ \n \n17,203,475.45 \n \n$ \n \n15,963,784.68 \n \n$ \n \n15,994,439.37 \n \n$ \n \n16,314,149.47 \n \n$ \n \n15,786,646.73 \n \n$ \n \n15,656,895.31 \n \n19.71% 19.55% 18.81% 21.06% 20.82% 16.73% 14.15% 14.15% 13.04% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"3\" \n \nFor the Year Ended June 30 \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share of \nthe NPL \n \n0.002665% $ 0.002722% $ 0.002555% $ 0.002361% $ 0.002196% $ 0.002523% $ 0.002585% $ 0.002558% $ 0.002591% $ \n \n177,981.00 63,665.00 \n107,692.00 97,427.00 90,278.00 \n102,467.00 122,281.00 103,635.00 \n97,179.00 \n \nSchool District's covered payroll \n \n$ \n \n65,243.16 \n \n$ \n \n65,243.16 \n \n$ \n \n65,696.44 \n \n$ \n \n54,867.38 \n \n$ \n \n56,023.77 \n \n$ \n \n61,878.66 \n \n$ \n \n60,097.22 \n \n$ \n \n58,488.36 \n \n$ \n \n58,346.42 \n \nSchool District's proportionate share of the NPL as a percentage \nof covered payroll \n272.80% 97.58% \n163.92% 177.57% 161.14% 165.59% 203.47% 177.19% 166.56% \n \nPlan fiduciary net position as a \npercentage of total pension liability \n67.44% 87.62% 76.21% 76.74% 76.68% 76.33% 72.34% 76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 41 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"4\" \n \nFor the Year Ended June 30 \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \nContractually required contribution \n \n$ \n \n- \n \n$ \n \n16,069.00 \n \n$ \n \n16,089.00 \n \n$ \n \n16,200.78 \n \n$ \n \n13,596.00 \n \n$ \n \n13,899.49 \n \n$ \n \n15,352.05 \n \n$ \n \n14,856.00 \n \n$ \n \n12,844.08 \n \nContributions in relation to the contractually required \ncontribution \n \n$ \n \n- \n \n$ \n \n16,069.00 \n \n$ \n \n16,089.00 \n \n$ \n \n16,200.78 \n \n$ \n \n13,596.00 \n \n$ \n \n13,899.49 \n \n$ \n \n15,352.05 \n \n$ \n \n14,856.00 \n \n$ \n \n12,844.08 \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 \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n$ \n \n- \n \n$ \n \n65,243.16 \n \n$ \n \n65,243.16 \n \n$ \n \n65,696.44 \n \n$ \n \n54,867.38 \n \n$ \n \n56,023.77 \n \n$ \n \n61,878.66 \n \n$ \n \n60,097.22 \n \n$ \n \n58,488.36 \n \n0.00% 24.63% 24.66% 24.66% 24.78% 24.81% 24.81% 24.72% 21.96% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 42 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"5\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension \nliability \n \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 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 \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n492,225.00 $ 51,694.00 $ \n360,715.00 $ 338,812.00 $ 293,873.00 $ 273,648.00 $ 383,890.00 $ 242,736.00 $ 224,650.00 $ \n \n492,225.00 $ 51,694.00 $ \n360,715.00 $ 338,812.00 $ 293,873.00 $ 273,648.00 $ 383,890.00 $ 242,736.00 $ 224,650.00 $ \n \n836,547.23 760,577.87 777,289.13 783,850.97 813,644.00 730,766.58 725,869.10 783,445.60 846,638.60 \n \nN/A \n \n81.21% \n \nN/A \n \n98.00% \n \nN/A \n \n84.45% \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- 43 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND \n \nSCHEDULE \"6\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net OPEB Liability (NOL) \n \nSchool District's proportionate share \nof the NOL \n \nState of Georgia's proportionate \nshare of the NOL associated with the School District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the NOL as a percentage of its coveredemployee payroll \n \nPlan fiduciary net position as a percentage \nof the total OPEB liability \n \n2023 2022 2021 2020 2019 2018 \n \n0.191457% $ 18,960,335.00 $ 0.186445% $ 20,193,536.00 $ 0.188912% $ 27,746,773.00 $ 0.188040% $ 23,076,542.00 $ 0.188132% $ 23,911,000.00 $ 0.188905% $ 26,541,077.00 $ \n \n- \n \n$ 18,960,335.00 $ 17,874,843.65 \n \n- \n \n$ 20,193,536.00 $ 16,104,571.59 \n \n- \n \n$ 27,746,773.00 $ 15,452,349.64 \n \n- \n \n$ 23,076,542.00 $ 14,511,158.88 \n \n- \n \n$ 23,911,000.00 $ 14,202,987.29 \n \n- \n \n$ 26,541,077.00 $ 14,340,666.23 \n \n106.07% 125.39% 179.56% 159.03% 168.35% 185.08% \n \n6.17% 6.14% 3.99% 4.63% 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- 44 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \n \nSCHEDULE \"7\" \n \nFor the Year Ended June 30 \n2023 2022 2021 2020 2019 2018 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n782,610.00 $ \n \n782,610.00 $ \n \n- \n \n$ \n \n692,261.00 $ \n \n692,261.00 $ \n \n- \n \n$ \n \n693,545.00 $ \n \n693,545.00 $ \n \n- \n \n$ \n \n638,857.00 $ \n \n638,857.00 $ \n \n- \n \n$ \n \n1,012,725.00 $ \n \n1,012,725.00 $ \n \n- \n \n$ \n \n975,069.00 $ \n \n975,069.00 $ \n \n- \n \nSchool District's covered-employee \npayroll \n \n$ \n \n18,292,569.36 \n \n$ \n \n17,874,843.65 \n \n$ \n \n16,104,571.59 \n \n$ \n \n15,452,349.64 \n \n$ \n \n14,511,158.88 \n \n$ \n \n14,202,987.29 \n \nContribution as a percentage of \ncovered-employee payroll \n4.28% 3.87% 4.31% 4.13% 6.98% 6.87% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 45 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"8\" \n \nTeachers Retirement System Change of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \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%. \nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nOn May 11, 2022, the Board adopted recommended changes to the long-term assumed rate of return and payroll growth assumption utilized by the System. The long-term assumed rate of return was changed from 7.25% to 6.90%, and the payroll growth assumption was changed from 3.00% to 2.50%. \nEmployees' Retirement System Changes of benefit terms: There have been no changes in benefit terms. \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. The expectation of retired life mortality was changed to the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward 2 years for both males and females). \nA new funding policy was initially adopted the Board on March 15, 2018, and most recently amended on June 18, 2020. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rate of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return of 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability. \nOn April 21, 2022, the Board adopted a new funding policy which, in part, provides that the Actuarial Accrued Liability and Normal Cost of the System will include a prefunded variable Cost-of-Living Adjustment (COLA) for eligible retirees and beneficiaries of the System. Under the new policy, future COLAs are provided through a profit-sharing mechanism using the System's asset performance. After studying the parameters of this new policy, the assumption for future COLAs was set at 1.05%. Previously, no future COLAs were assumed. In addition, the funding policy set the assumed rate of return at 7.20% for the June 30, 2021 valuation and established a new Transitional Unfunded Actuarial Accrued Liability as of June 30, 2021 which will be amortized over a closed 20-year period. \nPublic School Employees Retirement System Changes of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \nA new funding policy was initially adopted by the Board on March 15, 2018, and most recently amended on December 17, 2020. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumption utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability. \n \n- 46 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"8\" \n \nSchool OPEB Fund Changes of benefit terms: There have been no changes in benefit terms. \nChanges in assumptions: June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience study. Approximately 0.10% of employees are members of the Employees' Retirement System. \nJune 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study. \nJune 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%. \nJune 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised. \nJune 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect to Retirement Systems' experience studies. \nJune 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed. \nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, to 3.87% as of June 30, 2018, back to 3.58% of June 30, 2019, and to 2.22% as of June 30, 2020. \n \n- 47 - \n \n BEN HILL COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"9\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Total Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES(USES) Other Sources Other Uses Total Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning (Restated) \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n7,120,000.00 $ \n \n7,120,000.00 $ \n \n7,775,782.75 $ \n \n70,000.00 \n \n70,000.00 \n \n86,996.21 \n \n23,839,848.00 \n \n23,799,332.21 \n \n25,936,546.73 \n \n3,031,334.28 \n \n6,369,420.28 \n \n12,229,289.74 \n \n69,650.00 \n \n69,650.00 \n \n468,501.96 \n \n8,500.00 \n \n8,500.00 \n \n8,565.21 \n \n322,000.00 \n \n323,000.00 \n \n1,074,954.51 \n \n34,461,332.28 \n \n37,759,902.49 \n \n47,580,637.11 \n \n655,782.75 16,996.21 \n2,137,214.52 5,859,869.46 \n398,851.96 65.21 \n751,954.51 9,820,734.62 \n \n22,405,353.26 \n789,087.00 233,545.13 337,492.00 1,563,758.00 2,556,575.00 679,317.00 2,967,653.28 1,735,817.00 127,200.00 \n2,130,065.00 \n35,525,862.67 (1,064,530.39) \n \n282,190.00 (253,305.00) \n28,885.00 \n \n(1,035,645.39) \n \n7,008,775.25 \n \n57,439.73 \n \n$ \n \n6,030,569.59 $ \n \n27,044,924.87 \n1,172,562.61 452,348.73 337,575.32 \n1,690,828.43 2,563,138.52 \n679,318.24 2,816,499.80 1,814,763.66 \n127,199.48 - \n2,138,256.63 - \n4,350,731.00 45,188,147.29 (7,428,244.80) \n464,199.00 (435,314.00) \n28,885.00 \n(7,399,359.80) \n7,008,775.25 \n14,658.40 \n(375,926.15) $ \n \n31,610,040.32 \n1,459,661.33 468,202.52 251,356.49 \n1,710,065.65 3,024,247.16 \n697,923.96 2,951,554.18 2,164,290.80 \n127,218.37 10,000.00 10,610.37 \n2,828,430.87 1,911,465.15 49,225,067.17 (1,644,430.06) \n(2,500,000.00) (2,500,000.00) \n(4,144,430.06) \n6,145,646.66 \n- \n2,001,216.60 $ \n \n(4,565,115.45) \n(287,098.72) (15,853.79) 86,218.83 (19,237.22) \n(461,108.64) (18,605.72) \n(135,054.38) (349,527.14) \n(18.89) (10,000.00) 2,127,646.26 (2,828,430.87) 2,439,265.85 (4,036,919.88) 5,783,814.74 \n(464,199.00) (2,064,686.00) (2,528,885.00) \n3,254,929.74 \n(863,128.59) \n(14,658.40) \n2,377,142.75 \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 $902,125.12 and $865,002.52, 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- 48 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"10\" \n \nFUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of \nChild Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program COVID-19 - National School Lunch Program Total Child Nutrition Cluster \nOther Programs Direct Community Facilities Grant Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability State Administrative Expenses for Child Nutrition Total Other Programs Total 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 COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Homeless Children and Youth Total Education Stabilization Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States COVID-19 - American Rescue Plan - Grants to States Preschool Grants Preschool Grants Total Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Comprehensive Literacy Development English Language Acquisition State Grants Migrant Education State Grant Program Migrant Education State Grant Program Rural and Low-Income School Program Title I Grants to Local Educational Agencies Total Other Programs Total 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 COVID-19 - Child Care and Development Block Grant \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY IDENTIFYING \nNUMBER \n \nFEDERAL EXPENDITURES \n \n10.553 10.555 10.555 \n \n235GA324N1199 $ 235GA324N1199 225GA324N1099 \n \n442,056.61 2,023,859.91 \n160,753.53 2,626,670.05 \n \n10.771 \n10.579 10.560 \n \n215GA350N8103 235GA904N2533 \n \n100,000.00 \n28,092.67 5,652.62 \n133,745.29 2,760,415.34 \n \n84.425D 84.425D \n84.425U \n84.425W \n \nS425D200012 S425D210012 \nS425U210012 \nS425W210011 \n \n164,488.00 47,491.80 \n3,997,489.96 \n58,265.96 4,267,735.72 \n \n84.027A 84.027A 84.027X 84.173A 84.173A \n \nH027A210073 H027A220073 H027X210073 H173A210081 H173A220081 \n \n268,648.00 462,655.35 \n37,444.98 29,106.00 \n524.53 798,378.86 \n \n84.048A 84.371C 84.365A 84.011A 84.011A 84.358B 84.010A \n \nV048A220010 S371C190016-19A \nS365A220010 S011A200011 S011A220011 S358F220010 S010A220010 \n \n44,360.00 413,241.90 \n12,479.63 531.00 \n23,034.72 387,550.74 1,654,423.75 2,535,621.74 7,601,736.32 \n \n93.575 \n \n2210GACCC5 \n \n171,500.00 \n \n- 49 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"10\" \n \nFUNDING AGENCY PROGRAM/GRANT \nOther Programs Title V State Sexual Risk Avoidance Education (Title V State STAE Program) Total U.S. Department of Health and Human Services \nTotal Expenditures of Federal Awards \n \nASSISTANCE LISTING NUMBER \n93.235 \n \nPASSTHROUGH \nENTITY IDENTIFYING \nNUMBER \n \nFEDERAL EXPENDITURES \n \nNIG95295 $ \n \n100,562.44 272,062.44 \n10,634,214.10 \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 Ben Hill County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2023. 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. \nNote 4: Transfers Between Programs \nFunds totaling $182,009.00 and $129,420.00 were transferred from the Supporting Effective Instruction State Grants program (ALN 84.367A) and the Student Support and Academic Enrichment Program (ALN 84.424A) respectively; amounts were expended in the Rural and Low-Income School Program (ALN 84.358B) during Fiscal Year 2023. \n \nSee notes to the basic financial statements. \n \n- 50 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"11\" \n \nGOVERNMENTAL FUND TYPES \n \nGENERAL \n \nCAPITAL PROJECTS \n \nAGENCY/FUNDING \n \nFUND \n \nFUND \n \nGRANTS \n \nBright From the Start: \n \nGeorgia Department of Early Care and Learning \n \nPre-Kindergarten Program \n \n$ \n \n887,008.93 $ \n \n- $ \n \nEducation, Georgia Department of \n \nQuality Basic Education \n \nDirect Instructional Cost \n \nKindergarten Program \n \n1,060,947.00 \n \n- \n \nKindergarten Program - Early Intervention Program \n \n314,892.00 \n \n- \n \nPrimary Grades (1-3) Program \n \n1,712,105.00 \n \n- \n \nPrimary Grades - Early Intervention (1-3) Program \n \n968,309.00 \n \n- \n \nUpper Elementary Grades (4-5) Program \n \n792,004.00 \n \n- \n \nUpper Elementary Grades - Early Intervention (4-5) Program \n \n584,245.00 \n \n- \n \nMiddle School (6-8) Program \n \n1,883,228.00 \n \n- \n \nHigh School General Education (9-12) Program \n \n1,653,177.00 \n \n- \n \nVocational Laboratory (9-12) Program \n \n687,998.00 \n \n- \n \nStudents with Disabilities \n \n2,663,607.00 \n \n- \n \nGifted Student - Category VI \n \n945,822.00 \n \n- \n \nRemedial Education Program \n \n1,408,854.00 \n \n- \n \nAlternative Education Program \n \n140,353.00 \n \n- \n \nEnglish Speakers of Other Languages (ESOL) \n \n111,673.00 \n \n- \n \nSpecial Education Supplemental Speech \n \n488.00 \n \n- \n \nMedia Center Program \n \n375,740.00 \n \n- \n \n20 Days Additional Instruction \n \n115,923.00 \n \n- \n \nStaff and Professional Development \n \n68,633.00 \n \n- \n \nPrincipal Staff and Professional Development \n \n1,587.00 \n \n- \n \nIndirect Cost \n \nCentral Administration \n \n583,307.00 \n \n- \n \nSchool Administration \n \n851,100.00 \n \n- \n \nFacility Maintenance and Operations \n \n767,081.00 \n \n- \n \nMid-term Adjustment Hold-Harmless \n \n189,083.00 \n \n- \n \nCharter System Adjustment \n \n310,125.00 \n \n- \n \nOne-Time Supplement \n \n829,860.00 \n \n- \n \nCategorical Grants \n \nPupil Transportation \n \nRegular \n \n423,908.00 \n \n- \n \nBus Replacement \n \n176,220.00 \n \n- \n \nNursing Services \n \n65,092.00 \n \n- \n \nEducation Equalization Funding Grant \n \n4,838,544.00 \n \n- \n \nOther State Programs \n \nFood Services \n \n75,380.00 \n \n- \n \nHygiene Products \n \n2,562.00 \n \n- \n \nMath and Science Supplements \n \n36,838.22 \n \n- \n \nPreschool Disability Services \n \n95,439.11 \n \n- \n \nSchool Security Grant \n \n18,115.00 \n \n- \n \nTeachers Retirement \n \n55,696.39 \n \n- \n \nVocational Education \n \n175,849.08 \n \n- \n \nGeorgia State Financing and Investment Commission \n \nReimbursement on Construction Projects \n \n- \n \n249,014.36 \n \nOffice of the State Treasurer \n \nPublic School Employees Retirement \n \n65,753.00 \n \n- \n \n$ \n \n25,936,546.73 $ \n \n249,014.36 $ \n \nTOTAL \n887,008.93 \n1,060,947.00 314,892.00 \n1,712,105.00 968,309.00 792,004.00 584,245.00 \n1,883,228.00 1,653,177.00 \n687,998.00 2,663,607.00 \n945,822.00 1,408,854.00 \n140,353.00 111,673.00 \n488.00 375,740.00 115,923.00 \n68,633.00 1,587.00 \n583,307.00 851,100.00 767,081.00 189,083.00 310,125.00 829,860.00 \n423,908.00 176,220.00 \n65,092.00 4,838,544.00 \n75,380.00 2,562.00 \n36,838.22 95,439.11 18,115.00 55,696.39 175,849.08 \n249,014.36 \n65,753.00 \n26,185,561.09 \n \nSee notes to the basic financial statements. \n \n- 51 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"12\" \n \nPROJECT 2016 \n(i) Replacement of school and/or construction of new schools, including and necessary demolition; and \n(x) Paying a portion of the principal and interest on the current general obligation debt and general obligation debt to be issued (collectively, the \"Projects\"). \nSubtotal 2016 Projects \nPROJECTS 2021 \n(i) Replacement of schools and/or construction of new schools, including and necessary demolition; \n(ii) Adding to, renovating, repairing, improving, furnishing, and/or equipping existing school buildings, including the central office, transportation and maintenance facilities, including necessary demolition; \n(iii) Adding to, constructing, renovating, furnishing, and/or equipping athletic facilities; \n(iv) Acquiring equipment, instruments and/or materials for the fine arts, vocational, physical education and athletic departments; \n(v) Renovations, additions, and/or improvements to parking, traffic access facilities and transportation department, including paving and any necessary site work; \n(vi) Acquiring instructional and/or administrative technology equipment and materials; \n(vii) Acquiring safety, security, and/or fire protecting equipment; \n(viii) Acquiring buses, vehicles, and/or transportation equipment; \n(ix) Acquiring property; and \n(x) Retiring the current general obligation debt with respect only to capital outlay projects of the School District (collectively, the \"Projects\"). \nSubtotal 2021 Projects \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nESTIMATED COMPLETION \nDATE \n \n$ \n \n3,500,000.00 $ 45,867,666.42 \n \nCompleted \n \n7,950,000.00 11,450,000.00 \n \n5,888,362.41 51,756,028.83 \n \nCompleted \n \n1,000,000.00 \n \n1,000,000.00 \n \n1,000,000.00 500,000.00 500,000.00 \n \n1,105,959.79 500,000.00 500,000.00 \n \n500,000.00 \n \n500,000.00 \n \n1,000,000.00 250,000.00 625,625.00 100,000.00 \n \n1,000,000.00 250,000.00 625,625.00 100,000.00 \n \n10,524,375.00 16,000,000.00 \n \n10,524,375.00 16,105,959.79 \n \n$ 27,450,000.00 $ 67,861,988.62 \n \n2026 \n2026 2026 2026 \n2026 2026 2026 2026 2026 2037 \n \n- 52 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"12\" \n \nPROJECT 2016 \n(i) Replacement of school and/or construction of new schools, including and necessary demolition; and \n(x) Paying a portion of the principal and interest on the current general obligation debt and general obligation debt to be issued (collectively, the \"Projects\"). \nSubtotal 2016 Projects \nPROJECTS 2021 \n(i) Replacement of schools and/or construction of new schools, including and necessary demolition; \n(ii) Adding to, renovating, repairing, improving, furnishing, and/or equipping existing school buildings, including the central office, transportation and maintenance facilities, including necessary demolition; \n(iii) Adding to, constructing, renovating, furnishing, and/or equipping athletic facilities; \n(iv) Acquiring equipment, instruments and/or materials for the fine arts, vocational, physical education and athletic departments; \n(v) Renovations, additions, and/or improvements to parking, traffic access facilities and transportation department, including paving and any necessary site work; \n(vi) Acquiring instructional and/or administrative technology equipment and materials; \n(vii) Acquiring safety, security, and/or fire protecting equipment; \n(viii) Acquiring buses, vehicles, and/or transportation equipment; \n(ix) Acquiring property; and \n(x) Retiring the current general obligation debt with respect only to capital outlay projects of the School District (collectively, the \"Projects\"). \nSubtotal 2021 Projects \nTotal \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n$ \n \n506,715.72 $ 45,360,950.70 $ 45,867,666.42 $ \n \n- \n \n- \n \n5,888,362.41 \n \n5,888,362.41 \n \n- \n \n506,715.72 \n \n51,249,313.11 \n \n51,756,028.83 \n \n- \n \n- \n \n- \n \n- \n \n- \n \n1,105,959.79 \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 \n20,000.00 \n \n23,659.74 \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 \n2,107,687.50 \n \n- \n \n- \n \n- \n \n3,233,647.29 \n \n23,659.74 \n \n- \n \n- \n \n$ 3,740,363.01 $ 51,272,972.85 $ 51,756,028.83 $ \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. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Ben Hill County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. \nAmounts 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- 53 - \n \n Section II Compliance and Internal Control Reports \n \n Greg S. Griffin State Auditor \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 \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 Ms. Dawn Clements, Superintendent and Members of the Ben Hill County Board of Education \nWe have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the Ben Hill County Board of Education (School District) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated September 5, 2024. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \nReport on Internal 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Report on Compliance 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \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 \nSeptember 5, 2024 \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \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 Ms. Dawn Clements, Superintendent and Members of the Ben Hill County Board of Education \nReport on Compliance for Each Major Federal Program \nOpinion on Each Major Federal Program \nWe have audited the Ben Hill County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2023. 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. \nIn our opinion, the School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023. \nBasis for Opinion on Each Major Federal Program \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Responsibilities of Management for Compliance \nManagement is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs. \nAuditor's Responsibilities for the Audit of Compliance \nOur objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole. \nIn performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. \n Obtain an understanding of the School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control over compliance. Accordingly, no such opinion is expressed. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. \nReport on 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 a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance \n \n requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. \nOur audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. \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 \nSeptember 5, 2024 \n \n Section III Auditee's Response to Prior Year Findings and Questioned Costs \n \n BEN HILL COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2023 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS \n \nFS 2022-001 Repeat of Prior Year Finding: \n \nInternal Controls over Financial Reporting FS 2021-001, FS 2020-001 \n \nFinding Status: \n \nPreviously Reported Corrective Action Implemented \n \nFS 2021-001 Repeat of Prior Year Finding: Finding Status: \nFS 2020-001 Finding Status: \n \nInternal Controls over Financial Reporting FS 2020-001 Previously Reported Corrective Action Implemented \nInternal Controls over Financial Reporting Previously Reported Corrective Action Implemented \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2021-001 \n \nStrengthen Controls over Expenditures \n \nFederal Awarding Agency: Pass-Through Entity: \n \nU.S. Department of Education Georgia Department of Education \n \nFinding Status: \n \nPreviously Reported Corrective Action Implemented \n \nFA 2022-001 \nFederal Awarding Agency: Pass-Through Entity: \nFinding Status: \n \nStrengthen Controls over Equipment \nU.S. Department of Education Georgia Department of Education \nPreviously Reported Corrective Action Implemented \n \n Section IV Findings and Questioned Costs \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2023 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities, Each Major Fund, and Fiduciary Activities \n \nInternal control over financial reporting:  Material weakness(es) identified?  Significant deficiency(ies) identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal control over major programs:  Material weakness(es) identified?  Significant deficiency(ies) identified? \n \nType of auditor's report issued on compliance for major programs: \n \nAll major programs \n \nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \n \nIdentification of major programs: \n \nAssistance Listing Number Assistance Listing Program or Cluster Title \n \n10.553, 10.555 84.027, 84.173 84.425 \n \nChild Nutrition Cluster Special Education Cluster Education Stabilization Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nII FINANCIAL STATEMENT FINDINGS No matters were reported. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \nUnmodified No \nNone Reported No \nNo None Reported \nUnmodified No \n$750,000.00 No \n \n "},{"id":"dlg_ggpd_931532782-2024-08-13","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended 2023 June 30 (including independent auditor's reports).","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2024-08-13"],"dcterms_description":["Began with fiscal year ended June 30, 2009, released in 2010?","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 8/4/15 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 4, 2015).","Latest issue consulted: Fiscal year ended June 30, 2014 (Georgia Government Publications database, viewed September 4, 2015)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["[Atlanta, Georgia?] : State of Georgia"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Ben Hill County Board of Education (Ben Hill County, Ga.)--Appropriations and expenditures--Periodicals.","Ben Hill County Board of Education (Ben Hill County, Ga.)","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Auditors' reports","Expenditures, Public","Financial statements","Georgia","Georgia Government Documents--Serial"],"dcterms_title":["Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended 2023 June 30 (including independent auditor's reports)."],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_931532782-2024-08-13"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_931532782-2024-08-13"],"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":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2023 \nBerrien County Board of Education \nNashville, Georgia \nIncluding Independent Auditor's Report \nGreg S. Griffin | State Auditor \n \n Berrien County Board of Education Table of Contents \n \nSection I Financial \nIndependent Auditor's Report \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 in Fund Balances \n \nGovernmental Funds \n \n5 \n \nF \n \nReconciliation of the Governmental Funds Statement of \n \nRevenues, Expenditures and Changes in Fund Balances \n \nto the Statement of Activities \n \n6 \n \nG Notes to the Basic Financial Statements \n \n8 \n \nSchedules \n \nRequired Supplementary Information \n \n1 Schedule of Proportionate Share of the Net Pension Liability \n \nTeachers Retirement System of Georgia \n \n37 \n \n2 Schedule of Contributions  Teachers Retirement System of Georgia \n \n38 \n \n3 Schedule of Proportionate Share of the Net Pension Liability Public \n \nSchool Employees Retirement System of Georgia \n \n39 \n \n4 Schedule of Proportionate Share of the Net OPEB Liability \n \nSchool OPEB Fund \n \n40 \n \n5 Schedule of Contributions  School OPEB Fund \n \n41 \n \n6 Notes to the Required Supplementary Information \n \n42 \n \n7 Schedule of Revenues, Expenditures and Changes in Fund \n \nBalances - Budget and Actual General Fund \n \n43 \n \n8 Combining Balance Sheet  Nonmajor Governmental Funds \n \n44 \n \n9 Combining Statement of Revenues, Expenditures and Changes in Fund Balances \n \nNonmajor Governmental Funds \n \n45 \n \n Supplementary Information \n \n10 Schedule of Expenditures of Federal Awards \n \n46 \n \n11 Schedule of State Revenue \n \n48 \n \n12 Schedule of Approved Local Option Sales Tax Projects \n \n50 \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 \nSummary Schedule of Prior Audit Findings \n \nSection IV Findings and Questioned Costs \nSchedule of Findings and Questioned Costs \n \nSection V Management's Corrective Action for Current Year Findings \nSchedule of Management's Corrective Action \n \n Section I Financial \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT \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 Mrs. Robin Marcrum, Superintendent and Members of the Berrien County Board of Education \nReport on the Audit of the Financial Statements \nOpinions \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and remaining fund information of the Berrien County Board of Education (School District) as of and for the year ended June 30, 2023, 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. \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 remaining fund information of the School District as of June 30, 2023, 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. \nBasis for Opinions \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nResponsibilities of Management for the Financial Statements \nManagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \nAuditor's Responsibilities for the Audit of the Financial Statements \nOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. \nIn performing an audit in accordance with GAAS and Government Auditing Standards, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. \n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, no such opinion is expressed. \n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. \n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. \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 \n \n 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. \nSupplementary 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 supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated August 13, 2024 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. \n \n A 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. Respectfully submitted, \nGreg S. Griffin State Auditor \nAugust 13, 2024 \n \n Berrien County Board of Education \n \n BERRIEN COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2023 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Contracts Payable Retainages 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 Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION Net Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n21,067,974.84 \n \n965,629.51 4,419,579.86 3,018,753.99 \n37,283.21 393,061.51 \n47,971.61 12,610,913.01 38,862,936.82 81,424,104.36 \n \n19,245,095.00 4,869,202.00 \n24,114,297.00 \n \n781,011.13 4,033,257.50 \n89,306.37 75,000.00 1,126,188.98 1,048,716.21 40,286,628.00 18,489,934.00 \n1,235,345.70 5,177,158.50 72,342,546.39 \n \n741,088.00 12,037,092.00 12,778,180.00 \n \n43,495,572.39 \n \n972,971.78 386,439.40 2,935,465.91 (27,372,774.51) \n \n$ \n \n20,417,674.97 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n BERRIEN COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2023 \n \nEXHIBIT \"B\" \n \nGOVERNMENTAL ACTIVITIES Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Long-Term Debt \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ 25,973,666.42 $ \n1,695,785.21 1,082,437.47 \n543,512.20 1,180,220.66 1,881,379.74 \n277,030.06 2,374,336.93 2,458,618.52 \n282,827.32 34,736.40 \n2,133,942.97 250,462.68 \n \n195,350.60 $ \n8,356.27 - \n154,368.25 - \n \n23,166,145.71 $ \n463,527.71 480,144.03 447,426.00 1,442,737.19 1,881,996.60 \n6,732.00 1,235,175.75 1,107,218.69 \n30,786.87 13,503.68 \n2,058,841.12 - \n \n847,806.55 $ \n32,557.06 - \n2,618.96 80.64 - \n63,981.50 616,770.00 \n- \n18,452.92 - \n \n(1,764,363.56) \n(1,199,700.44) (602,293.44) (96,086.20) 265,135.49 697.50 (270,298.06) \n(1,066,823.41) (734,629.83) (252,040.45) (21,232.72) \n97,719.32 (250,462.68) \n \nTotal Governmental Activities \n \n$ 40,168,956.58 $ \n \n358,075.12 $ \n \n32,334,235.35 $ \n \n1,582,267.63 \n \n(5,894,378.48) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Total General Revenues \n \n6,317,354.89 \n1,999,169.19 98,816.56 \n3,866,288.00 135,792.09 \n2,061,548.14 14,478,968.87 \n \nChange in Net Position \n \n8,584,590.39 \n \nNet Position - Beginning of Year \n \n11,833,084.58 \n \nNet Position - End of Year \n \n$ \n \n20,417,674.97 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n BERRIEN COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2023 \n \nEXHIBIT \"C\" \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nNONMAJOR FUND \n \nTOTAL \n \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories \n \n$ 12,797,405.77 $ 7,933,964.60 $ \n \n796,765.25 3,380,701.94 3,012,613.86 \n37,283.21 344,934.58 \n47,971.61 \n \n168,864.26 965,497.63 \n- \n \n- $ \n- \n \n336,604.47 $ 21,067,974.84 \n \n73,380.29 \n6,140.13 - \n48,126.93 - \n \n965,629.51 4,419,579.86 3,018,753.99 \n37,283.21 393,061.51 \n47,971.61 \n \nTotal Assets \n \n$ 20,417,676.22 $ 9,068,326.49 $ \n \n- $ \n \n464,251.82 $ 29,950,254.53 \n \nLIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable \nTotal Liabilities \n \n$ \n \n764,886.13 $ \n \n- $ \n \n3,936,928.56 \n \n- \n \n89,306.37 \n \n- \n \n- \n \n1,126,188.98 \n \n215,830.39 \n \n832,885.82 \n \n5,006,951.45 \n \n1,959,074.80 \n \n- $ - \n \n16,125.00 $ 96,328.94 \n112,453.94 \n \n781,011.13 4,033,257.50 \n89,306.37 1,126,188.98 1,048,716.21 7,078,480.19 \n \nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - GSFIC Unavailable Revenue - State Funds \n \n465,204.44 \n \n- \n \n- \n \n- \n \n965,497.63 \n \n- \n \n616,770.00 \n \n- \n \n- \n \n1,081,974.44 \n \n965,497.63 \n \n- \n \n- \n \n465,204.44 \n \n- \n \n965,497.63 \n \n- \n \n616,770.00 \n \n- \n \n2,047,472.07 \n \nFUND BALANCES Nonspendable Restricted Assigned Unassigned \nTotal Fund Balances \n \n47,971.61 925,000.17 501,925.31 12,853,853.24 14,328,750.33 \n \n801,848.52 5,341,905.54 \n6,143,754.06 \n \n- \n \n- \n \n47,971.61 \n \n- \n \n- \n \n1,726,848.69 \n \n- \n \n351,797.88 \n \n6,195,628.73 \n \n- \n \n- \n \n12,853,853.24 \n \n- \n \n351,797.88 \n \n20,824,302.27 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 20,417,676.22 $ 9,068,326.49 $ \n \n- $ \n \n464,251.82 $ 29,950,254.53 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n BERRIEN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2023 \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. Land Construction in progress Buildings and improvements Equipment Land improvements Infrastructure Intangible assets Accumulated depreciation/amortization \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB liability \nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pension Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nGrants that are not available to pay for current period expenditures are deferred in the funds. GSFIC State 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. Bonds payable Accrued interest payable Unamortized bond premiums \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n20,824,302.27 \n \n$ \n \n707,496.00 \n \n11,903,417.01 \n \n47,314,822.61 \n \n11,949,528.01 \n \n2,126,994.43 \n \n159,600.00 \n \n248,648.00 \n \n(22,936,656.23) \n \n51,473,849.83 \n \n$ \n \n(40,286,628.00) \n \n(18,489,934.00) \n \n(58,776,562.00) \n \n$ \n \n18,504,007.00 \n \n(7,167,890.00) \n \n$ \n \n965,497.63 \n \n616,770.00 \n \n11,336,117.00 465,204.44 \n1,582,267.63 \n \n$ \n \n(6,000,000.00) \n \n(75,000.00) \n \n(412,504.20) \n \n(6,487,504.20) \n \n$ \n \n20,417,674.97 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n BERRIEN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023 \n \nEXHIBIT \"E\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nNONMAJOR FUND \n \n$ 6,077,540.11 $ 98,816.56 \n24,483,848.28 10,952,996.93 \n358,075.12 42,756.16 \n1,766,542.66 43,780,575.82 \n \n- $ 1,999,169.19 \n93,035.93 2,092,205.12 \n \n- $ \n \n186,684.52 $ \n \n- \n \n- \n \n- \n \n659,736.72 \n \n- \n \n47,433.89 \n \n- \n \n- \n \n- \n \n- \n \n- \n \n295,005.48 \n \n- \n \n1,188,860.61 \n \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nRevenues over (under) Expenditures \n \n24,063,508.97 \n1,183,945.96 1,046,239.50 \n541,883.66 1,243,330.08 1,659,409.19 \n274,926.12 2,317,739.94 3,517,040.26 \n273,294.75 25,220.93 \n2,128,086.49 2,331,484.28 \n40,606,110.13 3,174,465.69 \n \n10,557.00 \n7,513,990.93 \n7,524,547.93 (5,432,342.81) \n \n- \n- \n3,515,604.85 343,311.12 \n3,858,915.97 (3,858,915.97) \n \n573,342.39 \n352,336.54 1,276.45 - \n179,506.88 - \n22,887.07 5,136.26 2,200.54 9,515.47 - \n1,146,201.60 42,659.01 \n \nOTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances \n \n(2,992,440.00) (2,992,440.00) \n182,025.69 \n \n132,100.02 (1,093,796.00) \n(961,695.98) (6,394,038.79) \n \n3,858,915.97 - \n3,858,915.97 - \n \n95,220.01 - \n95,220.01 137,879.02 \n \nFund Balances - Beginning \n \n14,146,724.64 \n \n12,537,792.85 \n \n- \n \n213,918.86 \n \nFund Balances - Ending \n \n$ 14,328,750.33 $ 6,143,754.06 $ \n \n- $ \n \n351,797.88 $ \n \nTOTAL \n6,264,224.63 2,097,985.75 25,143,585.00 11,000,430.82 \n358,075.12 135,792.09 2,061,548.14 47,061,641.55 \n24,647,408.36 \n1,536,282.50 1,047,515.95 \n541,883.66 1,243,330.08 1,838,916.07 \n274,926.12 2,340,627.01 3,522,176.52 \n275,495.29 34,736.40 \n2,128,086.49 9,845,475.21 \n3,515,604.85 \n343,311.12 53,135,775.63 (6,074,134.08) \n4,086,236.00 (4,086,236.00) \n(6,074,134.08) \n26,898,436.35 \n20,824,302.27 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n BERRIEN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2023 \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. Capital outlay Depreciation/amortization expense Amortization expense \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nGrants reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. GSFIC State 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. Lease principal payments Bond principal retirements Amortization of bond premium \nDistrict pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense \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. Net decrease in accrued interest \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n(6,074,134.08) \n \n$ \n \n11,568,433.76 \n \n(1,253,753.03) \n \n(748,192.44) \n \n$ \n \n965,497.63 \n \n616,770.00 \n \n9,566,488.29 53,130.26 \n1,582,267.63 \n \n$ \n \n2,675,604.85 \n \n840,000.00 \n \n85,345.70 \n \n3,600,950.55 \n \n$ \n \n(1,971,656.00) \n \n1,820,041.00 \n \n(151,615.00) \n \n7,502.74 \n \n$ \n \n8,584,590.39 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n (This page left intentionally blank) \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nReporting Entity \nThe Berrien County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nBlended Component Unit \nThe Berrien County Collaborative, Inc. (Collaborative) (a non-profit corporation) is dedicated to coordinating human services and delivering them to youth of Berrien County, Georgia and to their families through the supportive environment of the public schools or alternative education sites. The Collaborative endeavors to enable said youth and their families to have access to a broad range of resources within an educational setting. The object of the Collaborative is to reduce the number of school dropouts in the Berrien County School District. The financial statements of the Collaborative have been blended with the School District's nonmajor governmental fund. \nThe Berrien Academy Charter School (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby certain State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been blended with the School District's nonmajor governmental fund. \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. 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. \n \n- 8 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nThe Statement of Net Position presents the School District's assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \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. \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. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. \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), bond proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \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. \n \n- 9 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nAll governmental funds not meeting the criteria established for major funds are presented in the nonmajor governmental column of the fund financial statements. \nBasis of Accounting \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide 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 certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 60 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under leases are reported as other financing sources. \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 2023, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. This statement defines subscription-based information technology arrangements and provides uniform guidance for accounting and financial reporting for transactions that meet that definition. Under this statement, a government is required to recognize a subscription liability and an intangible right-to-use asset for contracts that meet the definition of a subscription-based information technology arrangement. The adoption of this statement did not have a material impact on the School District's financial statements. \n \n- 10 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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. \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. \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. \nAmortization of intangible assets such as water, timber and mineral rights, easements, patents, trademarks, copyrights, and internally generated software is computed using the straight-line method over the estimated useful lives of the assets. \n \n- 11 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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 Infrastructure \n \nAny Amount \n \n$ \n \n10,000.00 \n \n$ \n \n10,000.00 \n \n$ \n \n10,000.00 \n \n$ \n \n10,000.00 \n \n$ 250,000.00 \n \nN/A 15 to 80 years 10 to 80 years \n5 to 50 years 15 to 50 years 15 to 50 years \n \nIntangible Right-To-Use Assets \nAn intangible right-to-use asset represents the School District's right to use an underlying asset for the lease term. Lease obligations represent the School District's liability to make lease payments arising from the lease agreement. Intangible right-to-use assets and lease obligations are recognized based on the present value of lease payments over the lease term, where the initial term exceeds 12 months. Residual value guarantees and the value of an option to extend or terminate a lease are reflected to the extent it is reasonably certain to be paid or exercised. Variable payments based on future performance or usage are not included in the measurement of the lease liability. Intangible right-to-use assets are amortized using a straight-line basis over the shorter of the lease term or useful life of the underlying asset. \nCapitalization thresholds of intangible right-to-use assets reported in the government-wide statements are as follows: \nCapitalization Policy \n \nLand Land Improvements Buildings and Improvements Equipment Infrastructure \n \nAny Amount \n \n$ \n \n10,000.00 \n \n$ \n \n10,000.00 \n \n$ \n \n10,000.00 \n \n$ 250,000.00 \n \nLeases as Lessee \nThe School District is a lessee for noncancellable leases of energy efficiency equipment and other energy-saving items owned by 3rd parties. \nAt the commencement of a lease, the School District initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The right-to-use lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Due to the lease containing a bargain purchase option that is reasonably certain of being exercised, the lease asset is amortized on the straight-line basis over the useful life of the underlying asset. \n- 12 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nKey estimates and judgments related to leases include how the School District determines (1) lease term, and (2) lease payments: \nThe lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of variable payments the School District will make over the lease term. \nThe School District monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and lease liability if certain changes occur that are expected to significantly affect the amount of the lease liability. \nLease assets are reported with other capital assets and lease liabilities are reported with current and long-term debt on the statement of net position. \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 straightline 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. \n \n- 13 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nPost-Employment 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 Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \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. \n \n- 14 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nProperty Taxes \nThe Berrien County Board of Commissioners adopted the property tax levy for the 2022 tax digest year (calendar year) on September 29, 2022 (levy date) based on property values as of January 1, 2022. Taxes were due on December 20, 2022 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2022 tax digest are reported as revenue in the governmental funds for fiscal year 2023. The Berrien County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2023, for maintenance and operations amounted to $5,187,290.42. \nThe tax millage rate levied for the 2022 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n14.88 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,076,934.21 during fiscal year ended June 30, 2023. \nSales Taxes \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,999,169.19 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, capital projects and nonmajor funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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. \n- 15 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \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, 2023, the School District had deposits with a carrying amount of $18,463,759.61, and a bank balance of $16,525,760.56. The bank balances insured by Federal depository insurance were $685,476.32 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $15,840,284.24. \n \n- 16 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position \n \n$ 21,067,974.84 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n2,604,215.23 \n \nTotal carrying value of deposits - June 30, 2023 \n \n$ 18,463,759.61 \n \nCategorization of Cash Equivalents \nThe School District reported cash equivalents of $2,604,215.23 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, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Fitch. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2023 was 28 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \n- 17 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 5: CAPITAL ASSETS AND INTANGIBLE RIGHT-TO-USE ASSETS \n \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2022 \n \nIncreases \n \nDecreases \n \nTransfers (1) \n \nBalances June 30, 2023 \n \nGovernmental Activities Capital Assets, \nNot Being Depreciated: Land Construction in Progress \n \n$ \n \n707,496.00 $ \n \n- \n \n$ \n \n2,309,260.83 \n \n9,594,156.18 \n \n- $ - \n \n- $ - \n \n707,496.00 11,903,417.01 \n \nTotal Capital Assets Not Being Depreciated \n \n3,016,756.83 \n \n9,594,156.18 \n \n- \n \n- \n \n12,610,913.01 \n \nCapital Assets, Being Depreciated and Amortized: Buildings and Improvements Equipment Land Improvements Infrastructure Intangible Assets \n \n47,085,645.61 7,363,085.66 2,126,994.43 \n159,600.00 248,648.00 \n \n229,177.00 1,745,100.58 \n- \n \n151,428.00 \n- \n \n2,992,769.77 \n- \n \n47,314,822.61 11,949,528.01 2,126,994.43 \n159,600.00 248,648.00 \n \nLess Accumulated Depreciation and Amortization: Buildings and Improvements Equipment Land Improvements Infrastructure Intangible Assets \n \n12,744,209.49 5,775,863.66 1,635,818.46 \n78,451.33 103,603.38 \n \n804,050.05 401,827.36 37,095.35 \n2,492.00 8,288.27 \n \n151,428.00 \n- \n \n1,496,384.88 \n- \n \n13,548,259.54 7,522,647.90 1,672,913.81 \n80,943.33 111,891.65 \n \nTotal Capital Assets, Being Depreciated and Amortized, Net \n \n36,646,027.38 \n \n720,524.55 \n \n- \n \n1,496,384.89 \n \n38,862,936.82 \n \nGovernmental Activities Capital Assets - Net \n \n$ 39,662,784.21 $ 10,314,680.73 $ \n \n- $ 1,496,384.89 $ \n \n51,473,849.83 \n \n(1) Transfers are used to move intangible right-to-use assets to capital assets. There is no outstanding lease liability as of June 30, 2023. \n \n- 18 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nCurrent year depreciation and amortization expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nPupil Services \n \n$ \n \nGeneral Administration \n \nSchool Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n$ \n49,870.29 4,011.67 123.53 \n100,497.65 306,982.31 \n \n764,001.75 \n461,485.45 28,265.83 \n \n$ \n \n1,253,753.03 \n \nThe following is a summary of changes in the intangible right-to-use assets for governmental activities during the fiscal year: \n \nBalances July 1, 2022 \n \nIncreases \n \nDecreases \n \nTransfers (1) \n \nBalances June 30, 2023 \n \nGovernmental Activities Intangible Right-to-Use Assets Equipment \n \n$ 2,992,769.77 $ \n \n- $ \n \n- $ (2,992,769.77) $ \n \n- \n \nLess Accumulated Amortization: Equipment \n \n748,192.44 \n \n748,192.44 \n \n- \n \n(1,496,384.88) \n \n- \n \nGovernmental Activities \n \nIntangible Right-to-Use Assets - Net \n \n$ 2,244,577.33 $ (748,192.44) $ \n \n- $ (1,496,384.89) $ \n \n- \n \n(1) Transfers are used to move intangible right-to-use assets to capital assets. There is no outstanding lease liability as of June 30, 2023. \n \nCurrent year amortization expense by function is as follows: \n \nInstruction \n \n$ \n \n748,192.44 \n \nNOTE 6: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2023, consisted of the following: \n \nTransfers to \n \nGeneral Fund \n \nTransfers From Capital Projects \nFund \n \nTotal \n \nCapital Projects Fund Debt Service Fund Nonmajor Governmental Funds \n \n$ 132,100.02 $ \n \n- $ 132,100.02 \n \n2,765,119.97 \n \n1,093,796.00 \n \n3,858,915.97 \n \n95,220.01 \n \n- \n \n95,220.01 \n \nTotal \n \n$ 2,992,440.00 $ 1,093,796.00 $ 4,086,236.00 \n \n- 19 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nTransfers are used to move property tax revenues collected by the general fund to the nonmajor governmental fund to cover current year expenditures at the Berrien Academy Charter School and to move Education Special Purpose Local Option Sales Tax (ESPLOST) collected by the capital projects fund to the debt service fund to repay general obligation bond debt. In addition, transfers are used to move local revenue from the general fund to the debt service fund to pay lease obligations and to the capital projects fund to help support capital project additions. \n \nNOTE 7: LONG-TERM LIABILITIES \n \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2022 \n \nGovernmental Activities \n \nBalance \n \nAdditions \n \nDeductions June 30, 2023 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bond - Series 2017 $ General Obligation (G.O.) Bond - Series 2022 Unamortized Bond Premiums Leases \n \n840,000.00 $ 6,000,000.00 \n497,849.90 2,675,604.85 \n \n- $ 840,000.00 $ \n \n- $ \n \n- \n \n- \n \n- \n \n6,000,000.00 1,150,000.00 \n \n- \n \n85,345.70 \n \n412,504.20 \n \n85,345.70 \n \n- \n \n2,675,604.85 \n \n- \n \n- \n \n$ 10,013,454.75 $ \n \n- $ 3,600,950.55 $ 6,412,504.20 $ 1,235,345.70 \n \nGeneral Obligation Bonds \n \nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved Education Special Purpose Local Option Sales Tax (ESPLOST). General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \n \nThe School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2023. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \n \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nMaturity Issue Date Date Amount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2022 2.33% - 2.87% 6/16/2022 4/1/2028 $ 6,000,000.00 $ 6,000,000.00 \n \n- 20 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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 \n2024 2025 2026 2027 2028 \n \n$ 1,150,000.00 $ 1,180,000.00 1,200,000.00 1,220,000.00 1,250,000.00 \n \nTotal Principal and Interest $ 6,000,000.00 $ \n \n300,000.00 $ 242,500.00 183,500.00 123,500.00 \n62,500.00 \n912,000.00 $ \n \n85,345.70 85,345.70 85,345.70 85,345.70 71,121.40 \n412,504.20 \n \nLeases \nThe School District has acquired energy efficiency equipment and other energy-saving items under the provision of a contract that conveys control of the right to use another entity's asset for a period of time in an exchange-like transaction. This contract is classified as a lease for accounting purposes. The lease liability in this contract has been paid in full during fiscal year 2023. The intangible right-to-use assets associated with the lease belong to the School District as a result of satisfying all outstanding obligations in the contract. \nThe following is a summary of the carrying values of intangible right-to-use assets that have been transferred to capital assets as of June 30, 2023: \nGovernmental Activities \n \nEquipment Less: Accumulated Amortizaion \n \n$ 2,992,769.77 1,496,384.88 \n$ 1,496,384.89 \n \nNOTE 8: 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 described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years. \nThe School District has elected to self-insure for losses related to natural disasters The School District has not experienced any losses related to this risk in the past three years. \n \n- 21 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nWorkers' Compensation \n \nGeorgia Education Workers' Compensation Trust \n \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 107% of the loss fund and based on the Fund's annual normal premium. \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. \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 \nEstimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2022 $ \n \n- $ \n \n1,247.34 $ \n \n1,247.34 $ \n \n- \n \n2023 $ \n \n- $ \n \n- $ \n \n- $ \n \n- \n \nSurety Bond \n \nThe School District purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n20,000.00 \n \n- 22 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2023: \n \nNonspendable \n \nInventories \n \nRestricted \n \nContinuation of Federal Programs \n \n$ \n \nCapital Projects \n \nDebt Service \n \nAssigned \n \nGeneral Fund - School Activity Accounts \n \n$ \n \nNonmajor Fund - School Activity Accounts \n \nCapital Projects Fund - Local Capital Outlay Projects \n \nUnassigned \n \n$ \n925,000.17 340,409.12 461,439.40 \n501,925.31 351,797.88 5,341,905.54 \n \n47,971.61 \n1,726,848.69 \n6,195,628.73 12,853,853.24 \n \nFund Balance, June 30, 2023 \n \n$ \n \n20,824,302.27 \n \nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \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 5% 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. \nNOTE 10: BROADBAND SPECTRUM AGREEMENT \nEffective April 1, 2011, the School District entered into a 10-year use agreement with MSB Spectrum Holdings, Inc for the use of excess spectrum capacity on Education Broadband Service licenses currently held by the School District. The agreement is renewable up to two times, for 10-years each time. These licenses were granted to the School District by the Federal Communications Commission. The agreement requires monthly payments over the term of the agreement, of which $29,040.00 was recognized during fiscal year 2023 as a general revenue on the Statement of Activities. \n \n- 23 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nCommitments under Construction Contracts \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2023, together with funding available: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2023 (2) \n \nFunding Available From State (1) \n \nBHS Athletic Facility Improvements $ BMS New PE and Health Classrooms BHS HVAC Project BMS HVAC Project \n \n1,168,793.66 $ 507,408.80 \n1,105,271.76 418,947.89 \n \n7,676,326.34 $ 2,294,944.60 \n898,297.73 - \n \n376,395.37 766,017.00 \n \n$ \n \n3,200,422.11 $ \n \n10,869,568.67 $ \n \n1,142,412.37 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year-end. \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 \nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \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 \n- 24 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nAdvantage 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 $725,297.00 for the year ended June 30, 2023. Active employees are not required to contribute to the School OPEB Fund. \n \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \n \nAt June 30, 2023, the School District reported a liability of $18,489,934.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2022. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2021. An expected total OPEB liability as of June 30, 2022 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, 2022. At June 30, 2022, the School District's proportion was 0.186707%, which was an increase of 0.002774% from its proportion measured as of June 30, 2021. \nFor the year ended June 30, 2023, the School District recognized OPEB expense of ($1,094,744.00). At June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \nChanges of assumptions \n \nNet difference between projected and actual earnings on OPEB plan investments \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \nSchool District contributions subsequent to the measurement date \n \nTotal \n \n$ \n \n738,037.00 $ 2,816,055.00 \n \n7,267,104.00 3,739,615.00 \n \n112,783.00 \n \n- \n \n477,030.00 \n \n1,030,373.00 \n \n725,297.00 \n \n- \n \n4,869,202.00 $ 12,037,092.00 \n \n- 25 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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, 2024. 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 \n2024 2025 2026 2027 2028 Thereafter \n \n$ (2,288,798.00) \n \n$ (1,869,364.00) \n \n$ (1,374,509.00) \n \n$ (1,571,896.00) \n \n$ \n \n(719,405.00) \n \n$ \n \n(69,215.00) \n \nActuarial Assumptions: The total OPEB liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021 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, 2022: \n \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, including inflation \n \nLong-term expected rate of return \nHealthcare cost trend rate \n \n7.00%, compounded annually, net of investment expense, and including inflation \n \nPre-Medicare Eligible \n \n6.50% \n \nMedicare Eligible \n \n5.00% \n \nUltimate trend rate \n \nPre-Medicare Eligible \n \n4.50% \n \nMedicare Eligible \n \n4.50% \n \nYear of Ultimate trend rate \n \nPre-Medicare Eligible \n \n2029 \n \nMedicare Eligible \n \n2023 \n \n- 26 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nThe Plan currently uses mortality tables that vary by age, gender, and health status (i.e. disabled or not disabled) as follows: \n For TRS members: Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General Employee Mortality Table, with no adjustment, with the MP-2019 Projections scale applied generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 101% for males and 103% for females) with the MP-2019 Projection scale applied generationally. Postretirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projections scaled applied generationally. Postretirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjust 104% for males and 99% for females) with the MP-2019 Project scale applied generationally. \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation with changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \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, 2021 valuation were based on a review of recent plan experience done concurrently with the June 30, 2021 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- 27 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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 of Return* \n \nFixed income Equities \n \n30.00% 70.00% \n \n2.00% 9.40% \n \nTotal \n \n100.00% \n \n* Net of inflation \n \nDiscount Rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.57% was used as the discount rate, as compared with last year's rate of 2.20%. The plan's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate as used for the long-term rate of return was applied to all periods of projected benefit payments to determine total OPEB liability. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation bonds with an average rating of AA or higher (3.54% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employers will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2128. \n \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 3.57%, 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 (2.57%) or 1-percentage-point higher (4.57%) than the current discount rate: \n \n1% Decrease (2.57%) \n \nCurrent Discount Rate (3.57%) \n \n1% Increase (4.57%) \n \nSchool District's proportionate share \n \nof the Net OPEB liability \n \n$ 20,914,335.00 $ \n \n18,489,934.00 $ 16,435,147.00 \n \n- 28 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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 1percentage-point lower or 1-percentage-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 \n \nof the Net OPEB liability \n \n$ \n \n15,931,288.00 $ \n \n18,489,934.00 $ 21,634,499.00 \n \nOPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \nNOTE 14: RETIREMENT PLANS \n \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) \n \nPlan Description: All teachers of the School District as defined in O.C.G.A. 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \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. \n \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2023. The School District's contractually required contribution rate for the year ended June 30, 2023 was 19.98% of annual School District payroll, of which 19.88% of \n \n- 29 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \npayroll was required from the School District and 0.10% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,569,118.00 and $17,015.47 from the School District and the State, respectively. \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/financials. \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 $15.75, 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. \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 $53,714.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2023, the School District reported a liability of $40,286,628.00 for its proportionate share of the net pension liability for TRS. \n \n- 30 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ \n \n40,286,628.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n183,466.00 \n \nTotal \n \n$ \n \n40,470,094.00 \n \nThe net pension liability for TRS was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 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, 2022. \nAt June 30, 2022, the School District's TRS proportion was 0.124066%, which was a decrease of 0.001890% from its proportion measured as of June 30, 2021. \nAt June 30, 2023, 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 $410,188.00. \nThe PSERS net pension liability was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 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, 2022. \nFor the year ended June 30, 2023, the School District recognized pension expense of $5,562,281.00 for TRS, $103,080.00 for PSERS and revenue of $24,157.00 for TRS and $103,080.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 31 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nAt June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience \n \n$ 1,672,308.00 $ \n \n209,701.00 \n \nChanges of assumptions \n \n6,064,423.00 \n \n- \n \nNet difference between projected and \n \nactual earnings on pension plan \n \ninvestments \n \n7,915,176.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n24,070.00 \n \n531,387.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n3,569,118.00 \n \n- \n \nTotal \n \n$ 19,245,095.00 $ 741,088.00 \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, 2024. 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 \n2024 2025 2026 2027 \n \n$ 3,966,147.00 $ 3,041,394.00 $ 2,206,995.00 $ 5,720,353.00 \n \n- 32 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nActuarial Assumptions: The total pension liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, average, including inflation \n \nInvestment rate of return \n \n6.90%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases \n \n1.50% semi-annually \n \nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018, with the exception of the investment rate of return and payroll growth assumption. \n \nPublic School Employees Retirement System: \n \nInflation \n \n2.50% \n \nSalary increases Investment rate of return \nPost-retirement benefit increases \n \nN/A 7.00%, net of pension plan investment expense, including inflation 1.50% semi-annually \n \n- 33 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nMortality rates are as follows: \n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type \n \nMembership Table \n \nSet Forward (+)/ Setback (-) Adjustment to Rates \n \nService Retirees \n \nGeneral Healthy Below- Male: +2; Female: +2 Median Annuitant \n \nMale: 101%; Female: 103% \n \nDisability Retirees \n \nGeneral Disabled \n \nMale: -3; Female: 0 \n \nMale: 103%; Female: 106% \n \nBeneficiaries \n \nGeneral Below-Median Contingent Survivors \n \nMale: +2; Female: +2 \n \nMale: 104%; Female: 99% \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \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 allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \n \nTRS/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% 46.30% \n1.20% 12.30% \n5.20% 5.00% \n \n0.20% 9.40% 13.40% 9.40% 11.40% 10.50% \n \nTotal \n \n100.00% \n \n* Rates shown are net of inflation \nDiscount Rate: The discount rate used to measure the total TRS pension liability was 6.90%. The discount rate used to measure the total PSERS pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plans' fiduciary net position were projected to be \n \n- 34 - \n \n BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \navailable 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. \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 6.90%, 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 (5.90%) or 1-percentage-point higher (7.90%) than the current rate: \n \nTeachers Retirement System: \nSchool District's proportionate share of the net pension liability \n \n1% Decrease (5.90%) \n \nCurrent Discount Rate (6.90%) \n \n$ 60,779,180.00 $ \n \n40,286,628.00 $ \n \n1% Increase (7.90%) \n23,551,749.00 \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/financials. \n \n- 35 - \n \n (This page left intentionally blank) \n \n BERRIEN COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"1\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion \nof the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a percentage \nof the total pension liability \n \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.124066% $ 40,286,628.00 $ 0.125956% $ 11,139,968.00 $ 0.127479% $ 30,880,403.00 $ 0.127124% $ 27,335,097.00 $ 0.129275% $ 23,996,209.00 $ 0.133391% $ 24,791,128.00 $ 0.134715% $ 27,793,207.00 $ 0.138107% $ 21,025,419.00 $ 0.142682% $ 18,025,989.00 $ \n \n183,466.00 51,474.00 \n128,387.00 104,503.00 110,445.00 123,964.00 115,534.00 141,583.00 126,337.00 \n \n$ 40,470,094.00 $ 11,191,442.00 $ 31,008,790.00 $ 27,439,600.00 $ 24,106,654.00 $ 24,915,092.00 $ 27,908,741.00 $ 21,167,002.00 $ 18,152,326.00 \n \n$ 16,859,337.12 $ 16,468,144.29 $ 16,510,763.39 $ 15,573,698.33 $ 15,471,486.02 $ 15,396,280.01 $ 14,840,954.07 $ 14,678,797.25 $ 14,658,454.23 \n \n238.96% 67.65% \n187.03% 175.52% 155.10% 161.02% 187.27% 143.24% 122.97% \n \n72.85% 92.03% 77.01% 78.56% 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- 37 - \n \n BERRIEN COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"2\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n3,569,118.00 $ 3,324,693.00 $ 3,124,407.00 $ 3,475,158.78 $ 3,242,504.67 $ 2,588,843.29 $ 2,186,082.21 $ 2,109,036.61 $ 1,916,928.70 $ \n \n3,569,118.00 $ 3,324,693.00 $ 3,124,407.00 $ 3,475,158.78 $ 3,242,504.67 $ 2,588,843.29 $ 2,186,082.21 $ 2,109,036.61 $ 1,916,928.70 $ \n \n- \n \n$ \n \n17,950,604.82 \n \n- \n \n$ \n \n16,859,337.12 \n \n- \n \n$ \n \n16,468,144.29 \n \n- \n \n$ \n \n16,510,763.39 \n \n- \n \n$ \n \n15,573,698.33 \n \n- \n \n$ \n \n15,471,486.02 \n \n- \n \n$ \n \n15,396,280.01 \n \n- \n \n$ \n \n14,840,954.07 \n \n- \n \n$ \n \n14,678,797.25 \n \n19.88% 19.72% 18.97% 21.05% 20.82% 16.73% 14.20% 14.21% 13.06% \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 BERRIEN COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"3\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension \nliability \n \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 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 \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n410,188.00 $ 43,332.00 $ \n294,669.00 $ 281,548.00 $ 284,831.00 $ 265,478.00 $ 329,822.00 $ 221,931.00 $ 191,701.00 $ \n \n410,188.00 $ 43,332.00 $ \n294,669.00 $ 281,548.00 $ 284,831.00 $ 265,478.00 $ 329,822.00 $ 221,931.00 $ 191,701.00 $ \n \n594,424.28 579,955.67 549,085.16 546,288.76 604,308.42 572,426.40 542,515.95 565,558.84 564,085.19 \n \nN/A \n \n81.21% \n \nN/A \n \n98.00% \n \nN/A \n \n84.45% \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 BERRIEN COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND \n \nSCHEDULE \"4\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net OPEB Liability (NOL) \n \nSchool District's proportionate share \nof the NOL \n \nState of Georgia's proportionate \nshare of the NOL associated with the School District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the NOL as a percentage of its coveredemployee payroll \n \nPlan fiduciary net position \nas a percentage of the total OPEB \nliability \n \n2023 2022 2021 2020 2019 2018 \n \n0.186707% $ 18,489,934.00 $ 0.183933% $ 19,921,466.00 $ 0.189470% $ 27,828,730.00 $ 0.188281% $ 23,106,119.00 $ 0.195160% $ 24,804,237.00 $ 0.196905% $ 27,665,073.00 $ \n \n- \n \n$ 18,489,934.00 $ 17,277,153.14 \n \n- \n \n$ 19,921,466.00 $ 15,682,190.42 \n \n- \n \n$ 27,828,730.00 $ 15,262,042.40 \n \n- \n \n$ 23,106,119.00 $ 14,410,060.78 \n \n- \n \n$ 24,804,237.00 $ 14,660,480.08 \n \n- \n \n$ 27,665,073.00 $ 14,499,379.47 \n \n107.02% 127.03% 182.34% 160.35% 169.19% 190.80% \n \n6.17% 6.14% 3.99% 4.63% 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 BERRIEN COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \n \nSCHEDULE \"5\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \nContribution as a percentage of \ncovered-employee payroll \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n725,297.00 $ 675,085.00 $ 684,199.00 $ 640,742.00 $ 1,014,022.00 $ 1,011,494.00 $ 1,026,677.00 $ \n \n725,297.00 $ 675,085.00 $ 684,199.00 $ 640,742.00 $ 1,014,022.00 $ 1,011,494.00 $ 1,026,677.00 $ \n \n- \n \n$ \n \n17,465,996.51 \n \n- \n \n$ \n \n17,277,153.14 \n \n- \n \n$ \n \n15,682,190.42 \n \n- \n \n$ \n \n15,262,042.40 \n \n- \n \n$ \n \n14,410,060.78 \n \n- \n \n$ \n \n14,660,480.08 \n \n- \n \n$ \n \n14,499,379.47 \n \n4.15% 3.91% 4.36% 4.20% 7.04% 6.90% 7.08% \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 BERRIEN COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"6\" \n \nTeachers Retirement System Change of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \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%. \nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nOn May 11, 2022, the Board adopted recommended changes to the long-term assumed rate of return and payroll growth assumption utilized by the System. The long-term assumed rate of return was changed from 7.25% to 6.90%, and the payroll growth assumption was changed from 3.00% to 2.50%. \nPublic School Employees Retirement System Changes of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \nA new funding policy was initially adopted by the Board on March 15, 2018, and most recently amended on December 17, 2020. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability. \nSchool OPEB Fund Changes of benefit terms: There have been no changes in benefit terms. \nChanges in assumptions: June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience study. Approximately 0.10% of employees are members of the Employees' Retirement System. \nJune 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study. \nJune 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%. \nJune 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised. \nJune 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \nJune 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed. \nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, to 3.87% as of June 30, 2018, back to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020. \n \n- 42 - \n \n BERRIEN COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"7\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Total Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES(USES) Other Sources Other Uses Total 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 \n5,355,000.00 $ \n \n5,355,000.00 $ \n \n6,077,540.11 $ \n \n20,000.00 \n \n20,000.00 \n \n98,816.56 \n \n23,612,302.00 \n \n23,612,302.00 \n \n24,483,848.28 \n \n12,660,442.82 \n \n12,660,442.82 \n \n10,952,996.93 \n \n59,700.00 \n \n59,700.00 \n \n358,075.12 \n \n31,300.00 \n \n31,300.00 \n \n42,756.16 \n \n808,788.00 \n \n808,788.00 \n \n1,766,542.66 \n \n42,547,532.82 \n \n42,547,532.82 \n \n43,780,575.82 \n \n722,540.11 78,816.56 \n871,546.28 (1,707,445.89) \n298,375.12 11,456.16 \n957,754.66 1,233,043.00 \n \n24,040,821.44 \n1,289,475.00 1,087,653.52 \n543,648.56 1,338,980.56 1,834,247.60 \n263,821.40 2,393,832.46 3,319,940.44 \n285,500.40 117,237.00 1,926,389.00 2,893,000.00 41,334,547.38 1,212,985.44 \n \n24,046,144.44 \n1,289,460.00 1,090,989.52 \n543,648.56 1,338,980.56 1,834,247.60 \n263,821.40 2,393,832.46 3,320,120.44 \n285,500.40 117,237.00 1,926,389.00 2,893,000.00 41,343,371.38 1,204,161.44 \n \n24,063,508.97 \n1,183,945.96 1,046,239.50 \n541,883.66 1,243,330.08 1,659,409.19 \n274,926.12 2,317,739.94 3,517,040.26 \n273,294.75 25,220.93 \n2,128,086.49 2,331,484.28 40,606,110.13 3,174,465.69 \n \n(17,364.53) \n105,514.04 44,750.02 1,764.90 95,650.48 \n174,838.41 (11,104.72) 76,092.52 (196,919.82) 12,205.65 92,016.07 (201,697.49) 561,515.72 737,261.25 1,970,304.25 \n \n10,361,742.12 (11,660,058.53) \n(1,298,316.41) \n \n10,361,742.12 (11,660,058.53) \n(1,298,316.41) \n \n(85,330.97) \n \n(94,154.97) \n \n14,274,538.49 \n \n14,274,538.49 \n \n36,600.67 \n \n(46,056.40) \n \n$ \n \n14,225,808.19 $ \n \n14,134,327.12 $ \n \n(2,992,440.00) (2,992,440.00) \n182,025.69 \n14,146,724.64 \n- \n14,328,750.33 $ \n \n(10,361,742.12) 8,667,618.53 (1,694,123.59) \n276,180.66 \n(127,813.85) \n46,056.40 \n194,423.21 \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 $1,122,746.55 and $1,026,068.17, respectively. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 43 - \n \n BERRIEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET \nNONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 \n \nSCHEDULE \"8\" \n \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nState Government Federal Government Other \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES Accounts Payable Salaries and Benefits Payable Total Liabilities \nFUND BALANCES Assigned \nTotal Liabilities and Fund Balances \n \nBERRIEN COUNTY COLLABORATIVE, \nINC. \n \n$ \n \n199,325.50 $ \n \n73,380.29 6,140.13 \n48,126.93 \n \n$ \n \n326,972.85 $ \n \nBERRIEN ACADEMY CHARTER SCHOOL \n137,278.97 $ \n- \n137,278.97 $ \n \nTOTAL \n336,604.47 73,380.29 6,140.13 48,126.93 \n464,251.82 \n \n$ \n \n1,890.00 $ \n \n- \n \n1,890.00 \n \n325,082.85 \n \n$ \n \n326,972.85 $ \n \n14,235.00 $ 96,328.94 110,563.94 \n26,715.03 \n137,278.97 $ \n \n16,125.00 96,328.94 112,453.94 \n351,797.88 \n464,251.82 \n \nSee notes to the basic financial statements. \n \n- 44 - \n \n BERRIEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nNONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"9\" \n \nREVENUES Property Taxes State Funds Federal Funds Miscellaneous \n \nTotal Revenues \n \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services School Administration Maintenance and Operation of Plant Student Transportation Services Support Services - Central Other Support Services Total Expenditures \n \nExcess of Revenues over (under) Expenditures \n \nOTHER FINANCING SOURCES Transfer In \n \nNet Change in Fund Balances \n \nFund Balances - Beginning \n \nFund Balances - Ending \n \nBERRIEN COUNTY COLLABORATIVE, \nINC. \n \nBERRIEN ACADEMY CHARTER SCHOOL \n \n$ \n \n- $ \n \n186,684.52 $ \n \n179,144.72 \n \n480,592.00 \n \n47,433.89 \n \n- \n \n295,005.48 \n \n- \n \n521,584.09 \n \n667,276.52 \n \n- \n352,336.54 - \n19,652.52 - \n2,200.54 9,515.47 383,705.07 \n137,879.02 \n \n573,342.39 \n1,276.45 179,506.88 3,234.55 5,136.26 \n762,496.53 \n(95,220.01) \n \n- \n \n95,220.01 \n \n137,879.02 \n \n- \n \n187,203.83 \n \n26,715.03 \n \n$ \n \n325,082.85 $ \n \n26,715.03 $ \n \nTOTAL \n186,684.52 659,736.72 \n47,433.89 295,005.48 1,188,860.61 \n573,342.39 \n352,336.54 1,276.45 \n179,506.88 22,887.07 5,136.26 2,200.54 9,515.47 \n1,146,201.60 \n42,659.01 \n95,220.01 \n137,879.02 \n213,918.86 \n351,797.88 \n \nSee notes to the basic financial statements. \n \n- 45 - \n \n BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"10\" \n \nFUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of \nChild Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program COVID-19 - National School Lunch Program Total Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability Total 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 COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Total Education Stabilization Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States COVID-19 - American Rescue Plan - Grants to States Preschool Grants Preschool Grants COVID-19 - American Rescue Plan - Preschool Total Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Career and Technical Education - Basic Grants to States Migrant Education State Grant Program Migrant Education State Grant Program Rural and Low-Income School Program Rural and Low-Income School Program 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 Total Other Programs Total U. S. Department of Education \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 10.555 \n \n235GA324N1199 $ 235GA324N1199 225GA324N1099 \n \n457,416.53 1,430,922.58 \n92,839.75 1,981,178.86 \n \n10.579 \n \n215GA350N8103 \n \n6,987.22 1,988,166.08 \n \n84.425D 84.425U \n \nS425D210012 S425U210012 \n \n563,602.65 \n4,976,215.77 5,539,818.42 \n \n84.027A 84.027A 84.027X 84.173A 84.173A 84.173X \n \nH027A210073 H027A220073 H027X210073 H173A210081 H173A220081 H173X210081 \n \n84.048A 84.048A 84.011A 84.011A 84.358B 84.358B 84.367A 84.010A 84.010A 84.287C 84.287C \n \nV048A210010 V048A220010 S011A200011 SA011A220011 S358B210010 S358F220010 S367A220001 S010A210010-21A S010A220010 S287C210010 S287C220010 \n \n89,020.00 650,693.49 \n66,370.40 3,148.00 \n32,932.45 3,088.00 \n845,252.34 \n2,768.00 55,312.85 \n1,000.00 43,323.57 \n7,824.00 68,777.15 \n700.00 81,717.00 1,544,209.64 104,336.00 758,735.23 2,668,703.44 9,053,774.20 \n \n- 46 - \n \n BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"10\" \n \nFUNDING AGENCY PROGRAM/GRANT \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 COVID-19 - Child Care and Development Block Grant Pass-Through From Berrien County Department of Children and Family Services Mary Lee Allen Promoting Safe and Stable Families Total U. S. Department of Health and Human Services \nJustice, U. S. Department of Pass-Through From Alapaha Judicial Circuit Court Court Appointed Special Advocates \nTotal Expenditures of Federal Awards \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n93.575 93.556 \n16.756 \n \n2210GACCC5 24153 \n \n26,029.39 \n11,566.24 26,029.39 \n \nUnknown $ \n \n35,867.65 11,103,837.32 \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 Berrien County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2023. 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. \nNote 4. Transfers Between Programs \nFunds totaling $96,357.00 and $175,308.00 were transferred from Student Support and Academic Enrichment Program (ALN 84.424A) and Supporting Effective Instruction State Grants (ALN 84.367A), respectively, and expended in the Title I Grants to Local Educational Agencies (ALN 84.010A) during Fiscal Year 2023. \n \nSee notes to the basic financial statements. \n \n- 47 - \n \n BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"11\" \n \nGOVERNMENTAL FUND TYPES \n \nGENERAL \n \nNONMAJOR \n \nAGENCY/FUNDING \n \nFUND \n \nFUND \n \nGRANTS \n \nBright From the Start: \n \nGeorgia Department of Early Care and Learning \n \nPre-Kindergarten Program Education, Georgia Department of \n \n$ \n \n700,369.15 $ \n \n- $ \n \nQuality Basic Education \n \nDirect Instructional Cost \n \nKindergarten 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 \n \n817,821.00 518,082.00 2,161,332.00 1,346,701.00 1,001,921.00 756,393.00 2,261,898.00 1,799,635.00 872,289.00 2,578,811.00 820,165.00 253,848.00 168,739.00 \n85,325.00 398,402.00 124,091.00 \n69,859.00 1,275.00 \n \n224,620.00 9,846.00 29,477.00 14,848.00 49,013.00 7,335.00 3,735.00 1,234.00 319.00 \n \nCentral Administration School Administration Facility Maintenance and Operations Local Charter School Supplement Categorical Grants \n \n583,185.00 772,943.00 789,713.00 \n7,896.00 \n \n3,906.00 118,023.00 \n18,236.00 - \n \nPupil Transportation \n \nRegular Nursing Services Education Equalization Funding Grant Health Insurance Increase (6 mounts new rate) Other State Programs \n \n526,600.00 \n \n- \n \n66,040.00 \n \n- \n \n3,866,288.00 \n \n- \n \n743,040.00 \n \n- \n \nFood Services Hygiene Products Math and Science Supplements Preschool Disability Services Teachers Retirement Vocational Education Governor's Office of Student Achievement \n \n77,576.00 \n \n- \n \n2,290.00 \n \n- \n \n13,982.66 \n \n- \n \n32,168.00 \n \n- \n \n17,015.47 \n \n- \n \n194,441.00 \n \n- \n \nCommunity Partnership Grant Office of the State Treasurer \n \n- \n \n25,456.00 \n \nPublic School Employees Retirement CONTRACT \n \n53,714.00 \n \n- \n \nHuman Resources, Georgia Department of \n \nFamily Connections \n \n- \n \n153,688.72 \n \n$ \n \n24,483,848.28 $ \n \n659,736.72 $ \n \nTOTAL \n700,369.15 \n817,821.00 518,082.00 2,161,332.00 1,346,701.00 1,001,921.00 756,393.00 2,261,898.00 2,024,255.00 882,135.00 2,608,288.00 835,013.00 302,861.00 168,739.00 \n85,325.00 405,737.00 127,826.00 \n71,093.00 1,594.00 \n587,091.00 890,966.00 807,949.00 \n7,896.00 \n526,600.00 66,040.00 \n3,866,288.00 743,040.00 \n77,576.00 2,290.00 \n13,982.66 32,168.00 17,015.47 194,441.00 \n25,456.00 \n53,714.00 \n153,688.72 \n25,143,585.00 \n \nSee notes to the basic financial statements. \n \n- 48 - \n \n (This page left intentionally blank) \n \n BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"12\" \n \nPROJECT SPLOST PROJECT VI To reimpose the School District to raise not more than $8,000,000.00 to (1) adding to, renovating, repairing, improving, furnishing, and equipping existing school buildings and other buildings and facilities, including painting, paving, landscaping, installation of carpeting, flooring, and energy efficiency upgrades, equipping and furnishing cafeterias, and an addition to the middle school cafeteria, including any necessary demolition; (2) acquiring safety and security equipment; (3) adding to, constructing, renovating, furnishing, and equipping athletic facilities, including installing field improvements, renovating the field house and the football stadium, including the locker rooms, and including any necessary demolition, and acquiring locker room and weightlifting equipment and mats; (4) acquiring instructional and administrative technology, equipment, and materials; (5) acquiring vocational, physical education, and fine arts equipment, including band instruments and uniforms; (6) acquiring buses, a cargo van, vehicles, and transportation and maintenance equipment; and (7) paying expenses incident to accomplishing the foregoing. \nSubtotal SPLOST PROJECT VI \nSPLOST PROJECT VII (1) To reimpose the special 1 percent sales and use tax for education currently in effect in Berrien County be continued for a period of time not to exceed 20 calendar quarters and for the raising of not more than $8,000,000.00 for the purposes of acquiring, constructing, repairing, improving, renovating, adding to, extending, upgrading, demolishing, furnishing, and equipping school buildings and support facilities in the Berrien County School District useful or desirable in connection therewith, including acquiring any necessary property therefore, both real and personal, specifically including the following: adding to, renovating, repairing, improving, furnishing, and equipping existing school buildings and other buildings and facilities, including painting, paving, landscaping, installation of carpeting, flooring, and energy efficiency upgrades, equipping and furnishing cafeterias, and additional classrooms, including any necessary demolition; (2) adding to, constructing, renovating, furnishing, and equipping athletic facilities, including tennis courts, track facilities, and including any necessary demolition; (3) acquiring safety and security equipment; (4) acquiring instructional and administrative technology, equipment, and materials; (5) acquiring vocational, physical education, and fine arts equipment, including band instruments and uniforms; (6) acquiring buses, a cargo van, vehicles, and transportation and maintenance equipment; (7) acquiring energy savings equipment, including making installment and/or lease purchase payments; and (8) paying expenses incident to accomplishing the foregoing. \nSubtotal SPLOST PROJECT VII \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nESTIMATED COMPLETION \nDATE \n \n$ \n \n1,000,000.00 $ \n \n1,022,146.39 \n \n- \n \n- \n \nCompleted Completed \n \n6,720,000.00 \n50,000.00 \n50,000.00 \n99,000.00 81,000.00 8,000,000.00 \n \n6,532,267.10 \n- \n- \n2,530.00 7,556,943.49 \n \nCompleted \nCompleted \nCompleted \nCompleted Completed \n \n- \n \n- \n \n8,000,000.00 - \n \n8,000,000.00 - \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n8,000,000.00 \n \n150,526.15 8,150,526.15 \n \n$ \n \n16,000,000.00 $ \n \n15,707,469.64 \n \n6/30/2028 \n6/30/2028 6/30/2028 6/30/2028 6/30/2028 6/30/2028 6/30/2028 6/30/2028 \n \n- 50 - \n \n BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"12\" \n \nPROJECT SPLOST PROJECT VI To reimpose the School District to raise not more than $8,000,000.00 to (1) adding to, renovating, repairing, improving, furnishing, and equipping existing school buildings and other buildings and facilities, including painting, paving, landscaping, installation of carpeting, flooring, and energy efficiency upgrades, equipping and furnishing cafeterias, and an addition to the middle school cafeteria, including any necessary demolition; (2) acquiring safety and security equipment; (3) adding to, constructing, renovating, furnishing, and equipping athletic facilities, including installing field improvements, renovating the field house and the football stadium, including the locker rooms, and including any necessary demolition, and acquiring locker room and weightlifting equipment and mats; (4) acquiring instructional and administrative technology, equipment, and materials; (5) acquiring vocational, physical education, and fine arts equipment, including band instruments and uniforms; (6) acquiring buses, a cargo van, vehicles, and transportation and maintenance equipment; and (7) paying expenses incident to accomplishing the foregoing. \nSubtotal SPLOST PROJECT VI \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n$ \n \n- $ 1,022,146.39 $ 1,022,146.39 $ \n \n- \n \n- \n \n- \n \n- \n \n- \n \n215,620.15 \n \n6,316,646.95 \n \n6,532,267.10 \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 \n30.00 \n \n2,500.00 \n \n2,530.00 \n \n- \n \n215,650.15 \n \n7,341,293.34 \n \n7,556,943.49 \n \n- \n \nSPLOST PROJECT VII \n \n(1) To reimpose the special 1 percent sales and use tax for education currently in \n \neffect in Berrien County be continued for a period of time not to exceed 20 \n \ncalendar quarters and for the raising of not more than $8,000,000.00 for the \n \npurposes of acquiring, constructing, repairing, improving, renovating, adding to, \n \nextending, upgrading, demolishing, furnishing, and equipping school buildings \n \nand support facilities in the Berrien County School District useful or desirable in \n \nconnection therewith, including acquiring any necessary property therefore, \n \nboth real and personal, specifically including the following: adding to, \n \nrenovating, repairing, improving, furnishing, and equipping existing school \n \nbuildings and other buildings and facilities, including painting, paving, \n \nlandscaping, installation of carpeting, flooring, and energy efficiency upgrades, \n \nequipping and furnishing cafeterias, and additional classrooms, including any \n \nnecessary demolition; \n \n- \n \n- \n \n- \n \n- \n \n(2) adding to, constructing, renovating, furnishing, and equipping athletic \n \nfacilities, including tennis courts, track facilities, and including any necessary \n \ndemolition; \n \n6,320,762.64 \n \n896,565.34 \n \n- \n \n- \n \n(3) acquiring safety and security equipment; \n \n- \n \n- \n \n- \n \n- \n \n(4) acquiring instructional and administrative technology, equipment, and \n \nmaterials; \n \n- \n \n- \n \n- \n \n- \n \n(5) acquiring vocational, physical education, and fine arts equipment, including \n \nband instruments and uniforms; \n \n- \n \n- \n \n- \n \n- \n \n(6) acquiring buses, a cargo van, vehicles, and transportation and maintenance \n \nequipment; \n \n- \n \n- \n \n- \n \n- \n \n(7) acquiring energy savings equipment, including making installment and/or \n \nlease purchase payments; and \n \n- \n \n- \n \n- \n \n- \n \n(8) paying expenses incident to accomplishing the foregoing. \n \n3,000.00 \n \n147,526.15 \n \n- \n \n- \n \nSubtotal SPLOST PROJECT VII \n \n6,323,762.64 \n \n1,044,091.49 \n \n- \n \n- \n \nTotal \n \n$ 6,539,412.79 $ 8,385,384.83 $ 7,556,943.49 $ \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. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Berrien County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. \nAmounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding as follows: \n \nPROJECT VI \n \nPROJECT VII \n \nPrior Years Current Year \n \n$ 299,708.44 $ \n \n- \n \n16,296.00 \n \n237,500.00 \n \nTotal \n \n$ 316,004.44 $ 237,500.00 \n \nSee notes to the basic financial statements. \n \n- 51 - \n \n Section II Compliance and Internal Control Reports \n \n Greg S. Griffin State Auditor \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 \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 Mrs. Robin Marcrum, Superintendent and Members of the Berrien County Board of Education \nWe have audited the financial statements of the governmental activities, each major fund, and remaining fund information of the Berrien County Board of Education (School District) as of and for the year ended June 30, 2023, 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 August 13, 2024. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \nReport on Internal 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n 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 in finding FS 2023-001 that we consider to be a significant deficiency. \nReport on Compliance 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nSchool District's Response to Findings \nGovernment Auditing Standards requires the auditor to perform limited procedures on the School District's response to the finding identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. \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 \nAugust 13, 2024 \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \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 Mrs. Robin Marcrum, Superintendent and Members of the Berrien County Board of Education \nReport on Compliance for Each Major Federal Program \nOpinion on Each Major Federal Program \nWe have audited the Berrien County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2023. 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. \nIn our opinion, the School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023. \nBasis for Opinion on Each Major Federal Program \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Responsibilities of Management for Compliance \nManagement is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs. \nAuditor's Responsibilities for the Audit of Compliance \nOur objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole. \nIn performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. \n Obtain an understanding of the School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control over compliance. Accordingly, no such opinion is expressed. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. \nReport on Internal Control over Compliance \nOur consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify a certain deficiency in internal control over compliance that we consider to be a significant deficiency. \n \n A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs in finding FA 2023-001 to be a significant deficiency. \nOur audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. \nGovernment Auditing Standards requires the auditor to perform limited procedures on the School District's response to the internal control over compliance finding identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the other 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 \nAugust 13, 2024 \n \n Section III Auditee's Response to Prior Year Findings and Questioned Costs \n \n BERRIEN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2023 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS \nNo matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n \n Section IV Findings and Questioned Costs \n \n BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2023 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: \nGovernmental Activities, Each Major Fund and Remaining Fund Information \n \nUnmodified \n \nInternal control over financial reporting: \n \n Material weakness(es) identified? \n \nNo \n \n Significant deficiency(ies) identified? \n \nYes \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal control over major programs: \n \n Material weakness(es) identified? \n \nNo \n \n Significant deficiency(ies) identified? \n \nYes \n \nType of auditor's report issued on compliance for major programs: \n \nAll 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 \nAssistance Listing Number Assistance Listing Program or Cluster Title \n \n10.553, 10.555 84.287 \n84.425 \n \nChild Nutrition Cluster Twenty-First Century Community Learning Centers \nEducation Stabilization 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 BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2023 \n \nII FINANCIAL STATEMENT FINDINGS \n \nFS 2023-01 \n \nInternal Controls over Capital Assets \n \nInternal Control Impact: \n \nSignificant Deficiency \n \nDescription: The School District did not adequately maintain the capital assets records. \nCriteria: Chapter IV-7 Implementing a Capital Asset Management System of the Financial Management for Georgia Local Units of Administration indicates that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system, and maintain fixed asset records. \nCondition: A review of the School District's capital asset records revealed the following deficiencies: \n One fully depreciated oven and one vehicle with a book value of $25,617.15 were reported as prior year deletions but have not been removed from the capital asset listing. \n A variance is noted in accumulated depreciation between the capital asset listing and the financial statements, in the amount of $322,797.38. \n Current year capital assets, depreciable was understated by the current year accumulated depreciation on deletions in the amount of $151,428.00, due to incorrectly recording the activity in the general ledger. \n Construction in progress was understated by $145,726.46 due to contracts and retainage payable not being calculated and recorded correctly. \n Construction in progress additions are overstated by prior year contracts and retainages payable in the amount of $889,807.18. \n The School District's capital asset policy does not include a description for infrastructure and the description of equipment does not agree with the equipment threshold stated in the policy. \nCause: When discussing the issues noted with management, they said when correcting their records, some prior year entries were made twice. In addition, year-end amounts were not reconciled properly. \nEffect: The failure of the School District to maintain a complete and accurate capital asset listing can lead to inaccurate internal and external reporting as well as noncompliance with generally accepted accounting principles. \nRecommendation: The School District should strengthen internal control procedures over capital assets to ensure that capital assets are recorded in accordance with the Board's policy, all required elements are included on the listing and adjustments are properly documented. Unusable assets should be impaired or removed from the capital assets listing. \nViews of Responsible Officials: We concur with this finding. \n \n- 2 - \n \n BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2023 \n \nlll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2023-001 \n \nStrengthen Controls over Expenditures \n \nCompliance Requirements: \nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: AL Numbers and Titles: \nFederal Award Numbers: \nQuestioned Costs: \n \nActivities Allowed or Unallowed Allowable Costs/Cost Principles Procurement and Suspension and Debarment Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education 10.553  School Breakfast Program 10.555  National School Lunch Program 235GA324N1199 (Year: 2023), 225GA324N1099 (Year: 2023) $3,381 \n \nDescription: A review of expenditures charged to the Child Nutrition Cluster revealed that the School District's internal control procedures were not operating appropriately to ensure that expenditures were reviewed \nand approved and that the School District's procurement and suspension and debarment procedures were followed. \n \nBackground Information: The Child Nutrition Cluster (CNC) is comprised of various programs that are intended to assist states in administering and overseeing food service program operators that provide healthful, nutritious meals \nto eligible children in public and non-profit private schools, residential childcare institutions, and summer programs. This Cluster of programs also fosters healthy eating habits in children by providing fresh fruits and fresh vegetables to children attending elementary and secondary schools and \nencourages the domestic consumption of nutritious agricultural commodities. \n \nCNC funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of \nAgriculture. GaDOE is responsible for distributing funds to local educational agencies (LEAs) and overseeing the various CNC programs. CNC funds totaling $1,981,179 were expended and reported on the Berrien County Board of Education's Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2023. \n \nCriteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards \nin compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303  Internal Controls. \n \nProvisions included in the Uniform Guidance, Section 200.403  Factors Affecting Allowability of Costs state that \"costs must meet the following general criteria in order to be allowable under Federal awards: \n(a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto \n \n- 3 - \n \n BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2023 \nunder these principles, (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items, (c) Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity... (g) Be adequately documented...\" \nAdditionally, provisions included in the Uniform Guidance, Section 200.318  General Procurement Standards state in part that \"(a) the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations and... (b) non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.\" In addition, provisions included in the Uniform Guidance, Section 200.320  Methods of Procurement to Be Followed provide guidance for procurement through small purchase procedures and state \"If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources.\" \nCondition: A sample of 40 expenditures was randomly selected for testing using a non-statistical sampling approach. These expenditures were reviewed to determine if appropriate internal controls were implemented and applicable compliance requirements were met. The following deficiencies were noted: \n For 12 expenditures, evidence of review and approval was not reflected within the voucher package. \n Two expenditures were not recorded in the correct fiscal year. \nAdditionally, auditor reviewed 38 of these same expenditures to determine if procurement transactions complied with the School District's procurement procedures and proper oversight was maintained to ensure that contractors were performing according to their contracts. The following deficiency was noted: \n The School District could not provide evidence that an adequate number of rate or price quotations were obtained from qualified sources for three small purchase expenditures reviewed. \nQuestioned Cost: Upon testing a sample of $73,322 in procurement transactions services expenditures, known questioned costs of $3,381 were identified for expenditures that did not follow the School District's procurement procedures. Using the total population of $1,341,865 in procurement transactions, we project the likely questioned costs to be approximately $61,878. \nCause: When discussing the issues noted with management, they stated that the new Director was unaware of these federal requirements. She did not maintain adequate documents due to being new in her position. \nEffect or Potential Effect: The School District is not in compliance with the Uniform Guidance and GaDOE guidance related to the Child Nutrition Cluster. Failure to ensure that expenditures are appropriately approved and procedures to address procurement and suspension and debarment compliance requirements are implemented exposes the School District to unnecessary risk of error and misuse of federal funds and could result in the expenditure of federal funds for unallowable purposes and/or with unqualified vendors. In addition, this deficiency could lead to the return of funding associated with unallowable expenditures. \n- 4 - \n \n BERRIEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2023 Recommendation: The School District should review current internal control procedures related to the Child Nutrition Cluster. Where vulnerable, the School District should develop and/or modify its policies and procedures to ensure that all expenditures reflect evidence of review and approval, required procurement methods are properly identified and followed, and required procurement and suspension and debarment documentation is properly identified, safeguarded, and retained. In addition, management should develop a monitoring process to ensure that these procedures are operating appropriately. Views of Responsible Officials: We concur with this finding. \n- 5 - \n \n Section V Management's Corrective Action \n \n   "},{"id":"dlg_ggpd_931532782-2023-12-13","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended 2022 June 30 (including independent auditor's reports).","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2023-12-13"],"dcterms_description":["Began with fiscal year ended June 30, 2009, released in 2010?","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 8/4/15 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 4, 2015).","Latest issue consulted: Fiscal year ended June 30, 2014 (Georgia Government Publications database, viewed September 4, 2015)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["[Atlanta, Georgia?] : State of Georgia"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Ben Hill County Board of Education (Ben Hill County, Ga.)--Appropriations and expenditures--Periodicals.","Ben Hill County Board of Education (Ben Hill County, Ga.)","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Auditors' reports","Expenditures, Public","Financial statements","Georgia","Georgia Government Documents--Serial"],"dcterms_title":["Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended 2022 June 30 (including independent auditor's reports)."],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_931532782-2023-12-13"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_931532782-2023-12-13"],"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":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2022 \nBen Hill County Board of Education \nFitzgerald, Georgia \nIncluding Independent Auditor's Report \nGreg S. Griffin | State Auditor \n \n Ben Hill County Board of Education \n \nTable of Contents \n \nSection I \n \nFinancial Independent Auditor's Report \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 in Fund Balances \n \nGovernmental Funds \n \n5 \n \nF \n \nReconciliation of the Governmental Funds Statement of \n \nRevenues, Expenditures and Changes in Fund Balances \n \nto the Statement of Activities \n \n6 \n \nG \n \nStatement of Fiduciary Net Position \n \nFiduciary Funds \n \n7 \n \nH \n \nStatement of Changes in Fiduciary Net Position \n \nFiduciary Funds \n \n8 \n \nI 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 \n37 \n \n2 Schedule of Contributions  Teachers Retirement System of Georgia \n \n38 \n \n3 Schedule of Proportionate Share of the Net Pension Liability \n \nEmployees' Retirement System of Georgia \n \n39 \n \n4 Schedule of Contributions  Employees' Retirement System of Georgia \n \n40 \n \n5 Schedule of Proportionate Share of the Net Pension Liability \n \nPublic School Employees Retirement System of Georgia \n \n41 \n \n Required Supplementary Information (Continued) \n \n6 Schedule of Proportionate Share of the Net OPEB Liability \n \nSchool OPEB Fund \n \n42 \n \n7 Schedule of Contributions  School OPEB Fund \n \n43 \n \n8 Notes to the Required Supplementary Information \n \n44 \n \n9 Schedule of Revenues, Expenditures and Changes in Fund \n \nBalances - Budget and Actual General Fund \n \n45 \n \nSupplementary Information \n \n10 Schedule of Expenditures of Federal Awards \n \n46 \n \n11 Schedule of State Revenue \n \n48 \n \n12 Schedule of Approved Local Option Sales Tax Projects \n \n50 \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 \n \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 Audit Findings \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 State Auditor \nINDEPENDENT AUDITOR'S REPORT \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 Ms. Dawn Clements, Superintendent and Members of the Ben Hill County Board of Education \nReport on the Audit of the Financial Statements \nOpinions \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and fiduciary activities of the Ben Hill County Board of Education (School District) as of and for the year ended June 30, 2022, 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. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and fiduciary activities of the School District as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nBasis for Opinions \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nResponsibilities of Management for the Financial Statements \nManagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \nAuditor's Responsibilities for the Audit of the Financial Statements \nOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. \nIn performing an audit in accordance with GAAS and Government Auditing Standards, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. \n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, no such opinion is expressed. \n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. \n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. \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 \n \n 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. \nSupplementary 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 supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated December 13, 2023 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \n \n A 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. Respectfully submitted, \nGreg S. Griffin State Auditor \nDecember 13, 2023 \n \n Ben Hill County Board of Education \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2022 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES Accounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Retainages 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 Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION Net Investment in Capital Assets Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n8,082,140.29 \n \n807,191.31 3,808,945.94 4,640,625.38 \n111,537.79 23,282.79 \n8,000.00 49,239,158.44 33,619,747.18 100,340,629.12 \n \n9,518,814.00 4,478,598.00 13,997,412.00 \n \n480,501.56 3,174,445.21 \n255,037.50 520,251.05 1,639,499.06 \n1,778.84 11,930,903.00 20,193,536.00 \n1,324,301.52 24,919,145.90 64,439,399.64 \n \n17,941,030.00 11,378,421.00 29,319,451.00 \n \n57,620,681.18 \n \n98,512.00 821,430.10 255,037.50 1,685,251.25 (39,901,721.55) \n \n$ \n \n20,579,190.48 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2022 \n \nEXHIBIT \"B\" \n \nGOVERNMENTAL ACTIVITIES Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \nTotal Governmental Activities \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ \n \n28,015,442.44 $ \n \n287,385.21 $ \n \n26,398,791.13 $ \n \n1,161,015.30 339,272.20 191,875.75 \n1,527,521.48 2,434,727.69 \n697,514.36 2,400,565.20 1,946,219.11 \n157,632.24 10,000.00 \n \n36,000.00 - \n \n529,338.54 311,094.77 436,074.99 699,341.02 1,116,219.53 61,307.97 1,183,454.91 549,920.46 18,219.99 \n9,797.85 \n \n109,967.04 2,479,671.45 \n807,048.48 \n \n15,915.75 \n- \n \n3,121,566.91 \n- \n \n$ \n \n42,278,472.74 $ \n \n339,300.96 $ \n \n34,435,128.07 $ \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Total General Revenues \n \nChange in Net Position \n \nNet Position - Beginning of Year \n \nNet Position - End of Year \n \n1,116,251.31 $ - \n14,668.04 1,675.77 \n5,621.14 25,678.95 \n12,281.94 \n43,900.65 1,220,077.80 \n$ \n \n(213,014.79) \n(631,676.76) (28,177.43) 258,867.28 (826,504.69) (1,318,508.16) (630,585.25) (1,155,431.34) (1,396,298.65) (127,130.31) \n(202.15) \n(109,967.04) 701,711.86 (807,048.48) \n6,283,965.92 \n7,422,724.15 27,265.96 \n2,826,836.54 99,422.22 \n4,680,647.00 22,778.14 \n1,211,504.95 16,291,178.96 \n22,575,144.88 \n10,571,977.43 \n33,147,122.31 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n ASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories Prepaid Items \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - State Funds Unavailable Revenue - Federal Funds \nTotal Deferred Inflows of Resources \nFUND BALANCES Nonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \nBEN HILL COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2022 \n \nEXHIBIT \"C\" \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE FUND \n \nTOTAL \n \n$ \n \n3,444,286.19 $ \n \n535,357.69 3,122,994.48 4,640,625.38 \n111,537.79 23,282.79 8,000.00 \n \n$ \n \n11,886,084.32 $ \n \n4,637,854.10 $ \n271,833.62 685,951.46 \n- \n5,595,639.18 $ \n \n- $ \n- \n- $ \n \n8,082,140.29 \n807,191.31 3,808,945.94 4,640,625.38 \n111,537.79 23,282.79 \n8,000.00 \n17,481,723.50 \n \n$ \n \n245,161.72 $ \n \n235,339.84 $ \n \n3,174,445.21 \n \n- \n \n- \n \n520,251.05 \n \n- \n \n1,639,499.06 \n \n1,778.84 \n \n- \n \n3,421,385.77 \n \n2,395,089.95 \n \n- $ - \n \n480,501.56 3,174,445.21 \n520,251.05 1,639,499.06 \n1,778.84 5,816,475.72 \n \n326,091.36 - \n1,992,960.53 2,319,051.89 \n \n249,014.36 \n249,014.36 \n \n- \n \n326,091.36 \n \n- \n \n249,014.36 \n \n- \n \n1,992,960.53 \n \n- \n \n2,568,066.25 \n \n31,282.79 896,659.31 872,484.18 4,345,220.38 6,145,646.66 \n \n2,951,534.87 \n2,951,534.87 \n \n- \n \n31,282.79 \n \n- \n \n3,848,194.18 \n \n- \n \n872,484.18 \n \n- \n \n4,345,220.38 \n \n- \n \n9,097,181.53 \n \n$ \n \n11,886,084.32 $ \n \n5,595,639.18 $ \n \n- $ \n \n17,481,723.50 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2022 \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. Land 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. Net 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. Related to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nGeorgia State Financing and Investment Commission grants that are not available to pay current period expenditures are deferred in the funds. \nFederal grants that are not available to pay 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. Bonds payable Accrued interest payable Unamortized bond premiums \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n9,097,181.53 \n \n$ \n \n3,744,153.28 \n \n45,495,005.16 \n \n49,398,031.48 \n \n7,132,499.07 \n \n2,994,268.28 \n \n(25,905,051.65) \n \n82,858,905.62 \n \n$ \n \n(11,930,903.00) \n \n(20,193,536.00) \n \n(32,124,439.00) \n \n$ \n \n(8,422,216.00) \n \n(6,899,823.00) \n \n(15,322,039.00) 326,091.36 249,014.36 \n1,992,960.53 \n \n$ \n \n(22,640,000.00) \n \n(255,037.50) \n \n(3,603,447.42) \n \n(26,498,484.92) \n \n$ \n \n20,579,190.48 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 \n \nEXHIBIT \"E\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE FUND \n \nTOTAL \n \n$ \n \n7,476,587.85 $ \n \n99,422.22 \n \n26,028,720.37 \n \n11,595,999.44 \n \n339,300.96 \n \n9,472.81 \n \n964,348.89 \n \n46,513,852.54 \n \n- $ 2,826,836.54 \n863,041.57 - \n13,305.33 247,156.06 3,950,339.50 \n \n- $ - \n \n7,476,587.85 2,926,258.76 26,891,761.94 11,595,999.44 \n339,300.96 22,778.14 \n1,211,504.95 50,464,192.04 \n \n30,899,611.30 \n1,332,089.24 341,402.85 217,159.13 \n1,662,602.22 2,757,797.90 \n752,107.46 2,568,189.84 1,829,534.63 \n141,767.34 10,000.00 \n109,967.04 2,867,085.80 \n55,825.70 \n45,545,140.45 968,712.09 \n \n68,052.44 \n9,784.37 19,770.00 3.00 53,259.28 116,685.04 19,233,992.52 \n19,501,546.65 (15,551,207.15) \n \n- \n- \n1,040,000.00 1,061,750.00 2,101,750.00 (2,101,750.00) \n \n30,967,663.74 \n1,332,089.24 341,402.85 217,159.13 \n1,672,386.59 2,777,567.90 \n752,110.46 2,621,449.12 1,946,219.67 \n141,767.34 10,000.00 \n109,967.04 2,867,085.80 19,289,818.22 \n1,040,000.00 1,061,750.00 67,148,437.10 (16,684,245.06) \n \n(2,491,829.83) (2,491,829.83) (1,523,117.74) \n \n2,491,829.83 (2,101,750.00) \n390,079.83 (15,161,127.32) \n \n2,101,750.00 - \n2,101,750.00 - \n \n4,593,579.83 (4,593,579.83) \n(16,684,245.06) \n \n7,668,764.40 \n \n18,112,662.19 \n \n- \n \n25,781,426.59 \n \n$ \n \n6,145,646.66 $ \n \n2,951,534.87 $ \n \n- $ \n \n9,097,181.53 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2022 \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. Capital outlay Depreciation expense \nTaxes and federal grants reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Taxes Federal grants \nGeorgia State Financing and Investment Commission grants reported in the funds are not reported as revenue in the Statement of Activities during the current period. \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. Bond principal retirements Amortization of bond premium \nDistrict pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense \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. Net decrease in accrued interest \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n(16,684,245.06) \n \n$ \n \n20,137,008.75 \n \n(1,274,124.71) \n \n$ \n \n(26,597.74) \n \n1,992,960.53 \n \n18,862,884.04 1,966,362.79 \n \n(70,170.24) \n \n$ \n \n1,040,000.00 \n \n244,301.52 \n \n1,284,301.52 \n \n$ \n \n3,693,600.00 \n \n944,080.00 \n \n4,637,680.00 \n \n10,400.00 \n \n$ \n \n10,007,213.05 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n ASSETS Cash and Cash Equivalents \nNET POSITION Held in Trust for Private Purpose \n \nBEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2022 \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n10,481.49 \n \n$ \n \n10,481.49 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n ADDITIONS Contributions Donors Investment Earnings Interest Miscellaneous Total Additions \nDEDUCTIONS Other Deductions \nChange in Net Position \nNet Position - Beginning \nNet Position - Ending \n \nBEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDCUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2022 \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n5,000.00 \n \n7.26 1,712.50 6,719.76 \n \n5,000.00 \n \n1,719.76 \n \n8,761.73 \n \n$ \n \n10,481.49 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nReporting Entity \nThe Ben Hill County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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, 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. \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. \n \n- 9 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \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), bond proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \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 Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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 \n \n- 10 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nlevied. 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 certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities 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 2022, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. The primary objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of government's financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The adoption of this statement did not have an impact on the School District's financial statements. \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 \n- 11 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \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. \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. \nPrepaid Items \nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \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 BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \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 \n$ \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nConstruction In Progress \n \n$ \n \nIntangible - Software \n \n$ \n \nAll Other- Intangible Assets \n \n$ \n \nAny Amount 50,000.00 50,000.00 5,000.00 50,000.00 \n100,000.00 10,000.00 \n \nN/A 15 years \n60 to 75 years 5 to 25 years N/A 10 years 20 years \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 straightline 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. \n \n- 13 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nPost-Employment 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 Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \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. \n \n- 14 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nProperty Taxes \nThe Ben Hill County Board of Commissioners adopted the property tax levy for the 2021 tax digest year (calendar year) on July 28, 2021 (levy date) based on property values as of January 1, 2021. Taxes were due on December 20, 2021 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2021 tax digest are reported as revenue in the governmental funds for fiscal year 2022. The Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2022, for maintenance and operations amounted to $6,644,897.45 \nThe tax millage rate levied for the 2021 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.232 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $804,424.44 during fiscal year ended June 30, 2022. \nSales Taxes \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,826,836.54 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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. \n \n- 15 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \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, 2022, the School District had deposits with a carrying amount of $4,741,075.06, and a bank balance of $7,286,896.05. The bank balances insured by Federal depository insurance were $500,000.00 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 $5,451,238.12. \nAt June 30, 2022, $1,335,657.93 of the School District's bank balances was in the State's Secure Deposit Program (SDP). \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral \n- 16 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nrequirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \n \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 8,082,140.29 10,481.49 \n \nTotal cash and cash equivalents \n \n8,092,621.78 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n3,351,546.72 \n \nTotal carrying value of deposits - June 30, 2022 \n \n$ 4,741,075.06 \n \nCategorization of Cash Equivalents \nThe School District reported cash equivalents of $3,351,546.72 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2022 was 43 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \n- 17 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nGovernmental Activities Capital Assets, \nNot Being Depreciated: Land Construction in Progress \n \nBalances July 1, 2021 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2022 \n \n$ 2,787,329.22 $ \n \n956,824.06 $ \n \n26,582,784.91 \n \n18,912,220.25 \n \n- $ 3,744,153.28 \n \n- \n \n45,495,005.16 \n \nTotal Capital Assets Not Being Depreciated \n \n29,370,114.13 \n \n19,869,044.31 \n \n- \n \n49,239,158.44 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n49,398,031.48 6,864,534.63 2,994,268.28 \n \n267,964.44 \n- \n \n16,704,361.89 5,305,386.84 2,621,178.21 \n \n873,846.56 \n294,221.14 106,057.01 \n \n- \n \n49,398,031.48 \n \n- \n \n7,132,499.07 \n \n- \n \n2,994,268.28 \n \n- \n \n17,578,208.45 \n \n- \n \n5,599,607.98 \n \n- \n \n2,727,235.22 \n \nTotal Capital Assets, Being Depreciated, Net \n \n34,625,907.45 \n \n(1,006,160.27) \n \n- \n \n33,619,747.18 \n \nGovernmental Activities Capital Assets - Net \n \n$ 63,996,021.58 $ 18,862,884.04 $ \n \n- $ 82,858,905.62 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ \n \n15,317.80 \n \n1,750.00 \n \n5,870.15 \n \n65,161.38 \n \n189,884.09 \n \n12,826.00 \n \n$ \n \n937,469.93 \n \n290,809.42 45,845.36 \n$ 1,274,124.71 \n \n- 18 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nNOTE 6: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2022, consisted of the following: \n \nTransfers to \n \nTransfers From \n \nGeneral Fund \n \nCapital Projects Fund \n \nCapital Projects Fund Debt Service Fund \n \n$ 2,491,829.83 $ - \n \n2,101,750.00 \n \nTotal \n \n$ 2,491,829.83 \n \n2,101,750.00 \n \nTransfers are used to move property tax revenues collected by the general fund to capital projects fund as required match or supplemental funding source for capital construction projects. Transfers are also used to move sales tax revenues collected by the capital projects fund to the debt service fund to provide funding to service debt. \n \nNOTE 7: LONG-TERM LIABILITIES \n \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2021 \n \nAdditions \n \nGovernmental Activities \n \nDeductions \n \nBalance June 30, 2022 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds $ 23,680,000.00 $ \n \nUnamortized Bond Premiums \n \n3,847,748.94 \n \n- $ 1,040,000.00 $ 22,640,000.00 $ \n \n- \n \n244,301.52 \n \n3,603,447.42 \n \n1,080,000.00 244,301.52 \n \n$ 27,527,748.94 $ \n \n- $ 1,284,301.52 $ 26,243,447.42 $ 1,324,301.52 \n \nGeneral Obligation Bonds \nThe School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \nThe School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2022. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \n \n- 19 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nOf the total amount originally authorized, $2,720,000.00 remains unissued. General 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 2019 \n \n3% to 5% 12/12/2019 4/1/2037 $ 24,680,000.00 $ 22,640,000.00 \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 \n2023 2024 2025 2026 2027 2028 - 2032 2033 - 2037 \n \n$ 1,080,000.00 1,125,000.00 1,180,000.00 1,240,000.00 1,275,000.00 7,405,000.00 9,335,000.00 \n \n1,020,150.00 976,950.00 920,700.00 861,700.00 824,500.00 \n3,099,250.00 1,167,900.00 \n \nTotal Principal and Interest $ 22,640,000.00 $ 8,871,150.00 \n \n$ 244,301.52 244,301.52 244,301.52 244,301.52 244,301.52 \n1,221,507.60 1,160,432.22 \n$ 3,603,447.42 \n \nNOTE 8: 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 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. \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 \n \n- 20 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \noccurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 107% of the loss fund and based on the Fund's annual normal premium. \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. \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 \n2021 $ \n \n- \n \n$ \n \n2,855.50 $ \n \n2,855.50 $ \n \n- \n \n2022 $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \nSurety Bond \n \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Military Property Custodian Each Principal Director of Budget and Finance Each Lunchroom Manager and Assistant Manager Each Secretary and Bookkeeper Payroll Administrator \n \n$ \n \n99,000.00 \n \n$ \n \n24,000.00 \n \n$ \n \n9,000.00 \n \n$ \n \n8,000.00 \n \n$ \n \n4,000.00 \n \n$ \n \n4,000.00 \n \n$ \n \n3,000.00 \n \n- 21 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2022: \n \nNonspendable \n \nInventories Prepaid Assets \n \n$ 23,282.79 8,000.00 $ \n \nRestricted \n \nBus Replacement \n \n$ 98,512.00 \n \nContinuation of Federal Programs \n \n798,147.31 \n \nCapital Projects \n \n2,441,459.87 \n \nDebt Service \n \n510,075.00 \n \nAssigned \n \nSchool Activity Accounts \n \n$ 404,633.66 \n \nDonated Funds \n \n467,850.52 \n \nUnassigned \n \n31,282.79 \n3,848,194.18 872,484.18 \n4,345,220.38 \n \nFund Balance, June 30, 2022 \n \n$ 9,097,181.53 \n \nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nNOTE 10: SIGNIFICANT COMMITMENTS \n \nCommitments under Construction Contracts \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2022, together with funding available: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2022 (2) \n \nFunding Available From State (1) \n \nFHS High School \n \n$ \n \n1,063,567.76 $ 43,361,777.34 $ \n \n744,462.59 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include Contracts and Retainages Payable at year end. \nNOTE 11: 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. \n- 22 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nLitigation \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \nNOTE 12: 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 post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \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 $692,261.00 for the year ended June 30, 2022. 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, 2022, the School District reported a liability of $20,193,536.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2021. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2020. An expected total OPEB liability as of June 30, 2021 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2021. At June 30, 2021, the School District's proportion was 0.186445%, which was an decrease of 0.002467% from its proportion measured as of June 30, 2020. \n \n- 23 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nFor the year ended June 30, 2022, the School District recognized OPEB expense of ($252,058.00). At June 30, 2022, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n- $ 9,220,304.00 \n \nChanges of assumptions \n \n3,697,748.00 \n \n1,647,780.00 \n \nNet difference between projected and actual earnings on OPEB plan investments \n \n- \n \n32,021.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n88,589.00 \n \n478,316.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n692,261.00 \n \n- \n \nTotal \n \n$ 4,478,598.00 $ 11,378,421.00 \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, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2023 2024 2025 2026 2027 2028 \n \n$ (1,994,924.00) \n \n$ (1,812,078.00) \n \n$ (1,321,185.00) \n \n$ \n \n(921,222.00) \n \n$ (1,189,109.00) \n \n$ \n \n(353,566.00) \n \n- 24 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nActuarial Assumptions: The total OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021: \n \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, including inflation \n \nLong-term expected rate of return \n \n7.00%, compounded annually, net of investment expense, and including inflation \n \nHealthcare cost trend rate Pre-Medicare Eligible Medicare Eligible \nUltimate trend rate Pre-Medicare Eligible Medicare Eligible \nYear of Ultimate trend rate \n \n6.75% 5.13% \n4.50% 4.50% \n \nPre-Medicare Eligible \n \n2029 \n \nMedicare Eligible \n \n2023 \n \nMortality rates were based on the Pub-2010 Mortality Tables for Males or Females, as appropriate, as follows: \n \n For TRS members: Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General Employee Mortality Table, with no adjustment, with the MP-2019 Projections scale applied generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 105% for males and 108% for females) with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and \n \n- 25 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nadjusted 103% for males and 106% for females) with the MP-2019 Projections scaled applied generationally. Post-retirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjust 106% for males and 158% for females) with the MP-2019 Project scale applied generationally. \n \nThe actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation with changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \n \nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2020 valuation were based on a review of recent plan experience done concurrently with the June 30, 2020 valuation. \n \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 \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 of Return* \n \nFixed income Equities \n \n30.00% 70.00% \n \n0.14% 9.20% \n \nTotal \n \n100.00% \n \n*Net of Inflation \nDiscount Rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 2.20% was used as the discount rate, as compared with last year's rate of 2.22%. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation bonds with an average rating of AA or higher (2.16% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employers will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2145. \n \n- 26 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nSensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 2.20%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.20%) or 1-percentage-point higher (3.20%) than the current discount rate: \n \nSchool District's proportionate share of the Net OPEB liability \n \n1% Decrease (1.20%) \n \nCurrent Discount Rate (2.20%) \n \n1% Increase (3.20%) \n \n$ 23,085,740.00 $ 20,193,536.00 $ 17,772,487.00 \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 1percentage-point lower or 1-percentage-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$ 17,134,998.00 $ 20,193,536.00 $ 24,016,949.00 \n \nOPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \nNOTE 13: RETIREMENT PLANS \n \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 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 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 \n \n- 27 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \ncompensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2022. The School District's contractually required contribution rate for the year ended June 30, 2022 was 19.81% of annual School District payroll, of which 19.55% of payroll was required from the School District and 0.26% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,862,006.00 and $49,957.81 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/financials. \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. \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 4.00% of annual compensation, up to $4,200.00, plus 6.00% 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 \n- 28 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \ncomputation 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 total required contribution rate for the year ended June 30, 2022 was 24.63% of annual covered payroll for old and new plan members and 21.57% 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 $16,069.00 for the current fiscal year. \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/financials. \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 $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \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 $63,085.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2022, the School District reported a liability of $11,930,903.00 for its proportionate share of the net pension liability for TRS ($11,867,238.00) and ERS ($63,665.00). \n \n- 29 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 11,867,238.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n159,375.00 \n \nTotal \n \n$ 12,026,613.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2020. An expected total pension liability as of June 30, 2021 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2021. \nAt June 30, 2021, the School District's TRS proportion was 0.134179%, which was an increase of 0.001283% from its proportion measured as of June 30, 2020. At June 30, 2021, the School District's ERS proportion was 0.002722%, which was an increase of 0.000167% from its proportion measured as of June 30, 2020. \nAt June 30, 2022, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $51,694.00. \nThe PSERS net pension liability was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2020. An expected total pension liability as of June 30, 2021 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2021. \nFor the year ended June 30, 2022, the School District recognized pension expense of $207,760.00 for TRS, $14,516.00 for ERS and $543.00 for PSERS and revenue of $37,801.00 for TRS and $543.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 30 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nAt June 30, 2022, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nDeferred Outflows of Resources \n \nTRS Deferred Inflows of Resources \n \nERS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience \n \n$ 2,831,900.00 $ \n \n- \n \n$ \n \n1,507.00 $ \n \n- \n \nChanges of assumptions \n \n2,296,865.00 \n \n- \n \n18,334.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n17,358,417.00 \n \n- \n \n58,842.00 \n \nChanges in proportion and differences \n \nbetween School District contributions and \n \nproportionate share of contributions \n \n486,566.00 \n \n523,771.00 \n \n5,567.00 \n \n- \n \nSchool District contributions subsequent to the measurement date \n \n3,862,006.00 \n \n- \n \n16,069.00 \n \n- \n \nTotal \n \n$ 9,477,337.00 $ 17,882,188.00 \n \n$ 41,477.00 $ 58,842.00 \n \nThe School District contributions subsequent to the measurement date for TRS and ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2023 2024 2025 2026 \n \n$ (2,527,469.00) $ 3,648.00 $ (2,259,251.00) $ (7,066.00) $ (3,238,667.00) $ (14,300.00) $ (4,241,470.00) $ (15,716.00) \n \nActuarial Assumptions: The total pension liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \n \nInflation Salary increases Investment rate of return \nPost-retirement benefit increases \n \n2.50% 3.00%  8.75%, average, including inflation 7.25%, net of pension plan investment expense, including inflation 1.50% semi-annually \n \n- 31 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \nThe actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018. \n \nEmployees' Retirement System: \n \nInflation Salary increases Investment rate of return \n \n2.50% \n3.00% - 6.75%, including inflation \n7.00%, net of pension plan investment expense, including inflation \n \nMortality rates are as follows: \n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type Service Retirees \nDisability Retirees \nBeneficiaries \n \nMembership Table General Healthy Annuitant \nGeneral Disabled \nGeneral Contingent Survivors \n \nSet Forward (+)/ Setback (-) Male: +1; Female: +1 \nMale: -3; Female: 0 \nMale: +2; Female: +2 \n \nAdjustment to Rates Male: 105%; Female: 108% \nMale: 103%; Female: 106% \nMale: 106%; Female: 105% \n \n- 32 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \n \nThe actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \n \nPublic School Employees Retirement System: \n \nInflation Salary increases Investment rate of return \n \n2.50% \nN/A \n7.00%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases 1.50% semi-annually \nMortality rates are as follows: \n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type \n \nMembership Table \n \nSet Forward (+)/ Setback (-) \n \nAdjustment to Rates \n \nService Retirees Disability Retirees \n \nGeneral Healthy Below-Median Annuitant \nGeneral Disabled \n \nMale: +2; Female: +2 Male: -3; Female: 0 \n \nMale: 101%; Female: 103% Male: 103%; Female: 106% \n \nBeneficiaries \n \nGeneral Below-Median Contingent Survivors \n \nMale: +2; Female: +2 \n \nMale: 104%; Female: 99% \n \nThe actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \n \n- 33 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \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 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 \nLong-term expected real rate of return* \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% 46.30% \n1.20% 11.50% \n6.00% 5.00% \n \n(0.80)% 9.30% 13.30% 9.30% 11.30% 10.60% \n \n30.00% 46.40% \n1.10% 11.70% \n5.80% 5.00% \n \n(1.50)% 9.20% 13.40% 9.20% 10.40% 10.60% \n \nTotal \n \n100.00% \n \n100.00% \n \n* Rates shown are net of inflation \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 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n- 34 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2022 \n \nEXHIBIT \"I\" \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 7.00%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25% and 6.00%) or 1-percentage-point higher (8.25% and 8.00%) 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$ 31,967,194.00 $ 11,867,238.00 $ (4,603,290.00) \n \nEmployees' Retirement System: \n \n1% Decrease (6.00%) \n \nCurrent Discount Rate (7.00%) \n \n1% Increase (8.00%) \n \nSchool District's proportionate share of the \n \nnet pension liability \n \n$ 116,665.00 $ \n \n63,665.00 $ \n \n18,842.00 \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 publicly available at www.trsga.com/publications and http://www.ers.ga.gov/financials. \n \nNOTE 14: SUBSEQUENT EVENTS \n \nOn April 12, 2023, the School District issued $1,990,000.00 of general obligation bonds that were authorized in prior years. The proceeds from these bonds will be used for capital outlay projects. \n \n- 35 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"1\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net Pension \nLiability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share of the NPL associated \nwith the School District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share \nof the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a percentage of \nthe total pension liability \n \n2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.134179% $ 11,867,238.00 $ 0.132896% $ 32,192,613.00 $ 0.130262% $ 28,009,852.00 $ 0.133661% $ 24,810,345.00 $ 0.140963% $ 26,198,408.00 $ 0.142743% $ 29,449,472.00 $ 0.147075% $ 22,390,708.00 $ 0.154807% $ 19,557,823.00 $ \n \n159,375.00 $ 12,026,613.00 $ 17,711,587.22 120,635.00 $ 32,313,248.00 $ 17,203,475.45 107,729.00 $ 28,117,581.00 $ 15,963,784.68 116,570.00 $ 24,926,915.00 $ 15,994,439.37 213,917.00 $ 26,412,325.00 $ 16,314,149.47 244,066.00 $ 29,693,538.00 $ 15,786,646.73 189,996.00 $ 22,580,704.00 $ 15,656,895.31 160,953.00 $ 19,718,776.00 $ 15,932,172.02 \n \n67.00% 187.13% 175.46% 155.12% 160.59% 186.55% 143.01% 122.76% \n \n92.03% 77.01% 78.56% 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- 37 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"2\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n3,862,006.00 $ 3,331,133.00 $ 3,623,230.00 $ 3,323,640.00 $ 2,676,096.72 $ 2,309,164.92 $ 2,234,505.20 $ 2,041,552.01 $ \n \n3,862,006.00 $ 3,331,133.00 $ 3,623,230.00 $ 3,323,640.00 $ 2,676,096.72 $ 2,309,164.92 $ 2,234,505.20 $ 2,041,552.01 $ \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 \n19,752,813.79 17,711,587.22 17,203,475.45 15,963,784.68 15,994,439.37 16,314,149.47 15,786,646.73 15,656,895.31 \n \n19.55% 18.81% 21.06% 20.82% 16.73% 14.15% 14.15% 13.04% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"3\" \n \nFor the Year Ended June 30 \n \nSchool District's proportion of the Net Pension Liability \n(NPL) \n \nSchool District's proportionate share of the \nNPL \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage \nof covered payroll \n \nPlan fiduciary net position as a percentage of total \npension liability \n \n2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.002722% $ 0.002555% $ 0.002361% $ 0.002196% $ 0.002523% $ 0.002585% $ 0.002558% $ 0.002591% $ \n \n63,665.00 $ 107,692.00 $ \n97,427.00 $ 90,278.00 $ 102,467.00 $ 122,281.00 $ 103,635.00 $ 97,179.00 $ \n \n65,243.16 65,696.44 54,867.38 56,023.77 61,878.66 60,097.22 58,488.36 58,346.42 \n \n97.58% 163.92% 177.57% 161.14% 165.59% 203.47% 177.19% 166.56% \n \n87.62% 76.21% 76.74% 76.68% 76.33% 72.34% 76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 39 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"4\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n16,069.00 $ 16,089.00 $ 16,200.78 $ 13,596.00 $ 13,899.49 $ 15,352.05 $ 14,856.00 $ 12,844.08 $ \n \n16,069.00 $ 16,089.00 $ 16,200.78 $ 13,596.00 $ 13,899.49 $ 15,352.05 $ 14,856.00 $ 12,844.08 $ \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 \n65,243.16 65,243.16 65,696.44 54,867.38 56,023.77 61,878.66 60,097.22 58,488.36 \n \n24.63% 24.66% 24.66% 24.78% 24.81% 24.81% 24.72% 21.96% \n \nThis schedule is intended to show information for 10 years. Addtional years will be displayed as they become available. \n \n- 40 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"5\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the \nNet Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share of \nthe NPL associated with the School District \n \nTotal \n \n2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 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 \n- \n \n$ \n \n- \n \n$ \n \n51,694.00 $ 360,715.00 $ 338,812.00 $ 293,873.00 $ 273,648.00 $ 383,890.00 $ 242,736.00 $ 224,650.00 $ \n \n51,694.00 360,715.00 338,812.00 293,873.00 273,648.00 383,890.00 242,736.00 224,650.00 \n \nSchool District's covered payroll \n \nSchool District's proportionate share \nof the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n$760,577.87 $777,289.13 $783,850.97 $813,644.00 $730,766.58 $725,869.10 $783,445.60 $846,638.60 \n \nN/A \n \n98.00% \n \nN/A \n \n84.45% \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- 41 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND \n \nSCHEDULE \"6\" \n \nFor the Year Ended June 30 \n \nSchool District's proportion of the \nNet OPEB Liability (NOL) \n \nSchool District's proportionate share \nof the NOL \n \nState of Georgia's proportionate share \nof the NOL associated with the \nSchool District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the NOL as a percentage of its covered-employee \npayroll \n \nPlan fiduciary net position as a percentage of the total OPEB \nliability \n \n2022 2021 2020 2019 2018 \n \n0.186445% $ 20,193,536.00 $ 0.188912% $ 27,746,773.00 $ 0.188040% $ 23,076,542.00 $ 0.188132% $ 23,911,000.00 $ 0.188905% $ 26,541,077.00 $ \n \n- \n \n$ 20,193,536.00 $ 16,104,571.59 \n \n- \n \n$ 27,746,773.00 $ 15,452,349.64 \n \n- \n \n$ 23,076,542.00 $ 14,511,158.88 \n \n- \n \n$ 23,911,000.00 $ 14,202,987.29 \n \n- \n \n$ 26,541,077.00 $ 14,340,666.23 \n \n125.39% 179.56% 159.03% 168.35% 185.08% \n \n6.14% 3.99% 4.63% 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- 42 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \n \nSCHEDULE \"7\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \nContribution as a percentage of covered- \nemployee payroll \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n692,261.00 $ 693,545.00 $ 638,857.00 $ 1,012,725.00 $ 975,069.00 $ \n \n692,261.00 $ 693,545.00 $ 638,857.00 $ 1,012,725.00 $ 975,069.00 $ \n \n- \n \n$ \n \n17,874,843.65 \n \n- \n \n$ \n \n16,104,571.59 \n \n- \n \n$ \n \n15,452,349.64 \n \n- \n \n$ \n \n14,511,158.88 \n \n- \n \n$ \n \n14,202,987.29 \n \n3.87% 4.31% 4.13% 6.98% 6.87% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 43 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2022 \n \nSCHEDULE \"8\" \n \nTeachers Retirement System Change of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \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%. \nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nEmployees' Retirement System Changes 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, and a one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \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. The expectation of retired life mortality was changed to the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set fowared 2 years for both males and females). \nA new funding policy was initially adopted the Board on March 15, 2018, and most recently amended on June 18, 2020. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utlizied by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rate of mortality, retirement, withdrawl, and salary increases. This also included a change to the long-term assumed investment rate of return of 7.00%. These assumption changes are reflected in the calcuation of the June 30, 2021 Total Pension Liability. \nPublic School Employees Retirement System Changes of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-ofliving adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \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. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation. \nSchool OPEB Fund Changes of benefit terms: There have been no changes in benefit terms. \nChanges in assumptions: June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees Retirement Systems experience study. Approximately 0.10% of emloyees are members of the Employees Retirement System. \nJune 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement Systems experience study. \nJune 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%. \nJune 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised. \nJune 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect to Retirement Systems' experience studies. \nJune 30, 2012 valuation: A data audit was performed and data collection procedures and asssumptions were changed. \nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, to 3.87% as of June 30, 2018, back to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020. \n- 44 - \n \n BEN HILL COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2022 \n \nSCHEDULE \"9\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Total Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES(USES) Other Sources Other Uses Total Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n6,543,000.00 $ \n \n6,543,000.00 $ \n \n7,476,587.85 $ \n \n60,000.00 \n \n60,000.00 \n \n99,422.22 \n \n23,658,974.00 \n \n24,145,121.00 \n \n26,028,720.37 \n \n6,189,633.88 \n \n6,633,512.88 \n \n11,595,999.44 \n \n164,622.40 \n \n164,622.40 \n \n339,300.96 \n \n15,016.00 \n \n15,016.00 \n \n9,472.81 \n \n765,829.72 \n \n765,829.72 \n \n964,348.89 \n \n37,397,076.00 \n \n38,327,102.00 \n \n46,513,852.54 \n \n933,587.85 39,422.22 \n1,883,599.37 4,962,486.56 \n174,678.56 (5,543.19) \n198,519.17 8,186,750.54 \n \n24,831,509.35 \n1,133,679.12 1,335,212.85 \n313,477.23 1,292,164.94 2,487,234.76 \n688,774.14 2,528,942.97 1,881,914.52 \n139,433.00 160,515.97 1,851,635.60 \n38,644,494.45 (1,247,418.45) \n \n25,700,014.60 \n1,126,787.99 764,662.75 313,477.23 \n1,286,991.94 2,502,642.76 \n688,774.14 2,528,942.97 1,989,043.52 \n85,189.00 160,515.97 2,351,635.60 \n39,498,678.47 (1,171,576.47) \n \n30,899,611.30 \n1,332,089.24 341,402.85 217,159.13 \n1,662,602.22 2,757,797.90 \n752,107.46 2,568,189.84 1,829,534.63 \n141,767.34 10,000.00 109,967.04 2,867,085.80 55,825.70 45,545,140.45 968,712.09 \n \n(5,199,596.70) \n(205,301.25) 423,259.90 \n96,318.10 (375,610.28) (255,155.14) \n(63,333.32) (39,246.87) 159,508.89 (141,767.34) 75,189.00 50,548.93 (515,450.20) (55,825.70) (6,046,461.98) 2,140,288.56 \n \n540,162.00 (95,000.00) 445,162.00 \n \n835,053.00 (389,891.00) 445,162.00 \n \n(2,491,829.83) (2,491,829.83) \n \n(835,053.00) (2,101,938.83) (2,936,991.83) \n \n(802,256.45) \n \n(726,414.47) \n \n(1,523,117.74) \n \n(796,703.27) \n \n6,199,197.97 \n \n6,199,197.97 \n \n7,668,764.40 \n \n1,469,566.43 \n \n38,467.69 \n \n(8,845.60) \n \n- \n \n8,845.60 \n \n$ \n \n5,435,409.21 $ \n \n5,463,937.90 $ \n \n6,145,646.66 $ \n \n681,708.76 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n \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- 45 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2022 \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 COVID-19 - National School Lunch Program Total Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition Pass-Through From Rural Utilities Services Total Other Programs Total 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 COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Total Education Stabilization Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States COVID-19 - American Rescue Plan - Grants to States Preschool Grants Preschool Grants Total Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Comprehensive Literacy Development English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Rural and Low-Income School Program Rural and Low-Income School Program Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 10.555 \n \n225GA324N1199 $ 225GA324N1199 225GA324N1099 \n \n519,549.69 1,364,461.11 \n180,558.19 2,064,568.99 \n \n10.560 10.855 \n \n215GA904N2533 RUS-21-01-DLT \n \n4,125.24 110,306.70 114,431.94 2,179,000.93 \n \n84.425D 84.425U \n \nS425D210012 S425U210012 \n \n1,192,007.64 \n5,787,808.24 6,979,815.88 \n \n84.027A 84.027A 84.027X 84.173A 84.173A \n \nH027A200073 H027A210073 H027X210073 H173A200081 H173A210081 \n \n84.048A 84.371C 84.365A 84.365A 84.011A 84.358B \n84.358B 84.010A 84.010A \n \nV048A210010 S371C190016-19A \nS365A200010 S365A210010 S011A200011 S358B200010 \nS358B210010 S010A200010 S010A210010-21A \n \n143,389.00 397,595.47 \n5,488.80 20,766.00 \n8,321.27 575,560.54 \n43,777.82 405,036.15 \n104.00 8,340.28 28,358.56 \n8.00 69,706.00 \n9,805.00 1,954,512.00 2,519,647.81 10,075,024.23 \n \n- 46 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2022 \n \nSCHEDULE \"10\" \n \nFUNDING AGENCY PROGRAM/GRANT \nFederal Communications Commission, U.S. Direct COVID-19 - Emergency Connectivity Fund Program \nHealth and Human Services, U. S. Department of Pass-Through From Children and Youth Coordinating Council Title V State Sexual Risk Avoidance Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nTotal Expenditures of Federal Awards \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \n32.009 \n \n93.235 \n \nNIG95295 \n \nEXPENDITURES IN PERIOD \n844,800.00 \n98,347.04 \n \n12. UNKNOWN \n \n29,969.15 \n \n$ \n \n13,227,141.35 \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 Ben Hill County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \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. \n \nNote 3. Indirect Cost Rate The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 47 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2022 \n \nSCHEDULE \"11\" \n \nAGENCY/FUNDING GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program Summer Transition Program Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Adjustment One-time Supplement Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Agriculture Construction Related Equipment - State Bonds Food Services Hygiene Products Math and Science Supplements Preschool Disability Services Teachers Retirement Vocational Education Vocational Construction Related Equipment - State Bonds Technical College System of Georgia Vocational - Technology School Office of the State Treasurer Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nGENERAL \n \nCAPITAL PROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n822,039.50 $ \n \n111,000.00 \n \n- $ - \n \n822,039.50 111,000.00 \n \n989,697.00 397,933.00 1,957,978.00 906,192.00 945,852.00 692,139.00 1,876,483.00 1,676,605.00 681,258.00 2,704,937.00 719,620.00 1,263,881.00 145,137.00 137,171.00 386,493.00 119,609.00 \n66,676.00 1,601.00 \n573,726.00 854,215.00 781,261.00 \n35,869.00 114,862.00 304,835.00 641,164.00 \n \n448,266.99 60,293.00 \n4,680,647.00 \n \n198,000.00 150,176.00 \n2,030.00 15,718.00 77,178.00 49,957.81 81,135.07 294,000.00 \n \n- \n \n63,085.00 \n \n$ \n \n26,028,720.37 $ \n \n- \n- \n- \n- \n863,041.57 \n- \n863,041.57 $ \n \n989,697.00 397,933.00 1,957,978.00 906,192.00 945,852.00 692,139.00 1,876,483.00 1,676,605.00 681,258.00 2,704,937.00 719,620.00 1,263,881.00 145,137.00 137,171.00 386,493.00 119,609.00 \n66,676.00 1,601.00 \n573,726.00 854,215.00 781,261.00 \n35,869.00 114,862.00 304,835.00 641,164.00 \n448,266.99 60,293.00 \n4,680,647.00 \n198,000.00 150,176.00 \n2,030.00 15,718.00 77,178.00 49,957.81 81,135.07 294,000.00 \n863,041.57 \n63,085.00 \n26,891,761.94 \n \nSee notes to the basic financial statements. \n \n- 48 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2022 \n \nSCHEDULE \"12\" \n \nPROJECT 2016 \n(i) Replacement of schools and/or construction of new schools, including including and necessary demolition; (ii) Adding to, renovating, repairing, improving, furnishing, and/or equipping existing school buildings, including the central office, transportation and maintenance facilities, including necessary demolition; (iii) Adding to, constructing, renovating, furnishing, and/or equipping athletic facilities; (iv) Acquiring equipment, instruments and/or materials for the fine arts, vocational, physical education and athletic departments; (v) Renovations, additions, and/or improvements to parking, traffic access facilities and transportation department, including paving and any necessary site work; (vi) Acquiring instructional and/or administrative technology equipment and materials; (vii) Acquiring safety, security, and/or fire protecting equipment; (viii) Acquiring buses, vehicles, and/or transportation equipment; (ix) Acquiring property; and (x) Paying a portion of the principal and interest on the current general obligation debt and general obligation debt to be issued (collectively, the \"Projects\"). Subtotal for Project 2016 \nPROJECT 2021 \n(i) Replacement of schools and/or construction of new schools, including and necessary demolition; (ii) Adding to, renovating, repairing, improving, furnishing, and/or equipping existing school buildings, including the central office, transportation and maintenance facilities, including necessary demolition; (iii) Adding to, constructing, renovating, furnishing, and/or equipping athletic facilities; (iv) Acquiring equipment, instruments and/or materials for the fine arts, vocational, physical education and athletic departments; (v) Renovations, additions, and/or improvements to parking, traffic access facilities and transportation department, including paving and any necessary site work; (vi) Acquiring instructional and/or administrative technology equipment and materials; (vii) Acquiring safety, security, and/or fire protecting equipment; (viii) Acquiring buses, vehicles, and/or transportation equipment; (ix) Acquiring property; and (x) Retiring the current general obligation debt with respect only to capital outlay projects of the School District (collectively, the \"Projects\"). \nSubtotal for Project 2021 \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nESTIMATED COMPLETION \nDATE \n \n$ 3,500,000.00 $ 45,360,950.70 \n \n2023 \n \n500,000.00 500,000.00 \n200,000.00 \n1,000,000.00 1,000,000.00 \n100,000.00 750,000.00 500,000.00 \n7,950,000.00 16,000,000.00 \n \n729,484.41 237,990.20 \n68,754.69 \n1,015,482.07 \n73,694.28 917,928.04 2,478,133.27 \n7,950,000.00 58,832,417.66 \n \nCompleted Completed \nCompleted \nCompleted Completed Completed Completed Completed \n2037 \n \n1,000,000.00 \n \n1,000,000.00 \n \n1,000,000.00 500,000.00 \n \n1,000,000.00 500,000.00 \n \n500,000.00 \n \n500,000.00 \n \n500,000.00 1,000,000.00 \n250,000.00 625,625.00 100,000.00 \n \n500,000.00 1,000,000.00 \n250,000.00 625,625.00 100,000.00 \n \n10,524,375.00 16,000,000.00 \n \n10,524,375.00 16,000,000.00 \n \n$ 32,000,000.00 $ 74,832,417.66 \n \n2026 \n2026 2026 \n2026 \n2026 2026 2026 2026 2026 \n2037 \n \n- 50 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2022 \n \nSCHEDULE \"12\" \n \nPROJECT 2016 \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n(i) Replacement of schools and/or construction of new schools, including \n \nand necessary demolition; \n \n$ 18,912,220.25 $ 26,448,730.45 $ \n \n- $ \n \n- \n \n(ii) Adding to, renovating, repairing, improving, furnishing, and/or equipping existing \n \nschool buildings, including the central office, transportation and maintenance facilities, \n \nincluding necessary demolition; \n \n271,935.17 \n \n457,459.24 \n \n729,484.41 \n \n- \n \n(iii) Adding to, constructing, renovating, furnishing, and/or equipping athletic facilities; \n \n- \n \n237,990.20 \n \n237,990.20 \n \n- \n \n(iv) Acquiring equipment, instruments and/or materials for the fine arts, vocational, \n \nphysical education and athletic departments; \n \n15,380.00 \n \n53,374.69 \n \n68,754.69 \n \n- \n \n(v) Renovations, additions, and/or improvements to parking, traffic access facilities \n \nand transportation department, including paving and any necessary site work; \n \n- \n \n- \n \n- \n \n- \n \n(vi) Acquiring instructional and/or administrative technology equipment and materials; \n \n114,931.72 \n \n900,550.35 \n \n1,015,482.07 \n \n- \n \n(vii) Acquiring safety, security, and/or fire protecting equipment; \n \n- \n \n73,694.28 \n \n73,694.28 \n \n- \n \n(viii) Acquiring buses, vehicles, and/or transportation equipment; \n \n105,123.04 \n \n812,805.00 \n \n917,928.04 \n \n- \n \n(ix) Acquiring property; and \n \n956,824.06 \n \n1,521,309.21 \n \n2,478,133.27 \n \n- \n \n(x) Paying a portion of the principal and interest on the current general obligation debt \n \nand general obligation debt to be issued (collectively, the \"Projects\"). \n \n2,105,787.50 \n \n3,782,574.91 \n \n- \n \n- \n \nSubtotal for Project 2016 \n \n22,482,201.74 \n \n34,288,488.33 \n \n5,521,466.96 \n \n- \n \nPROJECT 2021 \n \n(i) Replacement of schools and/or construction of new schools, including \n \nand necessary demolition; \n \n- \n \n- \n \n- \n \n- \n \n(ii) Adding to, renovating, repairing, improving, furnishing, and/or equipping existing \n \nschool buildings, including the central office, transportation and maintenance facilities, \n \nincluding necessary demolition; \n \n- \n \n- \n \n- \n \n- \n \n(iii) Adding to, constructing, renovating, furnishing, and/or equipping athletic facilities; \n \n- \n \n- \n \n- \n \n- \n \n(iv) Acquiring equipment, instruments and/or materials for the fine arts, vocational, \n \nphysical education and athletic departments; \n \n- \n \n- \n \n- \n \n- \n \n(v) Renovations, additions, and/or improvements to parking, traffic access facilities \n \nand transportation department, including paving and any necessary site work; \n \n- \n \n- \n \n- \n \n- \n \n(vi) Acquiring instructional and/or administrative technology equipment and materials; \n \n23,659.74 \n \n- \n \n- \n \n- \n \n(vii) Acquiring safety, security, and/or fire protecting equipment; \n \n- \n \n- \n \n- \n \n- \n \n(viii) Acquiring buses, vehicles, and/or transportation equipment; \n \n- \n \n- \n \n- \n \n- \n \n(ix) Acquiring property; and \n \n- \n \n- \n \n- \n \n- \n \n(x) Retiring the current general obligation debt with respect only to \n \ncapital outlay projects of the School District (collectively, the \"Projects\"). \n \n- \n \n- \n \n- \n \n- \n \nSubtotal for Project 2021 \n \n23,659.74 \n \n- \n \n- \n \n- \n \nTotal \n \n$ 22,505,861.48 $ 34,288,488.33 $ 5,521,466.96 $ \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. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Ben Hill County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. \nAmounts 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- 51 - \n \n Section II Compliance and Internal Control Reports \n \n Greg S. Griffin State Auditor \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 \nACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \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 Ms. Dawn Clements, Superintendent and Members of the Ben Hill County Board of Education \nWe have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the Ben Hill County Board of Education (School District) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated December 13, 2023. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \nReport on Internal 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n 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 in finding FS 2022-001 that we consider to be a significant deficiency. \nReport on Compliance 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nSchool District's Response to Findings \nGovernment Auditing Standards requires the auditor to perform limited procedures on the School District's response to the finding identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. \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 \nDecember 13, 2023 \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \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 Ms. Dawn Clements, Superintendent and Members of the Ben Hill County Board of Education \nReport on Compliance for Each Major Federal Program \nOpinion on Each Major Federal Program \nWe have audited the Ben Hill County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2022. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nIn our opinion, the School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022. \nBasis for Opinion on Each Major Federal Program \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Responsibilities of Management for Compliance \nManagement is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs. \nAuditor's Responsibilities for the Audit of Compliance \nOur objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole. \nIn performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. \n Obtain an understanding of the School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control over compliance. Accordingly, no such opinion is expressed. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. \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 in finding FA 2022-001. Our opinion on each major federal program is not modified with respect to this matter. \n \n Government Auditing Standards requires the auditor to perform limited procedures on the School District's response to the noncompliance finding identified in our compliance audit and described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \nReport on Internal Control over Compliance \nOur consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify a certain deficiency in internal control over compliance that we consider to be a significant deficiency. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs in finding FA 2022-001 to be a significant deficiency. \nOur audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. \nGovernment Auditing Standards requires the auditor to perform limited procedures on the School District's response to the internal control over compliance findings identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the other 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 \nDecember 13, 2023 \n \n Section III Auditee's Response to Prior Year Findings and Questioned Costs \n \n BEN HILL COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2022 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS \n \nFS 2021-001 Internal Controls over Financial Reporting \n \nRepeat of Prior Year Finding: \n \nFS 2020-001 \n \nFinding Status: \n \nUnresolved \n \nThe School System CFO will work closely with the outside financial statement preparer to ensure all data provided is accurate and complete. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FA 2021-001 Strengthen Controls over Expenditures \n \nFederal Awarding Agency: Pass-Through Entity: \n \nU.S. Department of Education Georgia Department of Education \n \nFinding Status: \n \nPartially Resolved \n \nThe School System will assign a lead person to be responsible for ESSER requirements for expenditures. \n \n Section IV Findings and Questioned Costs \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2022 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: \nGovernmental Activities, Each Major Fund, and Fiduciary Activities \n \nInternal control over financial reporting:  Material weakness(es) identified? \n Significant deficiency identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal control over major programs: \n Material weakness(es) identified?  Significant deficiency identified? \n \nType of auditor's report issued on compliance for major programs: \n \nAll major programs \n \nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \n \nIdentification of major programs: \n \nAssistance Listing Number \n32.009 84.010 84.425 \n \nAssistance Listing Program or Cluster Title \nEmergency Connectivity Fund Title I Grants to Local Educational Agencies Education Stabilization Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nUnmodified No Yes No \nNo Yes \nUnmodified Yes \n$750,000.00 No \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2022 \n \nII FINANCIAL STATEMENT FINDINGS \n \nFS 2022-01 Internal Controls over Financial Reporting \n \nInternal Control Impact: Repeat of Prior Year Finding: \n \nSignificant Deficiency FS 2021-001, FS 2020-001 \n \nDescription: The School District did not have adequate internal controls in place over the financial statement \nreporting process. \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 \ncontrols over GAAP financial reporting should include adequately trained personnel with the knowledge, skills, and experience to prepare GAAP based financial statements and include all \ndisclosures as required by the Governmental Accounting Standards Board (GASB). \n \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. \n \nChapter II - 2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \n \nCondition:  Fund balance - beginning of year was overstated by $2,774,437.69, expenditures were overstated by $2,455,253.09, and state funds were understated by $319,184.60 in the capital projects fund due to the beginning fund balance not agreeing with the prior year ending fund balance. The School District did not make adjusting entries on the financial statements to account for the prior year audit adjustments affecting fund balance. An adjustment was proposed by the auditors and accepted by the School District. \n Contracts payable and capital assets, non-depreciable were understated by $297,904.50 on the government-wide financial statements and contracts payable and expenditures were understated by $297,904.50 in the capital projects fund due to unrecorded contracts payable. This misstatement was significant to the capital projects fund. Adjustments to the financial statements were proposed by the auditors and accepted by the School District. \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2022 \n State Funds were overstated, and unavailable revenue was understated by $249,014.36 in the capital projects fund due to funds not being collected within the School District's revenue recognition period of 120 days after year end. This misstatement was significant to the capital projects fund. An adjustment was proposed by the auditors and accepted by the School District. \n Federal Funds were overstated, and unavailable revenue was understated by $1,882,653.83 in the general fund due to funds not being collected within the School District's revenue recognition period of 120 days after year end. This misstatement was significant to the general fund. An adjustment was proposed by the auditors and accepted by the School District. \n Due to calculation errors, net position on the government-wide statements was misclassified by $3,164,973.09 between Net Investment in Capital Assets and Restricted for Capital Projects. A reclassification adjustment was proposed by the auditors and accepted by the School District. \n The School District overstated the amount expended in current year on the Schedule of Approved Local Option Sales Tax Projects (2016 SPLOST) by $6,168,073.37 and understated amounts expended in prior years by $3,698,564.03. Adjustments were proposed by the auditors and accepted by the School District. \n Other audit adjustments and reclassifications were proposed by the auditors and accepted by the School District to properly present the School District's financial statements, note disclosures and supplemental information. \nCause: These issues were a result of the School District's inadequate controls and review procedures over the financial statements. \nEffect: Significant misstatements were included in the financial statements presented for audit. The lack of controls and monitoring over the financial statement process could impact the reporting of the School District's financial position and results of operations. \nRecommendation: The School District should strengthen their internal controls and review procedures over the financial reporting process to ensure that the financial statements presented for audit are complete and accurate. These procedures should be performed by a properly trained individual 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. \nViews of Responsible Officials: We concur with this finding. \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2022 \n \nlII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2022-001 Strengthen Controls over Equipment \n \nCompliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: AL Numbers and Titles: \nFederal Award Numbers: Questioned Costs: \n \nEquipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education COVID-19 84.425D  Elementary and Secondary School Emergency Relief Fund COVID-19 84.425U  American Rescue Plan Elementary and Secondary School Emergency Relief Fund S425D210012 (Year: 2021), S425U210012 (Year: 2021) None Identified \n \nDescription: The policies and procedures of the School District were insufficient to provide adequate internal \ncontrols over equipment and real property management as it relates to the Elementary and Secondary \nSchool Emergency Relief Fund program. \n \nBackground Information: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into \nlaw. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a \nvariety of ways, including providing additional funding for local educational agencies (LEAs) navigating \nthe impact of the COVID-19 outbreak. \n \nProvisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. \n \nESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE was responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $6,979,815.88 were expended and reported on the Ben Hill County Board of Education's Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2021. \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2022 \nCriteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303  Internal Controls. \nProvisions included in the Uniform Guidance, Section 200.313(d)(1) state, \"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.\" \nFurthermore, to assist school districts in improving their financial management systems and associated compliance over federal programs, GaDOE published the Financial Management for Georgia Local Units of Administration (FMGLUA) manual. The FMGLUA manual requires that LEAs submit a budget as part of each federal program's Consolidated Application process. The program budget reflects details regarding the manner in which each school district intends to expend the program funds. The Consolidated Application, including the budget, for each program must be reviewed and approved by GaDOE personnel before the LEA is authorized to expend program funds. Amendments to the budget are to be submitted to and approved by GaDOE when a school district intends to spend funds in a manner not initially reported. \nLastly, LEA personnel must also provide program-specific assurances related to the ESSER programs within the Consolidated Application system. These assurances are reflected in the Uniform Guidance, Section 200.415  Required Certifications, and include provisions that require LEAs \"to assure that expenditures are proper and in accordance with the terms and conditions of the Federal award and approved project budgets...\" \nCondition: The following deficiencies were noted when reviewing the ESSER program: \n 12 pieces of equipment with costs totaling $347,619.04, which were purchased with program funds, were not included on the federal program's equipment listing. \n The related expenditures for seven equipment additions with costs totaling $156,067.46 were not appropriately approved by GaDOE through the Consolidated Application process. Further, the expenditures were not submitted for approval on an amended budget as of the end of audit fieldwork. \nCause: Issues were a result of inadequate controls and review procedures over equipment. \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2022 \nEffect: The School District is not in compliance with the Uniform Guidance and GaDOE guidance. 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, failure to verify compliance with applicable policies and regulations, including reviewing approved budgets prior to the expenditure of federal program funds may expose the School District to unnecessary financial strains and shortages. \nRecommendation: The School District 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. Management should also implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. \nIn addition, the School District should also revise current internal control procedures related to the ESSER program. Where vulnerable, the School District should develop and/or modify its policies and procedures to ensure that potential expenditures are approved through the Consolidated Application process and deemed to be allowable before spending federal funds. Management should also develop and implement a monitoring process to ensure that control procedures are being followed. \nViews of Responsible Officials: We concur with this finding. \n \n Section V Management's Corrective Action \n \n   "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2021-belec-p-btext","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2021 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2021-06-30"],"dcterms_description":["Annual financial report for the Ben Hill County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Ben Hill County Board of Education (Ben Hill County, Ga.)--Appropriations and expenditures--Periodicals","Auditors' reports--Georgia--Periodicals","Financial statements--Georgia--Periodicals","Reports","Financial statements","Georgia","Periodicals","Audits","Financial records"],"dcterms_title":["Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2021 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2021-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2021-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2021 \nBen Hill County Board of Education \nFitzgerald, Georgia \nIncluding Independent Auditor's Report \nGreg S. Griffin | State Auditor Kristina A. Turner | Deputy State Auditor \n \n Ben Hill County Board of Education \n \nTable of Contents \n \nSection I \n \nFinancial \n \nIndependent Auditor's Report \n \nRequired Supplementary Information \n \nManagement's Discussion and Analysis \n \ni \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 in Fund \n \nBalances \n \nGovernmental Funds \n \n5 \n \nF \n \nReconciliation of the Governmental Funds Statement of \n \nRevenues, Expenditures and Changes in Fund Balances \n \nto the Statement of Activities \n \n6 \n \nG \n \nStatement of Fiduciary Net Position \n \nFiduciary Funds \n \n7 \n \nH \n \nStatement of Changes in Fiduciary Net Position \n \nFiduciary Funds \n \n8 \n \nI 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 \n37 \n \n2 Schedule of Contributions  Teachers Retirement System of Georgia \n \n38 \n \n3 Schedule of Proportionate Share of the Net Pension Liability \n \nEmployees' Retirement System of Georgia \n \n39 \n \n Ben Hill County Board of Education Table of Contents Section I \n \nSchedules \n \nRequired Supplementary Information \n \n4 Schedule of Contributions  Employees' Retirement System of Georgia \n \n40 \n \n5 Schedule of Proportionate Share of the Net Pension Liability Public \n \nSchool Employees Retirement System of Georgia \n \n41 \n \n6 Schedule of Proportionate Share of the Net OPEB Liability \n \nSchool OPEB Fund \n \n42 \n \n7 Schedule of Contributions  School OPEB Fund \n \n43 \n \n8 Notes to the Required Supplementary Information \n \n44 \n \n9 Schedule of Revenues, Expenditures and Changes in Fund \n \nBalances - Budget and Actual General Fund \n \n46 \n \nSupplementary Information \n \n10 Schedule of Expenditures of Federal Awards \n \n47 \n \n11 Schedule of State Revenue \n \n49 \n \n12 Schedule of Approved Local Option Sales Tax Projects \n \n50 \n \nSection II \n \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 \n \nAuditee's Response to Prior Year Findings and Questioned Costs Summary Schedule of Prior Year Findings and Questioned Costs Section IV \n \nFindings and Questioned Costs Schedule of Findings and Questioned Costs \n \n Ben Hill County Board of Education Table of Contents Section 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 State Auditor \nINDEPENDENT AUDITOR'S REPORT \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 Ms. Dawn Clements, Interim Superintendent and Members of the Ben Hill County Board of Education \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and fiduciary activities of the Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements 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 School District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and fiduciary activities of the School District as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2021, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The School District restated beginning balances for the effect of GASB Statement No. 84. Our opinions are not modified with respect to this matter. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \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 \n \n the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated August 9, 2022 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \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, \nGreg S. Griffin State Auditor \nAugust 9, 2022 \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \nINTRODUCTION \nThe discussion and analysis of the Ben Hill County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2021. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for the fiscal year 2021 are as follows: \n In fiscal year 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of the GASB Statement No. 84 is described in the restatement note. \n The School District received $765,292 more in equalization funds as part of an overall increase of $684,455 in state revenue in general fund over the prior year. The Federal Government provided grant revenue of $6.7 million through CARES (or ESSER) funding. Expenditures of these Federal funds will continue into fiscal year 2022 and beyond. \n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $10.6 million. \n The School District had $41.5 million in expenses relating to governmental activities for the fiscal year. Program specific charges for services and grants and contributions of $41.5 million were sufficient to offset the above-mentioned expenses. \n The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities (excluding net pension, OPEB and other long-term liabilities) was 3.7 based on the Statement of Net Position as of June 30, 2021. Generally, a ratio greater than 2.0 is considered very financially stable. \n The general fund (the primary operating fund), presented on a current financial resource basis, ended the fiscal year with a fund balance of $7.7 million, an increase of $3.1 million from the June 30, 2020 fund balance. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThe Management's Discussion and Analysis is intended to serve as an introduction to the School District's basic financial statements. The School District's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information that will enhance the reader's understanding of the financial condition of the School District. \ni \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \nGovernment-Wide Statements \nThe government-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide financial statements provide short-term and long-term information about the School District's financial status as a whole. \nThe Statement of Net Position presents information on all of the School District's non-fiduciary assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between these reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District is improving or deteriorating. \nThe Statement of Activities presents information showing how the School District's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). \nThese statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid. \nThe government-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes, state grants, and federal grant funds finance most of these activities. \nFund Financial Statements \nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into governmental funds or fiduciary funds. \nGovernmental funds - Governmental funds are used to account for essentially the same functions reported as the governmental activities in the governmental-wide financial statements. However, unlike the governmentwide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. \nBecause the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the School District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. \nThe School District maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general, capital projects and debt service funds, which are considered to be major funds. \nii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \nFiduciary funds - The School District is the trustee, or fiduciary, for assets that belong to others. The School District is responsible for ensuring the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \nNotes to the financial statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. \nOther information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information such as the budgetary comparison schedules for the general fund as presented on a generally accepted accounting principles basis in this section. This schedule is intended to demonstrate the School District's compliance with the legally adopted and amended budgets. \nGOVERNMENT-WIDE FINANCIAL ANALYSIS \nAs noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $10.6 million. \nThe largest portion of the School District's net position of $48.6 million, reflects the School District's investment in capital assets (property, plant, and equipment) less any related debt used to acquire those assets that is still outstanding. The School District uses its assets to provide safe and secure facilities to the students, these assets are not available for future spending. \nThe School District reports a restricted net position of $6.5 million, which consists of SPLOST funds to be used for capital projects, debt service funds to be used for servicing debt, school nutrition funds to be used for student meals and reserve for bus replacement. \nThe remaining portion of the School District's net position represents an unrestricted net position deficit of $44.5 million. The unrestricted net position deficit is a result of the fiscal year 2018 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) and the fiscal year 2015 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. More information about these reported liabilities can be found in Note 12 and 13, respectively, of the financial statements. \nThe School District has current assets of $35.7 million. These assets include $27.1 million of cash and cash equivalents. The School District's capital assets are $64.0 million. \niii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nTable 1 provides a summary of the School District's net position for fiscal year 2021 compared to fiscal year 2020. \n \nTable 1 Net Position \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2021 \n \n2020 (1) \n \n$ 35,730,452 $ 63,996,022 \n \n39,651,707 39,587,881 \n \nTotal Assets \n \n99,726,474 \n \n79,239,588 \n \nDeferred Outflows of Resources \n \n14,701,940 \n \n9,405,538 \n \nTotal Assets and Deferred Outflows of Resources \n \n114,428,414 \n \n88,645,126 \n \nLiabilities Current and Other Liabilities Long-Term Liabilties \n \n69,589,668 27,527,749 \n \n55,712,785 28,772,050 \n \nTotal Liabilities \n \n97,117,417 \n \n84,484,835 \n \nDeferred Inflows of Resources \n \n6,739,020 \n \n8,400,191 \n \nTotal Liabilities and Deferred Inflows of Resources \n \n103,856,437 \n \n92,885,026 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n48,554,706 6,519,759 \n(44,502,488) \n \n36,611,632 4,964,284 \n(45,815,816) \n \nTotal Net Position \n \n$ 10,571,977 $ \n \n(4,239,900) \n \n(1) Fiscal year 2020 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information. \n \niv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nChange in Net Position \n \nThe change in net position was an increase of $14.7 million from fiscal year 2020 to fiscal year 2021. \n \nTable 2 shows the changes in net position for fiscal year 2021 compared to the changes in net position for fiscal year 2020. \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nNet \n \n2021 \n \n2020 (1) \n \nChange \n \n$ 338,488 $ 293,241 $ \n \n31,878,333 24,449,587 \n \n9,324,753 \n \n77,220 \n \n45,247 7,428,746 9,247,533 \n \nTotal Program Revenues \n \n41,541,574 24,820,048 16,721,526 \n \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \n7,262,527 26,499 \n \n6,822,594 25,994 \n \n2,653,295 84,091 \n3,867,212 40,617 \n702,900 \n \n2,626,192 83,711 \n3,101,920 189,201 556,172 \n \n439,933 505 \n27,103 380 \n765,292 (148,584) 146,728 \n \nTotal General Revenues \n \n14,637,141 13,405,784 \n \n1,231,357 \n \nTotal Revenues \n \n56,178,715 38,225,832 17,952,883 \n \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Operation Interest on Long-Term Debt \n \n28,024,166 24,883,468 \n \n1,075,695 381,448 332,512 \n1,263,520 2,442,920 \n610,710 2,450,919 1,804,119 \n130,410 11,450 \n \n991,667 1,555,657 \n342,049 1,069,972 2,325,185 1,059,110 2,516,281 1,712,580 \n25,995 1,117,299 \n \n143,831 1,970,512 \n847,448 \n \n178,039 996,727 466,514 \n \n3,140,698 \n84,028 (1,174,209) \n(9,537) 193,548 117,735 (448,400) (65,362) \n91,539 104,415 (1,105,849) \n(34,208) 973,785 380,934 \n \nTotal Expenses \n \n41,489,660 39,240,543 \n \n2,249,117 \n \nChange in Net Position \n \n$ 14,689,055 $ (1,014,711) $ 15,703,766 \n \n(1) Fiscal year 2020 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements of additional information. \nv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nRevenues \nThe School District's total revenue was $56.2 million for the year. Grants and contributions make up 80.2% and property taxes accounted for 13.0% of the School District's revenue. \nExpenses \nThe School District's total expenses were $41.5 million. The School District's expenses are predominantly accounted for in the instructional category, which accounts for 67.5% of the total cost. This cost is directly related to educating the students. Maintenance and operations accounted for 5.9% of the total cost, which is the cost to keep the facilities comfortable, safe, and secure. \n \nFINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS \nThe focus of the School District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the School District's net resources available for spending at the end of the year. \nAt the end of the current fiscal year, the School District's governmental funds reported a combined ending fund balance of $25.8 million, a decrease in fund balance of $9.1 million from the prior year. \nGeneral Fund \nThe general fund is the primary operating fund of the School District. At the end of the fiscal year the total fund balance was $7.7 million, representing an unassigned fund balance of $6.5 million and a restricted, nonspendable and assigned fund balance of $1.2 million. Fund balance increased by $3.1 million as a result of an increase in state, federal and local funding for the fiscal year. The School District tries to maintain an available general fund balance of 15% of general fund expenditures for unforeseen needs or other opportunities that might arise in addition to meeting the cash flow needs of the School District. The School District currently has an available unassigned general fund balance of 17.3% of the $37.3 million general fund expenditures. \nCapital Projects Fund \nThe capital projects funds accounts for capital projects managed by the School District. After expenditures of $25.8 million for construction of the new Fitzgerald High School, bond payments, and other expenditures the capital projects fund had a decrease in fund balance of $12.2 million and ended the year with a fund balance of $18.1 million. \nTable 3 Governmental Fund Balances \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2021 \n \n2020 \n \nGeneral Fund Capital Projects Fund Debt Service Fund \n \n$ 7,668,765 $ 4,458,887 \n \n18,112,662 \n \n30,309,132 \n \n- \n \n- \n \nTotal \n \n$ 25,781,427 $ 34,768,019 \n \nvi \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nGeneral Fund Budgeting Highlights \n \nThe School District's budget utilized a conservative approach based on limited information available. Emphasis was given to ensure financial stability and long-term stability while providing revenue enhancement, financial priorities, and discipline. The budget is a legally adopted document that incorporates input from the citizens of the School District and input from the management of the School District, and the decisions of the School District regarding how to pay for the services that are provided to the students. \nIn the current year, the School District revised its budget periodically to recognize new funding amounts from external sources and state and federal grants. The Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, is included in the financial statements. For fiscal year 2021, the School District's general fund had a favorable budget variance of $6.5 million. There was an $8.7 million unfavorable budget variance for revenues with a $15.2 million favorable budget variance for expenditures. \n \nThe $8.7 million unfavorable revenue budget variance is attributed to less state and federal funds collected than what was budgeted. \nThe $15.2 million favorable expenditure budget variance is attributable to less actual expenditures for instruction and maintenance and operation of plant than what was budgeted. \nCapital Assets and Debt Administration \n \nCapital Assets \nAt fiscal year ended June 30, 2021, the School District had $64.0 million invested in capital assets (net of accumulated depreciation). The capital assets increased by $24.4 million due to the additions to construction in progress of Fitzgerald High School and purchases of equipment. The net change in capital assets (net of accumulated depreciation) from fiscal year 2020 to fiscal year 2021 was $24.4 million. \nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2021 \n \n2020 \n \nLand Construction In Progress Buildings and Improvements Equipment Land Improvements \n \n$ \n \n2,787,329 $ \n \n2,787,329 \n \n26,582,785 \n \n1,275,284 \n \n32,693,670 \n \n33,567,516 \n \n1,559,148 \n \n1,474,905 \n \n373,090 \n \n482,847 \n \nTotal \n \n$ \n \n63,996,022 $ \n \n39,587,881 \n \nvii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nLong-Term Debt \n \nDuring the prior year, the School District issued general obligation bonds totaling $24,680,000 to build a new school. \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 2019 \n \n3% to 5% 12/12/2019 \n \n4/1/2037 $ 24,680,000 $ 23,680,000 \n \nCURRENT ISSUES \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 continued throughout the fiscal year 2021 and continues to have a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. \nREQUESTS FOR INFORMATION \nThis report is designed to provide an overview of the School District's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Dawn Clements, Chief Operating Officer, Ben Hill County Board of Education, 509 West Palm Street, Fitzgerald, GA 31750. One may also call (229) 409-5500, visit our website www.benhill.k12.ga.us or send an email to dawn.clements@benhillschools.org. \n \nviii \n \n Ben Hill County Board of Education \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2021 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES Accounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Retainages 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 Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION Net Investment in Capital Assets Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n27,068,792.57 \n \n741,491.79 4,114,685.20 3,617,464.37 \n138,755.95 13,134.08 32,128.39 4,000.00 \n29,370,114.13 34,625,907.45 99,726,473.93 \n \n9,238,185.00 5,463,755.00 14,701,940.00 \n \n507,053.73 3,804,364.62 \n265,437.50 2,575,661.47 2,388,248.30 \n1,823.94 32,300,305.00 27,746,773.00 \n1,284,301.52 26,243,447.42 \n97,117,416.50 \n \n984,599.00 5,754,421.00 6,739,020.00 \n \n48,554,706.40 \n \n168,538.00 271,245.73 265,437.50 5,814,538.03 (44,502,488.23) \n \n$ \n \n10,571,977.43 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2021 \n \nEXHIBIT \"B\" \n \nEXPENSES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCHARGES FOR SERVICES \n \nGRANTS AND CONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction \n \n$ \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \nCommunity Services \n \nFood Services \n \nInterest on Long-Term Debt \n \n28,024,165.56 $ \n1,075,695.38 381,448.32 332,512.16 \n1,263,520.02 2,442,919.66 \n610,709.87 2,450,919.41 1,804,119.36 \n130,409.54 11,449.49 \n143,831.07 - \n1,970,511.96 847,448.48 \n \n258,142.26 $ 25,223,914.63 $ \n \n64,000.00 - \n \n207,776.27 316,538.88 428,647.81 675,968.85 1,042,119.38 20,044.83 1,068,705.62 1,135,954.94 \n1,217.64 11,085.45 \n \n16,346.00 - \n \n1,746,358.39 - \n \n7,951,802.43 $ \n \n5,409,693.76 \n \n112,772.54 12,008.94 40,282.45 248,983.24 231,660.00 153,549.76 - \n \n(867,919.11) (64,909.44) 208,908.19 (575,542.23) (1,400,800.28) (550,382.59) (1,069,230.55) (436,504.42) \n24,357.86 (364.04) \n \n263,132.45 310,561.66 \n- \n \n(143,831.07) 263,132.45 102,754.09 (847,448.48) \n \nTotal Governmental Activities \n \n$ 41,489,660.28 $ \n \n338,488.26 $ 31,878,332.69 $ 9,324,753.47 \n \n51,914.14 \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Total General Revenues \n \n7,262,526.52 26,499.20 \n2,653,294.54 84,091.57 \n3,867,212.00 40,617.02 \n702,899.78 14,637,140.63 \n \nChange in Net Position \n \n14,689,054.77 \n \nNet Position - Beginning of Year (Restated) \n \n(4,117,077.34) \n \nNet Position - End of Year \n \n$ \n \n10,571,977.43 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n BEN HILL COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2021 \n \nEXHIBIT \"C\" \n \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - State Funds \nTotal Deferred Inflows of Resources \nFUND BALANCES Nonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n5,211,809.59 $ \n \n21,856,982.98 $ \n \n501,714.81 2,642,941.73 3,617,464.37 \n138,755.95 13,134.08 32,128.39 4,000.00 \n \n239,776.98 1,471,743.47 \n- \n \n$ \n \n12,161,948.92 $ 23,568,503.43 $ \n \n- \n \n$ \n \n27,068,792.57 \n \n- \n \n741,491.79 \n \n- \n \n4,114,685.20 \n \n- \n \n3,617,464.37 \n \n- \n \n138,755.95 \n \n- \n \n13,134.08 \n \n- \n \n32,128.39 \n \n- \n \n4,000.00 \n \n- \n \n$ \n \n35,730,452.35 \n \n$ \n \n334,306.86 $ \n \n172,746.87 $ \n \n3,804,364.62 \n \n- \n \n- \n \n2,575,661.47 \n \n- \n \n2,388,248.30 \n \n1,823.94 \n \n- \n \n4,140,495.42 \n \n5,136,656.64 \n \n- $ - \n \n507,053.73 3,804,364.62 2,575,661.47 2,388,248.30 \n1,823.94 9,277,152.06 \n \n352,689.10 - \n352,689.10 \n \n319,184.60 319,184.60 \n \n- \n \n352,689.10 \n \n- \n \n319,184.60 \n \n- \n \n671,873.70 \n \n32,128.39 407,655.34 750,854.14 6,478,126.53 7,668,764.40 \n \n18,112,662.19 \n18,112,662.19 \n \n- \n \n32,128.39 \n \n- \n \n18,520,317.53 \n \n- \n \n750,854.14 \n \n- \n \n6,478,126.53 \n \n- \n \n25,781,426.59 \n \n$ \n \n12,161,948.92 $ 23,568,503.43 $ \n \n- \n \n$ \n \n35,730,452.35 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n-3- \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2021 \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. Land 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. Net 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. Related to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nState grants that are not available to pay 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. Bonds payable Accrued interest payable Unamortized bond premiums \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n25,781,426.59 \n \n$ \n \n2,787,329.22 \n \n26,582,784.91 \n \n49,398,031.48 \n \n6,864,534.63 \n \n2,994,268.28 \n \n(24,630,926.94) \n \n63,996,021.58 \n \n$ \n \n(32,300,305.00) \n \n(27,746,773.00) \n \n(60,047,078.00) \n \n$ \n \n8,253,586.00 \n \n(290,666.00) \n \n7,962,920.00 352,689.10 319,184.60 \n \n$ \n \n(23,680,000.00) \n \n(265,437.50) \n \n(3,847,748.94) \n \n$ \n \n(27,793,186.44) 10,571,977.43 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 \n \nEXHIBIT \"E\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning (Restated) \nFund Balances - Ending \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n7,253,428.36 $ \n \n84,091.57 \n \n23,545,744.44 \n \n12,460,435.35 \n \n338,488.26 \n \n16,626.20 \n \n702,899.78 \n \n44,401,713.96 \n \n- $ 2,966,365.11 8,773,908.87 \n23,990.82 11,764,264.80 \n \n- $ - \n \n7,253,428.36 3,050,456.68 32,319,653.31 12,460,435.35 \n338,488.26 40,617.02 \n702,899.78 56,165,978.76 \n \n25,460,619.81 \n1,015,521.28 298,651.16 295,757.56 \n1,208,408.38 2,313,322.38 \n579,292.53 2,305,952.65 \n1,687,152.11 108,815.08 10,000.00 143,831.07 1,911,311.42 \n- \n37,338,635.43 7,063,078.53 \n \n164,123.59 \n21,960.98 150,042.12 176,000.00 25,322,881.37 \n25,835,008.06 (14,070,743.26) \n \n- \n- \n1,000,000.00 1,101,750.00 2,101,750.00 \n(2,101,750.00) \n \n25,624,743.40 \n1,015,521.28 298,651.16 295,757.56 \n1,230,369.36 2,313,322.38 \n579,292.53 2,455,994.77 \n1,863,152.11 108,815.08 10,000.00 143,831.07 1,911,311.42 25,322,881.37 \n1,000,000.00 1,101,750.00 \n65,275,393.49 (9,109,414.73) \n \n(3,976,023.89) (3,976,023.89) \n \n3,976,023.89 (2,101,750.00) 1,874,273.89 \n \n3,087,054.64 \n \n(12,196,469.37) \n \n4,581,709.76 \n \n30,309,131.56 \n \n$ \n \n7,668,764.40 $ \n \n18,112,662.19 $ \n \n2,101,750.00 - \n2,101,750.00 \n \n6,077,773.89 (6,077,773.89) \n- \n \n- \n \n(9,109,414.73) \n \n- \n \n34,890,841.32 \n \n- $ \n \n25,781,426.59 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2021 \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. Capital 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. \nTaxes reported in the funds are not reported as revenue in the Statement of Activities during the current period. \nState grants reported in the Statement of Activities that do not provide current financial resources are not reported as revenue 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. Bond principal retirements Amortization of bond premium \nDistrict pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense \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. Net decrease in accrued interest \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n(9,109,414.73) \n \n$ \n \n25,733,229.09 \n \n(1,325,088.72) \n \n24,408,140.37 35,597.36 \n(313,070.57) 319,184.60 \n \n$ \n \n1,000,000.00 \n \n244,301.52 \n \n1,244,301.52 \n \n$ \n \n(1,566,089.78) \n \n(339,594.00) \n \n(1,905,683.78) \n \n10,000.00 \n \n$ \n \n14,689,054.77 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2021 \nASSETS Cash and Cash Equivalents NET POSITION Held in Trust for Private Purposes \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n8,761.73 \n \n$ \n \n8,761.73 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n-7- \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDCUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2021 \nADDITIONS Contributions Donors Investment Earnings Interest Miscellaneous \nTotal Additions \nDEDUCTIONS Other Deductions \nChange in Net Position \nNet Position - Beginning Net Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n7,000.00 \n \n16.73 1,449.49 \n \n8,466.22 \n \n7,000.00 \n \n1,466.22 \n \n7,295.51 \n \n$ \n \n8,761.73 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n-8- \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nReporting Entity \nThe Ben Hill County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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, 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. \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. \n \n- 9 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \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), bond proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \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 Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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 BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \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 certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities 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 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and post-employment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of the GASB Statement No. 84 is described in the restatement note. \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- 11 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \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 \nPrepaid Items \nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \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 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. \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 Construction In Progress Intangible - Software All Other - Intangible Assets \n \nAny Amount \n \n$ \n \n50,000.00 \n \n$ \n \n50,000.00 \n \n$ \n \n5,000.00 \n \n$ \n \n50,000.00 \n \n$ 100,000.00 \n \n$ \n \n10,000.00 \n \nN/A 15 Years \n60 to 75 Years 5 to 25 Years N/A 10 Years 20 Years \n \n- 12 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \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 straightline 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. \nPost-Employment 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 Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \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. \n- 13 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \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. \n \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 \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 \n \nThe Ben Hill County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on July 30, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on December 20, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations amounted to $6,432,091.26. \n \nThe tax millage rate levied for the 2020 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.11 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $794,837.90 during fiscal year ended June 30, 2021. \nSales Taxes \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,966,365.11 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n- 14 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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 - 15 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \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, 2021, School District had deposits with a carrying amount of $12,987,272.59, and a bank balance of $14,268,237.02. The bank balances insured by Federal depository insurance were $500,000.00 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 $9,140,894.00. \nAt June 30, 2021, $4,627,343.02 of the School District's bank balances was in the State's Secure Deposit Program (SDP). \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \n- 16 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 27,068,792.57 8,761.73 \n \nTotal cash and cash equivalents \n \n27,077,554.30 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n14,090,281.71 \n \nTotal carrying value of deposits - June 30, 2021 \n \n$ 12,987,272.59 \n \nCategorization of Cash Equivalents \nThe School District reported cash equivalents of $14,090,281.91 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2021 was 36 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \n- 17 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nGovernmental Activities Capital Assets, \nNot Being Depreciated: Land Construction in Progress \n \nBalances July 1, 2020 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2021 \n \n$ 2,787,329.22 $ \n \n- $ \n \n1,275,283.82 \n \n25,307,501.09 \n \n- $ 2,787,329.22 \n \n- \n \n26,582,784.91 \n \nTotal Capital Assets Not Being Depreciated \n \n4,062,613.04 \n \n25,307,501.09 \n \n- \n \n29,370,114.13 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n49,492,298.52 6,525,323.63 2,994,268.28 \n15,924,782.37 5,050,418.39 \n2,511,421.50 \n \n425,728.00 \n- \n \n94,267.04 86,517.00 \n- \n \n49,398,031.48 6,864,534.63 2,994,268.28 \n \n873,846.56 341,485.45 109,756.71 \n \n94,267.04 86,517.00 \n- \n \n16,704,361.89 5,305,386.84 \n2,621,178.21 \n \nTotal Capital Assets Being Depreciated, Net \n \n35,525,268.17 \n \n(899,360.72) \n \n- \n \n34,625,907.45 \n \nGovernmental Activities Capital Assets - Net \n \n$ 39,587,881.21 $ 24,408,140.37 $ \n \n- $ 63,996,021.58 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nEducational Media Services \n \n$ \n \nGeneral Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nFood Services \n \n16,433.75 1,750.00 5,870.15 74,627.93 187,567.63 22,376.00 \n \n$ 971,206.77 \n308,625.46 45,256.52 \n \n$ 1,325,088.75 \n \n- 18 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nNOTE 6: INTERFUND TRANSFERS Interfund Transfers Interfund transfers for the year ended June 30, 2021, consisted of the following: \n \nTransfers to \n \nTransfers From \n \nCapital Projects \n \nGeneral Fund \n \nFund \n \nEXHIBIT \"I\" \n \nCapital Projects Fund Debt Service Fund \n \n$ 3,976,023.89 $ - \n \n2,101,750.00 \n \nTotal \n \n$ 3,976,023.89 $ 2,101,750.00 \n \nTransfers are used to move property tax revenues collected by the general fund to capital projects fund as required match or supplemental funding source for capital construction projects. Transfers are used to move sales tax revenues collected by the capital projects fund to the debt service fund to provide funding to service debt. \n \nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2020 \n \nGovernmental Activities \n \nBalance \n \nAdditions \n \nDeductions \n \nJune 30, 2021 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds $ 24,680,000.00 $ \n \nUnamortized Bond Premiums \n \n4,092,050.46 \n \n$ 28,772,050.46 $ \n \n- $ 1,000,000.00 $ 23,680,000.00 $ 1,040,000.00 \n \n- \n \n244,301.52 \n \n3,847,748.94 \n \n244,301.52 \n \n- $ 1,244,301.52 $ 27,527,748.94 $ 1,284,301.52 \n \nGeneral Obligation Debt Outstanding \nThe School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \nThe School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2021. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \n \n- 19 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nOf the total amount originally authorized, $2,720,000.00 remains unissued. General 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 2019 3% to 5% 12/12/2019 4/1/2037 $ 24,680,000.00 $ 23,680,000.00 \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 \n2022 2023 2024 2025 2026 2027 - 2031 2032 - 2036 2037 \n \n$ 1,040,000.00 $ 1,061,750.00 $ \n \n244,301.52 \n \n1,080,000.00 \n \n1,020,150.00 \n \n244,301.52 \n \n1,125,000.00 \n \n976,950.00 \n \n244,301.52 \n \n1,180,000.00 \n \n920,700.00 \n \n244,301.52 \n \n1,240,000.00 \n \n861,700.00 \n \n244,301.52 \n \n7,050,000.00 \n \n3,451,750.00 \n \n1,221,507.60 \n \n8,945,000.00 \n \n1,559,100.00 \n \n1,221,507.60 \n \n2,020,000.00 \n \n80,800.00 \n \n183,226.14 \n \nTotal Principal and Interest $ 23,680,000.00 $ 9,932,900.00 $ 3,847,748.94 \nNOTE 8: 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 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. \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 \n- 20 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nprovided 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 107% of the loss fund and based on the Fund's annual normal premium. \n \nUnemployment Compensation \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. \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 \nEstimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2020 $ \n \n- \n \n$ \n \n1,320.00 \n \n$ \n \n1,320.00 \n \n$ \n \n- \n \n2021 $ \n \n- \n \n$ \n \n2,855.50 \n \n$ \n \n2,855.50 \n \n$ \n \n- \n \nSurety Bond The School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \nMilitary Property Custodian \n \n$ \n \nEach Principal \n \n$ \n \nDirector of Budget and Finance \n \n$ \n \nEach Lunchroom Manager and Assistant Manager $ \n \nEach Secretary and Bookkeeper \n \n$ \n \nPayroll Administrator \n \n$ \n \n99,000.00 24,000.00 \n9,000.00 8,000.00 4,000.00 4,000.00 3,000.00 \n \n- 21 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2021: \n \nNonspendable Inventories \nRestricted Bus Replacement Continuation of Federal Programs Capital Projects Debt Service \nAssigned School Activity Accounts Donated Funds \nUnassigned \n \n$ \n \n32,128.39 \n \n$ 168,538.00 239,117.34 \n17,581,787.19 530,875.00 \n \n18,520,317.53 \n \n$ \n \n107,650.87 \n \n643,203.27 \n \n750,854.14 6,478,126.53 \n \nFund Balance, June 30, 2021 \n \n$ 25,781,426.59 \n \nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \nNOTE 10: SIGNIFICANT COMMITMENTS \nCommitments under Construction Contracts The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2021, together with funding available: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2021 (2) \n \nFunding Available From State (1) \n \nFHS High School \n \n$ 18,029,487.06 $ 26,188,136.28 $ 2,323,125.93 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year end. \nNOTE 11: 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. \n- 22 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nLitigation \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \nNOTE 12: 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 post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \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 $693,545.00 for the year ended June 30, 2021. 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, 2021, the School District reported a liability of $27,746,773.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 0.188912%, which was an increase of 0.000872% from its proportion measured as of June 30, 2019. \n \n- 23 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nFor the year ended June 30, 2021, the School District recognized OPEB expense of $1,033,139.00. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and \n \nactual experience \n \n$ \n \n- $ 3,029,086.00 \n \nChanges of assumptions \n \n4,588,700.00 \n \n2,468,866.00 \n \nNet difference between projected and actual earnings on OPEB plan investments \n \n72,319.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n109,191.00 \n \n256,469.00 \n \nSchool District contributions \n \nsubsequent to the measurement date \n \n693,545.00 \n \n- \n \nTotal \n \n$ 5,463,755.00 $ 5,754,421.00 \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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2022 2023 2024 2025 2026 Thereafter \n \n$ (620,509.00) $ (622,449.00) $ (437,601.00) $ 59,143.00 $ 464,258.00 $ 172,947.00 \n \n- 24 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nActuarial Assumptions: The total OPEB liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2020: \n \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, 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 Pre-Medicare Eligible Medicare Eligible \n \n7.00% 5.25% \n \nUltimate trend rate Pre-Medicare Eligible Medicare Eligible \n \n4.50% 4.50% \n \nYear of Ultimate trend rate \n \nPre-Medicare Eligible \n \n2029 \n \nMedicare Eligible \n \n2023 \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 Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirements and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirements. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future morality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \n- 25 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 valuation. \n \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 \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 of Return* \n \nFixed income Equities \n \n30.00% 70.00% \n \n0.50% 9.20% \n \nTotal \n \n100.00% \n \n*Net of Inflation \nDiscount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 2.22% was used as the discount rate, as compared with last year's rate of 3.58%. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation bonds with an average rating of AA or higher (2.21% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118. \n \n- 26 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nSensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate: The following presents the collective net OPEB liability of the participating employers calculated using the discount rate of 2.22%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.22%) or 1-percentage-point higher (3.22%) than the current discount rate: \n \n1% Decrease (1.22%) \n \nCurrent Discount Rate (2.22%) \n \n1% Increase (3.22%) \n \nSchool District's proportionate share of the Net OPEB liability \n \n$ 32,597,881.00 $ \n \n27,746,773.00 $ 23,867,242.00 \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 collective net OPEB liability of the participating employers, as well as what the collective net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint higher than the current healthcare cost trend rates: \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$ 23,101,978.00 $ \n \n27,476,773.00 $ 33,760,434.00 \n \nOPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \nNOTE 13: 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 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 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 \n- 27 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \ncompensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2021. The School District's contractually required contribution rate for the year ended June 30, 2021 was 19.06% of annual School District payroll, of which 18.81% of payroll was required from the School District and 0.25% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,331,133.00 and $39,510.10 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/financials. \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. \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 4.00% of annual compensation, up to $4,200.00, plus 6.00% 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 \n- 28 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \ncomputation 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 total required contribution rate for the year ended June 30, 2021 was 24.66% of annual covered payroll for old plan members of which 19.91% was required from the School District and 4.75% was contributed on behalf of the School District by the state. Additionally, the School District's total required contribution rate was 24.66% for new plan members and 21.57% 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 $16,089.00 for the current fiscal year. \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/financials. \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 $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \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 $56,280.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2021, the School District reported a liability of $32,300,305.00 for its proportionate share of the net pension liability for TRS ($32,192,613.00) and ERS ($107,692.00). \n \n- 29 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 32,192,613.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \nTotal \n \n120,635.00 $ 32,313,248.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2020. \nAt June 30, 2020, the School District's TRS proportion was 0.132896%, which was an increase of 0.002634% from its proportion measured as of June 30, 2019. At June 30, 2020, the School District's ERS proportion was 0.002555%, which was an increase of 0.000194% from its proportion measured as of June 30, 2019. \nAt June 30, 2021, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $360,715.00. \nThe PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2020. \nFor the year ended June 30, 2021, the School District recognized pension expense of $4,886,164.00 for TRS, $19,970.00 for ERS and $72,588.00 for PSERS and revenue of ($5,773.00) for TRS and $72,588.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 30 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nAt June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual \n \nexperience \n \n$ 1,401,998.00 $ \n \n- $ \n \n1,312.00 $ \n \n- \n \nChanges of assumptions \n \n3,315,876.00 \n \n- \n \n- \n \n- \n \nNet difference between projected and actual \n \nearnings on pension plan investments \n \n775,364.00 \n \n- \n \n1,521.00 \n \n- \n \nChanges in proportion and differences \n \nbetween School District contributions and \n \nproportionate share of contributions \n \n388,705.00 \n \n984,599.00 \n \n6,187.00 \n \n- \n \nSchool District contributions subsequent to the \n \nmeasurement date \n \n3,331,133.00 \n \n- \n \n16,089.00 \n \n- \n \nTotal \n \n$ 9,213,076.00 $ 984,599.00 $ \n \n25,109.00 $ \n \n- \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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2022 2023 2024 2025 \n \n$ 786,603.00 $ 3,540.00 $ 1,514,643.00 $ 2,384.00 $ 1,782,533.00 $ 1,765.00 $ 813,565.00 $ 1,331.00 \n \n- 31 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nActuarial Assumptions: The total pension liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \n \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 \nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018. \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 \n- 32 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \n \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \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 1.50% semi-annually \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, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \n \n- 33 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \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 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 \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 the 2.75% assumed rate of inflation with the exception of TRS, which assumed a \nrate of 2.50% rate of inflation. \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 plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n- 34 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"I\" \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 rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 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 \n \nthe net pension liability \n \n$ \n \n51,049,799.00 $ \n \n32,192,613.00 $ \n \n16,735,127.00 \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 \n151,504.00 $ \n \n107,692.00 $ \n \n70,304.00 \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 publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. \nNOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION AND FUND BALANCE \nFor fiscal year 2021, the School District made prior period adjustments due to the adoption of GASB Statement No. 84, as described in \"New Accounting Pronouncements,\" which requires the restatement of the June 30, 2020 net position in governmental activities and fund balance in the general fund. These changes are in accordance with generally accepted accounting principles. \n \nNet Position, July 1, 2020 as previously reported \n \n$ (4,239,900.37) \n \nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \n \n122,823.03 \n \nNet Position, July 1, 2020, as restated \n \n$ (4,117,077.34) \n \nFund Balance (General Fund), July 1, 2020, as previously reported \n \n$ 4,458,886.73 \n \nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \n \n122,823.03 \n \nFund Balance (General Fund), July 1, 2020, as restated \n \n$ 4,581,709.76 \n \nFunds Held for Others of $122,823.03, previously presented in Fiduciary Funds, was reclassified to Net Position and Fund Balance (General Fund). \n \n- 35 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"1\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion \nof the Net Pension Liability (NPL) \n \nSchool District's proportionate share of the NPL \n \nState of Georgia's proportionate \nshare of the NPL associated with the School District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered \npayroll \n \nPlan fiduciary net position \nas a percentage of \nthe total pension liability \n \n2021 2020 2019 2018 2017 2016 2015 \n \n0.132896% $ 32,192,613.00 $ 0.130262% $ 28,009,852.00 $ 0.133661% $ 24,810,345.00 $ 0.140963% $ 26,198,408.00 $ 0.142743% $ 29,449,472.00 $ 0.147075% $ 22,390,708.00 $ 0.154807% $ 19,557,823.00 $ \n \n120,635.00 107,729.00 116,570.00 213,917.00 244,066.00 189,996.00 160,953.00 \n \n$ 32,313,248.00 $ 28,117,581.00 $ 24,926,915.00 $ 26,412,325.00 $ 29,693,538.00 $ 22,580,704.00 $ 19,718,776.00 \n \n$ 17,203,475.45 $ 15,963,784.68 $ 15,994,439.37 $ 16,314,149.47 $ 15,786,646.73 $ 15,656,895.31 $ 15,932,172.02 \n \n187.13% 175.46% 155.12% 160.59% 186.55% 143.01% 122.76% \n \n77.01% 78.56% 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- 37 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"2\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \nContribution as a percentage of covered payroll \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n3,331,133.00 $ 3,623,230.00 $ 3,323,640.00 $ 2,676,096.72 $ 2,309,164.92 $ 2,234,505.20 $ \n2,041,552.01 $ \n \n3,331,133.00 $ 3,623,230.00 $ 3,323,640.00 $ 2,676,096.72 $ 2,309,164.92 $ 2,234,505.20 $ \n2,041,552.01 $ \n \n- \n \n$ \n \n17,711,587.22 \n \n- \n \n$ \n \n17,203,475.45 \n \n- \n \n$ 15,963,784.68 \n \n- \n \n$ \n \n15,994,439.37 \n \n- \n \n$ \n \n16,314,149.47 \n \n- \n \n$ \n \n15,786,646.73 \n \n- \n \n$ \n \n15,656,895.31 \n \n18.81% 21.06% 20.82% 16.73% 14.15% 14.15% 13.04% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"3\" \n \nFor the Year Ended June 30 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the \nNPL as a percentage of covered payroll \n \nPlan fiduciary net position as a \npercentage of total pension liability \n \n2021 2020 2019 2018 2017 2016 2015 \n \n0.002555% $ 0.002361% $ 0.002196% $ 0.002523% $ 0.002585% $ 0.002558% $ 0.002591% $ \n \n107,692.00 $ 97,427.00 $ 90,278.00 $ 102,467.00 $ 122,281.00 $ 103,635.00 $ 97,179.00 $ \n \n65,696.44 54,867.38 56,023.77 61,878.66 60,097.22 58,488.36 58,346.42 \n \n163.92% 177.57% 161.14% 165.59% 203.47% 177.19% 166.56% \n \n76.21% 76.74% 76.68% 76.33% 72.34% 76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 39 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"4\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \nContribution as a percentage of covered payroll \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n16,089.00 $ 16,200.78 $ 13,596.00 $ 13,899.49 $ 15,352.05 $ 14,856.00 $ 12,844.08 $ \n \n16,089.00 $ 16,200.78 $ 13,596.00 $ 13,899.49 $ 15,352.05 $ 14,856.00 $ 12,844.08 $ \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 \n65,243.16 65,696.44 54,867.38 56,023.77 61,878.66 60,097.22 58,488.26 \n \n24.66% 24.66% 24.78% 24.81% 24.81% 24.72% 21.96% \n \nThis schedule is intended to show information for 10 years. Addtional years will be displayed as they become available. \n \n- 40 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"5\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share of the NPL \n \nState of Georgia's proportionate \nshare of the NPL associated with the School District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered \npayroll \n \nPlan fiduciary net position as a percentage \nof the total pension liability \n \n2021 2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n360,715.00 $ 360,715.00 $ \n \n777,289.13 \n \n- \n \n$ \n \n338,812.00 $ 338,812.00 $ 783,850.97 \n \n- \n \n$ \n \n293,873.00 $ 293,873.00 $ 813,644.00 \n \n- \n \n$ \n \n273,648.00 $ 273,648.00 $ 730,766.58 \n \n- \n \n$ \n \n383,890.00 $ 383,890.00 $ \n \n725,869.10 \n \n- \n \n$ \n \n242,736.00 $ 242,736.00 $ 783,445.60 \n \n- \n \n$ 224,650.00 $ 224,650.00 $ 846,638.60 \n \nN/A \n \n84.45% \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- 41 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND \n \nSCHEDULE \"6\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net OPEB Liability (NOL) \n \nSchool District's proportionate share of the NOL \n \nState of Georgia's proportionate share of the NOL associated with the School \nDistrict \n \nTotal \n \nSchool District's covered- \nemployee payroll \n \nSchool District's proportionate share of the NOL as a percentage of its coveredemployee payroll \n \nPlan fiduciary net position \nas a percentage of the total OPEB liability \n \n2021 2020 2019 2018 \n \n0.188912% $ 27,746,773.00 $ 0.188040% $ 23,076,542.00 $ 0.188132% $ 23,911,000.00 $ 0.188905% $ 26,541,077.00 $ \n \n- \n \n$ 27,746,773.00 $ 15,452,349.64 \n \n- \n \n$ 23,076,542.00 $ 14,511,158.88 \n \n- \n \n$ 23,911,000.00 $ 14,202,987.29 \n \n- \n \n$ 26,541,077.00 $ 14,340,666.23 \n \n179.56% 159.03% 168.35% 185.08% \n \n3.99% 4.63% 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- 42 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \n \nSCHEDULE \"7\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \nContribution as a percentage of \ncovered-employee payroll \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n693,545.00 $ 638,857.00 $ 1,012,725.00 $ 975,069.00 $ \n \n693,545.00 $ 638,857.00 $ 1,012,725.00 $ 975,069.00 $ \n \n- \n \n$ \n \n16,104,571.59 \n \n- \n \n$ 15,452,349.64 \n \n- \n \n$ \n \n14,511,158.88 \n \n- \n \n$ 14,202,987.29 \n \n4.31% 4.13% 6.98% 6.87% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 43 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"8\" \n \nTeachers Retirement System Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \n \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). \n \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%. \n \nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nEmployees' Retirement System Changes 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, and a one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. Two onetime 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \n \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. \n \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. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation. \nPublic School Employees Retirement System Changes of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-of-living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \n \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. \n \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). \n \nOn March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation. \n \n- 44 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"8\" \n \nSchool OPEB Fund Changes 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 June 30, 2019 decremental valuation were changed to reflect the Teachers Retirement Systems experience study. \nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020. \n \n- 45 - \n \n BEN HILL COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"9\" \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \n \n$ \n \n- $ \n \n6,325,000.00 $ \n \n7,253,428.36 $ \n \n928,428.36 \n \n- \n \n60,000.00 \n \n84,091.57 \n \n24,091.57 \n \n14,850.00 \n \n23,695,659.66 \n \n23,545,744.44 \n \n(149,915.22) \n \n2,872,541.00 \n \n22,874,736.88 \n \n12,460,435.35 \n \n(10,414,301.53) \n \n- \n \n146,100.00 \n \n338,488.26 \n \n192,388.26 \n \n- \n \n12,516.00 \n \n16,626.20 \n \n4,110.20 \n \n- \n \n19,789.12 \n \n702,899.78 \n \n683,110.66 \n \n2,887,391.00 \n \n53,133,801.66 \n \n44,401,713.96 \n \n(8,732,087.70) \n \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operation Food Services Operation Total Expenditures \nExcess of Revenues over (under) Expenditures \n \n22,341,781.55 \n1,025,957.79 972,090.16 333,693.40 \n1,070,336.89 2,120,580.45 \n617,235.20 2,463,189.00 \n1,724,731.56 86,756.00 65,500.00 197,401.00 \n2,001,636.00 35,020,889.00 (32,133,498.00) \n \n35,555,725.88 \n1,387,276.70 1,124,642.16 339,780.40 1,086,627.89 2,146,740.45 628,038.20 5,393,737.00 2,476,157.06 \n94,405.00 65,500.00 197,401.00 2,093,650.41 52,589,682.15 544,119.51 \n \n25,460,619.81 \n1,015,521.28 298,651.16 295,757.56 \n1,208,408.38 2,313,322.38 \n579,292.53 2,305,952.65 \n1,687,152.11 108,815.08 10,000.00 143,831.07 1,911,311.42 37,338,635.43 7,063,078.53 \n \n10,095,106.07 \n371,755.42 825,991.00 44,022.84 (121,780.49) (166,581.93) \n48,745.67 3,087,784.35 \n789,004.95 (14,410.08) 55,500.00 53,569.93 182,338.99 \n15,251,046.72 6,518,959.02 \n \nOTHER FINANCING SOURCES(USES) Other Sources Other Uses Total Other Financing Sources (Uses) \n \n411,868.00 (411,868.00) \n- \n \n656,868.00 (411,868.00) 245,000.00 \n \n(3,976,023.89) (3,976,023.89) \n \n(656,868.00) (3,564,155.89) (4,221,023.89) \n \nNet Change in Fund Balances \n \n(32,133,498.00) \n \n789,119.51 \n \n3,087,054.64 \n \n2,297,935.13 \n \nFund Balances - Beginning (Restated) \n \n3,799,913.93 \n \n3,799,913.93 \n \n4,581,709.76 \n \n781,795.83 \n \nAdjustments \n \n9,740.97 \n \n(33,818.00) \n \n- \n \n33,818.00 \n \nFund Balances - Ending \n \n$ \n \n(28,323,843.10) $ \n \n4,555,215.44 $ \n \n7,668,764.40 $ \n \n3,113,548.96 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \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- 46 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2021 \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 Child Nutrition Discretionary Grants Limited Availability Total Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition Pass-Through From Rural Utilities Services Total Other Programs Total 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 COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Total Education Stabilization Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants Total Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Comprehensive Literacy Development English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Achievement Program Rural Education Achievement Program Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 10.579 \n \n215GA324N1199 $ 215GA324N1199 215GA350N8103 \n \n360,954.12 1,386,076.18 \n19,270.09 1,766,300.39 \n \n10.560 10.855 \n \n205GA904N2533 RUS-21-01-DLT \n \n6,233.78 297,213.30 303,447.08 2,069,747.47 \n \n84.425D 84.425D \n84.425U \n \nS425D200012 S425D210012 \nS425U210012 \n \n1,486,334.00 4,917,277.58 \n337,545.49 6,741,157.07 \n \n84.027A 84.173A \n \nH027A200073 H173A200081 \n \n651,592.22 34,388.24 685,980.46 \n \n84.048A 84.371C 84.365A 84.011 84.011 84.358B 84.358B 84.367A 84.010A 84.010A \n \nV048A200010 S371C190016-19A \nS365A200010 S011A190011 S011A200011 S365B190010 S365B200010 S367A200001 S010A190010 S010A200010 \n \n49,168.00 202,786.40 \n10,423.84 858.00 \n26,751.81 533.00 \n59,947.85 1,300.00 493,092.00 2,020,729.52 2,865,590.42 10,292,727.95 \n \n- 47 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"10\" \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services, U. S. Department of Pass-Through From Bright From the Start Georgia Department of Early Care and Learning COVID-19 - Child Care and Development Block Grant Pass-Through From Children and Youth Coordinating Council Abstinence Education Total U. S. Department of Health and Human Services \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nTotal Expenditures of Federal Awards \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n93.575 93.235 \n \nNIG95295 \n \n16,232.00 \n99,246.47 115,478.47 \n \n12. UNKNOWN \n \n51,676.38 \n \n$ \n \n12,529,630.27 \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 Ben Hill County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \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- 48 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"11\" \n \nAGENCY/FUNDING \n \nGRANTS \n \nBright From the Start: \n \nGeorgia Department of Early Care and Learning \n \nPre-Kindergarten Program \n \n$ \n \nSummer Transition Program \n \nEducation, Georgia Department of \n \nQuality Basic Education \n \nDirect Instructional Cost \n \nKindergarten Program \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) 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 \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \nMedia Center Program \n \n20 Days Additional Instruction \n \nStaff and Professional Development \n \nPrincipal Staff and Professional Development \n \nIndirect Cost \n \nCentral Administration \n \nSchool Administration \n \nFacility Maintenance and Operations \n \nMid-term Adjustment Hold-Harmless \n \nAmended Formula Adjustment \n \nCharter System Adjustment \n \nCategorical Grants \n \nPupil Transportation \n \nRegular \n \nBus Replacement \n \nNursing Services \n \nEducation Equalization Funding Grant \n \nOther State Programs \n \nFood Services \n \nHygiene Products \n \nMath and Science Supplements \n \nPreschool Disability Services \n \nPupil Transportation - State Bonds \n \nTeachers Retirement \n \nVocational Education \n \nVocational Supervisors \n \nGeorgia State Financing and Investment Commission \n \nReimbursement on Construction Projects \n \nOffice of the State Treasurer \n \nPublic School Employees Retirement \n \nTechnical College System of Georgia \n \nVocational - Technology School \n \n$ \n \nGOVERNMENTAL FUND TYPES \n \nGENERAL FUND \n \nCAPITAL PROJECTS FUND \n \n782,096.26 $ 113,844.08 \n \n- $ - \n \n1,018,005.00 325,181.00 \n1,749,344.00 1,126,614.00 804,761.00 1,070,159.00 2,038,762.00 1,573,114.00 578,063.00 2,659,777.00 727,469.00 1,223,843.00 \n145,514.00 122,620.00 384,555.00 118,277.00 67,203.00 \n1,518.00 \n567,663.00 844,140.00 777,457.00 37,306.00 (583,658.00) 304,832.00 \n398,298.00 154,440.00 \n61,232.00 3,867,212.00 \n53,350.00 1,877.00 \n14,850.00 101,002.00 77,220.00 \n39,510.10 128,365.00 \n13,649.00 \n- \n56,280.00 \n- \n23,545,744.44 $ \n \n- \n- \n- \n- \n7,651,112.20 \n- \n1,122,796.67 \n8,773,908.87 $ \n \nSee notes to the basic financial statements. \n \nTOTAL \n782,096.26 113,844.08 \n1,018,005.00 325,181.00 \n1,749,344.00 1,126,614.00 804,761.00 1,070,159.00 2,038,762.00 1,573,114.00 578,063.00 2,659,777.00 727,469.00 1,223,843.00 \n145,514.00 122,620.00 384,555.00 118,277.00 67,203.00 \n1,518.00 \n567,663.00 844,140.00 777,457.00 37,306.00 (583,658.00) 304,832.00 \n398,298.00 154,440.00 \n61,232.00 3,867,212.00 \n53,350.00 1,877.00 \n14,850.00 101,002.00 77,220.00 \n39,510.10 128,365.00 \n13,649.00 \n7,651,112.20 \n56,280.00 \n1,122,796.67 \n32,319,653.31 \n- 49 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"12\" \n \nPROJECT 2016 \n(i) Replacement of schools and/or construction of new schools, including and necessary demolition; \n(ii) Adding to, renovating, repairing, improving, furnishing, and/or equipping existing school buildings, including the central office, transportation and maintenance facilities, including necessary demolition; \n(iii) Adding to, constructing, renovating, furnishing, and/or equipping athletic facilities; \n(iv) Acquiring equipment, instruments and/or materials for the fine arts, vocational, physical education and athletic departments; \n(v) Renovations, additions, and/or improvements to parking, traffic access facilities and transportation department, including paving and any necessary site work; \n(vi) Acquiring instructional and/or administrative technology equipment and materials; \n(vii) Acquiring safety, security, and/or fire protecting equipment; \n(viii) Acquiring buses, vehicles, and/or transportation equipment; \n(ix) Acquiring property; and \n(x) Paying a portion of the principal and interest on the current general obligation debt and general obligation debt to be issued (collectively, the \"Projects\"). \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nESTIMATED COMPLETION \nDATE \n \n$ 3,500,000.00 $ 26,448,730.45 \n \n2022 \n \n500,000.00 500,000.00 200,000.00 \n \n500,000.00 500,000.00 200,000.00 \n \n2022 2022 2022 \n \n1,000,000.00 \n \n1,000,000.00 \n \n1,000,000.00 100,000.00 750,000.00 500,000.00 \n \n1,000,000.00 100,000.00 812,805.00 1,521,309.21 \n \n2022 \n2022 2022 2022 2022 \n \n7,950,000.00 \n \n7,950,000.00 \n \n$ 16,000,000.00 $ 40,032,844.66 \n \n2037 \n \n- 50 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"12\" \n \nPROJECT \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n(i) Replacement of schools and/or construction of new schools, \n \nincluding and necessary demolition; \n \n$ 25,307,501.37 $ 1,141,229.08 $ \n \n- $ \n \n- \n \n(ii) Adding to, renovating, repairing, improving, furnishing, and/or \n \nequipping existing school buildings, including the central office, \n \ntransportation and maintenance facilities, including necessary \n \ndemolition; \n \n67,900.00 \n \n389,649.24 \n \n- \n \n- \n \n(iii) Adding to, constructing, renovating, furnishing, and/or equipping \n \nathletic facilities; \n \n- \n \n237,990.20 \n \n- \n \n- \n \n(iv) Acquiring equipment, instruments and/or materials for the fine \n \narts, vocational, physical education and athletic departments; \n \n15,380.00 \n \n37,994.69 \n \n- \n \n- \n \n(v) Renovations, additions, and/or improvements to parking, traffic \n \naccess facilities and transportation department, including paving \n \nand any necessary site work; \n \n- \n \n- \n \n- \n \n- \n \n(vi) Acquiring instructional and/or administrative technology equipment and materials; \n \n211,341.19 \n \n689,209.16 \n \n- \n \n- \n \n(vii) Acquiring safety, security, and/or fire protecting equipment; \n \n- \n \n73,694.28 \n \n- \n \n- \n \n(viii) Acquiring buses, vehicles, and/or transportation equipment; \n \n228,848.00 \n \n583,957.00 \n \n- \n \n- \n \n(ix) Acquiring property; and \n \n- \n \n1,521,309.21 \n \n- \n \n- \n \n(x) Paying a portion of the principal and interest on the current \n \ngeneral obligation debt and general obligation debt to be issued \n \n(collectively, the \"Projects\"). \n \n2,105,787.50 \n \n1,676,787.41 \n \n- \n \n- \n \nTotal \n \n$ 27,936,758.06 $ 6,351,820.27 $ \n \n- $ \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. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Ben Hill County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. \nAmounts 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- 51 - \n \n Section II Compliance and Internal Control Reports \n \n Greg S. Griffin State Auditor \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 \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 Ms. Dawn Clements, Interim Superintendent and Members of the Ben Hill County Board of Education \nWe have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated August 9, 2022. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n 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 in finding FS 2021-001 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \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, \nGreg S. Griffin State Auditor \nAugust 9, 2022 \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \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 Ms. Dawn Clements, Interim Superintendent and Members of the Ben Hill County Board of Education \nReport on Compliance for Each Major Federal Program \nWe have audited the Ben Hill County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \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. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \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, 2021. \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 in finding FA 2021-001. Our opinion on each major federal program is not modified with respect to this matter. \nThe School District's response to the noncompliance 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. \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 a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \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 have not been identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we did identify a certain deficiency in internal control over compliance, described in the accompanying Schedule of Findings and Questioned Costs in finding FA 2021-001 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 \nAugust 9, 2022 \n \n Section III Auditee's Response to Prior Year Findings and Questioned Costs \n \n BEN HILL COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS \n \nFS 2020-001 Internal Controls over Financial Reporting \n \nFinding Status: \n \nUnresolved \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n Section IV Findings and Questioned Costs \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2021 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: \nGovernmental Activities, Each Major Fund, and Fiduciary Activities \n \nInternal control over financial reporting:  Material weakness(es) identified? \n Significant deficiency(ies) identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal Control over major programs: \n Material weakness(es) identified?  Significant deficiency(ies) identified? \n \nType of auditor's report issued on compliance for major programs: \n \nAll major programs \n \nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \n \nIdentification of major programs: \n \nAssistance Listing Number Assistance Listing Program or Cluster Title \n \n84.425 \n \nEducation Stabilization Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nUnmodified No Yes No \nNo Yes \nUnmodified Yes \n$750,000.00 No \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2021 \n \nII FINANCIAL STATEMENT FINDINGS \n \nFS 2021-001 Internal Controls over Financial Reporting \n \nInternal Control Impact: \nCompliance Impact: Repeat of Prior Year Finding: \n \nSignificant Deficiency \nNone FS 2020-001 \n \nDescription: The School District did not have adequate internal controls in place over the financial statement \nreporting process. \n \nCriteria: Management is responsible for having adequate controls over the preparation of financial statements in \naccordance 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 \ndisclosures as required by the Governmental Accounting Standards Board (GASB). \n \nGASB Statement No. 34, Basic Financial Statements  Management's Discussion and Analysis  for \nState 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 \nthe 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. \n \nChapter II - 2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \n \nCondition: The following errors and omissions were noted in the School District's financial statements, note \ndisclosures and supplementary information presented for audit: \n \n Contracts payable and capital assets, non-depreciable were understated by $2,455,253.09 on the government-wide financial statements and contracts payable and expenditures were understated by $2,455,253.09 in the capital projects fund due to an unrecorded contract payable. This misstatement was material to government-wide and capital projects fund. Adjustments to the financial statements were proposed by the auditors and accepted by the School District. \n State funds were overstated and unavailable revenue was understated by $319,184.60 in the capital projects fund due to funds not being collected within the School District's revenue recognition period of 120 days after year end. This misstatement was significant to the capital projects fund. An adjustment was proposed by the auditors and accepted by the School District. \n The School District understated the amount expended in current year on the Schedule of Approved Local Option Sales Tax Projects by $23,445,861.44, amount expended in prior years by $3,961,613.85, and overstated total completion cost by $6,881,103.04. Adjustments were proposed by the auditors and accepted by the School District. \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2021 \n \n The pension schedules for TRS, ERS, and PSERS and the schedules for the School OPEB Fund, which are Required Supplementary Information, were submitted for audit excluding information for the current fiscal year. \n Other audit adjustments and reclassifications were proposed by the auditors and accepted by the School District to properly present the School District's financial statements, note disclosures and supplemental information. \nCause: These issues were a result of the School District's inadequate controls and review procedures over the financial statements. \nEffect: Significant misstatements were included in the financial statements presented for audit. The lack of controls and monitoring over the financial statement process could impact the reporting of the School District's financial position and results of operations. \nRecommendation: The School District should strengthen their internal controls and review procedures over the financial reporting process to ensure that the financial statements presented for audit are complete and accurate. These procedures should be performed by a properly trained individual 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. \nViews of Responsible Officials: We concur with this finding. \n \nIll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2021-001 Strengthen Controls over Expenditures \n \nCompliance Requirement: \nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Numbers and Titles: \nFederal Award Numbers: \nQuestioned Costs: \n \nActivities Allowed or Unallowed \nAllowable Costs / Cost Principles Significant Deficiency \nNonmaterial Noncompliance U.S. Department of Education \nGeorgia Department of Education COVID-19 84.425D  Elementary and Secondary School \nEmergency Relief Fund COVID-19 84.425U  American Rescue Plan Elementary \nand Secondary School Emergency Relief Fund S425D200012 (Year: 2020), S425D210012 (Year: 2021), \nS425U210012 (Year: 2021) $74,566 \n \nDescription: A review of expenditures charged to the Elementary and Secondary Emergency Relief Fund programs (Assistance Listing Numbers 84.425D and 84.425U) revealed that the School District's internal control procedures were not operating to ensure that expenditures were appropriately documented to support \nallowability. \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2021 \nBackground Information: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. \nProvisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. \nESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE was responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $6,741,157 were expended and reported on the Ben Hill County Board of Education's Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2021. \nCriteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303  Internal Controls. \nIn addition, provisions included in Title VIII of the CARES Act state that the Education Stabilization Fund was established \"to prevent, prepare for, and respond to coronavirus.\" Specifically, Section 18003(d) of the CARES Act lists 12 allowable uses of ESSER funds by LEAs. \nFurthermore, provisions included in the Uniform Guidance, Section 200.403  Factors Affecting Allowability of Costs state that \"costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles, (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items, (c) Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the nonFederal entity... (g) Be adequately documented...\" \nMoreover, provisions included in the Uniform Guidance, Section 200.430  CompensationPersonal Services prescribe standards for documentation of personnel expenses and state, in part, that \"(a) ... Costs for compensation are allowable to the extent that they satisfy... specific requirements..., and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i)..., [as follows:] (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2021 \nThese records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity...\" \nLastly, as a condition of receiving federal subawards from the GaDOE, LEAs are required to prepare an annual budget that reflects how funding will be expended. This budget is submitted in the Consolidated Application system and required to be reviewed and approved by the GaDOE program and grants management prior to expending federal program funds. LEA personnel must also provide programspecific assurances related to the ESSER program within the Consolidated Application system. These assurances are reflected in the Uniform Guidance, Section 200.415  Required Certifications, and include provisions that require LEAs \"to assure that expenditures are proper and in accordance with the terms and conditions of the Federal award and approved project budgets...\" \nCondition: A sample of 60 employees was randomly selected for testing using a non-statistical sampling approach. These employees were reviewed to determine if internal controls were properly functioning, and applicable compliance requirements were met. It was noted that six employees received retention bonuses totaling $4,000 for which they were not eligible based upon the stated criteria. \nIn addition, all nonpersonal services expenditures, which totaled $71,0174, were tested to determine if appropriate internal controls were implemented and applicable compliance requirements were met. It was noted that prior approval was not obtained from the GaDOE for one expenditure in the amount of $70,566 as this expenditure was not reflected in the approved budget within the Consolidated Application system as required. \nQuestioned Costs: Upon testing a sample of $532,025 in personal services expenditures, known questioned costs of $4,000 were identified. Using the total personal services expenditure population of $4,584,115 (excluding benefits payments), we project the likely questioned costs to be approximately $34,465. In addition, upon testing the entire population of $71,014 in nonpersonal services expenditures, known questioned costs of $70,566 were identified. The following assistance listing numbers were affected by the known questioned costs: 84.425D and 84.425U. \nCause: In discussing these deficiencies with management, they stated that preliminary guidance associated with the ESSER program was ambiguous, and cumulative, clarifying guidance was not published until more than a year after the initial ESSER funding was allocated to the School District. Therefore, the School District misinterpreted the initial guidance that was available at the beginning of Fiscal Year 2021. Therefore, there was a lack of internal controls over salaries paid with ESSER funding. \nEffect: The School District is not in compliance with the Uniform Guidance or ED guidance related to the ESSER program. Failure to ensure that appropriate documentation exists to support the allowability of payments from the ESSER fund may expose the School District to unnecessary financial strains and shortages as ED or GaDOE may require the School District to return funds associated with improperly documented expenditures and/or unapproved expenditures. \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2021 \nRecommendation: The School District should review current internal control procedures related to ESSER program expenditures. Where vulnerable, the School District should develop and/or modify its policies and procedures to ensure that expenditures are appropriately documented and are appropriately approved by the GaDOE within the Consolidated Application system prior to the expending of federal program funds. \nViews of Responsible Officials: We concur with this finding. \n \n Section V Management's Corrective Action \n \n    "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2020-belec-p-btext","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2020 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2020-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009, released in 2010?","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 8/4/15 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 4, 2015).","Latest issue consulted: Fiscal year ended June 30, 2014 (Georgia Government Publications database, viewed September 4, 2015)."],"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":["Ben Hill County Board of Education (Ben Hill County, Ga.)--Appropriations and expenditures--Periodicals","Auditors' reports--Georgia--Periodicals","Financial statements--Georgia--Periodicals","Reports","Financial statements","Georgia","Periodicals","Audits","Financial records"],"dcterms_title":["Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2020 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2020-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2020-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"BEN HILL COUNTY BOARD OF EDUCATION \nFITZGERALD, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n(Including Independent Auditor's Reports) \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \ni \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 \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n8 \n \nI 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 \n33 \n \n2 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n34 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n35 \n \n4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 36 \n \n5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n37 \n \n6 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \n \nSCHOOL OPEB FUND \n \n38 \n \n7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \n \n39 \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \nIN 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 \n40 41 42 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 Ben Hill County 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 the Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \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 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 \n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \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 information is fairly stated, in all material respects, in relation to the basic 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 May 19, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \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 \nMay 19, 2021 \n \nGreg S. Griffin State Auditor \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \nINTRODUCTION \nThe discussion and analysis of the Ben Hill County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2020. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for the fiscal year 2020 are as follows: \n In 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. \n In fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements. \n The School District received $508,671 less in equalization funds as part of an overall increase of $546,012 in state revenue over the prior year. \n On the government-wide financial statements, the assets and deferred outflows of resources of the School District fell short of liabilities and deferred inflows of resources by $4.2 million. \n The School District had $39.2 million in expenses relating to governmental activates for the fiscal year. $24.8 million of the above mentioned expenses for the fiscal year were offset by program specific charges for services and grants and contributions. General revenues (primarily property and sales taxes) of $13.4 million, along with fund balance were adequate to provide for these programs. \n The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities was 8.8 based on the Statement of Net Position as of June 30, 2020. Generally, a ratio greater than 2.0 is considered very financially stable. \n The general fund (the primary operating fund), presented on a current financial resource basis, ended the fiscal year with a fund balance of $4.5 million, a decrease of $1.0 million from the June 30, 2019 fund balance. \ni \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThe Management's Discussion and Analysis is intended to serve as an introduction to the School District's basic financial statements. The School District's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information that will enhance the reader's understanding of the financial condition of the School District. \nGovernment-Wide Statements \nThe government-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide financial statements provide short-term and long-term information about the School District's financial status as a whole. \nThe Statement of Net Position presents information on all of the School District's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between these reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District is improving or deteriorating. \nThe Statement of Activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). \nThese statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid. \nThe government-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes, state grants, and federal grant funds finance most of these activities. \nFund Financial Statements \nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into governmental funds or fiduciary funds. \nGovernmental Funds - Governmental funds are used to account for essentially the same functions reported as the governmental activities in the governmental-wide financial statements. However, unlike the governmental-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. \nBecause the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the School District's near-term \nii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \nfinancing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. \nThe School District maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general, capital projects and debt service funds, which are considered to be major funds. \nFiduciary funds - These funds are used to account for resources held for clubs, organizations, and others within the principals' accounts for which the School District is the trustee, or fiduciary. The School District is responsible for ensuring that the assets reported in the funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. \nNotes to the financial statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. \nOther information - In addition to the basic financial statements and accompanying notes, this report also presents certain required and other supplementary information such as the budgetary comparison schedule for the general fund as presented on a generally accepted accounting principles basis. This schedule is intended to demonstrate the School District's compliance with the legally adopted and amended budgets. \nGOVERNMENT-WIDE FINANCIAL ANALYSIS \nAs noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the School District, liabilities and deferred inflows of resources exceeded assets and deferred outflows of resources by $4.2 million. \nThe largest portion of the School District's net position of $36.6 million, reflects the School District's investment in capital assets (property, plant, and equipment) less any related debt used to acquire those assets that is still outstanding. The School District uses its assets to provide safe and secure facilities to the students, these assets are not available for future spending. \nThe School District reports a restricted net position of $5.0 million, which consists of SPLOST funds to be used for capital projects, debt service funds to be used for servicing debt, school nutrition funds to be used for student meals and a reserve for bus replacement. \nThe remaining portion of the School District's net position represents an unrestricted net position deficit of $45.8 million. The unrestricted net position deficit is a result of the fiscal year 2018 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) and the fiscal year 2015 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. More information about these reported liabilities can be found in Notes 11 and 12, respectively, of the financial statements. \nThe School District has current assets of $39.6 million. These assets include $35.3 million of cash and cash equivalents. The School District's capital assets are $39.6 million. \niii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n \nTable 1 provides a summary of the School District's net position for fiscal year 2020 compared to fiscal year 2019. \n \nTable 1 Net Position \nAssets Current and Other Assets Capital Assets, Net Total Assets \nDeferred Outflows of Resources Total Assets and Deferred Outflows of Resources \nLiabilities Current and Other Liabilities Long-Term Liabilities Total Liabilities \nDeferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) Total Net Position \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2020 \n \n2019 \n \n$ 39,651,707 $ 12,355,261 \n \n39,587,881 \n \n37,879,700 \n \n79,239,588 \n \n50,234,961 \n \n9,405,538 \n \n6,408,619 \n \n88,645,126 \n \n56,643,580 \n \n55,712,785 28,772,050 84,484,835 \n8,400,191 92,885,026 \n \n52,273,945 - \n52,273,945 7,594,824 \n59,868,769 \n \n36,611,632 4,964,284 \n(45,815,816) \n \n37,879,700 3,784,476 \n(44,889,365) \n \n$ (4,239,900) $ (3,225,189) \n \niv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n \nChange in net position \n \nThe change in net position was a decrease of $1.0 million from fiscal year 2019 to fiscal year 2020. \n \nTable 2 shows the changes in net position for fiscal year 2020 compared to the changes in net position for fiscal year 2019. \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \n \nFiscal Year 2020 \n \nGovernmental Activities Fiscal Year 2019 \n \nNet Change \n \n$ \n \n293,241 $ \n \n298,681 $ \n \n24,449,587 \n \n25,076,145 \n \n77,220 \n \n154,440 \n \n(5,440) (626,558) \n(77,220) \n \nTotal Program Revenues \n \n24,820,048 \n \n25,529,266 \n \n(709,218) \n \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Extraordinary Item Donation \n \n6,822,594 25,994 \n2,626,192 83,711 \n3,101,920 189,201 556,172 \n- \n \n6,400,079 25,485 \n2,146,866 52,952 \n3,610,591 27,281 \n350,498 \n494,972 \n \n422,515 509 \n479,326 30,759 \n(508,671) 161,920 205,674 \n(494,972) \n \nTotal General Revenues and Extraordinary Item \n \n13,405,784 \n \n13,108,724 \n \n297,060 \n \nTotal Revenues and Extraordinary Item \n \n38,225,832 \n \n38,637,990 \n \n(412,158) \n \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n24,883,468 \n991,667 1,555,657 \n342,049 1,069,972 2,325,185 1,059,110 2,516,281 1,712,580 \n25,995 1,117,299 \n178,039 996,727 466,514 \n \n22,221,065 \n969,909 1,346,526 \n402,190 692,269 2,086,905 472,268 2,413,289 1,434,635 \n27,761 18,200 \n290,127 1,913,692 \n- \n \n2,662,403 \n21,758 209,131 (60,141) 377,703 238,280 586,842 102,992 277,945 \n(1,766) 1,099,099 \n(112,088) (916,965) 466,514 \n \nTotal Expenses \n \n39,240,543 \n \n34,288,836 \n \n4,951,707 \n \nChange in Net Position \n \n$ \n \n(1,014,711) $ \n \n4,349,154 $ (5,363,865) \n \nv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n \nRevenues \n \nThe School District's total revenue was $38.2 million for the year. Grants and contributions make up 72.3% and property taxes accounted for 17.9% of the School District's revenue. \n \nExpenses \n \nThe School District's total expenses were $39.2 million. The School District's expenses are predominantly accounted for in the instructional category, which accounts for 63.4% of the total cost. This cost is directly related to educating the students. Maintenance and operations accounted for 6.4% of the total cost, which is the cost to keep the facilities comfortable, safe, and secure. \n \nFINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS \n \nThe focus of the School District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the School District's net resources available for spending at the end of the year. \n \nAt the end of the current fiscal year, the School District's governmental funds reported a combined ending fund balance of $34.8 million, an increase in fund balance of $26.2 million. This is mainly due to the receipt of bond proceeds, which were issued in current year. \n \nGeneral Fund \n \nThe general fund is the primary operating fund of the School District. At the end of the fiscal year the total fund balance was $4.5 million, representing an unassigned fund balance of $3.3 million and a restricted, non-spendable, and assigned fund balance of $1.2 million. Fund balance decreased by $1.0 million as a result of a decrease in federal funding for the fiscal year. The School District tries to maintain an available general fund balance of 15% of general fund expenditures for unforeseen needs or other opportunities that might arise in addition to meeting the cash flow needs of the School District. The School District currently has an available general fund balance of 9.1% of the $36.4 million general fund expenditures. \n \nCapital Projects Fund \n \nThe capital projects fund accounts for capital projects managed by the School District. After expenditures of $3.8 million for renovations at various facilities, issuance of a bond and interest on bonds, the capital projects fund had an increase in fund balance of $27.2 million and ended the year with a fund balance of $30.3 million. \n \nTable 3 Governmental Fund Balances \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2020 \n \n2019 \n \nGeneral Fund Capital Projects Fund Debt Service Fund \n \n$ \n \n4,458,887 $ \n \n30,309,132 \n \n- \n \n5,494,092 3,099,928 \n- \n \nTotal \n \n$ 34,768,019 $ \n \n8,594,020 \n \nvi \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n \nGeneral Fund Budgeting Highlights \n \nThe School District's budget utilized a conservative approach based on limited information available. Emphasis was given to ensure financial stability and long-term stability while providing revenue enhancement, financial priorities, and discipline. The budget is a legally adopted document that incorporates input from the citizens of the School District and input from the management of the School District, and the decisions of the School District regarding how to pay for the services that are provided to the students. \n \nIn the current year, the School District revised its budget periodically to recognize new funding amounts from external sources and state and federal grants. The Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, is included in the financial statements. For fiscal year 2020, the School District's general fund had an unfavorable budget variance of $1.6 million. There was a $1.8 million favorable budget variance for revenues, with a $3.4 million unfavorable budget variance for expenditures. \n \nThe $1.8 million favorable revenue budget variance is attributed to more state funds collected than what was budgeted. Other factors that attributed to a favorable budget variance include an increase in property tax revenue and revenues for the various school accounts, which is reported as charges for services and miscellaneous revenue. \n \nThe $3.4 million unfavorable expenditure budget variance is attributable to additional funding needed in the areas of instruction and improvement of instructional services. \nCapital Assets and Debt Administration \n \nCapital Assets \n \nAt fiscal year ended June 30, 2020, the School District had $39.6 million invested in capital assets (net of accumulated depreciation). The capital assets increased by $1.7 million due to the additions to construction in progress of Fitzgerald High School, the purchase of land, along with several equipment purchases. The net change in capital assets (net of accumulated depreciation) from fiscal year 2019 to fiscal year 2020 was an increase of $1.7 million. \n \nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2020 \n \n2019 \n \nLand Construction In Progress Building and Improvements Equipment Land Improvements \n \n$ \n \n2,787,329 $ \n \n1,275,284 \n \n33,567,516 \n \n1,474,905 \n \n482,847 \n \n1,266,020 182,081 \n34,441,365 1,393,931 596,303 \n \nTotal \n \n$ 39,587,881 $ \n \n37,879,700 \n \nvii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n \nLong-Term Debt \n \nDuring the current year, the School District issued general obligation bonds totaling $24,680,000 to build a new school. The School District had no long-term debt in prior year. \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 2019 \n \n3% to 5% \n \n12/12/2019 \n \n4/1/2037 $ \n \n24,680,000 $ \n \n24,680,000 \n \nCURRENT ISSUES \n \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. \n \nREQUESTS FOR INFORMATION \n \nThis report is designed to provide an overview of the School District's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Thomas Rachels, Chief Operating Officer, Ben Hill County Board of Education, 509 West Palm Street, Fitzgerald, GA 31750. One may also call (229) 409-5500, visit our website www.ben-hill.k12.ga.us or send an email to thomas.rachels@benhillschools.org. \n \nviii \n \n BEN HILL COUNTY BOARD OF EDUCATION \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020 \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local 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 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 \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \nThe notes to the basic financial statements are an integral part of this statement. \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ 35,301,351.07 \n1,105,531.89 2,450,979.05 \n724,187.48 112.84 \n3,598.76 65,946.39 4,062,613.04 35,525,268.17 \n79,239,588.69 \n7,915,023.78 1,490,514.00 \n9,405,537.78 \n \n343,745.44 3,719,091.18 \n161,581.64 275,437.50 \n29,108.62 28,107,279.00 23,076,542.00 \n1,244,301.52 27,527,748.94 \n84,484,835.84 \n \n2,288,374.00 6,111,817.00 \n8,400,191.00 \n \n36,611,631.70 \n14,098.00 399,222.60 275,437.50 4,275,526.18 (45,815,816.35) \n \n$ \n \n(4,239,900.37) \n \n- 1 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \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 Food Services Interest on Long-Term Debt \n \n$ 24,883,468.43 $ \n991,666.94 1,555,656.95 \n342,049.45 1,069,971.61 2,325,184.89 1,059,109.56 2,516,281.12 1,712,579.76 \n25,994.93 1,117,299.02 \n178,039.25 996,727.54 466,513.67 \n \n224,766.51 $ 18,194,144.29 $ \n \n40,000.00 - \n \n178,625.49 666,030.17 429,039.32 802,815.15 1,002,162.12 \n15,572.64 1,019,264.26 \n434,012.67 - \n10,151.66 \n \n28,474.13 \n- \n \n1,697,769.71 \n- \n \n- $ \n77,220.00 - \n- \n \n(6,464,557.63) \n(813,041.45) (889,626.78) \n86,989.87 (267,156.46) (1,323,022.77) (1,043,536.92) (1,457,016.86) (1,201,347.09) \n(25,994.93) (1,107,147.36) \n(178,039.25) 729,516.30 (466,513.67) \n \nTotal Governmental Activities \n \n$ 39,240,543.12 $ \n \n293,240.64 $ 24,449,587.48 $ \n \n77,220.00 \n \n(14,420,495.00) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \n6,822,594.14 25,993.85 \n2,626,191.95 83,711.24 \n3,101,920.00 189,201.17 556,171.74 \n \nTotal General Revenues \n \n13,405,784.09 \n \nChange in Net Position \n \n(1,014,710.91) \n \nNet Position - Beginning of Year \n \n(3,225,189.46) \n \nNet Position - End of Year \n \n$ \n \n(4,239,900.37) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n BEN HILL COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2020 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 5,208,620.98 $ 30,092,730.09 $ \n \n576,059.85 2,450,979.05 \n724,187.48 112.84 \n3,598.76 65,946.39 \n \n529,472.04 - \n \n- $ 35,301,351.07 \n \n- \n \n1,105,531.89 \n \n- \n \n2,450,979.05 \n \n- \n \n724,187.48 \n \n- \n \n112.84 \n \n- \n \n3,598.76 \n \n- \n \n65,946.39 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes Unavailable Revenue - Sales Taxes \nTotal Deferred Inflows of Resources \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 9,029,505.35 $ 30,622,202.13 $ \n \n$ \n \n343,745.44 $ \n \n3,719,091.18 \n \n161,581.64 \n \n29,108.62 \n \n4,253,526.88 \n \n- $ - \n- \n \n317,091.74 - \n317,091.74 \n \n313,070.57 \n313,070.57 \n \n65,946.39 347,374.21 750,092.71 3,295,473.42 \n4,458,886.73 \n \n30,309,131.56 \n- \n30,309,131.56 \n \n$ 9,029,505.35 $ 30,622,202.13 $ \n \n- $ 39,651,707.48 \n \n- $ - \n- \n \n343,745.44 3,719,091.18 \n161,581.64 29,108.62 \n4,253,526.88 \n \n- \n \n317,091.74 \n \n- \n \n313,070.57 \n \n- \n \n630,162.31 \n \n- \n \n65,946.39 \n \n- \n \n30,656,505.77 \n \n- \n \n750,092.71 \n \n- \n \n3,295,473.42 \n \n- \n \n34,768,018.29 \n \n- $ 39,651,707.48 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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\") \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 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 and 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 tax Sales tax \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 Unamortized bond premiums \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 34,768,018.29 \n \n$ 2,787,329.22 1,275,283.82 \n49,492,298.52 6,525,323.63 2,994,268.28 \n(23,486,622.26) \n \n39,587,881.21 \n \n$ (28,107,279.00) (23,076,542.00) \n \n(51,183,821.00) \n \n$ 5,626,649.78 (4,621,303.00) \n \n1,005,346.78 \n \n$ \n \n317,091.74 \n \n313,070.57 \n \n630,162.31 \n \n$ (24,680,000.00) (275,437.50) \n(4,092,050.46) \n \n(29,047,487.96) \n \n$ (4,239,900.37) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Service \nBond Issuance Costs Interest \nTotal Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Bonds Premiums on Bonds Sold 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$ 6,830,414.63 $ 83,711.24 \n22,861,288.99 4,739,411.79 293,240.64 27,417.07 556,171.74 \n \n- $ 2,313,121.38 \n161,784.10 - \n \n35,391,656.10 \n \n2,474,905.48 \n \n- $ 6,830,414.63 \n \n- \n \n2,396,832.62 \n \n- \n \n22,861,288.99 \n \n- \n \n4,739,411.79 \n \n- \n \n293,240.64 \n \n- \n \n189,201.17 \n \n- \n \n556,171.74 \n \n- \n \n37,866,561.58 \n \n23,334,062.40 \n989,889.53 1,522,250.33 \n319,522.97 1,052,556.79 2,310,019.97 \n566,567.83 2,415,008.84 1,615,839.91 \n159,680.00 178,039.25 1,963,423.36 \n- \n- \n36,426,861.18 \n(1,035,205.08) \n \n286,217.15 \n13,363.99 - \n53,259.28 275,500.00 \n2,718,749.75 \n499,586.61 - \n3,846,676.78 \n(1,371,771.30) \n \n- \n- \n- \n333,585.41 \n333,585.41 \n(333,585.41) \n \n23,620,279.55 \n1,003,253.52 1,522,250.33 \n319,522.97 1,052,556.79 2,310,019.97 \n566,567.83 2,468,268.12 1,891,339.91 \n159,680.00 178,039.25 1,963,423.36 2,718,749.75 \n499,586.61 333,585.41 \n40,607,123.37 \n(2,740,561.79) \n \n- \n- \n(1,035,205.08) \n5,494,091.81 \n \n24,680,000.00 4,234,559.70 (333,585.41) \n28,580,974.29 \n27,209,202.99 \n3,099,928.57 \n \n333,585.41 - \n333,585.41 \n- \n- \n \n24,680,000.00 4,234,559.70 333,585.41 (333,585.41) \n28,914,559.70 \n26,173,997.91 \n8,594,020.38 \n \nFund Balances - Ending \n \n$ 4,458,886.73 $ 30,309,131.56 $ \n \n- $ 34,768,018.29 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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\") \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. \nProperty tax Sales tax \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. \nGeneral obligation bonds issued, including a premium of $4,234,559.70 Amortization of bond premium \nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the School District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \nPension expense OPEB expense \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \nAccrued interest on issuance of bonds \n \n$ 26,173,997.91 \n \n$ 3,002,828.11 (1,294,646.68) \n \n1,708,181.43 \n \n$ \n \n18,173.36 \n \n313,070.57 \n \n331,243.93 \n \n$ (28,914,559.70) 142,509.24 \n \n(28,772,050.46) \n \n$ \n \n(369,384.22) \n \n188,738.00 \n \n(180,646.22) \n \n(275,437.50) \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ (1,014,710.91) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n ASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \nNET POSITION Held in Trust for Private Purposes \n \nBEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2020 \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n7,295.51 $ 122,823.03 \n \n$ 122,823.03 \n \n$ \n \n7,295.51 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2020 \nADDITIONS Contributions Investment Earnings Interest Other Additions Total Additions \nDEDUCTIONS Other Deductions Change in Net Position \nNet Position - Beginning \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n1,000.00 \n \n26.09 1,500.00 \n \n2,526.09 \n \n6,500.00 (3,973.91) 11,269.42 \n \n$ \n \n7,295.51 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Ben Hill County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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 , 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. \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. \n- 9 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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) and bond proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \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 types: \n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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. \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 \n- 10 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nrecorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \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 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. \nIn fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements. \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. \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- 11 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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 \n$ \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nConstruction In Progress \n \n$ \n \nIntangible - Software \n \n$ \n \nAll Other- Intangible Assets \n \n$ \n \nAny Amount 50,000.00 50,000.00 \n5,000.00 50,000.00 100,000.00 10,000.00 \n \nN/A 15 years 60 to 75 years 5 to 25 years N/A 10 years 20 years \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. \nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \n \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. \n \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. \n \n- 12 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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. \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. \n \n- 13 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nPROPERTY TAXES \n \nThe Ben Hill County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on July 25, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on December 20, 2019 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $6,173,267.05. \n \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 \n18.039 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $631,153.73 during fiscal 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 $2,313,121.38 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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. \n \n- 14 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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. At June 30, 2020, $296,436.95 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all the School District's deposits. \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, School District had deposits with a carrying amount of $9,809,243.90, and a bank balance of $11,734,759.58. The bank balances insured by Federal depository insurance were $500,000.00 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 $6,821,001.72. \nAt June 30, 2020, $4,117,320.91 of the School District's bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, \n \n- 15 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nand 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrant. The program lists the types of eligible criteria. The OST approves authorized custodians. \n \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \nAt June 30, 2020, $296,436.95 of the School District's bank balance was exposed to custodial credit risk as follows: \n \nUninsured and Uncollateralized \n \n$ 296,436.95 \n \nUninsured with collateral held by the pledging \n \nfinancial institution \n \n- \n \nUninsured with collateral held by the pledging \n \nfinancial institution's trust department or \n \nagent but not in the School District's name \n \n- \n \nTotal \n \n$ 296,436.95 \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$ 35,301,351.07 130,118.54 \n \nTotal cash and cash equivalents \n \n35,431,469.61 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n25,622,225.71 \n \nTotal carrying value of deposits - June 30, 2020 \n \n$ \n \n9,809,243.90 \n \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $25,622.225.71 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, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report, which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \n- 16 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2019 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2020 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,266,020.01 $ 1,521,309.21 $ \n \n182,081.18 \n \n1,093,202.64 \n \n- $ 2,787,329.22 \n \n- \n \n1,275,283.82 \n \nTotal Capital Assets Not Being Depreciated \n \n1,448,101.19 \n \n2,614,511.85 \n \n- \n \n4,062,613.04 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n49,492,298.52 6,411,336.37 2,994,268.28 \n15,050,934.10 5,017,405.39 2,397,965.09 \n \n388,316.26 \n- \n873,848.27 307,342.00 113,456.41 \n \n274,329.00 \n- \n \n49,492,298.52 6,525,323.63 2,994,268.28 \n \n274,329.00 \n- \n \n15,924,782.37 5,050,418.39 2,511,421.50 \n \nTotal Capital Assets, Being Depreciated, Net \n \n36,431,598.59 \n \n(906,330.42) \n \n- \n \n35,525,268.17 \n \nGovernmental Activities Capital Assets - Net \n \n$ 37,879,699.78 $ 1,708,181.43 $ \n \n- $ 39,587,881.21 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n16,434.00 7,620.00 \n67,659.00 161,495.00 \n22,376.00 \n \n$ 975,424.68 \n275,584.00 43,638.00 \n \n$ 1,294,646.68 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2020, consisted of the following: \n \nTransfers to \n \nTransfer From \nCapital Projects Fund \n \nDebt Service Fund \n \n$ 333,585.41 \n \nTransfers are used to move sales tax revenues collected by the capital projects fund to the debt service fund to provide funding to service debt. \n \n- 17 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nNOTE 7: 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 \n \n$ \n \nUnamortized Bond Premiums \n \n- $ 24,680,000.00 $ \n \n- $ 24,680,000.00 $ 1,000,000.00 \n \n- \n \n4,234,559.70 \n \n142,509.24 \n \n4,092,050.46 \n \n244,301.52 \n \n$ \n \n- $ 28,914,559.70 $ 142,509.24 $ 28,772,050.46 $ 1,244,301.52 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nThe School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \n \nThe School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2020. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (EPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \n \nDuring the current year, the School District issued general obligation bonds totaling $24,680,000.00 to build a new school. Of the total amount originally authorized, $2,720,000.00 remains unissued. \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 2019 \n \n3% to 5% \n \n12/12/2019 \n \n4/1/2037 $ 24,680,000.00 $ 24,680,000.00 \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 \n2021 2022 2023 2024 2025 2026 - 2030 2031 - 2035 2036 - 2037 \n \n$ \n \n1,000,000.00 $ 1,101,750.00 \n \n$ \n \n244,301.52 \n \n1,040,000.00 \n \n1,061,750.00 \n \n244,301.52 \n \n1,080,000.00 \n \n1,020,150.00 \n \n244,301.52 \n \n1,125,000.00 \n \n976,950.00 \n \n244,301.52 \n \n1,180,000.00 \n \n920,700.00 \n \n244,301.52 \n \n6,740,000.00 \n \n3,763,950.00 \n \n1,221,507.60 \n \n8,555,000.00 \n \n1,950,200.00 \n \n1,221,507.60 \n \n3,960,000.00 \n \n239,200.00 \n \n427,527.66 \n \nTotal Principal and Interest \n \n$ \n \n24,680,000.00 $ 11,034,650.00 \n \n$ \n \n4,092,050.46 \n \n- 18 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nNOTE 8: RISK MANAGEMENT INSURANCE Commercial 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 exceeded commercial insurance coverage in any of the past three fiscal years. \nWORKERS' COMPENSATION \nGeorgia Education Workers' Compensation Trust \n \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 107% of the loss fund and based on the Fund's annual normal premium. \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 \n2019 $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n2020 $ \n \n- \n \n$ \n \n1,320.00 $ \n \n1,320.00 $ \n \n- \n \n- 19 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nSURETY BOND \n \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \nMilitary Property Custodian \n \n$ \n \nEach Principal \n \n$ \n \nDirector of Budget and Finance \n \n$ \n \nEach Lunchroom Manager and Assistant Manager $ \n \nEach Secretary and Bookkeeper \n \n$ \n \nPayroll Administrator \n \n$ \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \n \n99,000.00 24,000.00 \n9,000.00 8,000.00 4,000.00 4,000.00 3,000.00 \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: \n \nNonspendable \n \nInventories \n \nRestricted \n \nBus Replacement \n \n$ \n \nContinuation of Federal Programs \n \nDebt Service \n \nCapita(lpProjects ) \n \nAssigned \n \nDonated Funds \n \n$ \n \nSchool Activity Accounts \n \nUnassigned \n \n$ \n \n65,946.39 \n \n14,098.00 333,276.21 550,875.00 29,758,256.56 \n \n30,656,505.77 \n \n641,062.23 109,030.48 \n \n750,092.71 3,295,473.42 \n \nFund Balance, June 30, 2020 \n \n$ 34,768,018.29 \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. \nNOTE 10: 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 \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 have a material adverse effect on the financial condition of the School District. \n \n- 20 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nNOTE 11: 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 $638,857.00 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 $23,076,542.00 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 0.188040%, which was an decrease of 0.000092% from its proportion measured as of June 30, 2018. \n \n- 21 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nFor the year ended June 30, 2020, the School District recognized OPEB expense of $450,120.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n- $ 2,510,487.00 \n \nChanges of assumptions \n \n801,403.00 3,253,063.00 \n \nNet difference between projected and \n \nactual earnings on OPEB plan investments \n \n50,254.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n348,267.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n638,857.00 \n \n- \n \nTotal \n \n$ 1,490,514.00 $ 6,111,817.00 \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 2026 \n \n$ (1,201,122.00) \n \n$ (1,201,122.00) \n \n$ (1,203,054.00) \n \n$ (1,018,913.00) \n \n$ \n \n(524,238.00) \n \n$ \n \n(111,711.00) \n \n- 22 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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: \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 \nPre-Medicare Eligible \n \n7.30%, compounded annually, net of investment expense, and including inflation \n7.250% \n \nMedicare Eligible \n \n5.375% \n \nUltimate trend rate \n \nPre-Medicare Eligible \n \n4.75% \n \nMedicare Eligible \n \n4.75% \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 \nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \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. \n \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. \n \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- 23 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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 \nnominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by \nweighting the expected future real rates of return by the target asset allocation percentage and by \nadding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment \nstrategy to a more long-term approach. The target allocation and best estimates of arithmetic real \nrates 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 \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$ 26,822,559.00 $ \n \n23,076,542.00 $ 20,029,326.00 \n \n- 24 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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 \nOPEB liability, as well as what the School District's proportionate share of the net OPEB liability would \nbe if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- \npercentage-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$ 19,439,542.00 $ \n \n23,076,542.00 $ 27,695,809.00 \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. \nNOTE 12: RETIREMENT PLANS \n \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 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 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 6.00% of their annual pay during fiscal year 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 21.06% of payroll was required from the School District and 0.08% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,623,230.00 and $13,452.30 from the School District and the State, respectively. \n \n- 25 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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/financials. \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. \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 $16,200.78 for the current fiscal year. \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/financials. \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 $15.25, 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 \n- 26 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \ntermination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \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 \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 $55,277.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \n \nAt June 30, 2020, the School District reported a liability of $28,107,279.00 for its proportionate share of the net pension liability for TRS ($28,009,852.00) and ERS ($97,427.00 ). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 28,009,852.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n107,729.00 \n \nTotal \n \n$ 28,117,581.00 \n \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 0.130262%, which was an decrease of 0.003399% from its proportion measured as of June 30, 2018. At June 30, 2019, the School District's ERS proportion was 0.002361%,which was an increase of 0.000165% 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 $338,812.00. \n \n- 27 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nThe PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019. \n \nFor the year ended June 30, 2020, the School District recognized pension expense of $3,985,791.00 for TRS, $15,347.00 for ERS and $104,486.00 for PSERS and revenue of $7,730.00 for TRS and $104,486.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ 1,578,778.00 $ \n \n8,304.00 \n \n$ 3,245.00 $ \n \n- \n \nChanges of assumptions \n \n2,687,911.00 \n \n- \n \n1,715.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n667,000.00 \n \n- \n \n3,033.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \nSchool District contributions subsequent to the measurement date \nTotal \n \n- \n \n1,607,006.00 \n \n3,944.00 \n \n3,031.00 \n \n3,623,230.00 \n \n- \n \n$ 7,889,919.00 $ 2,282,310.00 \n \n16,200.78 $ 25,104.78 $ \n \n6,064.00 \n \nThe School District contributions subsequent to the measurement date for TRS and ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 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$ 906,413.00 $ $ (206,574.00) $ $ 508,662.00 $ $ 775,878.00 $ \n \n4,025.00 (990.00) (597.00) 402.00 \n \n- 28 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nActuarial assumptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \n \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 \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 investment rate of return. \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 \nmortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set \nforward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society \nof Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females \nwas used for death after disability retirement. There is a margin for future mortality improvement in \nthe tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the \nactual number of deaths that occurred during the study period for service retirements and \nbeneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \n- 29 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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. \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 1.50% semi-annually \n \nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected \nto 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected \nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death \nafter disability retirement. There is a margin for future mortality improvement in the tables used by the \nSystem. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected \nunder the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \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 rate of return. \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 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 \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. \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 \n \n- 30 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nto 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. \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 rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 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$ 45,468,188.00 $ 28,009,852.00 $ 13,652,897.00 \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 \n138,453.00 $ \n \n97,427.00 $ \n \n62,454.00 \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 publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. \n \n- 31 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR 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 \nthe net pension liability \n \nState of Georgia's proportionate share of the net pension liability \nassociated with the School District \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 \n2020 2019 2018 2017 2016 2015 \n \n0.130262% $ 28,009,852.00 $ 0.133661% $ 24,810,345.00 $ 0.140963% $ 26,198,408.00 $ 0.142743% $ 29,449,472.00 $ 0.147075% $ 22,390,708.00 $ 0.154807% $ 19,557,823.00 $ \n \n107,729.00 116,570.00 213,917.00 244,066.00 189,996.00 160,953.00 \n \n$ 28,117,581.00 $ 24,926,915.00 $ 26,412,325.00 $ 29,693,538.00 $ 22,580,704.00 $ 19,718,776.00 \n \n$ 15,963,784.68 $ 15,994,439.37 $ 16,314,149.47 $ 15,786,646.73 $ 15,656,895.31 $ 15,932,172.02 \n \n175.46% 155.12% 160.59% 186.55% 143.01% 122.76% \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- 33 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n2020 2019 2018 2017 2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n3,623,230.00 $ \n \n3,623,230.00 $ \n \n- \n \n$ \n \n3,323,640.00 $ \n \n3,323,640.00 $ \n \n- \n \n$ \n \n2,676,096.72 $ \n \n2,676,096.72 $ \n \n- \n \n$ \n \n2,309,164.92 $ \n \n2,309,164.92 $ \n \n- \n \n$ \n \n2,234,505.20 $ \n \n2,234,505.20 $ \n \n- \n \n$ \n \n2,041,552.01 $ \n \n2,041,552.01 $ \n \n- \n \nSchool District's covered payroll \n$ 17,203,475.45 $ 15,963,784.68 $ 15,994,439.37 $ 16,314,149.47 $ 15,786,646.73 $ 15,656,895.31 \n \nContribution as a percentage of covered \npayroll \n21.06% 20.82% 16.73% 14.15% 14.15% 13.04% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PORPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \n \nYear Ended \n2020 2019 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 \nSchool District's covered payroll \n \n0.002361% $ 0.002196% $ 0.002523% $ 0.002585% $ 0.002558% $ 0.002591% $ \n \n97,427.00 $ 90,278.00 $ 102,467.00 $ 122,281.00 $ 103,635.00 $ 97,179.00 $ \n \n54,867.38 56,023.77 61,878.66 60,097.22 58,488.36 58,346.42 \n \nSchool District's proportionate share of the net pension liability \nas a percentage of covered payroll \n \nPlan fiduciary net position as a \npercentage of total pension liability \n \n177.57% 161.14% 165.59% 203.47% 177.19% 166.56% \n \n76.74% 76.68% 76.33% 72.34% 76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 35 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n2020 2019 2018 2017 2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n16,200.78 $ \n \n16,200.78 $ \n \n- \n \n$ \n \n13,596.00 $ \n \n13,596.00 $ \n \n- \n \n$ \n \n13,899.49 $ \n \n13,899.49 $ \n \n- \n \n$ \n \n15,352.05 $ \n \n15,352.05 $ \n \n- \n \n$ \n \n14,856.00 $ \n \n14,856.00 $ \n \n- \n \n$ \n \n12,844.08 $ \n \n12,844.08 $ \n \n- \n \nSchool District's covered payroll \n \n$ \n \n65,696.44 \n \n$ \n \n54,867.38 \n \n$ \n \n56,023.77 \n \n$ \n \n61,878.66 \n \n$ \n \n60,097.22 \n \n$ \n \n58,488.36 \n \nContribution as a percentage of covered \npayroll \n24.66% 24.78% 24.81% 24.81% 24.72% 21.96% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PORPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \nFOR 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 the 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 \ncovered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \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 \n338,812.00 $ 338,812.00 $ 293,873.00 $ 293,873.00 $ 273,648.00 $ 273,648.00 $ 383,890.00 $ 383,890.00 $ 242,736.00 $ 242,736.00 $ 224,650.00 $ 224,650.00 $ \n \n783,850.97 813,644.00 730,766.58 725,869.10 783,445.60 846,638.60 \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- 37 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND FOR 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 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 \nSchool District's proportionate share of the \nnet OPEB liability as a percentage of its covered- \nemployee payroll \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \n \n0.188040% $ 23,076,542.00 $ 0.188132% $ 23,911,000.00 $ 0.188905% $ 26,541,077.00 $ \n \n- \n \n$ 23,076,542.00 $ 14,511,158.88 \n \n- \n \n$ 23,911,000.00 $ 14,202,987.29 \n \n- \n \n$ 26,541,077.00 $ 14,340,666.23 \n \n159.03% 168.35% 185.08% \n \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- 38 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"7\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \n2020 2019 2018 \n \n$ \n \n638,857.00 $ \n \n$ 1,012,725.00 $ \n \n$ \n \n975,069.00 $ \n \n638,857.00 1,012,725.00 \n975,069.00 \n \nContribution deficiency (excess) \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \nSchool District's covered-employee \npayroll \n$ 15,452,349.64 $ 14,511,158.88 $ 14,202,987.29 \n \nContribution as a percentage of covered- \nemployee payroll \n4.13% 6.98% 6.87% \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 BEN HILL COUNTY BOARD OF EDUCATION 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 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). \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 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). \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- 40 - \n \n BEN HILL COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2020 \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 \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 \n \nFINAL \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n6,343,000.00 $ \n \n6,343,000.00 $ \n \n6,830,414.63 $ \n \n60,000.00 \n \n60,000.00 \n \n83,711.24 \n \n21,327,599.00 \n \n21,439,259.09 \n \n22,861,288.99 \n \n- \n \n5,289,741.87 \n \n4,739,411.79 \n \n48,000.00 \n \n164,622.40 \n \n293,240.64 \n \n12,501.00 \n \n12,517.00 \n \n27,417.07 \n \n245,000.00 \n \n247,118.72 \n \n556,171.74 \n \n28,036,100.00 \n \n33,556,259.08 \n \n35,391,656.10 \n \n487,414.63 23,711.24 \n1,422,029.90 (550,330.08) 128,618.24 14,900.07 309,053.02 \n1,835,397.02 \n \n19,240,387.21 \n871,790.51 214,240.51 471,738.60 861,436.28 1,994,462.03 509,062.79 2,284,161.24 1,573,317.14 \n4,000.00 \n- \n28,024,596.31 \n11,503.69 \n \n21,753,469.33 \n953,124.51 615,648.95 471,738.60 864,536.28 1,994,462.03 509,062.79 2,284,161.24 1,573,317.14 \n209.00 4,000.00 \n2,001,636.00 \n33,025,365.87 \n530,893.21 \n \n23,334,062.40 \n989,889.53 1,522,250.33 \n319,522.97 1,052,556.79 2,310,019.97 \n566,567.83 2,415,008.84 1,615,839.91 \n159,680.00 178,039.25 1,963,423.36 \n36,426,861.18 \n(1,035,205.08) \n \n(1,580,593.07) \n(36,765.02) (906,601.38) 152,215.63 (188,020.51) (315,557.94) \n(57,505.04) (130,847.60) \n(42,522.77) 209.00 \n(155,680.00) (178,039.25) \n38,212.64 \n(3,401,495.31) \n(1,566,098.29) \n \n391,533.00 (391,533.00) \n11,503.69 4,599,988.46 58,044.24 \n \n225,971.00 (225,971.00) \n530,893.21 4,599,988.46 \n65,946.39 \n \n(1,035,205.08) 5,494,091.81 - \n \n(225,971.00) 225,971.00 \n(1,566,098.29) \n894,103.35 (65,946.39) \n \n$ \n \n4,669,536.39 $ \n \n5,196,828.06 $ \n \n4,458,886.73 $ \n \n(737,941.33) \n \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 BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR 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 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 Grants to States Preschool Grants Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Striving Readers Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nHealth and Human Services, U. S. Department of Pass-Through From Children and Youth Coordinating Council Abstinence Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n205GA324N1099 $ 205GA324N1099 \n \n427,375.34 1,463,196.38 \n1,890,571.72 \n \n84.027 84.027 84.173 84.173 \n84.048 84.011 84.011 84.358 84.358 84.371 84.010 84.010 \n \nH027A180073 H027A190073 H173A180081 H173A190081 \nV048A190010 S011A180011 S011A190011 S365B180010 S365B190010 S371C170049 S010A180010 S010A190010 \n \n11,386.00 506,675.17 \n11,857.84 16,679.73 \n546,598.74 \n44,609.49 3,755.39 \n21,706.91 4,611.00 \n60,496.69 260,998.59 101,877.00 1,630,776.53 \n2,128,831.60 \n2,675,430.34 \n \n12.UNKNOWN 93.235 \n \nNIG95295 \n \n55,912.94 115,710.88 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n4,737,625.88 \n \nNote 1. Basis of Presentation \n \nNotes to the Schedule of Expenditures of Federal Awards \n \nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Ben Hill County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \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 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 42 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 Summer Transition 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 Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Hygiene Products Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds School Safety Grant Teachers Retirement Vocational Education Vocational Supervisors \nOffice of the State Treasurer Public School Employees Retirement \nTechnical College System of Georgia Vocational - Technology School \nSee notes to the basic financial statements. \n \nSCHEDULE \"11\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n796,575.02 \n \n12,155.92 \n \n893,473.00 453,903.00 1,749,285.00 1,202,341.00 968,127.00 878,340.00 2,069,887.00 1,168,797.00 923,886.00 2,637,435.00 731,235.00 1,005,084.00 133,442.00 131,581.00 383,010.00 116,044.00 \n66,111.00 1,193.00 \n691,558.00 830,519.00 783,127.00 (282,310.00) 312,716.00 \n384,841.00 64,629.00 \n3,101,920.00 \n54,208.00 2,863.00 \n17,374.09 72,748.00 77,220.00 109,301.66 13,452.30 125,800.00 14,140.00 \n55,277.00 \n110,000.00 \n$ 22,861,288.99 \n \n- 43 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2020 \n \nSCHEDULE \"12\" \n \nPROJECT 2016 \n \nORIGINAL ESTIMATED \nCOST (1) \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 \n(i) Replacement of schools and/or \n \nconstruction of new schools, including and \n \nnecessary demolition; \n \n$ 3,500,000.00 $ 3,500,000.00 $ 1,097,102.64 $ \n \n44,126.44 $ \n \n- $ \n \n- \n \nESTIMATED COMPLETION \nDATE \n2022 \n \n(ii) Adding to, renovating, repairing, \n \nimproving, furnishing, and/or equipping \n \nexisting school buildings, including the \n \ncentral office, transportation and \n \nmaintenance facilities, including \n \nnecessary demolition; \n \n500,000.00 \n \n500,000.00 \n \n56,497.00 \n \n333,152.24 \n \n- \n \n(iii) Adding to, constructing, renovating, \n \nfurnishing, and/or equipping athletic \n \nfacilities; \n \n500,000.00 \n \n500,000.00 \n \n19,210.20 \n \n218,780.00 \n \n- \n \n(iv) Acquiring equipment, instruments \n \nand/or materials for the fine arts, \n \nvocational, physical education and athletic \n \ndepartments; \n \n200,000.00 \n \n200,000.00 \n \n37,994.69 \n \n- \n \n- \n \n(v) Renovations, additions, and/or \n \nimprovements to parking, traffic access \n \nfacilities and transportation department, \n \nincluding paving and any necessary site \n \nwork; \n \n1,000,000.00 \n \n1,000,000.00 \n \n- \n \n- \n \n- \n \n(vi) Acquiring instructional and/or \n \nadministrative technology equipment and \n \nmaterials; \n \n1,000,000.00 \n \n1,000,000.00 \n \n286,217.15 \n \n402,992.01 \n \n- \n \n(vii) Acquiring safety, security, and/or fire \n \nprotecting equipment; \n \n100,000.00 \n \n100,000.00 \n \n53,259.28 \n \n20,435.00 \n \n- \n \n(viii) Acquiring buses, vehicles, and/or \n \ntransportation equipment; \n \n750,000.00 \n \n750,000.00 \n \n275,500.00 \n \n308,457.00 \n \n- \n \n(ix) Acquiring property; and \n \n500,000.00 \n \n1,521,309.21 1,521,309.21 \n \n- \n \n- \n \n(x) Paying a portion of the principal and \n \ninterest on the current general obligation \n \ndebt and general obligation debt to be \n \nissued (collectively, the \"Projects\"). \n \n7,950,000.00 \n \n7,950,000.00 \n \n833,172.02 \n \n843,615.39 \n \n- \n \n- \n \n2021 \n \n- \n \n2021 \n \n- \n \n2021 \n \n- \n \n2021 \n \n- \n \n2021 \n \n- \n \n2021 \n \n- \n \n2021 \n \n- \n \n2021 \n \n- \n \n2037 \n \n$ 16,000,000.00 $ 17,021,309.21 $ 4,180,262.19 $ 2,171,558.08 $ \n \n- $ \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 Ben Hill 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 Ben Hill County 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 Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated May 19, 2021. \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. \nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that 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. \n \n Compliance 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \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 \nMay 19, 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 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 Ben Hill County Board of Education \nReport on Compliance for Each Major Federal Program \nWe have audited the Ben Hill County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \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 \nMay 19, 2021 \n \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 \nNo matters were reported. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2019-001 \n \nImprove Controls over Suspension and Debarment Procedures \n \nCompliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: \n \nProcurement and Suspension and Debarment Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education 84.371 Striving Readers S371C170002 \n \nFinding Status: \n \nPreviously Reported Corrective Action Implemented \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR 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 \n \nUnmodified \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 \n10.553, 10.555 84.371 \n \nChild Nutrition Cluster Striving Readers \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 BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2020 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2020-001 Control Category: Internal Control Impact: Compliance Impact: \n \nInternal Controls over Financial Reporting Financial Reporting Significant Deficiency None \n \nDescription: The School District did not have adequate internal controls in place over the financial statement reporting process. \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). \n \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. \n \nChapter II - 2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \n \nCondition: The following errors and omissions were noted in the School District's financial statements, note disclosures and supplementary information presented for audit: \n \n Accounts receivable  taxes and sales tax revenue were understated by $216,401.47 on the government-wide financial statements and in the capital projects fund due to an unrecorded SPLOST receipt. This misstatement was material to the capital projects fund. Adjustments to the financial statements were proposed by the auditors and accepted by the School District. \n Due to calculation errors, net position on the government-wide statements was misclassified by $25,795,800.95 between Net Investment in Capital Assets and Restricted for Capital Projects. A material reclassification adjustment was proposed by the auditors and accepted by the School District. \n The School District understated the amount expended in current year on the Schedule of Approved Local Option Sales Tax Projects by $3,117,998.46. An adjustment was proposed by the auditors and accepted by the School District. \n The School District did not disclose $2,720,000.00 of bonds authorized, but not issued, in the Long-term Liabilities note disclosure. An adjustment was proposed by the auditors and accepted by the School District. \n Other audit adjustments and reclassifications were proposed by the auditors and accepted by the School District to properly present the School District's financial statements, note disclosures and supplemental information. \n \n- 2 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2020 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Cause: These issues were a result of the School District's inadequate controls and review procedures over the financial statements. Effect or Potential Effect: Significant misstatements were included in the financial statements presented for audit. The lack of controls and monitoring over the financial statement process could impact the reporting of the School District's financial position and results of operations. Recommendation: The School District should strengthen their internal controls and review procedures over the financial reporting process to ensure that the financial statements presented for audit are complete and accurate. These procedures should be performed by a properly trained individual 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. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n- 3 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n  "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2019-belec-p-btext","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2019 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2019-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009, released in 2010?","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 8/4/15 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 4, 2015).","Latest issue consulted: Fiscal year ended June 30, 2014 (Georgia Government Publications database, viewed September 4, 2015)."],"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":["Ben Hill County Board of Education (Ben Hill County, Ga.)--Appropriations and expenditures--Periodicals","Auditors' reports--Georgia--Periodicals","Financial statements--Georgia--Periodicals","Reports","Financial statements","Georgia","Periodicals","Audits","Financial records"],"dcterms_title":["Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2019 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2019-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2019-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"BEN HILL COUNTY BOARD OF EDUCATION \nFITZGERALD, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n(Including Independent Auditor's Reports) \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \ni \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 \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n9 \n \nI NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n31 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n32 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n33 \n \n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \n \nSCHOOL OPEB FUND \n \n34 \n \n5 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n35 \n \n6 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 36 \n \n7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \n \n37 \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \nIN 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 \n38 39 40 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 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 \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 Ben Hill County 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 the Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \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 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 \n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2019, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \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 information is fairly stated, in all material respects, in relation to the basic 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 August 10, 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, \n \nAugust 10, 2020 \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nINTRODUCTION \nThe discussion and analysis of the Ben Hill County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2019. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for the fiscal year 2019 are as follows: \n In fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement. The adoption of this statement did not have an impact on the School District's financial statement. \n In fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The adoption of this statement did not have an impact on the School District's financial statement. \n The School District received $293,529 more in equalization funds as part of an overall increase of $587,155 in state revenue over the prior year along with a $2.5 million increase in federal funding from the prior year. \n On the government-wide financial statements, the assets and deferred outflows of resources of the School District fell short of liabilities and deferred inflows of resources by $3.2 million. The main reason for the shortfall is our pension and OPEB liabilities. \n The School District had $34.3 million in expenses relating to governmental activities for the fiscal year. $25.5 million of the above mentioned expenses for the fiscal year were offset by program specific charges for services and grants and contributions. General revenues (primarily property and sales taxes) of $13.1 million, along with fund balance were adequate to provide for these programs. \n The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities was 3.6 based on the Statement of Net Position as of June 30, 2019. Generally, a ratio greater than 2.0 is considered very financially stable. \n The general fund (the primary operating fund), presented on a current financial resource basis, ended the fiscal year with a fund balance of $5.5 million, an increase of $1.8 million from the June 30, 2018 fund balance. \ni \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThe Management's Discussion and Analysis is intended to serve as an introduction to the School District's basic financial statements. The School District's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information that will enhance the reader's understanding of the financial condition of the School District. \nGovernment-wide Statements \nThe government-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide financial statements provide short-term and long-term information about the School District's financial status as a whole. \nThe Statement of Net Position presents information on all of the School District's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between the these reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District's is improving or deteriorating. \nThe Statement of Activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). \nThese statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid. \nThe government-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes, state grants, and Federal grant funds finance most of these activities. \nFund Financial Statements \nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into governmental funds or fiduciary funds. \nGovernmental Funds - Governmental funds are used to account for essentially the same functions reported as the governmental activities in the governmental-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. \nii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nBecause the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the School District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenue, expenditures and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. \nThe School District maintains several individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the general and capital projects funds, which are considered to be major funds. \nFiduciary Funds - These funds are used to account for resources held for clubs, organizations, and others within the principals' accounts for which the School District is the trustee, or fiduciary. The School District is responsible for ensuring that the assets reported in the funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. \nNotes to the financial statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. \nOther information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information such as the budgetary comparison schedule for the general fund as presented on a generally accepted accounting principle basis. This schedule is intended to demonstrate the School District's compliance with the legally adopted and amended budgets. \nGOVERNMENT-WIDE FINANCIAL ANALYSIS \nAs noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the School District, liabilities and deferred inflows of resources exceeded assets and deferred outflows of resources by $3.2 million. \nThe largest portion of the School District's net position of $37.9 million, reflects the School District's investment in capital assets (property, plant, and equipment) less any related debt used to acquire those assets that is still outstanding. The School District uses its assets to provide safe and secure facilities to the students, these assets are not available for future spending. \nThe School District reports a restricted net position of $3.8 million, which consists of SPLOST funds to be used for capital projects, school nutrition funds to be used for student meals and a reserve for bus replacement. \nThe remaining portion of the School District's net position represents an unrestricted net position deficit of $44.9 million. The unrestricted net position deficit is a result of the fiscal year 2018 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) and the fiscal year 2015 adoption the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. More information about these reported liabilities can be found in Notes 9 and 10, respectively, of the financial statements. \niii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n \nTable 1 Net Position \n \nAssets Current and Other Assets Capital Assets (Net of Accumulated Depreciation) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2019 \n \n2018 \n \n$ 12,355,261 $ 37,879,700 \n \n9,357,743 38,478,944 \n \nDeferred Outflows of Resources Total Assets and Deferred Outflows of Resources \n \n6,408,619 56,643,580 \n \n5,236,054 53,072,741 \n \nLiabilities Current and Other Liabilities Net Pension and OPEB Liabilities \n \n3,462,322 48,811,623 \n \n3,856,759 52,841,952 \n \nDeferred Inflows of Resources \n \n7,594,824 \n \n3,948,374 \n \nTotal Liabilities and Deferred Inflows of Resources \n \n59,868,769 \n \n60,647,085 \n \nNet Position Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n37,879,700 3,784,476 \n(44,889,365) \n \n38,478,945 2,014,255 \n(48,067,544) \n \nTotal Net Position \n \n$ \n \n(3,225,189) $ \n \n(7,574,344) \n \nChange in net position \n \nThe change in net position was an increase of $4.3 million from fiscal year 2018 to fiscal year 2019. \n \nThe increase of $2.9 million in total revenues is largely due to an increase of $2.6 million in program revenues for operating grants and contributions, which are funds earned through state and federal grants. \n \nThe expenditures did not change in fiscal year 2019 when compared to fiscal year 2018, with a total of $34.3 million. \n \niv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n \nTable 2 Net Position \n \nRevenues \n \nProgram Revenues: \n \nCharges for Services \n \n$ \n \nOperating Grants and Contributions \n \nCapital Grants and Contributions \n \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations For Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Taxes Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous \nExtraordinary Item Donation \n \nTotal General Revenues and Extraordinary Item \n \nTotal Revenues and Exraordinary Item \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \n \nChange in Net Position \n \n$ \n \nFiscal Year 2019 \n \nGovernmental Activities Fiscal Year 2018 \n \n298,681 $ 25,076,145 \n154,440 \n25,529,266 \n \n131,002 $ 22,467,112 \n- \n22,598,114 \n \n6,400,079 25,485 \n \n6,415,300 23,233 \n \n2,146,866 52,952 \n3,610,591 27,281 \n350,498 \n494,972 \n13,108,724 \n38,637,990 \n \n2,127,960 95,386 \n3,317,062 20,024 \n627,425 \n500,000 \n13,126,390 \n35,724,504 \n \n22,221,065 \n969,909 1,346,526 \n402,190 692,269 2,086,905 472,268 2,413,289 1,434,635 \n27,761 18,200 \n290,127 1,913,692 \n- \n34,288,836 \n4,349,154 $ \n \n22,201,770 \n1,000,157 1,364,088 \n464,027 678,639 2,064,311 476,962 2,363,530 1,520,122 \n31,344 17,272 \n74,459 2,028,971 \n3,341 \n34,288,993 \n1,435,511 $ \n \nNet Change \n167,679 2,609,033 \n154,440 \n2,931,152 \n(15,221) 2,252 \n18,906 (42,434) 293,529 \n7,257 (276,927) \n(5,028) \n(17,666) \n2,913,486 \n19,295 \n(30,248) (17,562) (61,837) 13,630 22,594 \n(4,694) 49,759 (85,487) (3,583) \n928 \n215,668 (115,279) \n(3,341) \n(157) \n2,913,643 \n \nv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n \nRevenues \nThe School District's total revenues and extraordinary item was $38.6 million for the year. Grants and contributions make up 74.7% and property taxes accounted for 16.7% of the School District's revenue. \nExpenditures \nThe School Districts total expenses were $34.3 million. The School District's expenses are predominantly accounted for in the instructional category, which accounts for 64.8% of the total cost. This cost is directly related to educating the students. Maintenance and operations accounted for 7.0% of the total cost, which is the cost to keep the facilities comfortable, safe, and secure. \nFINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS \nThe focus of the School District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the School District's net resources available for spending at the end of the year. \nAt the end of the current fiscal year, the School District's governmental funds reported a combined ending fund balance of $8.6 million, an increase in fund balance of $3.4 million. \nGeneral Fund \nThe general fund is the primary operating fund of the School District. At the end of the fiscal year the total fund balance was $5.5 million, representing an unassigned fund balance of $3.8 million, and a restricted, non-spendable and assigned fund balance of $1.7 million. Fund balance increased by $1.8 million as a result of an increase in state and federal funding for the fiscal year. The School District tries to maintain an available general fund balance of 15% of general fund expenditures for unforeseen needs or other opportunities that might arise in addition to meeting the cash flow needs of the School District. The School District currently has an available general fund balance of 11.0% of the $34.7 million general fund expenditures. \nCapital Projects \nThe capital projects fund accounts for capital projects managed by the School District. After expenditures of $525,259 for renovations at various facilities, the capital projects fund had an increase in fund balance of $1.6 million and ended the year with a fund balance of $3.1 million. \n \nTable 3 Governmental Fund Balances \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2019 \n \n2018 \n \nGeneral Fund \n \n$ \n \nCapital Projects Fund \n \nTotal \n \n$ \n \n5,494,092 $ 3,099,928 \n8,594,020 $ \n \n3,713,691 1,473,550 \n5,187,241 \n \nvi \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nGeneral Fund Budgeting Highlights \nThe School District's budget utilized a conservative approach based on limited information available. Emphasis was given to ensure financial stability and long-term stability while providing revenue enhancement, financial priorities, and discipline. The budget is a legally adopted document that incorporates input from the citizens of the School District and input from the management of the School District, and the decisions of the School District regarding how to pay for the services that are provided to the students. \nIn the current year, the School District revised its budget periodically to recognize new funding amounts from external sources and state and federal grants. The Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, is included in the financial statements. For fiscal year 2019, the School District's general fund had a favorable budget variance of $1.4 million. There was a $1.3 million favorable budget variance for revenues, with a $380,573 unfavorable budget variance for expenditures. There was a favorable budget variance of $494,972 for other financing sources (uses). \nThe $1.3 million favorable revenue budget variance is attributed to more state and federal funds collected than what was budgeted. Other factors that attributed to a favorable budget variance include an increase in property tax revenue and revenues for the various school accounts, which is reported as charges for services revenue. \nThe $380,573 unfavorable expenditure budget variance is attributable to additional funding needed in the areas of instruction, maintenance and operation of plant as well as student transportation services. \nThe $494,972 favorable other financing sources (uses) budget variance is attributable to a donation received that was not budgeted. Capital Assets and Debt Administration \nCapital Assets \nAt fiscal year ended June 30, 2019, the School District had $37,879,700 invested in capital assets (net of accumulated depreciation). The capital assets increased by $280,772 due to the additions to construction in progress of Fitzgerald High School Football Stadium and the ROTC Armory Building, along with several equipment purchases. The net change in capital assets (net of accumulated depreciation) from fiscal year 2018 to fiscal year 2019 was a decrease of $599,245. \nAdditional information about the School District's capital assets can be found in the Notes of the Basic Financial Statements. \nvii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2019 \n \n2018 \n \nLand \n \n$ 1,266,020 $ 1,266,020 \n \nConstruction in Progress \n \n182,081 \n \n759,676 \n \nBuildings and Improvements \n \n34,441,365 \n \n34,417,594 \n \nEquipment \n \n1,393,931 \n \n1,325,895 \n \nLand Improvements \n \n596,303 \n \n709,760 \n \nTotal \n \n$ 37,879,700 $ 38,478,945 \n \nLong-Term Debt \n \nAt the end of fiscal year 2019, the School District had no long-term debt. \n \nCURRENT ISSUES \n \nIn subsequent period the School District issued $24,680,000 of general obligation bonds of the $27, 400,000 authorized in prior years. The proceeds from these bonds will be used for acquiring, constructing, and equipping capital outlay projects. \n \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 COV-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time. \n \nREQUESTS FOR INFORMATION \n \nThis report is designed to provide an overview of the School District's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Thomas Rachels, Chief Operating Officer, Ben Hill County Board of Education, 509 West Palm Street, Fitzgerald, GA 31750. One may also call (229) 409-5500, visit our website www.ben-hill.k12.ga.us or send an email to thomas.rachels@benhillschools.org. \n \nviii \n \n BEN HILL COUNTY BOARD OF EDUCATION \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019 \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets DEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION \nInvestment in Capital Assets Restricted for \nBus Replacement Continuation of Federal Programs Capital Projects Unrestricted (Deficit) \nTotal Net Position \nThe notes to the basic financial statements are an integral part of this statement. \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n7,269,499.41 \n \n669,102.40 2,509,464.15 1,856,997.00 \n7,829.06 618.90 \n41,749.99 1,448,101.19 36,431,598.59 \n \n50,234,960.69 \n \n5,363,542.00 1,045,077.00 \n6,408,619.00 \n \n41,899.24 3,418,656.22 \n1,766.69 24,900,623.00 23,911,000.00 \n52,273,945.15 \n \n2,574,164.00 5,020,660.00 \n7,594,824.00 \n \n37,879,699.78 \n14,098.00 670,449.34 3,099,928.57 (44,889,365.15) \n \n$ \n \n(3,225,189.46) \n \n- 1 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 Food Services \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Extraordinary Item Donation \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$ \n \n22,221,064.59 $ \n \n969,908.84 1,346,525.56 \n402,189.94 692,269.47 2,086,905.06 472,267.65 2,413,289.20 1,434,635.50 \n27,761.09 18,200.00 \n \n290,127.54 1,913,691.66 \n \n$ \n \n34,288,836.10 $ \n \n245,038.69 \n22,955.00 - \n30,687.62 \n298,681.31 \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 \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ 17,998,748.04 $ \n255,628.04 1,658,237.02 \n427,552.70 627,050.72 870,181.99 \n4,232.00 890,649.41 405,531.98 \n17,541.63 \n1,920,791.06 \n$ 25,076,144.59 $ \n \n- $ \n154,440.00 - \n- \n154,440.00 \n \n(3,977,277.86) \n(714,280.80) 311,711.46 \n25,362.76 (65,218.75) (1,216,723.07) (468,035.65) (1,499,684.79) (874,663.52) (27,761.09) \n(658.37) \n(290,127.54) 37,787.02 \n(8,759,570.20) \n \n6,400,079.49 25,485.02 \n2,146,865.81 52,951.72 \n3,610,591.00 27,281.00 \n350,498.34 \n494,971.96 \n13,108,724.34 \n4,349,154.14 \n(7,574,343.60) \n \n$ \n \n(3,225,189.46) \n \n- 3 - \n \n BEN HILL COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2019 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 4,358,049.12 $ 2,911,450.29 $ \n \n480,624.12 2,509,464.15 1,856,997.00 \n7,829.06 618.90 \n41,749.99 \n \n188,478.28 - \n \n7,269,499.41 \n669,102.40 2,509,464.15 1,856,997.00 \n7,829.06 618.90 \n41,749.99 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \n \n$ 9,255,332.34 $ 3,099,928.57 $ 12,355,260.91 \n \n$ \n \n41,899.24 $ \n \n3,418,656.22 \n \n1,766.69 \n \n3,462,322.15 \n \n- $ - \n- \n \n41,899.24 3,418,656.22 \n1,766.69 \n3,462,322.15 \n \n298,918.38 \n \n- \n \n298,918.38 \n \n41,749.99 642,797.35 1,005,245.09 3,804,299.38 \n5,494,091.81 \n \n3,099,928.57 \n- \n3,099,928.57 \n \n41,749.99 3,742,725.92 1,005,245.09 3,804,299.38 \n8,594,020.38 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 9,255,332.34 $ 3,099,928.57 $ \n \n12,355,260.91 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 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 and 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. \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ \n \n8,594,020.38 \n \n$ \n \n1,266,020.01 \n \n182,081.18 \n \n49,492,298.52 \n \n6,411,336.37 \n \n2,994,268.28 \n \n(22,466,304.58) \n \n37,879,699.78 \n \n$ (24,900,623.00) (23,911,000.00) \n \n(48,811,623.00) \n \n$ \n \n2,789,378.00 \n \n(3,975,583.00) \n \n(1,186,205.00) 298,918.38 \n \n$ \n \n(3,225,189.46) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay \nTotal Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES \nExtraordinary Item - Donation \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 6,440,388.63 $ 52,951.72 \n22,315,276.77 6,534,620.44 298,681.31 22,509.24 350,498.34 \n \n- $ 2,146,865.81 \n4,771.76 - \n \n6,440,388.63 2,199,817.53 22,315,276.77 6,534,620.44 \n298,681.31 27,281.00 \n350,498.34 \n \n36,014,926.45 \n \n2,151,637.57 \n \n38,166,564.02 \n \n22,118,248.47 \n999,680.86 1,404,912.04 \n430,532.75 728,107.57 2,199,148.13 499,807.21 2,431,346.10 1,629,997.82 \n18,200.00 290,127.54 1,979,389.46 \n- \n34,729,497.95 \n1,285,428.50 \n \n39,255.13 \n28,704.40 - \n16,500.00 88,700.00 32,760.00 \n319,339.00 \n525,258.53 \n1,626,379.04 \n \n22,157,503.60 \n1,028,385.26 1,404,912.04 \n430,532.75 728,107.57 2,199,148.13 499,807.21 2,447,846.10 1,718,697.82 \n50,960.00 290,127.54 1,979,389.46 319,339.00 \n35,254,756.48 \n2,911,807.54 \n \n494,971.96 1,780,400.46 3,713,691.35 \n \n1,626,379.04 1,473,549.53 \n \n494,971.96 3,406,779.50 5,187,240.88 \n \n$ 5,494,091.81 $ 3,099,928.57 $ 8,594,020.38 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \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 School 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 OPEB expense \n \n$ 3,406,779.50 \n \n$ \n \n645,254.00 \n \n(1,244,499.03) \n \n(599,245.03) (14,824.12) \n \n$ 1,464,804.79 91,639.00 \n \n1,556,443.79 \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ 4,349,154.14 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n ASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \nNET POSITION Held in Trust for Private Purposes \n \nBEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2019 \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ 11,269.42 $ 121,402.49 \n \n$ 121,402.49 \n \n$ 11,269.42 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2019 \nADDITIONS Contributions Investment Earnings Interest Other Additions Total Additions \nDEDUCTIONS Other Deductions Change in Net Position \nNet Position - Beginning \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n27.31 \n \n4,735.00 \n \n4,762.31 \n \n885.31 3,877.00 7,392.42 \n \n$ \n \n11,269.42 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 9 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Ben Hill County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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, 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. Investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation. \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. \n \n- 10 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \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. \nThe School District reports the following fiduciary fund types: \n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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. \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 60 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. \n \n- 11 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \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 statement. \nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The adoption of this statement did not have an impact on the School District's financial statement. \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. \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 \n- 12 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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 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 \n$ \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nConstruction In Progress \n \n$ \n \nIntangible - Software \n \n$ \n \nAll Other- Intangible Assets $ \n \nAny Amount 50,000.00 50,000.00 \n5,000.00 50,000.00 100,000.00 10,000.00 \n \nN/A 15 years \n60 to 75 years 5 to 25 years N/A 10 years 20 years \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. \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. \n \n- 13 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \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. \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 Ben Hill County Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on July 24, 2018 (levy date) based on property values as of January 1, 2018. Taxes were due on December 20, 2018 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2018 tax digest are reported as revenue in the governmental funds for fiscal year 2019. The Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2019, for maintenance and operations amounted to $5,921,680.74. \n \n- 14 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \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 \n18.128 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $493,222.87 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 $2,146,865.81 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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. \n \nNOTE 4: DEPOSITS \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. At June 30, 2019, $113,569.71 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all the School District's deposits. \n \n- 15 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \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, 2019, the School District had deposits with a carrying amount of $7,402,171.32 and a bank balance of $8,811,602.46. The bank balances insured by Federal depository insurance were $500,000.00 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 $8,198,032.75. \nAt June 30, 2019, $113,569.71 of the School District's bank balance was exposed to custodial credit risk as follows: \n \nUninsured and Uncollateralized \n \n$ 113,569.71 \n \nUninsured with collateral held by the pledging \n \nfinancial institution \n \n- \n \nUninsured with collateral held by the pledging \n \nfinancial institution's trust department or \n \nagent but not in the School District's name \n \n- \n \nTotal \n \n$ 113,569.71 \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$ 7,269,499.41 132,671.91 \n \nTotal carrying value of deposits - June 30, 2019 \n \n$ 7,402,171.32 \n \n- 16 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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, 2018 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2019 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,266,020.01 $ \n \n- $ \n \n- $ \n \n759,676.42 \n \n302,421.50 880,016.74 \n \n1,266,020.01 182,081.18 \n \nTotal Capital Assets Not Being Depreciated \n \n2,025,696.43 \n \n302,421.50 880,016.74 \n \n1,448,101.19 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n48,612,281.78 6,154,205.87 2,994,268.28 \n14,194,687.88 4,828,310.99 2,284,508.68 \n \n880,016.74 342,832.50 \n- \n \n85,702.00 \n- \n \n856,246.22 274,796.40 113,456.41 \n \n85,702.00 \n- \n \n49,492,298.52 6,411,336.37 2,994,268.28 \n15,050,934.10 5,017,405.39 2,397,965.09 \n \nTotal Capital Assets, Being Depreciated, Net \n \n36,453,248.38 \n \n(21,649.79) \n \n- \n \n36,431,598.59 \n \nGovernmental Activities Capital Assets - Net $ 38,478,944.81 $ 280,771.71 $ 880,016.74 $ 37,879,699.78 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nEducational Media Services \n \n$ \n \nGeneral Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nFood Services \n \n$ \n16,433.75 1,750.00 5,870.15 \n28,217.39 132,119.48 \n20,738.00 \n \n998,797.16 \n205,128.77 40,573.10 \n \n$ 1,244,499.03 \nNOTE 6: 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 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 \n- 17 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \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 $2.0 million in aggregate coverage to the Trust, attaching at 110% of the loss fund and based on the Fund's annual normal premium. \n \nUNEMPLOYMENT COMPENSATION \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District had no unemployment compensation claims in the past two years. \n \nSURETY BOND \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n99,000.00 \n \nMilitary Property Custodian \n \n$ \n \n24,000.00 \n \nEach Principal \n \n$ \n \n9,000.00 \n \nDirector of Budget and Finance \n \n$ \n \n8,000.00 \n \nEach Lunchroom Manager and Assistant Manager \n \n$ \n \n4,000.00 \n \nEach Secretary and Bookkeeper \n \n$ \n \n4,000.00 \n \nPayroll Administrator \n \n$ \n \n3,000.00 \n \nNOTE 7: 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 \n \nInventories \n \nRestricted \n \nBus Replacement \n \n$ \n \nContinuation of Federal Programs \n \nCapital Projects \n \nAssigned \n \nDonated Funds \n \n$ \n \nSchool Activity Accounts \n \nUnassigned \n \n$ \n14,098.00 628,699.35 3,099,928.57 \n852,353.36 152,891.73 \n \n41,749.99 \n3,742,725.92 1,005,245.09 3,804,299.38 \n \nFund Balance, June 30, 2019 \n \n$ 8,594,020.38 \n \n- 18 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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. \nNOTE 8: 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 various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \nNOTE 9: 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 $1,012,725.00 for the year ended June 30, 2019. Active employees are not required to contribute to the School OPEB Fund. \n \n- 19 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \n \nAt June 30, 2019, the School District reported a liability of $23,911,000.00 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 0.188132%, which was a decrease of 0.000773% from its proportion measured as of June 30, 2017. \n \nFor the year ended June 30, 2019, the School District recognized OPEB expense of $921,086.00. At June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nOPEB \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n- $ \n \n543,881.00 \n \nChanges of assumptions \n \n- \n \n4,050,638.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n32,352.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n426,141.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n1,012,725.00 \n \n- \n \nTotal \n \n$ 1,045,077.00 $ 5,020,660.00 \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 2025 \n \n$ (975,409.00) $ (975,409.00) $ (975,409.00) $ (977,341.00) $ (793,126.00) $ (291,614.00) \n \n- 20 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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 \nHealthcare cost trend rate \n \n7.30%, compounded annually, net of investment expense, and including inflation \n \nPre-Medicare Eligible \n \n7.50% \n \nMedicare Eligible \n \n5.50% \n \nUltimate trend rate \n \nPre-Medicare Eligible \n \n4.75% \n \nMedicare Eligible \n \n4.75% \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 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, 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- 21 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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 \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 \nTotal \n \nTarget allocation \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n100.00% \n \nLong-Term Expected Real Rate of Return* \n(0.50)% 9.00% \n12.00% 13.50% \n8.00% 12.00% 10.50% \n \n*Net of Inflation \n \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. \n \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 \nof the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point \nlower (2.87%) or 1 percentage-point higher (4.87%) than the current discount rate: \n \n1% Decrease (2.87%) \n \nCurrent Discount Rate (3.87%) \n \n1% Increase (4.87%) \n \nNet OPEB Liability \n \n$ 27,920,550.00 $ \n \n23,911,000.00 $ 20,677,717.00 \n \n- 22 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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 \nNet OPEB Liability \n \n$ 20,102,170.00 $ \n \n23,911,000.00 $ 28,778,544.00 \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 \nNOTE 10: 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 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. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2019. The School District's contractually required contribution rate for the year ended June 30, 2019 was 20.90% of annual School District payroll, of which 20.82% of payroll was required from the School District and 0.08% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,323,640.00 and $12,373.62 from the School District and the State, respectively. \n \n- 23 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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/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. \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, 2019 was 24.78% of annual covered payroll for old and new plan members and 21.78% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.66% of annual covered payroll of new and old plan members and 21.66% for GSEPS members, plus a 0.12% adjustment for the HB 751 one-time benefit adjustment of 3% to retired state employees. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $13,596.00 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/formspubs/formspubs. \n \n- 24 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \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. \n \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. \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 $55,169.00. \n \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \n \nAt June 30, 2019, the School District reported a liability of $24,900,623.00 for its proportionate share of the net pension liability for TRS ($24,810,345.00) and ERS ($90,278.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 24,810,345.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n116,570.00 \n \nTotal \n \n$ 24,926,915.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2018. \nAt June 30, 2018, the School District's TRS proportion was 0.133661%, which was a decrease of 0.007302% from its proportion measured as of June 30, 2017. At June 30, 2018, the School District's ERS proportion was 0.002196%, which was a decrease of 0.000327% 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 $293,873.00. \n- 25 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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 $1,858,197.00 for TRS, $5,061.00 for ERS and $68,042.00 for PSERS and revenue of ($9,221.00) for TRS and $68,042.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual \n \nexperience \n \n$ 1,642,480.00 $ \n \n51,135.00 $ \n \n2,808.00 $ \n \n- \n \nChanges of assumptions \n \n374,379.00 \n \n- \n \n4,253.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n678,363.00 \n \n2,080.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n2,386.00 \n \n1,833,898.00 \n \n8,688.00 \n \nSchool District contributions subsequent to the measurement date \nTotal \n \n3,323,640.00 \n \n- \n \n$ 5,342,885.00 $ 2,563,396.00 $ \n \n13,596.00 20,657.00 $ \n \n10,768.00 \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, 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 \nERS \n \n2020 2021 2022 2023 2024 \n \n$ 584,845.00 $ \n \n$ 144,535.00 $ \n \n$ (1,001,709.00) $ \n \n$ (269,951.00) $ \n \n$ \n \n(1,871.00) $ \n \n1,130.00 (449.00) \n(3,458.00) (930.00) - \n \n- 26 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nActuarial assum ptions: The total pension liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \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 \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, 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 \n- 27 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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. \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 \n \nTRS Target allocation \n \nERS/PSERS Target \nallocation \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 pension liability was 7.50%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n- 28 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \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% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50% and 6.30%) or 1-percentage-point higher (8.50% and 8.30%) than the current rate: \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$ 41,415,569.00 $ \n \n24,810,345.00 $ 11,126,794.00 \n \nEmployees' Retirement System: \nSchool District's proportionate share of the net pension liability \n \n1% Decrease (6.30%) \n \nCurrent Discount Rate (7.30%) \n \n1% Increase (8.30%) \n \n$ \n \n128,408.00 $ \n \n90,278.00 $ \n \n57,791.00 \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 available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \nNOTE 11: EXTRAORDINARY ITEM \nDuring fiscal year 2019, the School District received a bequest by a private citizen. The School District received $494,971.96 to be used on scholarships, technology, literacy programs and capital outlay projects. This amount is shown on the Statement of Activities and the Statement of Revenues, Expenses and Changes in Fund Balances as an extraordinary item. \nNOTE 12: SUBSEQUENT EVENTS \n In the subsequent fiscal year, the School District issued $24,680,000.00 of general obligation bonds of the $27,400,000.00 that were authorized in prior years. The proceeds from these bonds will be used for acquiring, constructing and equipping capital outlay projects. \n In December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time. \n \n- 29 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR 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 the net pension \nliability \n \nState of Georgia's proportionate share of the net pension liability \nassociated with the School District \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 \n2019 2018 2017 2016 2015 \n \n0.133661% $ 24,810,345.00 $ 0.140963% $ 26,198,408.00 $ 0.142743% $ 29,449,472.00 $ 0.147075% $ 22,390,708.00 $ 0.154807% $ 19,557,823.00 $ \n \n116,570.00 213,917.00 244,066.00 189,996.00 160,953.00 \n \n$ 24,926,915.00 $ 26,412,325.00 $ 29,693,538.00 $ 22,580,704.00 $ 19,718,776.00 \n \n$ 15,994,439.37 $ 16,314,149.47 $ 15,786,646.73 $ 15,656,895.31 $ 15,932,172.02 \n \n155.12% 160.59% 186.55% 143.01% 122.76% \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- 31 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PORPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the net pension \nliability \n \nSchool District's covered payroll \n \n2019 2018 2017 2016 2015 \n \n0.002196% $ 0.002523% $ 0.002585% $ 0.002558% $ 0.002591% $ \n \n90,278.00 $ 102,467.00 $ 122,281.00 $ 103,635.00 $ \n97,179.00 $ \n \n56,023.77 61,878.66 60,097.22 58,488.36 58,346.42 \n \nSchool District's proportionate share of the net pension liability \nas a percentage of covered payroll \n161.14% 165.59% 203.47% 177.19% 166.56% \n \nPlan fiduciary net position as a \npercentage of total pension liability \n76.68% 76.33% 72.34% 76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 32 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PORPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \n \nYear Ended \n2019 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 \nnet pension liability associated with the School \nDistrict \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 \n293,873.00 273,648.00 383,890.00 242,736.00 224,650.00 \n \nTotal \n$ 293,873.00 $ 273,648.00 $ 383,890.00 $ 242,736.00 $ 224,650.00 \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 \n$ 813,644.00 $ 730,766.58 $ 725,869.10 $ 783,445.60 $ 846,638.60 \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- 33 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n2019 2018 \n \nSchool District's proportion of the net \nOPEB liability \n \nSchool District's proportionate share \nof the net OPEB liability \n \nState of Georgia's proportionate share of the \nnet OPEB liability associated with the School \nDistrict \n \nTotal \n \n0.188132% $ 23,911,000.00 $ 0.188905% $ 26,541,077.00 $ \n \n- \n \n$ 23,911,000.00 \n \n- \n \n$ 26,541,077.00 \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the net OPEB liability as a percentage of its covered- \nemployee payroll \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \n \n$ 14,202,987.29 $ 14,340,666.23 \n \n168.35% 185.08% \n \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- 34 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n2019 2018 2017 2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \n$ \n \n3,323,640.00 $ \n \n3,323,640.00 $ \n \n- \n \n$ \n \n2,676,096.72 $ \n \n2,676,096.72 $ \n \n- \n \n$ \n \n2,309,164.92 $ \n \n2,309,164.92 $ \n \n- \n \n$ \n \n2,234,505.20 $ \n \n2,234,505.20 $ \n \n- \n \n$ \n \n2,041,552.01 $ \n \n2,041,552.01 $ \n \n- \n \nSchool District's covered payroll \n$ 15,963,784.68 $ 15,994,439.37 $ 16,314,149.47 $ 15,786,646.73 $ 15,656,895.31 \n \nContribution as a percentage of covered \npayroll \n20.82% 16.73% 14.15% 14.15% 13.04% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"6\" \n \nYear Ended \n2019 2018 2017 2016 2015 \n \nContractually required contribution \n \n$ \n \n13,596.00 \n \n$ \n \n13,899.49 \n \n$ \n \n15,352.05 \n \n$ \n \n14,856.00 \n \n$ \n \n12,844.08 \n \nContributions in relation to the contractually required \ncontribution \n \n$ \n \n13,596.00 \n \n$ \n \n13,899.49 \n \n$ \n \n15,352.05 \n \n$ \n \n14,856.00 \n \n$ \n \n12,844.08 \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 \nSchool District's covered payroll \n \n$ \n \n54,867.38 \n \n$ \n \n56,023.77 \n \n$ \n \n61,878.66 \n \n$ \n \n60,097.22 \n \n$ \n \n58,488.36 \n \nContribution as a percentage of covered \npayroll \n24.78% 24.81% 24.81% 24.72% 21.96% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"7\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \n2019 2018 \n \n$ 1,012,725.00 $ \n \n$ \n \n975,069.00 $ \n \n1,012,725.00 975,069.00 \n \nContribution deficiency (excess) \n \n$ \n \n- \n \n$ \n \n- \n \nSchool District's covered-employee \npayroll \n$ 14,511,158.88 $ 14,202,987.29 \n \nContribution as a percentage of covered- \nemployee payroll \n6.98% 6.87% \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 BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"8\" \n \nTeachers Retirement System \n \nChanges of assumptions: On November 18, 2015, th-e Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The \n \nexpectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the \n \nSociety of Actuaries' projection scale BB (set forward one year for males). \n \n- \n \nIn 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \n \nEmployees' Retirement System \n* 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 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. On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among WKHFKDQJHVZHUHWKHXSGDWHVWRUDWHVRIPRUWDOLW\\UHWLUHPHQWGLVDELOLW\\ZLWKGUDZDODQGVDODU\\LQFUHDVHV \n \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 RP 2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (-set forward 3 years for males and 2 years for females). In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual H[SHULHQFH \nSchool OPEB Fund \nChanges of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: June 30, 2017 valuation: the June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. \nThe discount rate was updated from 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018. \n \n- 38 - \n \n BEN HILL COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2019 \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 \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nExtraordinary Item - Donation Operating Transfers From Other Funds Operating Transfers To Other Funds \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n6,295,000.00 $ \n \n6,295,000.00 $ \n \n6,440,388.63 $ \n \n60,000.00 \n \n60,000.00 \n \n52,951.72 \n \n21,826,805.00 \n \n21,826,805.00 \n \n22,315,276.77 \n \n5,616,230.88 \n \n5,626,230.88 \n \n6,534,620.44 \n \n164,622.40 \n \n164,622.40 \n \n298,681.31 \n \n12,516.00 \n \n12,516.00 \n \n22,509.24 \n \n698,844.72 \n \n698,844.72 \n \n350,498.34 \n \n34,674,019.00 \n \n34,684,019.00 \n \n36,014,926.45 \n \n145,388.63 (7,048.28) \n488,471.77 908,389.56 134,058.91 \n9,993.24 (348,346.38) \n1,330,907.45 \n \n21,968,439.67 \n833,374.06 1,326,984.09 \n452,110.85 687,399.83 2,189,339.45 483,260.81 2,337,674.11 1,502,042.86 \n146,840.00 197,401.00 1,851,636.00 \n33,976,502.73 \n697,516.27 \n95,000.00 (95,000.00) \n- \n697,516.27 \n3,452,167.96 \n(3,619.16) \n \n21,421,169.42 \n999,326.06 2,236,396.09 \n478,984.85 691,580.83 2,129,324.45 483,260.81 2,328,289.11 1,444,955.86 \n1,100.00 85,500.00 197,401.00 1,851,636.00 \n34,348,924.48 \n335,094.52 \n526,671.00 (526,671.00) \n- \n335,094.52 \n3,452,167.96 \n(57,662.52) \n \n22,118,248.47 \n999,680.86 1,404,912.04 \n430,532.75 728,107.57 2,199,148.13 499,807.21 2,431,346.10 1,629,997.82 \n18,200.00 290,127.54 1,979,389.46 \n34,729,497.95 \n1,285,428.50 \n494,971.96 - \n494,971.96 \n1,780,400.46 \n3,713,691.35 \n- \n \n(697,079.05) \n(354.80) 831,484.05 \n48,452.10 (36,526.74) (69,823.68) (16,546.40) (103,056.99) (185,041.96) \n1,100.00 67,300.00 (92,726.54) (127,753.46) \n(380,573.47) \n950,333.98 \n494,971.96 (526,671.00) 526,671.00 \n494,971.96 \n1,445,305.94 \n261,523.39 \n57,662.52 \n \nFund Balances - Ending \n \n$ \n \n4,146,065.07 $ \n \n3,729,599.96 $ \n \n5,494,091.81 $ \n \n1,764,491.85 \n \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 BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2019 \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 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 Grants to States Preschool Grants Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition Grants English Language Acquisition Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Striving Readers Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nHealth and Human Services, U. S. Department of Pass-Through From Children and Youth Coordinating Council Abstinence Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n19195GA324N1099 $ 19195GA324N1100 \n \n411,203.74 1,485,261.23 \n1,896,464.97 \n \n84.027 84.027 84.173 84.173 \n \nH027A170073 H027A180073 H173A170081 H173A180081 \n \n84.048 84.365 84.365 84.011 84.011 84.358 84.358 84.371 84.424A 84.367 84.010 84.010 \n \nV048A180010 S365A170010 S365A180010 S011A170011 S011A180011 S365B170010 S365B180010 S371C170002 S424A180011 S367A180001 S010A170010 S010A180010 \n \n12.UNKNOWN 93.235 \n \nNIG95295 \n \n11,872.50 644,335.11 \n24,983.90 29,438.69 \n710,630.20 \n42,795.00 205.00 \n10,808.18 5,830.61 \n48,432.69 4,896.36 \n55,281.96 874,640.29 \n3,465.25 19,497.77 29,269.17 1,979,314.50 \n3,074,436.78 \n3,785,066.98 \n30,085.27 \n103,379.04 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n5,814,996.26 \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 Ben Hill County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2019. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \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 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 40 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 Development Programs Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Hold Harmless Categorical Grants Pupil Transportation Regular Nursing Services Charter System Adjustment Education Equalization Funding Grant Other State Programs Bus Purchases - State Allotment Food Services Math and Science Supplements Preschool Disability Services State Health Benefit Plan Employer Holiday Teachers Retirement Vocational Education Vocational Supervisors \nGovernor's Office of Student Achievement (GOSA) Connection for Classrooms \nOffice of the State Treasurer Public School Employees Retirement \n \nSCHEDULE \"11\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n722,085.92 \n \n1,033,272.00 23,721.00 \n2,619,949.00 172,971.00 \n1,430,095.00 332,950.00 \n2,232,011.00 1,561,139.00 \n777,324.00 2,533,789.00 \n425,751.00 400,739.00 153,269.00 125,219.00 382,857.00 118,649.00 \n59,368.00 1,114.00 \n536,719.00 745,872.00 802,733.00 293,049.00 \n375,421.00 65,676.00 \n288,564.00 3,610,591.00 \n154,440.00 53,106.00 15,384.92 85,726.31 \n(168,210.00) 12,373.62 \n117,790.00 14,299.00 \n150,300.00 \n55,169.00 \n \n$ \n \n22,315,276.77 \n \nSee notes to the basic financial statements. \n \n- 41 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"12\" \n \nPROJECT 2016 \n \nORIGINAL ESTIMATED \nCOST (1) \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 \n(i) Replacement of schools and/or \n \nconstruction of new schools, including and \n \nnecessary demolition; \n \n$ \n \n3,500,000.00 $ \n \n3,500,000.00 $ \n \n23,200.00 $ \n \n20,926.44 $ \n \n- $ \n \n- \n \n(ii) Adding to, renovating, repairing, \n \nimproving, furnishing, and/or equipping \n \nexisting school buildings, including the \n \ncentral office, transportation and \n \nmaintenance facilities, including necessary \n \ndemolition; \n \n500,000.00 \n \n500,000.00 \n \n105,966.98 \n \n227,185.26 \n \n- \n \n- \n \n(iii) Adding to, constructing, renovating, \n \nfurnishing, and/or equipping athletic \n \nfacilities; \n \n500,000.00 \n \n500,000.00 \n \n218,780.00 \n \n- \n \n- \n \n- \n \n(iv) Acquiring equipment, instruments \n \nand/or materials for the fine arts, \n \nvocational, physical education and athletic \n \ndepartments; \n \n200,000.00 \n \n200,000.00 \n \n- \n \n- \n \n- \n \n- \n \n(v) Renovations, additions, and/or \n \nimprovements to parking, traffic access \n \nfacilities and transportation department, \n \nincluding paving and any necessary site \n \nwork; \n \n1,000,000.00 \n \n1,000,000.00 \n \n- \n \n- \n \n- \n \n- \n \n(vi) Acquiring instructional and/or \n \nadministrative technology equipment and \n \nmaterials; \n \n1,000,000.00 \n \n1,000,000.00 \n \n68,176.55 \n \n334,815.46 \n \n- \n \n(vii) Acquiring safety, security, and/or fire \n \nprotection equipment; \n \n100,000.00 \n \n100,000.00 \n \n20,435.00 \n \n- \n \n- \n \n- \n \n(viii) Acquiring buses, vehicles, and/or \n \ntransportation equipment; \n \n750,000.00 \n \n750,000.00 \n \n88,700.00 \n \n219,757.00 \n \n- \n \n(ix) Acquiring property; \n \n500,000.00 \n \n500,000.00 \n \n- \n \n- \n \n- \n \n- \n \n(x) Paying a portion of the principal and \n \ninterest on the current general obligation \n \ndebt and general obligation debt to be \n \nissued (collectively, the \"Projects\"). \n \n7,950,000.00 \n \n7,950,000.00 \n \n- \n \n843,615.39 \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE 2022 \n2021 2021 \n2021 \n2021 2021 2021 2021 2020 \n2037 \n \n$ 16,000,000.00 $ 16,000,000.00 $ 525,258.53 $ 1,646,299.55 $ \n \n- $ \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 Ben Hill 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- 43 - \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 \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 Ben Hill County 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 Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated August 10, 2020. \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. \nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \n \n Compliance 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \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 \nAugust 10, 2020 \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 \n \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND 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 Ben Hill County Board of Education \nReport on Compliance for Each Major Federal Program \nWe have audited the Ben Hill County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \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. \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 2019-001. Our opinion on each major federal program is not modified with respect to this matter. \nThe School District's response to the noncompliance 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. \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 2019-001, 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, \n \nAugust 10, 2020 \n \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2019 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \nType of auditor's report issued: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \n \nUnmodified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs: \n \n Material weakness identified? \n \nNo \n \n Significant deficiency identified? \n \nYes \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: CFDA Numbers \n \nName of Federal Program or Cluster \n \n84.010 84.371 \n \nTitle I Grants to Local Educational Agencies Striving Readers \n \nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \n \n$750,000.00 No \n \n- 1 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2019 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2019-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \n \nImprove Controls over Suspension and Debarment Procedures Procurement and Suspension and Debarment Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education 84.371 Striving Readers S371C170002 None Identified \n \nDescription: The policies and procedures of the School District did not provide adequate internal controls over the suspension and debarment process as it relates to the Striving Readers program. \n \nCriteria: Provisions included in 2 CFR 180.300 provide the suspension and debarment compliance requirements for entering into a covered transaction. The School District is required to verify that the vendor is not excluded or disqualified by \"(a) Checking System for Awards Management (SAM) exclusions; or (b) Collecting a certification from that entity; or (c) Adding a clause or condition to the covered transaction with that entity.\" \n \nCondition: A random sample of six procurements was selected for testing using a non-statistical sampling approach. In addition, nine individually significant procurement transactions were selected for testing. These items were reviewed to ensure that the School District followed its procedures for verifying that each vendor is not debarred, suspended, or otherwise excluded before entering into a covered transaction. Upon review of these procurement transactions, it was noted that the School District did not complete appropriate procedures to verify that three of six vendors tested were not excluded or disqualified at any point during the procurement process. \n \nCause: In discussing the deficiency with management, they stated that the School District did not follow procedures in place to verify the suspension and debarment status of vendors before purchases occurred. \n \nEffect or Potential Effect: Failure to appropriately implement procedures to address suspension and debarment compliance requirements could result in the expenditure of the Federal funds with unqualified vendors and the return of grant funds associated with these unallowable expenditures. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. \n \n- 2 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2019 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Recommendation: Management should evaluate and improve the School District's policies and procedures for verifying that vendors are not suspended, debarred or otherwise excluded prior to entering into covered transactions. In addition, management should develop and implement a monitoring process to ensure that these procedure are operating appropriately. Views of Responsible Officials: We concur with this finding. \n- 3 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n  "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2018-belec-p-btext","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2018 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2018-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009, released in 2010?","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 8/4/15 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 4, 2015).","Latest issue consulted: Fiscal year ended June 30, 2014 (Georgia Government Publications database, viewed September 4, 2015)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2018-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2018-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"BEN HILL COUNTY BOARD OF EDUCATION \nFITZGERALD, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n(Including Independent Auditor's Reports) \n \n BEN HILL COUNTY BOARD OF EDUCATION - 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 \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nI NOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \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 EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \n5 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 6 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \n1 2 \n3 4 5 6 7 8 9 \n31 32 33 34 35 36 37 38 39 \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION I FINANCIAL SCHEDULES SUPPLEMENTARY INFORMATION 10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n40 41 43 \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 \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 \nMay 23, 2019 \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 Ben Hill County 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 the Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \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 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 \n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \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 \nAs described in Note 2 and 14 to the financial statements, in 2018, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended by GASB Statement No. 85, Omnibus 2017. The School District restated beginning net position for the effect of GASB Statement No. 75. Our opinions are not modified with respect to this matter. \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 \n \n U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated May 23, 2019 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \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 BEN HILL COUNTY BOARD OF EDUCATION \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2018 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets DEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan Total Deferred Outflows of Resources LIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Total Liabilities DEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan Total Deferred Inflows of Resources NET POSITION Investment in Capital Assets Restricted for Bus Replacement Continuation of Federal Programs Capital Projects Unrestricted (Deficit) \nTotal Net Position \nThe notes to the basic financial statements are an integral part of this statement. \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n5,793,627.61 \n \n887,869.31 2,579,853.42 \n25,653.63 316.76 \n70,422.03 2,025,696.43 36,453,248.38 \n \n47,836,687.57 \n \n4,253,222.21 982,832.00 \n5,236,054.21 \n \n313,473.76 3,223,009.02 \n161,126.27 159,150.33 26,300,875.00 26,541,077.00 \n56,698,711.38 \n1,528,397.00 2,419,977.00 \n3,948,374.00 \n \n38,478,944.81 \n14,098.00 526,608.25 1,473,549.53 (48,067,544.19) \n \n$ \n \n(7,574,343.60) \n \n- 1 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2018 \n \nEXHIBIT \"B\" \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 POSITION \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 Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \n \n$ 22,201,769.88 $ \n1,000,156.65 1,364,087.72 \n464,026.74 678,638.70 2,064,311.23 476,961.86 2,363,530.07 1,520,122.11 \n31,344.43 17,272.13 \n74,458.99 2,028,971.13 \n3,341.44 \n$ 34,288,993.08 $ \n \n47,620.36 $ 16,142,984.55 $ \n \n44,000.00 - \n \n258,132.70 819,254.53 429,923.00 656,648.93 861,692.72 \n8,242.26 923,454.20 413,209.20 \n(3,700.39) 17,542.64 \n \n39,381.75 - \n \n427.68 1,939,300.02 \n- \n \n131,002.11 $ 22,467,112.04 \n \n(6,011,164.97) \n(742,023.95) (544,833.19) \n(34,103.74) (21,989.77) (1,202,618.51) (468,719.60) (1,396,075.87) (1,106,912.91) (35,044.82) \n270.51 \n(74,031.31) (50,289.36) \n(3,341.44) \n(11,690,878.93) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nExtraordinary Item Donation \n \n6,415,300.27 23,232.61 \n2,127,959.46 95,386.41 \n3,317,062.00 20,023.69 \n627,425.34 \n500,000.00 \n \nTotal General Revenues and Extraordinary Item \n \n13,126,389.78 \n \nChange in Net Position \n \n1,435,510.85 \n \nNet Position - Beginning of Year (Restated) \n \n(9,009,854.45) \n \nNet Position - End of Year \n \n$ \n \n(7,574,343.60) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n BEN HILL COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2017 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 4,503,307.38 $ 1,290,320.23 $ \n \n704,640.01 2,579,853.42 \n25,653.63 316.76 \n70,422.03 \n \n183,229.30 - \n \n- $ 5,793,627.61 \n \n- \n \n- \n \n887,869.31 \n \n- \n \n2,579,853.42 \n \n- \n \n25,653.63 \n \n- \n \n316.76 \n \n- \n \n70,422.03 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \n \n$ 7,884,193.23 $ 1,473,549.53 $ \n \n$ \n \n313,473.76 $ \n \n3,223,009.02 \n \n161,126.27 \n \n159,150.33 \n \n3,856,759.38 \n \n- $ - \n- \n- \n \n313,742.50 \n \n- \n \n70,422.03 470,284.22 563,551.05 2,609,434.05 \n3,713,691.35 \n \n1,473,549.53 \n- \n1,473,549.53 \n \n- $ 9,357,742.76 \n \n- $ \n \n313,473.76 \n \n- \n \n3,223,009.02 \n \n- \n \n161,126.27 \n \n- \n \n159,150.33 \n \n- \n \n3,856,759.38 \n \n- \n \n313,742.50 \n \n- \n \n70,422.03 \n \n- \n \n1,943,833.75 \n \n- \n \n563,551.05 \n \n- \n \n2,609,434.05 \n \n- \n \n5,187,240.88 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 7,884,193.23 $ 1,473,549.53 $ \n \n- $ 9,357,742.76 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 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 and 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. \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 5,187,240.88 \n \n$ 1,266,020.01 759,676.42 \n48,612,281.78 6,154,205.87 2,994,268.28 \n(21,307,507.55) \n \n38,478,944.81 \n \n$ (26,300,875.00) (26,541,077.00) \n \n(52,841,952.00) \n \n$ 2,724,825.21 (1,437,145.00) \n \n1,287,680.21 \n \n313,742.50 \n \n$ (7,574,343.60) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, 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 Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nExtraordinary Item Donation \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$ 6,460,866.68 $ 95,386.41 \n21,728,121.89 4,048,629.44 131,002.11 18,018.48 624,041.34 \n \n- $ 2,127,959.46 \n2,005.21 3,384.00 \n \n33,106,066.35 \n \n2,133,348.67 \n \n- $ 6,460,866.68 \n \n- \n \n2,223,345.87 \n \n- \n \n21,728,121.89 \n \n- \n \n4,048,629.44 \n \n- \n \n131,002.11 \n \n- \n \n20,023.69 \n \n- \n \n627,425.34 \n \n- \n \n35,239,415.02 \n \n20,751,830.84 \n997,940.89 1,362,756.59 \n443,971.68 673,390.82 2,055,568.85 473,622.91 2,298,549.90 1,384,213.66 \n2,102.38 17,272.13 74,458.99 1,959,616.90 \n- \n- \n32,495,296.54 \n610,769.81 \n \n304,786.17 \n3,175.00 25,000.00 47,335.73 219,757.00 12,875.00 353,198.66 \n- \n966,127.56 \n1,167,221.11 \n \n- \n- \n- \n840,000.00 18,900.00 \n858,900.00 \n(858,900.00) \n \n21,056,617.01 \n997,940.89 1,362,756.59 \n443,971.68 676,565.82 2,055,568.85 498,622.91 2,345,885.63 1,603,970.66 \n2,102.38 17,272.13 74,458.99 1,972,491.90 353,198.66 \n840,000.00 18,900.00 \n34,320,324.10 \n919,090.92 \n \n500,000.00 - \n500,000.00 \n1,110,769.81 \n2,602,921.54 \n \n(858,900.00) \n(858,900.00) \n308,321.11 \n1,165,228.42 \n \n858,900.00 - \n858,900.00 \n- \n- \n \n500,000.00 858,900.00 (858,900.00) \n500,000.00 \n1,419,090.92 \n3,768,149.96 \n \nFund Balances - Ending \n \n$ 3,713,691.35 $ 1,473,549.53 $ \n \n- $ 5,187,240.88 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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. \nAmortization of bond premium Bond principal retirements \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 School 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 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 \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ 1,419,090.92 \n \n$ 623,001.10 (1,227,751.67) \n \n(604,750.57) \n \n(22,333.80) \n \n$ \n \n29,734.50 \n \n840,000.00 \n \n869,734.50 \n \n$ 254,444.24 (496,233.00) \n \n(241,788.76) \n \n15,558.56 $ 1,435,510.85 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n ASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \nNET POSITION Held in Trust for Private Purposes \n \nBEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2018 \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n7,392.42 $ 112,891.23 \n \n$ 112,891.23 \n \n$ \n \n7,392.42 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2018 \nADDITIONS Contributions Investment Earnings Interest Other Additions Total Additions \nDEDUCTIONS Other Deductions Change in Net Position \nNet Position - Beginning \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n28.12 \n \n2,520.00 \n \n2,548.12 \n \n84.18 2,463.94 4,928.48 \n \n$ \n \n7,392.42 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Ben Hill County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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, 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. \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. \n \n- 9 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \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. \n,The School District reports the following fiduciary fund types: \n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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. \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 60 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded \n- 10 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nwhen the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \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 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 trust for the sole purpose of extinguishing debt. This statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The adoption of this statement does not have a significant impact on the School District's financial statements. \n \n- 11 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nCASH AND CASH EQUIVALENTS \n \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 \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. \nINVENTORIES \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. \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 \nAny Amount \n \nN/A \n \nLand Improvements \n \n$ \n \n50,000.00 \n \n15 years \n \nBuildings and Improvements $ \n \n50,000.00 \n \n60 to 75 years \n \nEquipment \n \n$ \n \n5,000.00 \n \n5 to 25 years \n \nConstruction In Progress \n \n$ \n \n50,000.00 \n \nN/A \n \nIntangible - Software \n \n$ 100,000.00 \n \n10 years \n \nAll Other - Intangible Assets \n \n$ \n \n10,000.00 \n \n20 years \n \n- 12 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \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. \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. \n \n- 13 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \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 \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. \nUSE OF ESTIMATES \n \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 \n \nThe Ben Hill County Board of Commissioners adopted the property tax levy for the 2017 tax digest year (calendar year) on July 27, 2017 (levy date) based on property values as of January 1, 2017. Taxes were due on December 30, 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 Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2018, for maintenance and operations amounted to $6,100,680.32. \n \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 \n18.130 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $336,953.75 during fiscal year ended June 30, 2018. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,127,959.46 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 is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \n- 14 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \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 \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, 2018, the School District had deposits with a carrying amount of $5,913,911.26 and a bank balance of $7,030,455.25. The bank balances insured by Federal depository insurance were $500,000.00 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 $6,530,455.25. \n- 15 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 5,396,373.74 517,537.52 \n \nTotal carrying value of deposits - June 30, 2018 \n \n$ 5,913,911.26 \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, 2017 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2018 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,266,020.01 $ \n \n- $ \n \n373,932.32 \n \n385,744.10 \n \n- $ 1,266,020.01 \n \n- \n \n759,676.42 \n \nTotal Capital Assets Not Being Depreciated \n \n1,639,952.33 \n \n385,744.10 \n \n- \n \n2,025,696.43 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n48,612,281.78 6,282,836.87 2,994,268.28 \n \n237,257.00 \n- \n \n365,888.00 \n- \n \n48,612,281.78 6,154,205.87 2,994,268.28 \n \n13,356,041.99 4,918,549.62 2,171,052.27 \n \n838,645.89 275,649.37 \n113,456.41 \n \n365,888.00 \n- \n \n14,194,687.88 4,828,310.99 2,284,508.68 \n \nTotal Capital Assets, Being Depreciated, Net 37,443,743.05 \n \n(990,494.67) \n \n- \n \n36,453,248.38 \n \nGovernmental Activity Capital Assets - Net $ 39,083,695.38 $ (604,750.57) $ \n \n- $ 38,478,944.81 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \n$ \n \nSupport Services \n \nEducational Media Services \n \n$ 16,433.75 \n \nGeneral Administration \n \n875.00 \n \nBusiness Administration \n \n5,870.15 \n \nMaintenance and Operation of Plant \n \n28,952.39 \n \nStudent Transportation Services \n \n109,627.63 \n \nCentral Support Services \n \n36,106.02 \n \nFood Services \n \n988,949.75 \n197,864.94 40,936.98 \n \n$ 1,227,751.67 \n \n- 16 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2018, consisted of the following: \n \nTransfers to \n \nTransfers From \nCapital Projects Fund \n \nDebt Service Fund \n \n$ \n \n858,900.00 \n \nTransfers are used to move sales tax revenues collected by the capital projects fund to the debt service fund to provide funding to service debt. \nNOTE 7: LONG-TERM LIABILITIES \n \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 Bonds Unamortized Bond Premiums \n \n$ 840,000.00 $ 29,734.50 \n \n- $ 840,000.00 $ \n \n- \n \n29,734.50 \n \n- $ \n \n- \n \n- \n \n- \n \n$ 869,734.50 $ \n \n- $ 869,734.50 $ \n \n- $ \n \n- \n \nThe voters of Ben Hill County have authorized $27,400,000.00 in general obligation bonds that were not issued as of June 30, 2018. The primary purpose of the bonds is to pay for acquiring, constructing, and equipping capital outlay projects. \nNOTE 8: 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 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. \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 $2.0 million in aggregate coverage to the Trust, attaching at 110% of the loss fund and based on the Fund's annual normal premium. \n- 17 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nUNEMPLOYMENT COMPENSATION \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District had no unemployment compensation claims in the past two years. \nSURETY BOND \n \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nSuperintendent \n \n$ \n \nMilitary Property Custodian \n \n$ \n \nEach Principal \n \n$ \n \nDirector of Budget and Finance \n \n$ \n \nEach Lunchroom Manager and Assistant Manager $ \n \nEach Secretary and Bookkeeper \n \n$ \n \nPayroll Administrator \n \n$ \n \n99,000.00 24,000.00 \n9,000.00 8,000.00 4,000.00 4,000.00 3,000.00 \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2018: \n \nNonspendable \n \nInventories \n \nRestricted \n \nBus Replacement \n \n$ \n \nContinuation of Federal Programs \n \nCapital Projects \n \nAssigned \n \nSchool Activity Accounts \n \n$ \n \nDonated Funds \n \nUnassigned \n \n$ \n14,098.00 456,186.22 1,473,549.53 \n166,297.18 397,253.87 \n \n70,422.03 \n1,943,833.75 563,551.05 \n2,609,434.05 \n \nFund Balance, June 30, 2018 \n \n$ 5,187,240.88 \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. \nNOTE 10: 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 various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to have a material adverse effect on the financial condition of the School District. \n- 18 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 11: 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 $975,069.00 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 $26,541,077.00 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 0.188905%, which was an decrease of 0.003176% from its proportion measured as of June 30, 2016. \n \n- 19 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nFor the year ended June 30, 2018, the School District recognized OPEB expense of $1,471,302.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nOPEB \n \nDeferred Inflows of Resources \n \nChanges of assumptions \n \n$ \n \n- $ 2,021,035.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n7,763.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n398,942.00 \n \nSchool District contributions subsequent to the measurement date \n \n975,069.00 \n \nTotal \n \n$ 982,832.00 $ 2,419,977.00 \n \nSchool District contributions subsequent to the measurement date of $975,069.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2019 2020 2021 2022 2023 2024 \n \n$ (433,307.00) $ (433,307.00) $ (433,307.00) $ (433,307.00) $ (435,248.00) $ (243,738.00) \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: \nOPEB: \n \nInflation Salary increases \n \n2.75% \n \nERS JRS LRS TRS PSERS \n \n3.25% - 7.00%, including inflation 4.50%, including inflation None 3.25 -- 9.00%, including inflation N/A \n \n- 20 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nLong-term expected rate of return Healthcare cost trend rate \nPre-Medicare Eligible Medicare Eligible Ultimate trend rate Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate \n \n3.88%, 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 \nwith projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \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 of assumptions that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the School OPEB Fund is based on their current or last employer payroll location. Current and former employees of public school districts, libraries, regional educational service agencies and community colleges are allocated to the School OPEB Fund irrespective of retirement system affiliation. In addition, the discount rate increased from 3.07% to 3.58%. \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 \n- 21 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nweighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \n \nTarget Allocation \n \nLong-Term Expected Real Rate of Return* \n \nLocal Government Investment Pool \n \n100.00% \n \n1.13% \n \n*Rate shown is net of 2.75% assumed rate of inflation. \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 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$ 31,512,774.00 $ \n \n26,541,077.00 $ 22,617,400.00 \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 \nliability, as well as what the District's proportionate share of the net OPEB liability would be if it were \ncalculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point \nhigher 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$ 21,999,529.00 $ \n \n26,541,077.00 $ 32,454,165.00 \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. \nNOTE 12: 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 \n \n- 22 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nadministered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial 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 2018. The School District's contractually required contribution rate for the year ended June 30, 2018 was 16.81% of annual School District payroll, of which 16.73% of payroll was required from the School District and 0.08% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,676,096.72 and $13,381.29 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. \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. \n- 23 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's required contribution rate for the year ended June 30, 2018 was 24.81% of annual covered payroll for old and new plan members and 21.81% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.69% of annual covered payroll for old and new plan members and 21.69% for GSEPS members, plus a 0.12% adjustment for the HB 751 one-time benefit adjustment of 3% to retired state employees. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $13,899.49 for the current fiscal year. \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. \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 $54,665.00. \n \n- 24 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \n \nAt June 30, 2018, the School District reported a liability of $26,300,875.00 for its proportionate share of the net pension liability for TRS ($26,198,408.00) and ERS ($102,467.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability State of Georgia's proportionate share of the net pension liability associated with the School District \n \n$ 26,198,408.00 213,917.00 \n \nTotal \n \n$ 26,412,325.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2017. \nAt June 30, 2017, the School District's TRS proportion was 0.140963%, which was a decrease of 0.001780% from its proportion measured as of June 30, 2016. At June 30, 2017, the School District's ERS proportion was 0.002523%, which was a decrease of 0.000062% 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 $273,648.00. \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 $2,446,975.00 for TRS, $9,441.00 for ERS and $55,151.00 for PSERS and revenue of $20,318.00 for TRS and $55,151.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 25 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ 979,982.00 $ \n \n98,870.00 $ \n \n1,123.00 $ \n \n1.00 \n \nChanges of assumptions \n \n574,302.00 \n \n- \n \n233.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n180,289.00 \n \n- \n \n255.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n8,356.00 \n \n1,248,296.00 \n \n(770.00) \n \n686.00 \n \nSchool District contributions subsequent to the measurement date \n \n2,676,096.72 \n \n- \n \n13,899.49 \n \n- \n \nTotal \n \n$ 4,238,736.72 $ 1,527,455.00 $ 14,485.49 $ \n \n942.00 \n \nThe School District contributions subsequent to the measurement date of $2,676,096.72 for TRS and $13,899.49 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2019 \n \n$ (612,994.00) $ (2,081.00) \n \n2020 \n \n$ 935,556.00 $ 3,454.00 \n \n2021 \n \n$ 460,250.00 $ 1,150.00 \n \n2022 \n \n$ (757,442.00) $ (2,905.00) \n \n2023 \n \n$ 9,815.00 $ \n \n- \n \nActuarial assumptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \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 \n- 26 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \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. \nEmployees' Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25% - 7.00%, 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 Combined Mortality Table with future \nmortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set \nforward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society \nof Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females \nwas used for death after disability retirement. There is a margin for future mortality improvement in \nthe tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the \nactual number of deaths that occurred during the study period for service retirements and \nbeneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \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. \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, 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 \n \n- 27 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nrate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \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 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, 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. \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: School District's proportionate share of the net pension liability \nEmployees' Retirement System: School District's proportionate share of the net pension liability \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \n$ 42,994,661.00 $ 26,198,408.00 $ 12,362,070.00 \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \n$ \n \n144,628.00 $ \n \n102,467.00 $ \n \n66,503.00 \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 \n- 28 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 13: EXTRAORDINARY ITEM \n \nDuring fiscal year 2018, the School District received a bequest by a private citizen. The School District received $500,000.00 to be used on scholarships, technology, literacy programs and capital outlay projects. This amount is shown on the Statement of Activities and the Statement of Revenues, Expenses and Change in Fund Balances as an extraordinary item. \nNOTE 14: 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 $27,481,989.00. This change is in accordance with generally accepted accounting procedures. \n \nNet Position, July 1, 2017 as previously reported \n \n$ 18,472,134.55 \n \nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \n \n(28,466,954.00) \n \nDeferred Outflows - School District's Contributions made during fiscal year 2017 \n \n984,965.00 \n \nNet Position, July 1, 2017, as restated \n \n$ (9,009,854.45) \n \n- 29 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR 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 net pension liability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \n \n2018 2017 2016 2015 \n \n0.140963% $ 0.142743% $ 0.147075% $ 0.154807% $ \n \n26,198,408.00 $ 29,449,472.00 $ 22,390,708.00 $ 19,557,823.00 $ \n \n213,917.00 $ 244,066.00 $ 189,996.00 $ 160,953.00 $ \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 \n26,412,325.00 $ 16,314,149.47 29,693,538.00 $ 15,786,646.73 22,580,704.00 $ 15,656,895.31 19,718,776.00 $ 15,932,172.02 \n \n160.59% 186.55% 143.01% 122.76% \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- 31 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PORPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \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 payroll \n \nSchool District's proportionate share of the net pension liability as a \npercentage of covered payroll \n \nPlan fiduciary net position as a \npercentage of total net pension liability \n \n2018 2017 2016 2015 \n \n0.002523% $ 102,467.00 $ \n \n0.002585% $ 122,281.00 $ \n \n0.002558% $ 103,635.00 $ \n \n0.002591% $ \n \n97,179.00 $ \n \n61,878.66 60,097.22 58,488.36 58,346.42 \n \n165.59% 203.47% 177.19% 166.56% \n \n76.33% 72.34% 76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 32 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PORPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \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 net pension liability \nassociated with the School District \n \n2018 2017 2016 2015 \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 \n273,648.00 $ 383,890.00 $ 242,736.00 $ 224,650.00 $ \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability as a percentage of its \ncovered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n273,648.00 $ 383,890.00 $ 242,736.00 $ 224,650.00 $ \n \n730,766.58 725,869.10 783,445.60 846,638.60 \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- 33 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \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 net OPEB liability associated \nwith the School District \n \n0.188905% $ 26,541,077.00 \n \n- \n \n$ \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 OPEB liability \n \n26,541,077.00 $ 14,340,666.23 \n \n185.08% \n \n1.61% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \n2018 \n \n$ \n \n2,676,096.72 $ \n \n2,676,096.72 $ \n \n- \n \n2017 \n \n$ \n \n2,309,164.92 $ \n \n2,309,164.92 $ \n \n- \n \n2016 \n \n$ \n \n2,234,505.20 $ \n \n2,234,505.20 $ \n \n- \n \n2015 \n \n$ \n \n2,041,552.01 $ \n \n2,041,552.01 $ \n \n- \n \nSchool District's covered payroll \n \n$ \n \n15,994,439.37 \n \n$ \n \n16,314,149.47 \n \n$ \n \n15,786,646.73 \n \n$ \n \n15,656,895.31 \n \nContribution as a percentage of covered \npayroll \n16.73% 14.15% 14.15% 13.04% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"6\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n2018 \n \n$ \n \n13,899.49 $ \n \n13,899.49 $ \n \n- \n \n2017 \n \n$ \n \n15,352.05 $ \n \n15,352.05 $ \n \n- \n \n2016 \n \n$ \n \n14,856.00 $ \n \n14,856.00 $ \n \n- \n \n2015 \n \n$ \n \n12,844.08 $ \n \n12,844.08 $ \n \n- \n \nSchool District's covered payroll \n \n$ \n \n56,023.77 \n \n$ \n \n61,878.66 \n \n$ \n \n60,097.22 \n \n$ \n \n58,488.36 \n \nContribution as a percentage of covered \npayroll \n24.81% 24.81% 24.72% 21.96% \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 BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"7\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n2018 \n \n$ \n \n975,069.00 $ \n \n975,069.00 $ \n \n- \n \nSchool District's covered-employee \npayroll \n$ 14,202,987.29 \n \nContribution as a percentage of covered- \nemployee payroll \n6.87% \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 BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2018 \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). \nEmployees' Retirement System \nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. \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). \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- 38 - \n \n BEN HILL COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2018 \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 \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 \n \nFINAL \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n6,020,000.00 $ \n \n6,020,000.00 $ \n \n6,460,866.68 $ \n \n58,000.00 \n \n58,000.00 \n \n95,386.41 \n \n21,264,222.00 \n \n21,264,222.00 \n \n21,728,121.89 \n \n5,616,230.88 \n \n5,616,230.88 \n \n4,048,629.44 \n \n175,530.40 \n \n175,530.40 \n \n131,002.11 \n \n10,016.00 \n \n10,016.00 \n \n17,229.89 \n \n658,844.16 \n \n658,844.16 \n \n624,041.34 \n \n33,802,843.44 \n \n33,802,843.44 \n \n33,105,277.76 \n \n440,866.68 37,386.41 \n463,899.89 (1,567,601.44) \n(44,528.29) 7,213.89 \n(34,802.82) \n(697,565.68) \n \n22,189,185.10 \n873,234.06 1,344,009.31 \n462,733.24 661,996.33 2,150,067.90 415,398.27 2,159,914.58 1,271,698.02 \n146,840.00 197,401.00 1,851,635.60 \n33,724,113.41 \n78,730.03 \n \n21,927,663.91 \n998,644.06 1,666,166.31 \n462,733.24 811,500.33 2,150,067.90 415,398.27 2,159,914.58 1,273,794.02 \n662.00 95,789.00 197,401.00 1,851,635.60 \n34,011,370.22 \n(208,526.78) \n \n20,648,296.12 \n997,940.89 1,362,756.59 \n443,971.68 673,390.82 2,055,568.85 473,622.91 2,298,549.90 1,384,213.66 \n2,102.38 17,272.13 74,458.99 1,959,616.90 \n32,391,761.82 \n713,515.94 \n \n1,279,367.79 \n703.17 303,409.72 \n18,761.56 138,109.51 \n94,499.05 (58,224.64) (138,635.32) (110,419.64) \n(1,440.38) 78,516.87 122,942.01 (107,981.30) \n1,619,608.40 \n922,042.72 \n \n95,000.00 (95,000.00) \n78,730.03 2,805,811.61 \n- \n \n95,000.00 (95,000.00) \n(208,526.78) 2,805,811.61 \n38,164.02 \n \n713,515.94 2,602,921.54 - \n \n(95,000.00) 95,000.00 \n922,042.72 (202,890.07) (38,164.02) \n \n$ \n \n2,884,541.64 $ \n \n2,635,448.85 $ \n \n3,316,437.48 $ \n \n680,988.63 \n \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 BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2018 \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 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 Grants to States Preschool Grants Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition Grants English Language Acquisition Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Striving Readers 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 \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Deparment of the Army R.O.T.C. Program \nHealth and Human Services, U. S. Department of Pass-Through From Children and Youth Coordinating Council Abstinence Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n18185GA324N1099 $ 18185GA324N1100 \n \n327,411.54 1,555,745.97 \n1,883,157.51 \n \n84.027 84.027 84.173 84.173 \n \nH027A160073 H027A170073 H173A160081 H173A170081 \n \n84.048 84.365 84.365 84.011 84.011 84.358 84.358 84.371 84.424A 84.367 84.367 84.010 84.010 \n \nV048A170010 S365A160010 S365A170010 S011A160011 S011A170011 S358B160010 S365B170010 S371C170002 S424A170011 S367A160001 S367A170001 S010A150010 S010A160010 \n \n80,356.00 630,185.89 \n9,180.00 11,681.74 \n731,403.63 \n44,068.00 612.00 \n12,932.21 341.00 \n26,196.19 299.00 \n51,458.29 4,317.65 \n21,438.20 8,394.00 \n143,736.05 43,112.00 \n1,695,102.51 \n2,052,007.10 \n2,783,410.73 \n \n12.UNKNOWN 93.235 \n \nNIG95295 \n \n41,530.15 90,568.06 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n4,798,666.45 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \nNote 1. Basis of Presentation \n \nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Ben Hill County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2018. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \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, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments , or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 40 - \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff Development Programs Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Mid-term Adjustment Hold Harmless Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Middle School Computer Coding Grant Preschool Disability Services Teacher of the Year Grant Teachers Retirement Vocational Education Vocational Supervisors \nGovernor's Office of Student Achievement (GOSA) Connection for Classrooms \nOffice of the State Treasurer Public School Employees Retirement \n \nSCHEDULE \"11\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n675,489.98 \n \n1,160,689.00 51,774.00 \n2,875,108.00 244,250.00 \n1,420,773.00 321,335.00 \n2,120,652.00 1,553,360.00 \n773,971.00 2,547,830.00 \n413,636.00 268,058.00 145,664.00 148,010.00 390,631.00 119,978.00 \n60,909.00 1,109.00 \n573,295.00 734,586.00 820,142.00 (282,224.00) \n366,444.00 64,558.00 \n358,887.00 3,317,062.00 \n52,668.00 26,289.27 25,000.00 36,190.69 \n507.25 13,381.29 119,734.70 16,502.00 \n137,206.71 \n54,665.00 \n \n$ \n \n21,728,121.89 \n \nSee notes to the basic financial statements. \n \n- 41 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"12\" \n \nPROJECT 2011 \n \nORIGINAL ESTIMATED \nCOST (1) \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 \n(i) Payment of principal and interest on previously incurred general \n \nobligation debt of the School district in a maximum amount of \n \n$4,422,515.00; \n \n$ 4,422,515.00 $ 3,009,252.11 $ \n \n18,459.61 $ 2,990,792.50 $ 3,009,252.11 $ \n \n- \n \n(ii) Repairing, improving, rehabilitating and upgrading the \"Old Lynwood\" \n \nbuilding for use as a Central Support facility; \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n(iii) Adding a new wing at Ben Hill Primary School, including necessary furnishings, fixtures and equipment; \n \n- \n \n20,000.00 \n \n- \n \n20,000.00 \n \n20,000.00 \n \n- \n \n(iv) Renovating, extending, repairing and equipping existing School District facilities to include roof repairs; \n \n- \n \n6,389,710.94 \n \n160,268.40 \n \n6,229,442.54 \n \n6,389,710.94 \n \n- \n \n(v) Acquiring and installing systemwide instructional and administrative technology, safety and security equipment; \n \n- \n \n802,008.62 \n \n- \n \n802,008.62 \n \n802,008.62 \n \n- \n \n(vi) Acquisition of school buses and transportation equipment; \n \n9,444.93 \n \n- \n \n9,444.93 \n \n9,444.93 \n \n(vii) Acquisition of fine arts, vocational and physical education/athletic equipment and facilities; \n \n- \n \n347,655.70 \n \n- \n \n347,655.70 \n \n347,655.70 \n \n- \n \n(viii) Acquiring textbooks; \n \n- \n \n(ix) Planning for new School District site development and site \n \nacquisition at a maximum cost of $13,000,400.00. \n \n11,077,485.00 \n \n511,799.14 \n \n- \n \n511,799.14 \n \n511,799.14 \n \n- \n \n15,500,000.00 \n \n11,089,871.44 \n \n178,728.01 \n \n10,911,143.43 \n \n11,089,871.44 \n \n- \n \nPROJECT 2016 \n \n(i) Replacement of schools and/or construction of new schools, including \n \nand necessary demolition; \n \n3,500,000.00 \n \n3,500,000.00 \n \n20,926.44 \n \n- \n \n- \n \n- \n \n(ii) Adding to, renovating, repairing, improving, furnishing, and/or \n \nequipping existing school buildings, including the central office, \n \ntransportation and maintenance facilities, including necessary \n \ndemoition; \n \n500,000.00 \n \n500,000.00 \n \n227,185.26 \n \n- \n \n- \n \n- \n \n(iii) Adding to, constructing, renovating, furnishing, and/or equipping \n \nathletic facilities; \n \n500,000.00 \n \n500,000.00 \n \n- \n \n- \n \n- \n \n- \n \n(iv) Acquiring equipment, instruments and/or materials for the fine arts, \n \nvocational, physical education and athletic departments; \n \n200,000.00 \n \n200,000.00 \n \n- \n \n- \n \n- \n \n- \n \n(v) Renovations, additions, and/or improvements to parking, traffic \n \naccess facilities and transportation department, including paving and \n \nany necessary site work; \n \n1,000,000.00 \n \n1,000,000.00 \n \n- \n \n- \n \n- \n \n- \n \n(vi) Acquiring instructional and/or administrative technology equipment \n \nand materials; \n \n1,000,000.00 \n \n1,000,000.00 \n \n334,815.46 \n \n- \n \n- \n \n(vii) Acquiring safety, security, and/or fire protectiong equipment; \n \n100,000.00 \n \n100,000.00 \n \n- \n \n- \n \n- \n \n- \n \n(viii) Acquiring buses, vehicles, and/or transportation equipment; \n \n750,000.00 \n \n750,000.00 \n \n219,757.00 \n \n- \n \n- \n \n(ix) Acquiring property; \n \n500,000.00 \n \n500,000.00 \n \n- \n \n- \n \n- \n \n- \n \n(x) Paying a porton of the principal and interest on the current general \n \nobligation debt and general obligation debt to be issued (collectively, the \n \n\"Projects\"). \n \n7,950,000.00 \n \n7,950,000.00 \n \n843,615.39 \n \n- \n \n- \n \n- \n \n16,000,000.00 \n \n16,000,000.00 \n \n1,646,299.55 \n \n- \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE \nCompleted Completed Completed Completed Completed Completed Completed Completed Completed \n2021 \n2021 2021 2021 \n2021 2021 2021 2021 2021 \n2021 \n \n$ 31,500,000.00 $ 27,089,871.44 $ 1,825,027.56 $ 10,911,143.43 $ 11,089,871.44 $ \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 Ben Hill 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- 43 - \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 \nMay 23, 2019 \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 Ben Hill County 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 Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated May 23, 2019. \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. \nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \n \n Compliance 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \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 \nMay 23, 2019 \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 Ben Hill County 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 Ben Hill County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \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. \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 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION 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 \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS 2017-001 \n \nSignificantly Differing Corrective Action Implemented (1) \n \nAUDITOR'S COMMENTS \n \n(1) The School District resolved this finding by hiring a consultant to prepare the financial statements for audit. This differs significantly from the corrective action plan reported. The corrective action plan reported states that the Chief Financial Officer will personally review such reports prior to their submission. The system accountant will also report to the Chief Financial Officer when his/her review is complete. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2018 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \n \nUnmodified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo 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 \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: CFDA 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: Auditee qualified as low-risk auditee? \n \n$750,000.00 No \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2017-belec-p-btext","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2017 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2017-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009, released in 2010?","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 8/4/15 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 4, 2015).","Latest issue consulted: Fiscal year ended June 30, 2014 (Georgia Government Publications database, viewed September 4, 2015)."],"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":["Ben Hill County Board of Education (Ben Hill County, Ga.)--Appropriations and expenditures--Periodicals","Auditors' reports--Georgia--Periodicals","Financial statements--Georgia--Periodicals","Reports","Financial statements","Georgia","Periodicals","Audits","Financial records"],"dcterms_title":["Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2017 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2017-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2017-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"BEN HILL COUNTY BOARD OF EDUCATION \nFITZGERALD, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \n(Including Independent Auditor's Reports) \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \ni \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 \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n9 \n \nI NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n29 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n30 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n31 \n \n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n32 \n \n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 33 \n \n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n34 \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \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 \n35 36 37 39 \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 \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 \nMarch 8, 2018 \n \nThe Honorable Nathan Deal, 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 Ben Hill County 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 the Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \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 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. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2017, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2017, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures, GASB Statement No. 80, Blending Requirements for Certain Component Units, and GASB Statement No. 82, Pension Issues. Our opinions are not modified with respect to these matters. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages i through x and pages 29 through 35 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \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, are presented for the purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 \n \n U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated March 8, 2018 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \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 BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nINTRODUCTION The intent of this discussion and analysis is to look at the Ben Hill County Board of Education's (School District) financial performance as a whole. The reader should review the notes to the basic financial statements and the financial statements to enhance their understanding of the School District's financial performance. The School District's financial statements for the fiscal year ended June 30, 2017 includes a series of basic financial statements that report financial information for the School District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances. The fund financial statements provide information about all of the School District's funds. FINANCIAL HIGHLIGHTS Key financial highlights for fiscal year 2017 are as follows: On the government-wide financial statements: \n Government-wide net position at June 30, 2017 was approximately $18.5 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term and deferred inflows of resources. The net position at June 30, 2017 of $18.5 million represented an increase of approximately $433 thousand when compared to the prior year. \n The School District had over $34.0 million in expenses relating to governmental activities; only $22.8 million of these expenses were offset by program specific charges for services, operating and capital grants and contributions. However, the general revenues (primarily property and sales taxes) of approximately $11.7 provided additional funding of these expenses. \n As stated above, general revenues accounted for $11.7 million or about 34% of all revenues totaling approximately $34.6 million. Program specific revenues in the form of charges for services, operating and capital grants, and contributions accounted for the balance of these revenues. \ni \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nOn the fund financial statements: \n Among major funds, the general fund had approximately $32.6 million in revenues and $32.4 million in expenditures. The general fund balance of approximately $2.6 million at June 30, 2017 increased by approximately $132 thousand from the prior year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements, including notes to the financial statements, and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \nThe government-wide financial statements include the 'Statement of Net Position' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Ben Hill County School District, the general fund, capital projects funds, and debt service fund are all considered to be major funds. The School District has no non-major funds as defined by GASB Statement No. 34 for purposes of this report. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nGovernment-wide Statements \nSince the School District has no operations that have been classified as \"Business Activities\", the government-wide financial statements are basically a consolidation of the entire School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Position' and the 'Statement of Activities' provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most privatesector companies. This basis of accounting takes into accounts all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net position and any change in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \nii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nWhen analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus and \nthe accrual basis of accounting  Allocate net position as follows: \no Net Investment in Capital Assets o Restricted net position is that with constraints placed on the use by external \nsources such as creditors, grantors, contributors or laws and regulations. o Unrestricted net position is net position that does not meet any of the above \nrestrictions. \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no non-major Funds as defined by generally accepted accounting principles. \nThe School District has two kinds of funds as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds  The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet position, which is the difference between total assets plus deferred outflows of resources and total liabilities plus deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position, can be one way to measure the School District's financial health, or financial position. \niii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 Over time, increases or decreases in the School District's net position as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other non-financial factors should be considered in assessing the overall health of the School District. In the case of the Ben Hill County School District, assets plus deferred outflows of resources exceeded liabilities plus deferred inflows of resources by approximately $18.5 million at June 30, 2017. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $18.5 million of net position, about $1.7 million was restricted for continuation of Federal programs, debt service, ongoing capital projects and bus replacements. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. In addition, the School District had over $38.2 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. The deficit balance of unrestricted net position of approximately ($21.4) million reflects the net pension liability as required by GASB Statement No. 68 and GASB Statement No. 71. \niv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \n \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \nTable 1 Net Position \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2017 \n \nYear 2016 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ \n \n7,500,993 $ 9,417,682 \n \n39,083,695 \n \n37,362,783 \n \nTotal Assets \n \n46,584,688 \n \n46,780,465 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plan \n \n7,279,544 \n \n2,270,345 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n3,412,325 30,441,487 \n \n3,649,570 24,203,812 \n \nTotal Liabilities \n \n33,853,812 \n \n27,853,382 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plan \n \n1,538,285 \n \n3,157,963 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n38,193,792 1,704,534 \n(21,426,191) \n \n35,653,314 3,191,758 \n(20,805,607) \n \nTotal Net Position \n \n$ \n \n18,472,135 $ 18,039,465 \n \nTotal net position increased by $432,670 in fiscal year 2017 from the prior year. \n \nv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Item Loss on Disposal of Land \nTotal General Revenues and Special Item \nTotal Revenues \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nChange in Net Position \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2017 \n \n2016 \n \n$ \n \n506,660.00 $ \n \n350,376.00 \n \n22,240,070.00 \n \n21,754,909.00 \n \n77,216.00 \n \n1,221,100.00 \n \n22,823,946.00 \n \n23,326,385.00 \n \n6,214,251.00 2,083,404.00 \n3,050,273.00 19,051.00 \n361,751.00 \n11,728,730.00 34,552,676.00 \n \n6,110,522.00 2,164,870.00 \n3,272,607.00 27,160.00 \n429,753.00 \n(40,671.00) 11,964,241.00 35,290,626.00 \n \n22,509,906.00 \n \n20,788,097.00 \n \n983,449.00 1,187,147.00 \n469,476.00 631,550.00 2,082,198.00 515,380.00 2,333,990.00 1,270,616.00 \n67,854.00 43,427.00 \n \n672,433.00 1,016,984.00 \n424,067.00 505,075.00 1,940,594.00 408,095.00 2,244,147.00 1,213,052.00 \n59,466.00 76,097.00 \n \n96,372.00 1,887,928.00 \n40,713.00 \n \n102,480.00 1,839,119.00 \n72,104.00 \n \n34,120,006.00 \n \n31,361,810.00 \n \n$ \n \n432,670.00 $ 3,928,816.00 \n \nvi \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nCost of Providing Services \n \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \nTable 3 \nGovernmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2017 \n \nYear 2016 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2017 \n \nYear 2016 \n \nInstruction \n \n$ \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administrative \n \nSchool Administrative \n \nBusiness Administrative \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \nFood Services \n \nInterest in Short-Term and Long-Term Debt \n \n22,509,906 $ \n983,449 1,187,147 \n469,476 631,550 2,082,198 515,380 2,333,990 1,270,616 \n67,854 43,427 \n96,372 1,887,928 \n40,713 \n \n20,788,097 $ \n672,433 1,016,984 \n424,067 505,075 1,940,594 408,095 2,244,147 1,213,052 \n59,466 76,097 \n102,480 1,839,119 \n72,104 \n \n6,686,451 $ \n719,707 270,071 \n58,852 33,168 1,263,794 508,419 1,355,459 784,682 56,563 18,962 (303,924) \n(196,857) 40,713 \n \n4,053,331 \n574,660 276,217 \n(5,095) (89,324) 1,123,021 390,229 1,197,284 757,341 59,366 \n2,517 \n(155,787) (220,440) \n72,104 \n \nTotal Expenses \n \n$ \n \n34,120,006 $ \n \n31,361,810 $ \n \n11,296,060 $ \n \n8,035,424 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"E\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues over $34.6 million and total expenditures of $36.2 million in fiscal year 2017. Total governmental fund balances of approximately $3.77 million at June 30, 2017, decreased approximately $1.61 million from the prior year. $2.4 million of these expenses were incurred due to construction projects in progress in fiscal year 2017. \nGeneral Fund Budget Highlights \nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal year 2017, the School District amended its general fund budget as needed. \n \nvii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \nFor the general fund, the final actual revenues of $32.6 million were less than the final budgeted amount of $33.1 million by approximately $567 thousand. This can be attributed to receiving less Federal funds and miscellaneous income than originally expected. \nThe general fund's final actual expenditures of $32.4 million were more than the final budget amount of $32.2 by approximately $233 thousand. The School District believes it effectively managed its budget during the fiscal year. Additionally, the School District did include revenues and expenditures for school activity accounts in the final budget. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2017, the School District had over $39.1 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2017 \n \nYear 2016 \n \nLand Construction In Progress Building and Improvements Equipment Land Improvements \n \n$ \n \n1,266,020 $ \n \n373,932 \n \n35,256,240 \n \n1,364,287 \n \n823,216 \n \n1,250,020 3,464,098 30,451,321 1,260,672 \n936,672 \n \nTotal \n \n$ \n \n39,083,695 $ \n \n37,362,783 \n \nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \n \nviii \n \n Debt \n \nBEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \n \nAt June 30, 2017, the Board had $840 thousand in bonds outstanding, being due within one year. \nTable 5 Debt at June 30 \n \nGeneral Obligation Bonds \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2017 \n \n2016 \n \n$ \n \n840,000 $ 1,650,000 \n \nFACTORS BEARING ON THE DISTRICTS'S FUTURE \n \nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n The School District is financially stable. The School District's operating millage for 2017 is 18.077, which produces approximately $326,495 per mill. \n The School District plans to fund additional capital outlays with the one percent local sales tax revenue. Collections began in January of 2017 on the 2017-2021 ESPLOST and are estimated to bring in approximately $1,944,000 annually. This will enable the School District to continue development plans for a new high school and the issuance of a $27.4 million (maximum) bond in the year 2020. \n The School District retired the 2006 series bond of $12.2 million in August of 2017 and currently has no long-term debt. The remaining two and one half years of collections prior to beginning construction of the new high school should provide $3.0 million - $4.0 million in funds to reduce the need for bond debt. By the bond issue date of January 2020 the School District will have earned approximately $9.0 million in state capital outlay funds to further reduce local participation in the construction project and bond debt. \n The School District is now considering a change from the \"strategic waiver\" format to the \"charter\" format which will enable the School District to write a new educational plan. This new plan will offer the School District the ability to include valuable strategies for cost reduction such as staffing allowable classes with non-certified employees versus certified employees. The School District may also write in a salary schedule which would not be tied to the state schedule. This could significantly impact overall salaries and benefit requirements. \n The administration has begun research into methods of reducing costs related to classified staff. Requests for proposals are being generated to seek a cost efficient solution to filling lower level positions. It is estimated that this method could reduce add-on costs for those positions from an average 35 cents per wage dollar to 17 cents per wage dollar. This would result in a decrease of $7,000 to $8,000 in expense per employee. \n For 2018 the state increased the state salary scale by two percent, the School District increased all of the classified scales by the same two percent. This will cost the School District approximately $400,000. \n The School District has a goal of $3.75 million as an acceptable fund balance figure. This would provide much greater stability in the event of low ad valorem revenue collections. \n \nix \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017  The state health rate for classified employees will match the certified rate of $945.00 per employee, per month on January 1, 2017. This will cost the School District approximately $160,000. The School District anticipates that the state will continue to provide the level of revenue needed to compensate for those increased expenses. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional information, contact Mr. Thomas Rachels, Chief Operating Officer, Ben Hill County School District, 509 West Palm Street, Fitzgerald, Georgia 31750. You may also email your questions to Mr. Rachels at thomas.rachels@benhillschools.org. \nx \n \n BEN HILL COUNTY BOARD OF EDUCATION \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2017 \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Retainage Payable Deposits and Unearned Revenues Net Pension Liability Long-Term Liabilities \nDue Within One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans \nNET POSITION \nNet Investment in Capital Assets Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n3,983,946.71 \n \n706,486.76 2,419,176.62 \n348,508.70 10,616.04 32,258.01 \n1,639,952.33 37,443,743.05 \n \n46,584,688.22 \n \n7,279,543.97 \n \n11,287.50 3,360,595.85 \n15,558.56 18,152.10 \n2,016.90 4,714.23 29,571,753.00 \n869,734.50 \n33,853,812.64 \n \n1,538,285.00 \n \n38,193,791.88 \n14,098.00 540,765.78 843,341.44 306,328.42 (21,426,190.97) \n \n$ \n \n18,472,134.55 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2017 \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 Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \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$ 22,509,906.12 $ \n983,448.96 1,187,146.85 \n469,475.49 631,549.95 2,082,197.89 515,380.23 2,333,990.39 1,270,616.30 \n67,853.68 43,427.37 \n96,372.27 1,887,927.72 \n40,712.69 \n$ 34,120,005.91 $ \n \n15,507.82 \n48,100.00 - \n400,295.84 42,756.75 - \n506,660.41 \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 \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ 15,807,947.23 $ \n263,741.41 917,076.14 410,624.00 598,382.41 818,403.84 \n6,960.80 930,431.29 408,717.89 \n11,291.01 24,465.67 \n2,042,027.87 \n- \n$ 22,240,069.56 $ \n \n- $ \n77,216.25 - \n- \n77,216.25 \n \n(6,686,451.07) \n(719,707.55) (270,070.71) \n(58,851.49) (33,167.54) (1,263,794.05) (508,419.43) (1,355,459.10) (784,682.16) (56,562.67) (18,961.70) \n303,923.57 196,856.90 (40,712.69) \n(11,296,059.69) \n \n6,195,272.93 18,977.85 \n2,002,203.26 81,200.79 \n3,050,273.00 19,050.75 \n361,751.13 \n11,728,729.71 \n432,670.02 \n18,039,464.53 \n \n$ \n \n18,472,134.55 \n \n- 3 - \n \n BEN HILL COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2017 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 2,976,642.30 $ 1,007,304.41 $ \n \n528,393.75 2,419,176.62 \n348,508.70 10,616.04 32,258.01 \n \n178,093.01 - \n \n- $ 3,983,946.71 \n \n- \n \n- \n \n706,486.76 \n \n- \n \n2,419,176.62 \n \n- \n \n348,508.70 \n \n- \n \n10,616.04 \n \n- \n \n32,258.01 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainage Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \n \n$ 6,315,595.42 $ 1,185,397.42 $ \n \n$ \n \n11,287.50 $ \n \n3,360,595.85 \n \n- \n \n- \n \n4,714.23 \n \n3,376,597.58 \n \n- $ 18,152.10 2,016.90 - \n20,169.00 \n \n336,076.30 \n \n- \n \n- $ 7,500,992.84 \n \n- $ \n \n11,287.50 \n \n- \n \n3,360,595.85 \n \n- \n \n18,152.10 \n \n- \n \n2,016.90 \n \n- \n \n4,714.23 \n \n- \n \n3,396,766.58 \n \n- \n \n336,076.30 \n \n32,258.01 522,605.77 225,233.28 1,822,824.48 \n2,602,921.54 \n \n1,165,228.42 \n- \n1,165,228.42 \n \n- \n \n32,258.01 \n \n- \n \n1,687,834.19 \n \n- \n \n225,233.28 \n \n- \n \n1,822,824.48 \n \n- \n \n3,768,149.96 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances $ 6,315,595.42 $ 1,185,397.42 $ \n \n- $ 7,500,992.84 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2017 \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 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 Unamortized bond premiums \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ \n \n3,768,149.96 \n \n$ \n \n1,266,020.01 \n \n373,932.32 \n \n48,612,281.78 \n \n6,282,836.87 \n \n2,994,268.28 \n \n(20,445,643.88) \n \n39,083,695.38 \n \n(29,571,753.00) 5,741,258.97 336,076.30 \n \n$ \n \n(840,000.00) \n \n(15,558.56) \n \n(29,734.50) \n \n(885,293.06) \n \n$ 18,472,134.55 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 \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 Services \nPrincipal 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$ 6,289,140.06 $ 81,200.79 \n20,659,197.45 4,694,580.16 506,660.41 16,202.02 332,016.63 \n \n- $ 2,002,203.26 \n2,848.73 - \n \n32,578,997.52 \n \n2,005,051.99 \n \n- $ 6,289,140.06 \n \n- \n \n2,083,404.05 \n \n- \n \n20,659,197.45 \n \n- \n \n4,694,580.16 \n \n- \n \n506,660.41 \n \n- \n \n19,050.75 \n \n- \n \n332,016.63 \n \n- \n \n34,584,049.51 \n \n21,263,863.00 \n957,178.58 1,145,506.26 \n438,507.93 621,582.97 2,000,357.26 489,958.23 2,271,067.12 1,271,313.71 \n14,806.89 21,897.14 96,372.27 1,854,858.75 \n- \n- \n32,447,270.11 \n131,727.41 \n \n58,898.67 \n11,237.12 \n12,825.58 6,490.00 30,188.70 9,444.93 20,169.00 2,741,367.47 \n- \n2,890,621.47 \n(885,569.48) \n \n- \n- \n- \n810,000.00 53,392.50 \n863,392.50 \n(863,392.50) \n \n21,322,761.67 \n957,178.58 1,156,743.38 \n438,507.93 621,582.97 2,013,182.84 496,448.23 2,301,255.82 1,280,758.64 \n14,806.89 42,066.14 96,372.27 1,854,858.75 2,741,367.47 \n810,000.00 53,392.50 \n36,201,284.08 \n(1,617,234.57) \n \n- \n- \n131,727.41 \n2,471,194.13 \n \n(863,392.50) \n(863,392.50) \n(1,748,961.98) \n2,914,190.40 \n \n863,392.50 - \n863,392.50 \n- \n- \n \n863,392.50 (863,392.50) \n- \n(1,617,234.57) \n5,385,384.53 \n \nFund Balances - Ending \n \n$ 2,602,921.54 $ 1,165,228.42 $ \n \n- $ 3,768,149.96 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2017 \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. \nAmortization of bond premium Bond principal retirements \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 School 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 issuance of bonds \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ (1,617,234.57) \n \n$ 2,915,719.47 (1,194,806.68) \n \n1,720,912.79 \n \n(74,889.28) \n \n$ \n \n29,734.50 \n \n810,000.00 \n \n839,734.50 \n \n(448,533.23) 12,679.81 \n$ 432,670.02 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n ASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \nNET POSITION Held in Trust for Private Purposes \n \nBEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION FIDUCIARY FUNDS JUNE 30, 2017 \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n4,928.48 $ 102,219.44 \n \n$ 102,219.44 \n \n$ \n \n4,928.48 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2017 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Other Deductions Change in Net Position \nNet Position - Beginning \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n61.18 \n \n61.18 4,867.30 \n \n$ \n \n4,928.48 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 9 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Ben Hill County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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, 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. \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. \n \n- 10 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \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 types: \n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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. \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 60 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded \n- 11 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nwhen the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \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 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures. This statement requires governments that enter into tax abatement agreements to disclose the following information; (1) brief descriptive information, such as the tax being abated, the authority under which tax abatements are provided, eligibility criteria, the mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of commitments made by tax abatement recipients; (2) the gross dollar amount of taxes abated during the period; and (3) commitments made by a government, other than to abate taxes, as part of a tax abatement agreement. The adoption of this statement does not have a significant impact on the School District's financial statements, although the amount is disclosed as required. \nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 80, Blending Requirements for Certain Component Units  an amendment of GASB Statement No. 14. This statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organization Are Component Units. The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 82, Pension Issues  an amendment of GASB Statements No. 67, No. 68 and No. 73. This statement addresses certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and No. 68. Specifically, this statement addresses issues regarding (1) the presentation of payrollrelated measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The adoption of this statement does not have a significant impact on the School District's financial statements. \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 \n- 12 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \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 \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 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. \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 Construction in Progress Intangible - Software All Other - Intangible Assets \n \nAny Amount \n \n$ \n \n50,000.00 \n \n$ \n \n50,000.00 \n \n$ \n \n5,000.00 \n \n$ \n \n50,000.00 \n \n$ \n \n100,000.00 \n \n$ \n \n10,000.00 \n \nN/A 15 years \n60 to 75 years 5 to 25 years N/A 10 years 20 years \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 \n- 13 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \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. \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. \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. \n \n- 14 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \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 Ben Hill County Board of Commissioners adopted the property tax levy for the 2016 tax digest year (calendar year) on July 22, 2016 (levy date) based on property values as of January 1, 2016. Taxes were due on December 20, 2016 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2016 tax digest are reported as revenue in the governmental funds for fiscal year 2017. The Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2017, for maintenance and operations amounted to $5,902,045.55. \n \nThe tax millage rate levied for the 2016 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.077 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $368,116.66 during fiscal year ended June 30, 2017. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,002,203.26 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 is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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. \n \n- 15 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nNOTE 4: DEPOSITS \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, 2017, the School District had deposits with a carrying amount of $4,091,094.63, and a bank balance of $5,651,046.37. The bank balances insured by Federal depository insurance were $1,601,982.20 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $4,049,064.17. \n \n- 16 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2016 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2017 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,250,020.01 $ \n \n16,000.00 $ \n \n$ \n \n3,464,097.64 \n \n2,395,863.17 5,486,028.49 \n \n1,266,020.01 373,932.32 \n \nTotal Capital Assets Not Being Depreciated \n \n4,714,117.65 \n \n2,411,863.17 5,486,028.49 \n \n1,639,952.33 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n43,015,358.55 5,986,502.31 2,994,268.28 \n \n5,596,923.23 392,961.56 - \n \n12,564,038.06 4,725,830.28 2,057,595.86 \n \n792,003.93 289,346.34 113,456.41 \n \n96,627.00 \n- \n \n48,612,281.78 6,282,836.87 2,994,268.28 \n \n96,627.00 \n- \n \n13,356,041.99 4,918,549.62 2,171,052.27 \n \nTotal Capital Assets, Being Depreciated, Net \n \n32,648,664.94 \n \n4,795,078.11 \n \n- \n \n37,443,743.05 \n \nGovernmental Activity Capital Assets - Net $ 37,362,782.59 $ 7,206,941.28 $ 5,486,028.49 $ 39,083,695.38 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Educational Media Services Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ \n \n$ \n \n749.50 \n \n16,433.75 \n \n5,870.15 \n \n32,345.99 \n \n111,887.47 \n \n54,857.02 \n \n930,634.82 \n222,143.88 42,027.98 \n \n$ 1,194,806.68 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2017, consisted of the following: \n \nTransfers to \n \nTransfers from Capital Projects \nFund \n \nDebt Service Fund \n \n$ 863,392.50 \n \n- 17 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nTransfers are used to move sales tax revenues collected by the capital projects fund to the debt service fund to provide funding to service debt. \n \nNOTE 7: SHORT-TERM DEBT \nThe School District issues tax anticipation notes and 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% 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 \n \n$ \n \n- $ \n \n1,613,537.81 $ \n \n1,613,537.81 $ \n \n- \n \nNOTE 8: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \n \nBalance July 1, 2016 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2017 \n \nDue Within One Year \n \nGeneral Obligation Bonds Unamortized Bond Premiums \n \n$ 1,650,000.00 $ 59,469.00 \n \n- $ 810,000.00 $ 840,000.00 $ 840,000.00 \n \n- \n \n29,734.50 \n \n29,734.50 \n \n29,734.50 \n \n$ 1,709,469.00 $ \n \n- $ 839,734.50 $ 869,734.50 $ 869,734.50 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \n \nThe voters of Ben Hill County have authorized $27,400,000.00 in general obligation bonds that were not issued as of June 30, 2017. The primary purpose of the bonds is to pay for acquiring, constructing, and equipping capital outlay projects. \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 2006 \n \n3.85% - 5.00% \n \n4/6/2006 \n \n8/1/2017 $ 12,820,000.00 $ \n \n840,000.00 \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 \n2018 \n \n$ \n \n840,000.00 $ \n \n18,900.00 $ \n \n29,734.50 \n \n- 18 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \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 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 \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 had no unemployment compensation claims in the past two years. \n \nSURETY BOND The School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Military Property Custodian Each Principal Director of Budget and Finance Each Lunchroom Manager and Assistant Manager Each Secretary and Bookkeeper Payroll Administrator \n \n$ \n \n99,000.00 \n \n$ \n \n24,000.00 \n \n$ \n \n9,000.00 \n \n$ \n \n8,000.00 \n \n$ \n \n4,000.00 \n \n$ \n \n4,000.00 \n \n$ \n \n3,000.00 \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2017: \n \nNonspendable Inventories \nRestricted Bus replacement Continuation of federal programs Capital projects Debt service \nAssigned School activity accounts \nUnassigned \n \n$ \n \n32,258.01 \n \n$ \n \n14,098.00 \n \n508,507.77 \n \n306,328.42 \n \n858,900.00 \n \n1,687,834.19 \n \n225,233.28 1,822,824.48 \n \nFund Balance, June 30, 2017 \n \n$ 3,768,149.96 \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 \n- 19 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nNOTE 11: SIGNIFICANT COMMITMENTS \nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2017: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2017 (2) \n \nBen Hill Stadium Upgrades \n \n$ \n \n346,673.00 $ \n \n20,169.00 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year-end. \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 various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to have a material adverse effect on the financial condition of the School District. \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. \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 \n- 20 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nnot 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. \n \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. \n \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2017: \n \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 1, 2016  June 30, 2017 \n \n$945.00 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2016  December 31, 2016 $746.20 per member per month \n \nJanuary 1, 2017  June 30, 2017 $846.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2017 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2017 2016 2015 \n \n100% \n \n$ \n \n3,489,316.93 \n \n100% \n \n$ \n \n3,329,774.20 \n \n100% \n \n$ \n \n3,139,352.40 \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) \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. \n \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. \n- 21 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nAn employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2017. The School District's contractually required contribution rate for the year ended June 30, 2017 was 14.27% of annual School District payroll, of which 14.15% of payroll was required from the School District and 0.12% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,309,164.92 and $18,565.80 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. \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. \n \n- 22 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2017 was 24.81% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $15,352.05 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/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. \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 $54,598.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2017, the School District reported a liability of $29,571,753.00 for its proportionate share of the net pension liability for TRS ($29,449,472.00) and ERS ($122,281.00). \n \n- 23 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 29,449,472.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n244,066.00 \n \nTotal \n \n$ 29,693,538.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2016. \nAt June 30, 2016, the School District's TRS proportion was 0.142743%, which was a decrease of 0.004332% from its proportion measured as of June 30, 2015. At June 30, 2016, the School District's ERS proportion was 0.002585%, which was an increase of 0.000027% from its proportion measured as of June 30, 2015. \nAt June 30, 2017, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $383,890.00. \nThe PSERS net pension liability was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2016. \nFor the year ended June 30, 2017, the School District recognized pension expense of $2,784,540.00 for TRS, $12,338.00 for ERS and $62,934.00 for PSERS and revenue of $24,011.00 for TRS and $62,934.00 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- 24 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \n \nAt June 30, 2017, 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 $ 438,718.00 $ 145,628.00 $ \n \n- $ \n \n282.00 \n \nChanges of assumptions \n \n763,290.00 \n \n- \n \n1,036.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n3,725,480.00 \n \n- \n \n12,433.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n14,326.00 \n \n1,392,991.00 \n \n(256.00) \n \n(616.00) \n \nSchool District contributions subsequent to the measurement date \n \n2,309,164.92 \n \n- \n \n15,352.05 \n \n- \n \nTotal \n \n$ 7,250,978.92 $ 1,538,619.00 $ 28,565.05 $ \n \n(334.00) \n \nThe School District contributions subsequent to the measurement date of $2,309,164.92 for TRS and $15,352.05 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2018 2019 2020 2021 2022 \n \n$ 180,307.00 $ \n \n$ 180,306.00 $ \n \n$ 1,748,455.00 $ \n \n$ 1,264,618.00 $ \n \n$ \n \n29,509.00 $ \n \n1,508.00 1,179.00 6,703.00 4,157.00 \n- \n \nActuarial assum ptions: The total pension liability as of June 30, 2016 was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \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' \n \n- 25 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \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, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nEmployees' Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25%  7.00%, 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 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, 2015 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, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \n- 26 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"I\" \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 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 \nERS/PSERS Target \nallocation \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 \nTotal \n \n30.00% 39.80% \n3.70% 1.50% 19.40% 5.60% \n- \n100.00% \n \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n100.00% \n \n(0.50)% 9.00% \n12.00% 13.50% \n8.00% 12.00% 10.50% \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, 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 proportionate share of the net pension liability would be if it were calculated using a discount rate that \nis 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 \n \nof the net pension liability \n \n$ \n \n45,838,467.00 $ \n \n29,449,472.00 $ 15,955,837.00 \n \nEmployees' Retirement System: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share \n \nof the net pension liability \n \n$ \n \n165,714.00 $ \n \n122,281.00 $ \n \n85,268.00 \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 \n- 27 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"1\" \n \nYear Ended \n2017 2016 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 \nTotal \n \nSchool District's covered-payroll \n \nSchool District's proportionate share of the net pension \nliability as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n0.142743% $ 29,449,472.00 $ 0.147075% $ 22,390,708.00 $ 0.154807% $ 19,557,823.00 $ \n \n244,066.00 $ 29,693,538.00 $ 15,786,646.73 189,996.00 $ 22,580,704.00 $ 15,656,895.31 160,953.00 $ 19,718,776.00 $ 15,932,172.02 \n \n186.55% 143.01% 122.76% \n \n76.06% 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- 29 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PORPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n2017 2016 2015 \n \nSchool District's proportion of the \nnet pension liability \n \nSchool District's proportionate share of the net pension liability \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability \nas a percentage of covered payroll \n \nPlan fiduciary net position as a \npercentage of total net pension liability \n \n0.002585% $ 122,281.00 $ 0.002558% $ 103,635.00 $ 0.002591% $ 97,179.00 $ \n \n60,097.22 58,488.36 58,346.42 \n \n203.47% 177.19% 166.56% \n \n72.34% 76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 30 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PORPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \n \nYear Ended \n2017 2016 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 net \npension liability associated with the School District \n \n0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n383,890.00 $ 242,736.00 $ 224,650.00 $ \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension \nliability as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension \nliability \n \n383,890.00 $ 242,736.00 $ 224,650.00 $ \n \n725,869.10 783,445.60 846,638.60 \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- 31 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \n2017 \n \n$ \n \n2,309,164.92 $ \n \n2,309,164.92 $ \n \n- \n \n2016 \n \n$ \n \n2,234,505.20 $ \n \n2,234,505.20 $ \n \n- \n \n2015 \n \n$ \n \n2,041,552.01 $ \n \n2,041,552.01 $ \n \n- \n \nSchool District's covered payroll \n$ 16,314,149.47 $ 15,786,646.73 $ 15,656,895.31 \n \nContribution as a percentage of covered \npayroll \n14.15% 14.15% 13.04% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 32 - \n \n BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n2017 2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n15,352.05 $ \n \n15,352.05 $ \n \n- \n \n$ \n \n14,856.00 $ \n \n14,856.00 $ \n \n- \n \n$ \n \n12,844.08 $ \n \n12,844.08 $ \n \n- \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n$ \n \n61,878.66 \n \n$ \n \n60,097.22 \n \n$ \n \n58,488.36 \n \n24.81% 24.72% 21.96% \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 BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2016 \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. \nOn November 18, 2-015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \nEmployees' Retirement System \nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. \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). \n \n- 34 - \n \n BEN HILL COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2017 \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 Food Services Operation \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 \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n6,307,000.00 $ \n \n6,307,000.00 $ \n \n58,000.00 \n \n58,000.00 \n \n20,364,728.00 \n \n20,364,728.00 \n \n5,515,922.00 \n \n5,515,922.00 \n \n131,138.00 \n \n131,138.00 \n \n10,016.00 \n \n10,016.00 \n \n758,906.00 \n \n758,906.00 \n \n33,145,710.00 \n \n33,145,710.00 \n \n6,289,140.06 $ 81,200.79 \n20,659,197.45 4,694,580.16 506,660.41 16,202.02 332,016.63 \n32,578,997.52 \n \n(17,859.94) 23,200.79 294,469.45 (821,341.84) 375,522.41 \n6,186.02 (426,889.37) \n(566,712.48) \n \n21,321,325.00 \n812,883.00 1,308,868.00 \n448,820.00 438,489.00 2,160,009.00 413,387.00 2,060,948.00 1,256,388.00 \n160,971.00 197,401.00 1,798,282.00 \n32,377,771.00 \n767,939.00 \n \n21,109,687.20 \n924,764.00 1,289,651.00 \n448,820.00 438,492.00 2,160,009.00 413,387.00 2,060,948.00 1,256,388.00 \n13,549.00 103,320.00 197,401.00 1,798,281.98 \n32,214,698.18 \n931,011.82 \n \n21,263,863.00 \n957,178.58 1,145,506.26 \n438,507.93 621,582.97 2,000,357.26 489,958.23 2,271,067.12 1,271,313.71 \n14,806.89 21,897.14 96,372.27 1,854,858.75 \n32,447,270.11 \n131,727.41 \n \n95,000.00 (95,000.00) \n767,939.00 2,548,326.96 \n- \n \n95,000.00 (95,000.00) \n931,011.82 2,548,326.96 (156,689.69) \n \n131,727.41 2,471,194.13 - \n \n(154,175.80) \n(32,414.58) 144,144.74 \n10,312.07 (183,090.97) 159,651.74 \n(76,571.23) (210,119.12) \n(14,925.71) (1,257.89) 81,422.86 \n101,028.73 (56,576.77) \n(232,571.93) \n(799,284.41) \n(95,000.00) 95,000.00 \n- \n(799,284.41) \n(77,132.83) \n156,689.69 \n \nFund Balances - Ending \n \n$ \n \n3,316,265.96 $ \n \n3,322,649.09 $ \n \n2,602,921.54 $ \n \n(719,727.55) \n \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- 35 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2017 \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 Grants to States Preschool Grants Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition Grants English Language Acquisition Grants Improving Teacher Quality State Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nHealth and Human Services, U. S. Department of Pass-Through From Children and Youth Coordinating Council Abstinence Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n17175GA324N1099 $ 17175GA324N1100 \n \n446,596.42 1,330,651.68 \n1,777,248.10 \n \n84.027 84.027 84.173 84.173 \n \nH027A150073 H027A160073 H173A150081 H173A160081 \n \n84.048 84.365 84.365 84.367 84.367 84.011 84.011 84.358 84.358 84.010 84.010 \n \nV048A150010 S365A150010 S365A160010 S367A150001 S367A160001 S011A150011 S011A160011 S358B150010 S358B160010 S010A150010 S010A160010 \n \n53,778.00 554,976.63 \n15,823.00 26,209.16 \n650,786.79 \n35,283.00 1,583.00 \n11,541.49 38,446.00 181,387.87 12,341.00 24,904.38 \n8,451.00 67,299.47 82,333.00 1,510,065.45 \n1,973,635.66 \n2,624,422.45 \n \n12. Unknown \n \n93.235 \n \nNIG95295 \n \n25,804.60 79,742.23 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n4,507,217.38 \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 Ben Hill County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net assets of the Board. \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 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 36 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2017 \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 Special Education Supplemental Speech Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff Development Programs Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Vocational Supervisors Austerity Reduction Principal Staff and Professional Development Nursing Services Mid-term Adjustment Hold Harmless Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Teachers Retirement Vocational Education Teacher of the Year Grant \nOffice of the State Treasurer Public School Employees Retirement \nSee notes to the basic financial statements. \n \nSCHEDULE \"9\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n724,656.14 \n \n1,216,389.00 75,652.00 \n2,709,369.00 273,294.00 \n1,299,063.00 161,568.00 \n1,843,689.00 1,415,949.00 \n780,117.00 2,892,036.00 \n473,790.00 798.00 \n124,765.00 135,291.00 122,645.00 369,443.00 109,762.00 \n61,721.00 \n518,567.00 694,617.00 826,806.00 \n362,524.00 13,306.00 \n(239,930.00) 1,083.00 \n62,511.00 153,345.00 3,050,273.00 \n48,200.00 15,833.97 64,297.00 77,216.25 18,565.80 146,880.04 \n507.25 \n54,598.00 \n$ 20,659,197.45 \n \n- 37 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2017 \n \nSCHEDULE \"10\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \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 \n(i) Payment of principal and interest on \n \npreviously incurred general obligation debt \n \nof the School District in a maximum amount \n \nof $4,422,515.00; \n \n$ 4,422,515.00 $ 3,848,815.27 $ \n \n863,392.50 $ 2,127,400.00 $ \n \n- $ \n \n- \n \n(ii) Repairing, improving, rehabilitating and upgrading the \"Old Lynwood\" building for use as a Central Support facility; \n \n- \n \n2,000,000.00 \n \n- \n \n- \n \n- \n \n- \n \n(iii) Adding a new wing at Ben Hill Primary School, including necessary furnishings, fixtures and equipment; \n \n- \n \n6,100,000.00 \n \n- \n \n20,000.00 \n \n- \n \n- \n \n(iv) Renovating, extending, repairing and equipping existing School District facilities to include roof repairs; \n \n- \n \n6,229,442.54 \n \n2,536,403.03 \n \n3,693,039.51 \n \n- \n \n- \n \n(v) Acquiring and installing system-wide instructional and administrative technology, safety and security equipment; \n \n- \n \n802,008.62 \n \n84,665.79 \n \n717,342.83 \n \n(vi) Acquisition of school buses and transportation equipment; \n \n- \n \n9,444.93 \n \n9,444.93 \n \n- \n \n- \n \n- \n \n(vii) Acquisition of fine arts, vocational and physical education/athletic equipment and facilities; \n \n- \n \n900,000.00 \n \n133,212.98 \n \n214,442.72 \n \n- \n \n- \n \n(viii) Acquiring textbooks; \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n(ix) Planning for new School District site \n \ndevelopment and site acquisition at a \n \nmaximum cost of $13,000,400.00. \n \n11,077,485.00 11,077,485.00 \n \n126,894.74 \n \n384,904.40 \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE \n2018 2018 \n2018 2018 \n2018 2018 \n2018 2018 \n2018 \n \n$ 15,500,000.00 $ 30,967,196.36 $ 3,754,013.97 $ 7,157,129.46 $ \n \n- $ \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 Ben Hill 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- 39 - \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 \nMarch 8, 2018 \n \nThe Honorable Nathan Deal, 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 Ben Hill County 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 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 Ben Hill County Board of Education, as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the School District basic financial statements, and have issued our report thereon dated March 8, 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. \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 were not identified. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS2017-001, 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \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, \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 \nMarch 8, 2018 \n \nThe Honorable Nathan Deal, 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 Ben Hill County Board of Education \nREPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL 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 the Ben Hill County Board of Education's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \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 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, 2017. \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 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2017 \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 \nUnmodified \n \nInternal control over financial reporting:  Material weakness 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 \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 84.010 84.027, 84.173 \n \nName of Federal Program or Cluster Title I Grants to Local Educational Agencies Special Education Cluster \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 BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2017 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS2017-001 Control Category: Internal Control Impact: Compliance Impact: \n \nInternal Controls over Financial Reporting Process Financial Reporting Material Weakness None \n \nDescription: The School District did not have adequate internal controls in place over the financial statement reporting process. \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). \n \nGASB Statement No. 34, Basic Financial Statements - Management's Discussion and Analysis - for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental funds balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the Statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements. \n \nChapter II  2, Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \n \nCondition: The following errors and omissions were noted in the School District's financial statements, note disclosures and supplementary information as presented for audit: \n \n A material adjustment totaling $172,175.32 was proposed and accepted by the client to correctly present beginning fund balance and SPLOST revenue in the capital projects fund on the governmental fund financial statements. \n An audit adjustment total $178,093.01 was proposed and accepted by the client to correctly present accounts receivable and SPLOST revenue on the government-wide financial statements and in the capital projects fund on the governmental fund financial statements. The adjustment was material to the capital projects fund. \n The entity did not properly reconcile beginning net position for private purpose trust funds. An immaterial audit adjustment was proposed to properly report beginning net position. \n Other immaterial audit adjustments and reclassifications were proposed and accepted by the client to properly present the School District's financial statements, note disclosures and supplemental information. \n \n- 2 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2017 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Cause: In discussing this issue with management, they believe the cause of the errors was from a failure to review the work of the system bookkeeper by the system accountant. The system bookkeeper is being trained to prepare the annual financial statements under the supervision of the system accountant. The Chief Financial Officer asked that the system accountant review the work of the system bookkeeper and that apparently did not happen. Effect or Potential Effect: Material misstatements were included in the financial statements presented for audit. The lack of controls and monitoring could impact the reporting of the School District's financial position and results of operation. Recommendation: The School District should strengthen their internal controls and preparation and review procedures over financial reporting to ensure that the financial statements, including disclosures, presented for audit are complete and accurate. These procedures should be performed by a properly trained individual(s) possessing a thorough understanding of GAAP, the applicable GASB pronouncements and knowledge of the School District's activities and 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. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n- 3 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n BEN HILL COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2017 \n \nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \n \nFS 2017-001 Control Category: Internal Control Impact: Compliance Impact: \n \nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \n \nThe School District did not have adequate internal controls in place over the financial statement reporting process, resulting in material and immaterial misstatements. \n \nCorrective Action Plans: In order to ensure that financial reporting is correct in future submissions the Chief Financial Officer will personally review such reports prior to their submission. The system accountant will also report to the Chief Financial Officer when his/her review is complete. \n \nEstimated Completion Date: June 30, 2018 \n \nContact Person: Thomas Rachels, Chief Financial Officer Telephone: (229) 409-5500 E-mail: thomas.rachels@benhillschools.org \n \nCORRECTIVE ACTION PLANS - FEDERAL AWARD FINDINGS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2016-belec-p-btext","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2016 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2016-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009, released in 2010?","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 8/4/15 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 4, 2015).","Latest issue consulted: Fiscal year ended June 30, 2014 (Georgia Government Publications database, viewed September 4, 2015)."],"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":["Ben Hill County Board of Education (Ben Hill County, Ga.)--Appropriations and expenditures--Periodicals","Auditors' reports--Georgia--Periodicals","Financial statements--Georgia--Periodicals","Reports","Financial statements","Georgia","Periodicals","Audits","Financial records"],"dcterms_title":["Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report for the fiscal year ended June 30, 2016 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2016-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"BEN HILL COUNTY BOARD OF EDUCATION \nFITZGERALD, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n(Including Independent Auditor's Reports) \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \ni \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 \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n9 \n \nI NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n11 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n31 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n32 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n33 \n \n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n34 \n \n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 35 \n \n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n36 \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \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 \n37 38 39 41 \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 \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 \nMarch 27, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Ben Hill County 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 Ben Hill County Board of Education (School District), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \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 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. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \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 Matter \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. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages i through x and pages 31 through 37, 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. \n \n Other 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. \nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated March 27, 2017, on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \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 BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nINTRODUCTION The intent of this discussion and analysis is to look at the School District's financial performance as a whole. The reader should review the notes to the basic financial statements and the financial statements to enhance their understanding of the District's financial performance. The School District's financial statements for the fiscal year ended June 30, 2016 includes a series of basic financial statements that report financial information for the School District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Position and the Statement of Activities provide financial information about all of the District's activities and present both a short-term and long-term view of the School District's finances. The fund financial statements provide information about all of the School District's funds. FINANCIAL HIGHLIGHTS Key financial highlights for fiscal year 2016 are as follows: On the government-wide financial statements: \n Government-wide net position at June 30, 2016 was approximately $18.0 million. Net position reflects the difference between all assets and deferred outflows of resources of the District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term and deferred inflows of resources. The net position at June 30, 2016 of $18.0 million represented an increase of approximately $3.9 million when compared to the prior year. \n The School District had over $31.4 million in expenses relating to governmental activities; only $23.3 million of these expenses were offset by program specific charges for services, operating and capital grants and contributions. However, the general revenues (primarily property and sales taxes) of approximately $12.0 million provided additional funding of these expenses. \n As stated above, general revenues accounted for $12.0 million or about 34% of all revenues totaling approximately $35.3 million. Program specific revenues in the form of charges for services, operating and capital grants, and contributions accounted for the balance of these revenues. \ni \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nGeneral Revenue- Equalization \n10% \nGeneral Revenue- Sales \nTaxes 6% \nGeneral Revenue- Property \nTaxes 17% \n \nSource of Revenues \nGeneral Revenue- All Other \n1% \nProgram Revenues \n66% \n \nOn the fund financial statements: \n Among major funds, the general fund had approximately $32.1 million in revenues and $31.3 million in expenditures. The general fund balance of approximately $2.5 million at June 30, 2016 increased by approximately $821 thousand from the prior year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements, including notes to the financial statements, and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \nThe government-wide financial statements include the 'Statement of Net Position' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Ben Hill County School District, the general fund, capital projects fund, and debt service fund are all considered to be major funds. The School District has no non-major funds as defined by GASB Statement No. 34 for purposes of this report. \n \nii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nGovernment-wide Statements \nSince the Ben Hill County School District has no operations that have been classified as \"BusinessType Activities\", the government-wide financial statements are basically a consolidation of the entire District's operating funds into one column called governmental activities. In reviewing the governmentwide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Position' and the 'Statement of Activities' provides the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into accounts all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net position and any changes in those assets. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \nWhen analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus \nand the accrual basis of accounting  Allocate net position as follows: \no Net Investment in Capital Assets o Restricted net position is that with constraints placed on the use by external sources \nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted net position is net position that does not meet any of the above \nrestrictions. \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no non-major funds as defined by generally accepted accounting principles. \niii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nThe District has two kinds of funds as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds  The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet position, which is the difference between total assets plus deferred outflows of resources and total liabilities plus deferred inflows of resources, is one indicator of the financial condition of the District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the District's operating results. The District's net position, as measured in the Statement of Net Position, can be one way to measure the District's financial health, or financial position. Over time, increases or decreases in the District's net position as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other non-financial factors should be considered in assessing the overall health of the District. \nIn the case of the Ben Hill County School District, assets plus deferred outflows of resources exceeded liabilities plus deferred inflows of resources by approximately $18.0 million at June 30, 2016. To better understand the District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $18.0 million of net position, about $3.2 million was restricted for continuation of Federal programs, debt service, ongoing capital projects and bus replacements. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \nIn addition, the District had over $35.6 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The District uses these capital assets to provide educational services to students within geographic boundaries served by the District. Because of the very nature and ongoing use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. \nThe deficit balance of unrestricted net position of approximately ($20.8) million reflects the net Pension liability as required by GASB Statement No. 68. \niv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \n \nTable 1 Net Position \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2016 \n \nYear 2015 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ \n \n9,417,682 $ \n \n37,362,783 \n \n11,464,209 33,713,427 \n \nTotal Assets \n \n46,780,465 \n \n45,177,636 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plan \n \n2,270,345 \n \n2,084,962 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n3,649,570 24,203,812 \n \n4,135,753 22,174,206 \n \nTotal Liabilities \n \n27,853,382 \n \n26,309,959 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plan \n \n3,157,963 \n \n6,841,990 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n35,653,314 3,191,758 \n(20,805,607) \n \n31,194,224 5,406,007 \n(22,489,582) \n \n$ \n \n18,039,465 $ \n \n14,110,649 \n \nTotal net position increased by $3,928,816 in fiscal year 2016 from the prior year. \n \nv \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues Charges for Services Operating Grants and Contribution Capital Grants and Contributions \nTotal Program Revenues \n \nGovernmental Activities \n \nFiscal Year 2016 \n \nFiscal Year 2015 \n \n$ \n \n350,376 $ \n \n406,294 \n \n21,754,909 \n \n20,960,946 \n \n1,221,100 \n \n966,040 \n \n23,326,385 \n \n22,333,280 \n \nGeneral Revenues Taxes Property Taxes Sales Taxes Grant and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Item Loss on Disposal of Land \nTotal General Revenues and Special Item \nTotal Revenues \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \n \n6,110,522 2,164,870 \n3,272,607 27,160 \n429,753 \n(40,671) \n11,964,241 \n35,290,626 \n20,788,097 \n672,433 1,016,984 \n424,067 505,075 1,940,594 408,095 2,244,147 1,213,052 \n59,466 76,097 \n102,480 1,839,119 \n72,104 \n31,361,810 \n \n6,292,562 2,246,171 \n2,470,522 24,317 \n362,232 \n- \n11,395,804 \n33,729,084 \n20,742,257 \n676,764 1,168,159 \n431,246 463,186 1,868,141 396,465 2,273,271 1,247,821 \n52,900 80,643 \n92,098 1,807,580 \n108,687 \n31,409,218 \n \nChange in Net Position \n \n$ \n \n3,928,816 $ \n \n2,319,866 \n \nvi \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nCost of Providing Services \n \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \n \nTable 3 Governmental Activities \n \nTotal Cost of Service \n \nFiscal \n \nFiscal \n \nYear 2016 \n \nYear 2015 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2016 \n \nYear 2015 \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 Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \n \n$ 20,788,097 $ 20,742,257 $ \n \n672,433 1,016,984 \n424,067 505,075 1,940,594 408,095 2,244,147 1,213,052 \n59,466 76,097 \n \n676,764 1,168,159 \n431,246 463,186 1,868,141 396,465 2,273,271 1,247,821 \n52,900 80,643 \n \n102,480 1,839,119 \n72,104 \n \n92,098 1,807,580 \n108,687 \n \n$ 31,361,810 $ 31,409,218 $ \n \n4,053,331 $ \n574,660 276,217 \n(5,095) (89,324) 1,123,021 390,229 1,197,284 757,341 59,366 \n2,517 \n(155,787) (220,440) \n72,104 \n8,035,424 $ \n \n5,133,591 \n611,192 289,986 \n4,014 (331,657) 1,054,995 388,389 1,271,623 653,726 \n52,901 (3,735) \n(120,383) (37,391) 108,687 \n9,075,938 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"E\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues over $34.1 million and total expenditures of $35.8 million in fiscal year 2016. Total governmental fund balances of approximately $5.4 million at June 30, 2016, decreased approximately $1.61 million from the prior year. $3.6 million of these expenses were incurred due to construction projects in progress in fiscal year 2016. \n \nGeneral Fund Budget Highlights \nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal year 2016, the School District amended its general fund budget as needed. \n \nvii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \nFor the general fund, the final actual revenues of $32.1 million were less than the final budgeted amount of $32.9 million by approximately $815,733. This can be attributed to receiving less Federal funds, Charges for Services, and miscellaneous income than originally expected. \nThe general fund's final actual expenditures of $31.3 million were less than the final budget amount of $32.4 by approximately $1,144,298. The District believes it effectively managed its budget during the fiscal year. Additionally, the District did include revenues and expenditures for school activity accounts in the final budget. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2016, the School District had over $37.3 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2016 \n \nYear 2015 \n \nLand Construction in Progress Building and Improvements Equipment Land Improvements \n \n$ \n \n1,250,020 $ \n \n403,817 \n \n3,464,098 \n \n117,960 \n \n30,451,321 \n \n30,671,212 \n \n1,260,672 \n \n1,470,309 \n \n936,672 \n \n1,050,129 \n \n$ \n \n37,362,783 $ \n \n33,713,427 \n \nAdditional information about the School District's Capital Assets can be found in the Notes to the Basic Financial Statements. \n \nviii \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nDebt At June 30, 2016, the Board had $1.65 million in bonds outstanding with $810,000 thousand due within one year. \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2016 \n \nYear 2015 \n \nGeneral Obligation Bonds \n \n$ 1,650,000 $ 2,430,000 \n \nFACTORS BEARING ON THE DISTRICT'S FUTURE \n \nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n \n The School District is financially stable. The School District's operating millage for 2016 is 18.077, which produces approximately $333,418 per mill. \n The District plans to fund additional capital outlays with the one percent local sales tax revenue. The referendum for the 2017-2021 ELOST was held in May of 2016 and passed. Collections will begin in January of 2017 and are estimated to bring in approximately $1,944,000 annually. This will enable the District to continue development plans for a new high school and the issuance of a $27.7 million (maximum) bond in the year 2020. \n The School District will retire the 2006 series bond of $12.2 million in August of 2017. The remaining two and one half years of collections prior to beginning construction of the new high school should provide $3.0 million - $4.0 million in funds to reduce the need for bond debt even after expending approximately $2.0 million on needed projects for the 2017-2019 period. The School District will also earn approximately $9.0 million in state capital outlay funds to further reduce local participation in the construction project and bond debt. The School District will also seek a $3.0 million state grant to construct a career academy that will operate under the administration of the high school. This construction will reduce the square footage requirements of the new high school and further reduce costs and bond indebtedness. \n In 2016 the School District elected to become a \"Strategic Waiver System\" under the new state funding format. This will allow for major flexibilities, such as class size waivers, in operations that should produce significant cost efficiencies. The new funding format should not reduce state funding provided under the former (QBE) system of earning state funds. \n \nix \n \n BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n For 2017 the Governor mandated that a three percent amount of state funding be applied to either raising teacher pay, reducing furlough days or hiring new staff. This will cost the School District approximately $500,000. If the School District had not faced the funding of the mandate, fund balance would have experienced a like amount of growth. After budgeting for the mandate the fiscal 2017 budget still provides a $91,370 increase to fund balance. This will bring fund balance to a projected $2.03 million. The School District anticipates that the state will continue to provide the current level of revenue which should allow an annual $300,000 to $500,000 increase in fund balance. The District has a goal of $3.75 million as an acceptable fund balance figure. This would provide much greater stability in the event of low ad valorem revenue collections. \n Again the School District faces increased health care costs for fiscal 2017. The continued increases for classified employees total approximately $125,000 for 2017. In 2018, with one more similar increase, the cost for classified health care coverage and certified health care coverage will become the same. Administration is in a \"wait and see\" status in hopes that the state will step in with an acceptable solution for classified health care that will not cause those staff member s to lose the state plan in retirement. That factor and potential changes in Federal health care laws currently suggest that a one to two year period of analysis would be the most prudent course prior to making any significant changes in health care participation for the District. \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional information, contact Mr. Thomas Rachels, Chief Operating Officer, Ben Hill County School District, 509 West Palm Street, Fitzgerald, Georgia 31750. You may also email your questions to Mr. Rachels at thomas.rachels@benhillschools.org. \nx \n \n BEN HILL COUNTY BOARD OF EDUCATION \n \n          (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Ben Hill County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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, 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. \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. \n \n- 11 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \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 types: \n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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. \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 \n- 12 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \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 60 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \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 qualifying program cost first 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. Therefore, the investments in this pool is measured at fair value as provided in paragraph 11 of GASB Statement No. 31, as amended. The adoption of this statement does not have an impact on the School District's financial statements. \n \n- 13 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \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. \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. \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 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- 14 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \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 Construction in Progress Intangible - Software All Other - Intangible Assets \n \nAny Amount \n \n$ \n \n50,000.00 \n \n$ \n \n50,000.00 \n \n$ \n \n5,000.00 \n \n$ \n \n50,000.00 \n \n$ \n \n100,000.00 \n \n$ \n \n10,000.00 \n \nN/A 15 years \n60 to 75 years 5 to 25 years N/A 10 years 20 years \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 \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. \n \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. \n \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. \n \nFUND BALANCES \n \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. \n \n- 15 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nThe School District's fund balances are classified as follows: \n \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. \n \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. \n \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 \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 Ben Hill County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on July 23, 2015 (levy date) based on property values as of January 1, 2015. Taxes were due on December 20, 2015 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2015 tax digest are reported as revenue in the governmental funds for fiscal year 2016. The Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2016, for maintenance and operations amounted to $5,679,257.37. \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 \n17.994 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $380,899.00 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 $2,088,387.13 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- 16 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \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, capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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 \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 \n- 17 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \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 \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 $6,144,003.46, and a bank balance of $8,494,767.83. The bank balances insured by Federal depository insurance were $4,313,811.48 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $4,180,956.35. \n \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2015 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2016 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ \n \n403,817.39 $ \n \n886,874.01 $ \n \n40,671.39 $ \n \n1,250,020.01 \n \n117,960.00 \n \n3,346,137.64 \n \n- \n \n3,464,097.64 \n \nTotal Capital Assets Not Being Depreciated \n \n521,777.39 \n \n4,233,011.65 \n \n40,671.39 \n \n4,714,117.65 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n42,547,737.55 5,895,757.68 2,994,268.28 \n11,876,525.96 4,425,448.49 1,944,139.45 \n \n521,130.00 90,744.63 - \n741,021.10 300,381.79 113,456.41 \n \n53,509.00 - \n53,509.00 - \n \n43,015,358.55 5,986,502.31 2,994,268.28 \n12,564,038.06 4,725,830.28 2,057,595.86 \n \nTotal Capital Assets, Being Depreciated, Net \n \n33,191,649.61 \n \n(542,984.67) \n \n- \n \n32,648,664.94 \n \nGovernmental Activity Capital Assets - Net $ 33,713,427.00 $ 3,690,026.98 $ \n \n40,671.39 $ 37,362,782.59 \n \n- 18 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nPupil Services \n \n$ \n \nEducational Media Services \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nFood Services \n \n1,499.00 16,433.75 \n5,870.15 35,005.30 125,670.90 56,602.02 \n \n$ 869,957.28 \n241,081.12 43,820.90 \n$ 1,154,859.30 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANFERS \nInterfund transfers for the year ended June 30, 2016, consisted of the following: \n \nTransfers to \n \nTransfers from Capital \nProjects Fund \n \nDebt Service Fund \n \n$ \n \n867,510.00 \n \nTransfers are used to move sales tax revenues collected by the capital projects fund to the debt service fund to provide funding to service debt. \n \nNOTE 7: SHORT-TERM DEBT \nThe School District issues tax anticipation notes and 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% 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 \n \n$ \n \n- $ 697,840.84 $ 697,840.84 $ \n \n- \n \n- 19 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \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 \nBalance \n \nDeductions \n \nJune 30, 2016 \n \nDue Within One Year \n \nGeneral Obligation Bonds Unamortized Bond Premiums \n \n$ 2,430,000.00 $ 89,203.50 \n \n- $ 780,000.00 $ 1,650,000.00 $ 810,000.00 \n \n- \n \n29,734.50 \n \n59,469.00 \n \n29,734.50 \n \n$ 2,519,203.50 $ \n \n- $ 809,734.50 $ 1,709,469.00 $ 839,734.50 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \nOf the total amount originally authorized, $4,000,000.00 remains unissued. General obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2006 \n \n3.85% - 5.00% \n \n4/6/2006 \n \n8/1/2017 \n \n$ 12,820,000.00 $ 1,650,000.00 \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: \n2017 2018 \nTotal Principal and Interest \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n$ \n \n810,000.00 $ \n \n840,000.00 \n \n53,392.50 $ 18,900.00 \n \n29,734.50 29,734.50 \n \n$ \n \n1,650,000.00 $ \n \n72,292.50 $ \n \n59,469.00 \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 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 \n- 20 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nUNEMPLOYMENT COMPENSATION \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. \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 \n1,035.00 \n \n$ \n \n8,381.94 \n \n$ \n \n9,416.94 \n \n$ \n \n- \n \n2016 \n \n$ \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 Military Property Custodian Each Principal Director of Budget and Finance Each Lunchroom Manager and Assistant Manager Each Secretary and Bookkeeper Payroll Administrator \n \n$ \n \n99,000.00 \n \n$ \n \n24,000.00 \n \n$ \n \n9,000.00 \n \n$ \n \n8,000.00 \n \n$ \n \n4,000.00 \n \n$ \n \n4,000.00 \n \n$ \n \n3,000.00 \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 Inventories \nRestricted Bus Replacement Continuation of Federal Programs Capital Projects Debt Service \nAssigned School Activity Accounts \nUnassigned \n \n$ 12,555.79 \n \n$ \n \n14,893.00 \n \n278,356.92 \n \n2,069,697.90 \n \n844,492.50 \n \n3,207,440.32 \n \n177,677.23 1,987,711.19 \n \nFund Balance, June 30, 2016 \n \n$ 5,385,384.53 \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 \n- 21 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nNOTE 11: SIGNIFICANT COMMITMENTS \nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2016: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2016 (2) \n \nBen Hill County Pre-K Renovation \n \n$ \n \n2,398,569.56 $ \n \n3,025,960.30 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include retainage payable at year-end. \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 various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to have a material adverse effect on the financial condition of the School District. \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. \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 \n- 22 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nnot 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: \n \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 1, 2015  June 30, 2016 \n \n$945.00 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2015  December 31, 2015 $596.20 per member per month \nJanuary 1, 2016  June 30, 2016 $746.20 per member per month \nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2016 2015 2014 \n \n100% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n3,329,774.20 3,139,352.40 3,205,536.95 \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) \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. \n \n- 23 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \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 14.15% of payroll was required from the School District and 0.12% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,234,505.20 and $18,248.80 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. \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. \n \n- 24 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2016 was 24.72% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $14,856.00 for the current fiscal year. \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. \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 $55,843.00. \n \n- 25 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \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 $22,494,343.00 for its proportionate share of the net pension liability for TRS ($22,390,708.00) and ERS ($103,635.00). \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 22,390,708.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n189,996.00 \n \nTotal \n \n$ 22,580,704.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2015. \nAt June 30, 2015, the School District's TRS proportion was 0.147075%, which was an decrease of 0.007732% from its proportion measured as of June 30, 2014. At June 30, 2015, the School District's ERS proportion was 0.002558%, which was an decrease of 0.000033% 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 $242,736.00. \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 $1,224,135.00 for TRS, $7,499.00 for ERS and $14,475.00 for PSERS and revenue of $12,407.00 for TRS and $14,475.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 26 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nAt June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ \n \n- \n \n$ 196,938.00 $ \n \n- \n \n$ \n \n828.00 \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n1,888,680.00 \n \n- \n \n7,477.00 \n \nChanges in proportion and differences between School \n \nDistrict contributions and proportionate share of \n \ncontributions \n \n20,296.00 \n \n1,064,040.00 \n \n688.00 \n \n- \n \nSchool District contributions subsequent to the measurement date \n \n2,234,505.20 \n \n- \n \n14,856.00 \n \n- \n \nTotal \n \n$ 2,254,801.20 $ 3,149,658.00 $ 15,544.00 $ \n \n8,305.00 \n \nThe School District contributions subsequent to the measurement date of $2,234,505.20 for TRS and $14,856.00 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2017 2018 2019 2020 2021 \n \n$ (1,171,291.00) $ (2,889.00) \n \n$ (1,171,291.00) $ (3,917.00) \n \n$ (1,171,292.00) $ (3,333.00) \n \n$ \n \n444,556.00 $ 2,522.00 \n \n$ \n \n(60,044.00) $ \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: \nInflation 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- 27 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nEmployees' Retirement System: Inflation Salary increases Investment rate of return \n \n3.00% \n5.45%  9.25%, average, including inflation 7.50%, 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 Investment rate of return \n \nN/A \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- 28 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \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$ 38,476,739.00 $ \n \n22,390,708.00 $ 9,131,991.00 \n \nEmployees' Retirement System: \nSchool District's proportionate share of the net pension liability \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \n$ \n \n146,906.00 $ \n \n103,635.00 $ \n \n66,744.00 \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: SPECIAL ITEM \nOn April 25, 2016, the School District deeded the City of Fitzgerald three small parcels of land that had a total carrying value of $40,671.39. \n \n- 29 - \n \n (This page left intentionally blank) \n \n    BEN HILL COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \n      (This page left intentionally blank) \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 \nMarch 27, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Ben Hill County 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 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 Ben Hill County Board of Education (School District) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements and have issued our report thereon dated March 27, 2017. \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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \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, 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 \nMarch 27, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Ben Hill County 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 Ben Hill County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \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 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 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR 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 \n \nUnmodified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo 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 \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 84.027, 84.173 \n \nTitle I Grants to Local Educational Agencies Special Education Cluster \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 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2012-h2013-belec-p-btext","title":"Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report on audit for the fiscal year ended June 30, 2013 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Ben Hill County, 31.75978, -83.22046"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2013-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009, released in 2010?","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 8/4/15 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 4, 2015).","Latest issue consulted: Fiscal year ended June 30, 2014 (Georgia Government Publications database, viewed September 4, 2015)."],"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","Ben Hill County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Ben Hill County Board of Education, Fitzgerald, Georgia, annual financial report on audit for the fiscal year ended June 30, 2013 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb4-b2012-h2013-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"BEN HILL COUNTY BOARD OF EDUCATION \nFITZGERALD, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n(Including Independent Auditor's Reports) \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-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 \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nI \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 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n1 2 4 5 6 7 8 9 10 \n25 26 27 28 29 \n \n BEN HILL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \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 \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 \nMarch 31, 2014 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Ben Hill County 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 (Exhibits A through I) of the Ben Hill County Board of Education, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Board's basic financial statements as listed in the table of contents. \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 of 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 effectiveness of the entity's internal control. Accordingly, we express \n2013ARL-11 \n \n no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \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 Ben Hill County Board of Education, as of June 30, 2013, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2013, the Ben Hill County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Our opinion is not modified with respect to this matter. \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. Accounting principles generally accepted in the United States of America require that the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual, as presented on page 25, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Ben Hill County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 2 through 5, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \n2013ARL-11 \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 March 31, 2014, on our consideration of the Ben Hill County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Ben Hill County Board of Education'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, \n \nGSG:as 2013ARL-11 \n \nGreg S. Griffin State Auditor \n \n BEN HILL COUNTY BOARD OF EDUCATION \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2013 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Capitalized Bond Issuance Costs Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET POSITION \nNet Investment in Capital Assets Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ 6,436,400.38 791,297.06 \n806,995.00 2,045,620.09 \n687,327.65 6,084.17 \n16,028.60 19,596.59 115,695.81 473,109.39 33,273,431.88 \n$ 44,671,586.62 \n \n$ \n \n456,446.83 \n \n3,273,633.22 \n \n75,343.57 \n \n70,246.89 \n \n8,012.60 \n \n754,734.50 3,298,938.00 \n \n$ 7,937,355.61 \n \n$ 29,841,541.27 \n15,155.50 19,596.59 739,083.11 3,887,696.79 2,231,157.75 \n \n$ 36,734,231.01 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2013 \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 Other Support Services Operations of Non-Instructional Services Enterprise Operations 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 Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Item Loss on Disposal 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$ 20,620,135.18 $ \n676,964.93 1,352,051.58 \n457,179.69 522,694.81 1,869,009.26 388,033.78 1,953,866.86 1,269,364.24 299,814.33 \n126,340.41 2,157,034.69 \n176,926.50 \n$ 31,869,416.26 $ \n \n14,473.53 \n48,000.00 162,991.58 168,245.90 393,711.01 \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 POSITION \n \n$ 13,655,556.87 $ \n122,675.35 1,064,262.98 \n455,178.03 748,248.65 955,289.99 \n25,166.83 956,306.70 447,955.20 149,670.52 \n1,614,498.05 \n$ 20,194,809.17 $ \n \n483,623.26 $ 603.77 \n9,342.39 \n3,474.25 18,538.89 76,219.50 29,075.29 \n25,619.93 \n646,497.28 $ \n \n-6,466,481.52 \n-553,685.81 -287,788.60 \n7,340.73 225,553.84 -913,719.27 -359,392.70 -931,021.27 -745,189.54 -121,068.52 \n36,651.17 -348,670.81 -176,926.50 \n-10,634,398.80 \n \n$ \n \n5,425,693.62 \n \n2,238,874.25 58,201.32 \n2,637,988.00 36,084.72 \n413,731.20 \n \n-113,886.64 \n \n$ \n \n10,696,686.47 \n \n$ \n \n62,287.67 \n \n36,671,943.34 \n \n$ \n \n36,734,231.01 \n \n- 3 - \n \n BEN HILL COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2013 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 2,557,728.45 $ 3,878,671.93 $ 791,297.06 \n \n630,925.41 2,045,620.09 \n687,327.65 6,084.17 \n16,028.60 19,596.59 \n \n176,069.59 \n \n0.00 $ 6,436,400.38 791,297.06 \n806,995.00 2,045,620.09 \n687,327.65 6,084.17 \n16,028.60 19,596.59 \n \n$ 5,963,310.96 $ 4,846,038.58 $ \n \n0.00 $ 10,809,349.54 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Committed Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ \n \n340,411.73 $ 116,035.10 $ \n \n3,273,633.22 \n \n75,343.57 \n \n460,109.04 \n \n$ 4,149,497.56 $ 116,035.10 $ \n \n0.00 $ \n \n456,446.83 3,273,633.22 \n75,343.57 460,109.04 \n \n0.00 $ 4,265,532.66 \n \n$ \n \n19,596.59 \n \n15,155.50 $ 4,730,003.48 $ \n \n360,614.42 \n \n1,418,446.89 \n \n$ 1,813,813.40 $ 4,730,003.48 $ \n \n$ 0.00 \n \n19,596.59 4,745,158.98 \n360,614.42 1,418,446.89 \n \n0.00 $ 6,543,816.88 \n \n$ 5,963,310.96 $ 4,846,038.58 $ \n \n0.00 $ 10,809,349.54 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2013 \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. 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. \nOther Long-Term Assets are not available to pay for current period expenditures and therefore, are deferred on the Statement of Net Position. \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 Unamortized Bond Premiums \nTotal Long-Term Liabilities \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 6,543,816.88 \n \n$ 403,817.39 69,292.00 \n2,847,468.28 40,939,702.43 \n5,556,617.73 -16,070,356.56 \n \n33,746,541.27 \n \n452,096.44 \n \n115,695.81 \n \n$ -3,905,000.00 -70,246.89 \n-148,672.50 \n \n-4,123,919.39 \n \n$ 36,734,231.01 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 \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 Other Support Services Enterprise Operations 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$ 5,480,188.72 58,201.32 $ \n18,140,868.87 4,768,147.80 393,711.01 25,447.17 316,911.54 \n \n$ 2,238,874.25 \n459,291.20 \n10,637.55 5,000.00 \n \n$ 29,183,476.43 $ 2,713,803.00 $ \n \n0.00 $ \n \n5,480,188.72 2,297,075.57 18,600,160.07 4,768,147.80 \n393,711.01 36,084.72 \n321,911.54 \n \n0.00 $ 31,897,279.43 \n \n$ 19,521,501.81 \n \n$ 19,521,501.81 \n \n671,466.31 1,352,051.58 \n432,209.86 499,555.64 1,869,009.26 377,554.03 1,894,516.88 1,187,707.90 188,133.65 126,340.41 2,086,304.17 \n$ \n \n593,697.43 \n \n671,466.31 1,352,051.58 \n432,209.86 499,555.64 1,869,009.26 377,554.03 1,894,516.88 1,187,707.90 188,133.65 126,340.41 2,086,304.17 593,697.43 \n \n$ 1,980,000.00 218,160.00 \n \n1,980,000.00 218,160.00 \n \n$ 30,206,351.50 $ 593,697.43 $ 2,198,160.00 $ 32,998,208.93 \n \n$ -1,022,875.07 $ 2,120,105.57 $ -2,198,160.00 $ -1,100,929.50 \n \n$ 2,198,160.00 $ 2,198,160.00 \n \n$ -2,198,160.00 \n \n-2,198,160.00 \n \n$ -2,198,160.00 $ 2,198,160.00 $ \n \n0.00 \n \n$ -1,022,875.07 $ -78,054.43 $ \n \n0.00 $ -1,100,929.50 \n \n2,836,688.47 \n \n4,808,057.91 \n \n0.00 \n \n7,644,746.38 \n \n$ 1,813,813.40 $ 4,730,003.48 $ \n \n0.00 $ 6,543,816.88 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2013 \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. \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \nBond Principal Retirements Amortization of Bond Premium \nTotal Long-Term Debt Repayments \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nAmortization of Bond Issuance Costs Net Increase in Accrued Interest \nTotal Additional Expenditures \nChange in Net Position of Governmental Activities (Exhibit \"B\") \n \n$ -1,100,929.50 \n \n$ 437,396.81 -1,133,626.73 \n \n-696,229.92 -54,495.10 \n-113,886.64 \n \n$ 1,980,000.00 29,734.50 \n \n2,009,734.50 \n \n$ \n \n-23,139.17 \n \n41,233.50 \n \n18,094.33 \n \n$ \n \n62,287.67 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2013 \n \nEXHIBIT \"G\" \n \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \nNET POSITION Held in Trust for Private Purposes \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n4,810.16 $ \n \n101,773.29 \n \n$ \n \n101,773.29 \n \n$ \n \n4,810.16 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2013 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Other Deductions Change in Net Assets \nNet Position - Beginning \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n0.43 \n \n$ \n \n0.00 \n \n$ \n \n0.43 \n \n4,809.73 \n \n$ \n \n4,810.16 \n \nThe notes to the basic financial statements are an integral part of this statement. - 9 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Ben Hill County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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 Ben Hill County Board of Education. \nDistrict-wide Statements: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \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 Education Special Purpose Local Option Sales Tax (ESPLOST) and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \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 BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports trust arrangement, Cumbee-McCall Trust Fund, under which income is to be used for the purpose of providing for the care and support of under privileged children. \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, 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. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The provisions of this Statement establish accounting and financial reporting standards for governments who enter into Service Concession Arrangements (SCA) with other governmental or nongovernmental entities. As of June 30, 2013, the School District has not entered into any arrangements that meet the qualifications to be reported as a SCA in accordance with this standard. \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement incorporate certain accounting and financial reporting guidance into authoritative GASB literature. \n- 11 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. The provisions of this Statement establish financial reporting standards for the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government's net position. The School District changed its presentation of net assets to net position for fiscal year 2013. There were no other applicable reporting changes for the School District. \nCASH AND CASH EQUIVALENTS \nComposition 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 \nComposition 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. \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- 12 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nPROPERTY TAXES \nThe Ben Hill County Board of Commissioners adopted the property tax levy for the 2012 tax digest year (calendar year) on August 23, 2012 (levy date) based on property values as of January 1, 2012. Taxes were due on December 20, 2012 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2012 tax digest are reported as revenue in the governmental funds for fiscal year 2013. The Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2013, for maintenance and operations amounted to $5,368,047.67. \nThe tax millage rate levied for the 2012 tax year (calendar year) for the Ben Hill County Board Of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n15.787 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $112,141.05 during fiscal year ended June 30, 2013. \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,238,874.25 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. \n \n- 13 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \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 Land Improvements Buildings and Improvements Equipment Construction in Progress Intangible Assets - Software All Other Intangibles \n \nAny Amount \n \n$ \n \n50,000.00 \n \n$ \n \n50,000.00 \n \n$ \n \n5,000.00 \n \n$ \n \n50,000.00 \n \n$ \n \n100,000.00 \n \n$ \n \n10,000.00 \n \nN/A 15 years \n60 to 75 years 5 to 25 years N/A 10 years 20 years \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. \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and software is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 20 years. \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 Position. \nNET POSITION \nThe School District's net position in the District-wide Statements is classified as follows: \nNet investment in capital assets - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \nRestricted net position - This represents resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net position - Unrestricted net position represents resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \n \n- 14 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nFUND BALANCES \nThe School District's fund balances are classified as follows: \n \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. \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. \nFund Balances of the Governmental Funds at June 30, 2013, are as follows: \n \nNonspendable Inventories \nRestricted Bus Replacement Capital Projects Debt Service \nAssigned School Activity Accounts Subsequent Period Expenditures \nUnassigned \n \n$ \n \n19,596.59 \n \n$ \n \n15,155.50 \n \n3,920,673.48 \n \n809,330.00 \n \n4,745,158.98 \n \n$ \n \n116,647.42 \n \n243,967.00 \n \n360,614.42 1,418,446.89 \n \nFund Balance, June 30, 2013 \n \n$ 6,543,816.88 \n \nThe fund balance of the School District's General Fund has been accumulated to meet the purpose of providing stability and flexibility to respond to unexpected adversity and/or opportunities. The target is to maintain a fund balance, net of non-spendable and restricted resources, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 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. \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 \n- 15 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nDEFICIT FUND BALANCES \nThe fund reporting a deficit fund balance at June 30, 2013, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nSchool Food Services \n \n$ \n \n106,422.33 \n \nThe School District's plan to eliminate this deficit is as follows: \n Eliminating part-time work and reducing the overall payroll cost by managing the number of employees actually required to operate. \n Reduce food costs by better managing waste. This encompasses several areas including monitoring the amount of food thrown out, identifying the meals that the students like best, comparing the amount of product bought for preparation of individual meals to that meals waste, monitoring the back door and overall security measures. \n Continuing to examine plate cost vs. charges per plate.  Communicating with the School Food Service representative at the state level and \nSchool Food Service directors and managers in other systems to get information on acceptable level (%) of cost factors by category.  Making a concerted effort to use more USDA foods in the preparation of meals in order to reduce costs.  Searching for more program qualified products to sell at a profit.  Communicating with each other (site to site and system to system) on strategies that are working. \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 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 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. \n \n- 16 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \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, \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, 2013, the bank balances were $7,685,733.32. 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, 2013, the carrying value of the School District's total investments was $791,297.06, 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. \n- 17 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2013, was 43 days. \n \nNOTE 5: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNOTE 6: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1, 2012 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2013 \n \n$ \n \n363,797.00 $ \n \n0.00 \n \n40,020.39 $ 69,292.00 \n \n0.00 $ \n \n403,817.39 69,292.00 \n \nTotal Capital Assets, Not Being Depreciated $ \n \n363,797.00 $ \n \n109,312.39 $ \n \n0.00 $ \n \n473,109.39 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n$ 41,340,302.43 5,285,187.59 $ 2,790,814.00 \n \n$ 271,430.14 \n56,654.28 \n \n400,600.00 $ \n \n40,939,702.43 5,556,617.73 2,847,468.28 \n \nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n10,228,420.79 3,374,683.70 1,620,338.70 \n \n675,947.27 355,898.19 101,781.27 \n \n286,713.36 \n \n10,617,654.70 3,730,581.89 1,722,119.97 \n \nTotal Capital Assets, Being Depreciated, Net $ 34,192,860.83 $ -805,542.31 $ \n \n113,886.64 $ 33,273,431.88 \n \nGovernmental Activity Capital Assets - Net $ 34,556,657.83 $ -696,229.92 $ \n \n113,886.64 $ 33,746,541.27 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Educational Media Services Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ \n \n$ \n \n1,499.00 \n \n17,683.75 \n \n5,870.15 \n \n35,005.30 \n \n148,717.83 \n \n72,186.62 \n \n802,833.65 \n280,962.65 49,830.43 \n \n$ 1,133,626.73 \n \n- 18 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nNOTE 7: INTERFUND TRANSFERS \nInterfund transfers for the year ended June 30, 2013, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide Capital Projects \n \nDebt Service Fund \n \n$ 2,198,160.00 \n \nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund to pay bond principal and interest payments.. \n \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 torts, assets, errors or omissions, job related illness or injuries to employees 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. 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. \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 \n2012 $ 2013 $ \n \n1,976.67 $ 4,290.00 $ \n \n28,731.87 $ 19,768.00 $ \n \n26,418.54 $ 17,820.00 $ \n \n4,290.00 6,238.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \nMilitary Property Custodian \n \n$ \n \nEach Principal \n \n$ \n \nDirector of Budget and Finance \n \n$ \n \nEach Lunchroom Manager and Assistant Manager $ \n \nEach Secretary and Bookkeeper \n \n$ \n \nPayroll Administrator \n \n$ \n \n99,000.00 24,000.00 \n9,000.00 8,000.00 4,000.00 4,000.00 3,000.00 \n \n- 19 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nNOTE 9: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2006 \n \n3.85% - 5.0% \n \n$ 3,905,000.00 \n \nVoters have authorized $4,000,000.00 in general obligation debt for construction and renovation projects which was not issued as of June 30, 2013. \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2013, were as follows: \n \nBalance July 1, 2012 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2013 \n \nDue Within One Year \n \nG. O. Bonds Bond Premiums Amortized \n \n$ 5,885,000.00 $ 178,407.00 \n \n0.00 $ 1,980,000.00 $ 3,905,000.00 $ \n \n29,734.50 \n \n148,672.50 \n \n725,000.00 29,734.50 \n \n$ 6,063,407.00 $ \n \n0.00 $ 2,009,734.50 $ 4,053,672.50 $ 754,734.50 \n \nAt June 30, 2013, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nGeneral Obligation Debt \n \nUnamortized \n \nPrincipal \n \nInterest \n \nBond Premium \n \nFiscal Year Ended June 30: \n \n2014 2015 2016 2017 2018 \n \n$ \n \n725,000.00 $ \n \n152,347.50 $ \n \n750,000.00 \n \n121,036.00 \n \n780,000.00 \n \n87,509.50 \n \n810,000.00 \n \n53,392.50 \n \n840,000.00 \n \n18,900.00 \n \n29,734.50 29,734.50 29,734.50 29,734.50 29,734.50 \n \nTotal Principal and Interest \n \n$ 3,905,000.00 $ \n \n433,185.50 $ \n \n148,672.50 \n \nNOTE 10: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $1,688,848.79 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 $1,628,160.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $14,089.79 \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 $46,599.00 \n \n- 20 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \nNOTE 11: SPECIAL ITEMS \nThe School District incurred a loss in the amount of $113,886.64 on the disposal of an old elementary school main building that was built in 1969. \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: 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. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2013, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2013, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2013, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \n \n- 21 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \n \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, 2013: \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 2012 - February 2013 March 2013 - June 2013 \n \n$912.34 per member per month $937.34 per member per month \n \nFor non-certificated school personnel: \n \nJuly 2012 - June 2013 \n \n$446.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2013 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2013 2012 2011 \n \n100% 100% 100% \n \n$ \n \n2,944,898.19 \n \n$ \n \n2,796,773.18 \n \n$ \n \n2,699,349.99 \n \nNOTE 14: 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. \n \n- 22 - \n \n BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"I\" \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, 2013, were 6.00% of annual salary. Employer contributions required for fiscal year 2013 were 11.41% of annual salary as required by the June 30, 2010, actuarial valuation. The employer contribution rate will increase to 12.28% effective July 1, 2013. \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 \n2013 2012 2011 \n \n100% 100% 100% \n \n$ \n \n1,804,020.19 \n \n$ \n \n1,620,526.85 \n \n$ \n \n1,637,628.90 \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- 23 - \n \n (This page left intentionally blank) \n \n BEN HILL COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2013 \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 Other Support Services Enterprise Operations Food Services Operation \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 \n \nFINAL \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 5,100,000.00 $ 5,100,000.00 $ 5,480,188.72 $ \n \n25,000.00 \n \n25,000.00 \n \n58,201.32 \n \n18,159,864.00 18,111,263.77 18,140,868.87 \n \n5,700,031.00 \n \n5,417,303.30 \n \n4,768,147.80 \n \n232,535.00 \n \n232,535.00 \n \n393,711.01 \n \n69,648.00 \n \n69,648.00 \n \n25,447.17 \n \n782,640.00 \n \n782,640.00 \n \n316,911.54 \n \n380,188.72 33,201.32 29,605.10 \n-649,155.50 161,176.01 -44,200.83 -465,728.46 \n \n$ 30,069,718.00 $ 29,738,390.07 $ 29,183,476.43 $ -554,913.64 \n \n$ 19,813,875.27 $ 20,038,945.88 $ 19,521,501.81 $ 517,444.07 \n \n953,043.27 1,611,849.16 \n443,594.07 521,700.38 1,798,381.72 324,594.47 1,713,453.39 1,055,219.95 151,077.00 197,401.00 1,905,788.00 \n \n733,960.27 1,748,615.11 \n420,481.07 396,351.38 1,794,981.72 324,594.47 1,713,453.39 1,012,783.15 183,645.00 197,401.00 1,905,788.00 \n \n671,466.31 1,352,051.58 \n432,209.86 499,555.64 1,869,009.26 377,554.03 1,894,516.88 1,187,707.90 188,133.65 126,340.41 2,086,304.17 \n \n62,493.96 396,563.53 -11,728.79 -103,204.26 -74,027.54 -52,959.56 -181,063.49 -174,924.75 \n-4,488.65 71,060.59 -180,516.17 \n \n$ 30,489,977.68 $ 30,471,000.44 $ 30,206,351.50 $ 264,648.94 \n \n$ -420,259.68 $ -732,610.37 $ -1,022,875.07 $ -290,264.70 \n \n$ \n \n95,000.00 $ \n \n95,000.00 $ \n \n-95,000.00 \n \n-95,000.00 \n \n0.00 $ \n \n-95,000.00 95,000.00 \n \n$ \n \n0.00 $ \n \n0.00 \n \n0.00 $ \n \n0.00 \n \n$ -420,259.68 $ -732,610.37 $ -1,022,875.07 $ -290,264.70 \n \n756,473.55 \n \n756,473.50 \n \n2,836,688.47 \n \n2,080,214.97 \n \n36,267.16 \n \n2,023,980.91 \n \n-2,023,980.91 \n \nFund Balances - Ending \n \n$ 372,481.03 $ 2,047,844.04 $ 1,813,813.40 $ -234,030.64 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \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 BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2013 \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 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 \nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Rural Education \nTotal Other Programs \nTotal U. S. Department of Education \nHealth and Human Services, U. S. Department of Other Programs Pass-Through From Children and Youth Coordination Council Abstinence Education \nDefense, U. S. Department of Direct Department of the Army 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 $ 2,037,432.66 (1) \n \n$ 2,037,432.66 \n \n84.027 84.173 \n \nN/A $ 526,380.56 \n \nN/A \n \n35,193.88 \n \n$ 561,574.44 \n \n* 84.010 \n \nN/A $ 1,650,408.76 \n \n* 84.395 84.048 84.410 84.365 84.367 84.011 84.358 \n \nN/A $ 441,491.89 \n \nN/A \n \n43,266.00 \n \nN/A \n \n1,289.00 \n \nN/A \n \n21,156.04 \n \nN/A \n \n233,890.49 \n \nN/A \n \n15,828.19 \n \nN/A \n \n72,229.87 \n \n$ 829,151.48 \n \n$ 3,041,134.68 \n \n93.235 \n \nN/A $ 109,811.57 \n \n$ \n \n47,617.99 \n \nTotal Expenditures of Federal Awards \nN/A = Not Available \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 $62,610.75. \n(2) Expenditures for the funds earned on the School Breakfast Program ($383,325.00) were not maintained separately and are included in the 2013 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Ben Hill County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \nSee notes to the basic financial statements. \n- 26 - \n \n$ 5,235,996.90 \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2013 \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 (1) Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities 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) 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 Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs K-3 Statewide Reading Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement \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$ 582,334.17 \n \n$ 582,334.17 \n \n1,793,510.00 150,901.00 \n2,575,044.00 267,539.00 \n1,179,874.00 246,110.00 \n1,914,501.00 1,392,875.00 \n595,650.00 \n136,285.00 299,664.00 1,393,924.00 157,443.00 587,946.00 674,835.00 213,578.00 144,608.00 156,326.00 382,777.00 112,111.00 \n69,879.00 \n569,672.00 700,324.00 845,073.00 \n352,967.00 63,889.00 34,336.00 \n2,637,988.00 48,680.00 \n127,578.34 -2,526,577.00 \n1,195.00 7,132.07 113,989.00 76,219.50 14,089.79 \n \n1,793,510.00 150,901.00 \n2,575,044.00 267,539.00 \n1,179,874.00 246,110.00 \n1,914,501.00 1,392,875.00 \n595,650.00 \n136,285.00 299,664.00 1,393,924.00 157,443.00 587,946.00 674,835.00 213,578.00 144,608.00 156,326.00 382,777.00 112,111.00 \n69,879.00 \n569,672.00 700,324.00 845,073.00 \n352,967.00 63,889.00 34,336.00 \n2,637,988.00 48,680.00 \n127,578.34 -2,526,577.00 \n1,195.00 7,132.07 113,989.00 76,219.50 14,089.79 \n \n$ 459,291.20 46,599.00 \n \n459,291.20 46,599.00 \n \n$ 18,140,868.87 $ 459,291.20 $ 18,600,160.07 \n(1) Payments to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District in the amount of $1,628,160.00 are included as part of the Quality Basic Education revenue allotments. \nSee notes to the basic financial statements. - 27 - \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2013 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \nESTIMATED COMPLETION \nDATE \n \n2006 - 2011 SPLOST \n \n(i) renovating, extending, repairing and equipping, Ben Hill \n \nPrimary School and PreK Center, including necessary \n \nfurnishings, fixtures and equipment; \n \n$ \n \n(ii) renovating, extending, repairing and equipping existing School District schools to include roof repairs; acquiring and installing system wide instructional and administrative technology, safety and security equipment; \n \n(iii) acquisition of school buses and transportation equipment; \n \n(iv) acquisition of music, vocational, and physical education/athletic equipment; \n \n(v) acquiring and necessary property therefore, both real and personal; \n \n(vi) paying expenses incident to accomplishing the foregoing. \n \n0.00 $ 3,374,393.33 \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n1,290,769.67 550,079.86 1,290,290.93 \n \n137,604.01 \n \n137,604.01 \n \n3,854,611.17 221,335.00 3,633,276.17 \n \n0.00 $ \n \n0.00 \n \n2014 \n2014 2014 2014 2014 2014 \n \nSubtotal \n \n$ 3,374,393.33 $ 5,282,984.85 $ 771,414.86 $ 5,061,171.11 $ \n \n0.00 $ \n \n0.00 \n \n2012 - 2016 SPLOST \n \n(i) Payment of principal and interest on previously incurred \n \ngeneral obligation debt of the School district in a maximum \n \namount of $4,422,515; \n \n$ \n \n(ii) Repairing, improving, rehabilitating and upgrading the \"Old Lynwood\" building for use as a Central Support facility; \n \n(iii) Adding a new wing at Ben Hill Primary School, including necessary furnishings, fixtures and equipment; \n \n(iv) Renovating, extending, repairing and equipping existing School District facilities to include roof repairs; \n \n(v) Acquiring and installing system wide instructional and administrative technology, safety and security equipment; \n \n(vi) Acquisition of school buses and transportation equipment; \n \n(vii) Acquisition of fine arts, vocational and physical education/athletic equipment and facilities; \n \n(viii) Acquiring textbooks; (ix) Planning for new School District site development and site acquisition at a maximum cost of $13,000,400. \n \n4,422,515.00 $ 11,077,485.00 \n \n3,762,896.19 \n900,000.00 $ 11,077,485.00 \n \n422.18 $ 40,020.39 \n \n5,280.00 \n \n2016 \n2016 2016 2016 2016 2016 2016 2016 2016 \n \nSubtotal \n \n$ 15,500,000.00 $ 15,740,381.19 $ 40,442.57 $ \n \n5,280.00 $ \n \n0.00 $ \n \n0.00 \n \n$ 18,874,393.33 $ 21,023,366.04 $ 811,857.43 $ 5,066,451.11 $ \n \n0.00 $ \n \n0.00 \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 Ben Hill 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- 28 - \n \n BEN HILL COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2013 \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 II Category III Category IV 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) (3) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n1,951,771.00 $ 1,627,290.69 $ \n \n71,364.69 $ 1,698,655.38 \n \n167,317.00 \n \n64,969.32 \n \n64,969.32 \n \n2,849,183.00 2,575,150.30 \n \n167,268.59 \n \n2,742,418.89 \n \n299,863.00 \n \n212,956.90 \n \n212,956.90 \n \n1,316,682.00 1,625,203.15 \n \n86,774.38 \n \n1,711,977.53 \n \n245,981.00 2,138,580.00 1,529,203.00 \n659,164.00 2,816,075.00 \n739,003.00 232,055.00 159,972.00 176,881.00 \n \n139,389.84 2,555,540.66 2,374,543.80 \n803,469.96 \n1,063,916.93 1,663,773.53 \n295,838.58 264,101.74 \n171,835.58 205,948.13 \n \n91,272.89 136,116.23 110,200.19 \n13,172.50 4,828.75 2,243.95 3,326.09 \n225.00 1,337.64 \n \n139,389.84 2,646,813.55 2,510,660.03 \n913,670.15 \n1,077,089.43 1,668,602.28 \n298,082.53 267,427.83 \n172,060.58 207,285.77 \n \n$ \n \n15,281,730.00 $ 15,643,929.11 $ 688,130.90 $ 16,332,060.01 \n \n421,292.00 77,029.00 \n \n396,927.79 \n \n34,083.96 \n \n431,011.75 24,517.29 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n15,780,051.00 $ 16,040,856.90 $ 722,214.86 $ 16,787,589.05 \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. (3) Allotments do not include the State Health payments made by GDOE to the Department of Community Health for the certified employees. \n \nSee notes to the basic financial statements. \n \n- 29 - \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 \nMarch 31, 2014 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Ben Hill County 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, 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 Ben Hill County Board of Education as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise Ben Hill County Board of Education's basic financial statements and have issued our report thereon dated March 31, 2014. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered Ben Hill County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Ben Hill County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Ben Hill County Board of Education'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 \n2013YB-10 \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. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Ben Hill County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Ben Hill County Board of Education in a separate letter dated March 31, 2014. \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, not to provide an opinion on the effectiveness of the Ben Hill County Board of Education's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Ben Hill County Board of Education's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:as 2013YB-10 \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 \nMarch 31, 2014 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Ben Hill County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \nLadies and Gentlemen: \nReport on Compliance for Each Major Federal Program \nWe have audited Ben Hill County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2013. Ben Hill County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nManagement's Responsibility \nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Federal programs. \nAuditor's Responsibility \nOur responsibility is to express an opinion on compliance for each of Ben Hill County Board of Education's major Federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Ben Hill County Board of Education'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 Ben Hill County Board of Education's compliance. \n2013SA-10 \n \n Opinion on Each Major Federal Program \nIn our opinion, the Ben Hill County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2013. \nReport on Internal Control over Compliance \nManagement of Ben Hill County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Ben Hill County Board of Education's internal control over compliance with the types of requirements that could have a direct and material effect on each major Federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major Federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Ben Hill County 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. 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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:as 2013SA-10 \n \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2013 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6091-11-01 FS-6091-12-01 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2013 \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 \nUnmodified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo 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 \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(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 84.395 \n \nChild Nutrition Cluster Title I, Part A Cluster ARRA Race-to-the-Top Incentive Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$300,000.00 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":14,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":14}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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