Gilmer_County_Board_of_Education_24.pdf

Parent document: 2025-04-15-1334af4452ad353768053b711aff6b59-other.txt

Text

PERRY

Beyond the Numbers

GILMER COUNTY BOARD OF EDUCATION
GILMER COUNTY
SINGLE AUDIT
FOR THE YEAR ENDED JUNE 30, 2024

RFP #23-074


GILMER COUNTY BOARD OF EDUCATION

TABLE OF CONTENTS
TITLE PAGE
Independent Auditor's Report ................cc cc ccccceceseceeeeeaeeeaeaeaeaeaeaeaeaeaeaeaeeceseeeceeeseseeeeesesesesesesesesesesesesesesesesesess 1
Management’s Discussion and AnallySis...................:::c0c:cscseseseseseeeseeeseeeseeeseseseseseeeeteeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees 4

Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ..0.........cccccccececceeeececeeececeeeceeeeeceaeeeceaeeeseeeceeeeseaeeeseaeescaeeseareeseieeesieeseneees 16
Statement of Activities... ccc ccc cc ccccececeeeee cece eeceeeeeeeeeceaeeecaeecaeeeeeeeseaeeeseaeeseaeeseaneeseieeesieesenees 17
Governmental Fund Financial Statements:
Balance Sheet — Governmental Funds ................:ccccccccecceceeececeeeeeeeeeceaeeeceaeeceeeeseeeeseeeeseeeeseeeenenees 18

Statement of Revenues, Expenditures and Changes in
Fund Balances — Governmental Funds ................c.cccccccccccsesseceeesecececnseseeeeeeccneaasceeeeeeeenesiaseeeess 19

Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities .................. 20

Notes to the Basic Financial Statement ..................00cccccccccsssececeeececseseceeeeeceescsssaeseeeeeeccneeaseseeeeceeenesisseeeees 21
Required Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund
Balance — Budget and Actual — General Current Expense Fun .............ccccccccccsscceeessteeeeesneeeess 54

Schedule of Revenues, Expenditures and Changes in Fund
Balance — Budget and Actual — Special Revenue Fund.......0......cc:ccccceccccecsteeeeesteeeeessneeeessnteeeens 55

Schedule of Revenues, Expenditures and Changes in Fund
Balance — Budget and Actual — Special Revenue Fund —
School Activity FUNG ........0...cccccccsesccecsecceeecseeeeecseeeeesceeeeeesceeeseeeceeeeeeseesaeesseaeessseseessseseessseaeess 56

Schedule of Revenues, Expenditures and Changes in Fund
Balance — Budget and Actual — Special Revenue Fund —
ESSERPF Fund ...........cccceccccccsecsceceeseeeeeeeseeeseeeeeeseeeeeseceeeeseesieeeseseeseeesieesecesieeeeessieeeesesiteeeessaes 57

Schedule of Revenues, Expenditures and Changes in Fund
Balance — Budget and Actual — Special Revenue Fund —

Excess Levy Fund ............ccccccccccceceeeeeenneceeeeeeeeeceaaeceeeeeeesecaaaeceeeeeeesecacaeeeeeeeseseccusaeeeeeeesesscsiaeeeeeess 58
Schedule of the Board’s Proportionate Share of the Net Pension Liability............00...cccceeeeees 59
Schedule of Board Contributions — Teachers Retirement System ..............ccccccccecceceeseteeeesteeeees 60
Schedule of the Board’s Proportionate Share of the Net OPEB Liability (Asset) ...........0...... 61
Schedule of Board Contributions — Retiree Health Benefit Trust Fund .................:::cceesseeeeerees 62
Notes to the Required Supplementary Information. .............cc0ccccccccccccsseeeeecnneeeeecsneeeessnneeeeesneeeeseaas 63


GILMER COUNTY BOARD OF EDUCATION
TABLE OF CONTENTS (Continued)

TITLE PAGE
Other Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund

Balance — Budget and Actual — Capital Projects Fund .............cc:ccccccccccecsseeeeecsneeeeeesneeeeeenneeeeesas 69
Schedule of Excess Levy Revenues and Expenditures ...............cccccccccscccceceeeeeeessneeeessnteeeeesneeeeess 70
Schedule of Changes in School Activity FUNS ......0.....cccccccceccececsneeeeeesneeeeecsneeeeeseeeessnieeeessneeeenss 71
Schedule of State Grant Receipts and Expenditures .............0.ccccccccccecsteeeeseneeeeeesteeesssneeeessneeeenes 12
Notes to the Other Supplementary Information ............0...ccccccccecstecececsneeeeecnneeeecseeeeesseeeeecnneeeesenas 73

Other Information:
Schedule of Expenditures of Federal AWards ..............ccccccccccccsseceeeeseeeeeeeseeesesneeeeecseeeeecsaeeeeesseeseseneeeeseaas 14
Notes to the Schedule of Expenditures of Federal AWards .............::cccccssccccsssccessesseeeseeeeseseeeesseeseessseaees 75

Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Required by Government Auditing Standards ........0.0.0.c.ccccccsesccccceceeees 76

Independent Auditor’s Report on Compliance with Requirements
Applicable to the Major Federal Program and on Internal Control over

Compliance Required by the Uniform Guidancee .............0c:cccccccscccecseeeececsneeeecsneeeeesseeeessseeeessnieeeessnneeeenss 78
Schedule of FIndingS..............cccccccccessececsesceecseseeeeeeeseeeceeseesseeeeeeseeeeeseeseesesceieeseceseeseeseeeeeesueeeesesieesesenaes 81
Schedule of Prior Audit FIndingS................::cccccccccccsseceeeesseeeceeeeeeeseeeeeseeseeeeceseeeeceseeeeceseeeeesieeeesssieeeesesaes 83
Corrective Action Plann ..........cccccccceccecsceceeeeeeeeecaeeeeaeeceeeeecaeeeceaeceeeeesaeeecaeeecaeeseeesseeesceeesieeseaneessieeesieesees 84

fi




Gilmer County Board of Education
Gilmer County

Independent Auditor’s Report
Page 2

Auditor's Responsibilities for the Audit of the Financial Statements

Our 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.

In performing an audit in accordance with GAAS and Government Auditing Standards, we
e exercise professional judgment and maintain professional skepticism throughout the audit.

e 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.

e 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 Board’s internal control. Accordingly, no such opinion is expressed.

e 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.

e conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Board’s ability to continue as a going concern for a
reasonable period of time.

We 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.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, required budgetary comparison schedules, and schedules of net pension and
other post-employment benefit liabilities and pension and other post-employment benefit contributions 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 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.


Gilmer County Board of Education
Gilmer County

Independent Auditor’s Report
Page 3

Supplementary information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Board’s basic financial statements. The budgetary comparison information for the Debt
Service Fund, and Capital Projects Fund, the Schedule of Changes in School Activity Funds, the
Schedule of Excess Levy Revenues and Expenditures, the Schedule of State Grant Receipts and
Expenditures and the Schedule of Expenditures of Federal Awards 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 are presented for purposes of additional analysis and are not a
required part of the basic financial statements.

Such 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. The information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the 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, these schedules are fairly stated, in
all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 26,
2025, on our consideration of the Board’s internal control over financial reporting and 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 Board'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
Board's internal control over financial reporting and compliance.

Perry and Associates
Certified Public Accountants, A.C.
Marietta, Ohio

March 26, 2025


GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

Our discussion and analysis of the Gilmer County Board of Education’s financial performance
provides an overview of the Board’s financial activities for the fiscal year ended June 30, 2024.
Please read this discussion and analysis in conjunction with the Board’s basic financial
statements, which are presented immediately following this Management’s Discussion and
Analysis.

Financial Highlights

e The Board’s assets plus deferred outflows of resources exceeded liabilities plus deferred
inflows of resources by $18,823,046 (net position) at the close of the most recent fiscal
year. Of this amount, $3,600,358 (unrestricted net position) may be used to meet the
government’s ongoing obligations to citizens and creditors.

e The Board’s total net position decreased by $188,812. Most of this decrease is
attributable to the reduction in restricted.

e As of the close of the current fiscal year, the Board’s governmental funds reported
combined ending fund balances of $3,991,799, an increase of $926,094 in comparison
with the prior year. Approximately $1,173,687 of this total amount is available for
spending at the board’s discretion (unreserved fund balance).

e At the end of the current fiscal year, unreserved fund balance for the general fund was
$1,173,687, or 10.46 percent of total general fund expenditures.

e The Board’s total debt decreased by $185,276 during the current fiscal year. The key
factor in this decrease was principal payments on long term debt.

Overview of the Financial Statements

The discussion and analysis is intended to serve as an introduction to the Board’s basic financial
statements. The Board’s basic financial statements comprise three components: 1) district-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.

District-wide financial statements - The district-wide financial statements are designed
to provide readers with a broad overview of the Board’s finances, in a manner similar to a
private-sector business.

The statement of net position presents information on all the Board’s assets, deferred
outflows of resources, liabilities, and deferred inflow of resources. Net position is
reported as assets plus deferred outflows of resources minus liabilities minus deferred
inflows of resources. Over time, increases or decreases in net position may serve as a
useful indicator of whether the financial position of the Board is improving or
deteriorating.


GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

The 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 or 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 and earned but unused vacation leave).

The district-wide financial statements can be found on pages 16-17 of this report.

Fund financial statements - A 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 Board, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All the
funds of the Board can be divided into two categories: governmental funds and fiduciary
funds.

Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the district-wide financial statements.
However, unlike the district-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. Such
information may be useful in evaluating a government's near-term financing
requirements.

Because the focus of governmental funds is narrower than that of the district-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the district-wide
financial statements. By doing so, readers may better understand the long-term impact
of the government'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.

The Board maintains six 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
current expense fund, the special revenue fund, the special revenue school activities, the
special revenue ESSERF fund, the excess levy fund, and the capital projects fund, all of
which are considered major funds.

Notes to the basic financial statements - The notes provide additional information that
is essential for a full understanding of the data provided in the district-wide and fund
financial statements. The notes to the financial statements can be found on pages 21 to
52 of this report.


GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

District-wide Financial Analysis

As noted earlier, net position may serve over time as a useful indicator of a government’s
financial position. In the case of the Board, assets plus deferred outflows of resources exceeded
liabilities plus deferred inflows of resources by $18,823,046 at the close of the most recent fiscal

year.

The largest portion of the Board’s net position 78.22% reflects its investment in capital
assets (e.g. land, buildings, furniture and equipment, vehicles), less any related debt
used to acquire those assets that is still outstanding. The Board uses these capital
assets to provide services to students; consequently, these assets are nof available for
future spending. Although the Board’s investment in capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.

An additional portion of the Board’s net position 2.66% represents resources that are
subject to external restrictions on how they may be used. The majority of the restricted
balance is for school activity.

The remaining balance of unrestricted net position 19.13% may be used to meet the
Board’s obligations to students, employees, and creditors and to honor next year’s
budget.


GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

The following summarizes the statement of net position at June 30, 2024, in comparison with
June 30, 2023:

2024 2023
Governmental Governmental
Activities Activities Variance
ASSETS AND DEFERRED OUTFLOWS OF
RESOURCES
Current and other assets $ 5,139,141 $ 5,473,430 $ (334,289)
Capital assets 16,456,795 16,981 987 (525,192)
ROU Assets 291 633 368,873 (77,240)
Deferred outflows of resources 551 549 755,656 (204,107)
Total assets and deferred outflows
of resources $ 22,439,118 $ 23,579,946 $ (1,140,828)
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION
Liabilities and deferred inflows of resources:
Current and other liabilities $ 1,222,008 $ 1,503,548 $ (281,540)
Long-term liabilities outstanding 1,690,116 1,889,935 (199,819)
Deferred inflows of resources 296 154 520,812 (224,658)
Net pension liability - Proportionate share 469 076 627 481 (158,405)
Net other post employment benefit (OPEB) liability - Proportionate share - 26,312 (26,312)
Total liabilities and deferred
inflows of resources —_ 3,677,354 __ 4 568,088 __—(8 90,734)
Net position:
Net Investment in Capital Assets 14,722 556 15,173,589 (451,033)
Restricted 500,132 1,240,472 (740,340)
Unrestricted 3,600,358 2,597,797 1,002,561
Total net position 18,823 046 19,011,858 (188,812)
Total liabilities, deferred inflows of
resources, and net position $ 22,500,400 $ 23,579,946 $ (1,079,546)



GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

The key elements of the decrease of the Board’s net position for the year ended June 30, 2024,
are as follows:

Current and other assets decreased by approximately $334,289 which primarily represents a
decrease in reimbursements receivable since funds have been drawdown throughout the
fiscal year leaving less to be outstanding at the end of the fiscal year.

Capital assets decreased by approximately $525,192 which represents the reduction in
construction in progress and accumulated depreciation.

Right-of-Use assets decreased by approximately $77,240 which represents finance lease
amortization.

Current and other liabilities decreased by approximately $281,540 which was primarily the
result of in a reduction of salaries payable.

Long-term liabilities decreased by approximately $199,819 which was primarily the result of
principal payments on long-term debt.

Deferred inflows of resources decreased by approximately $224,658 which was primarily the
result of the reduction of deferred inflows from other post employment benefit.

At the end of the current fiscal year, the Board is able to report positive balances in all three
categories of net position. The same situation held true for the prior fiscal year.

The Board’s net position decreased by $188,812 during the current year. The following
discussion and analysis on governmental activities focuses on this decrease:


GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

The following summarizes the statement of activities for the year ended June 30, 2024, in
comparison with the year ended June 30, 2023:

2024 2023
Governmental Governmental
Activities Activities Variance

Revenues:
Program revenues:

Charges for services $ 25,862 $ 1,022,760 $ (996,898)

Operating grants and contributions 4,878,418 5,569,939 (691,521)
General revenues:

Property taxes 2,227,961 2,732,172 (504,211)

Unrestricted state aid 7,922,951 4,657,393 3,265,558

Unrestricted investment earnings 163,964 71,773 92,191

Unrestricted grants and contributions 534,813 393,570 141,243

Gain or (loss) on disposal of capital assets (206, 768) (17,979) (188,789)

Total revenues 15,547,201 14,429 628 1,117,573

Expenses:
Instruction 6,128,749 6,947,910 (819,161)
Supporting services:

Students 767,903 753,849 14,054

Instructional staff 711,167 517,271 193,896

General administration 484,938 452,353 32,585

School administration 599 636 504,181 95,455

Central services 422,072 301,810 120,262

Operation and maintenance of facilities 4,628,016 1,183,891 3,444,125

Student transportation 1,028,212 1,100,298 (72,086)

Other 533 1,820 (1,287)

Total supporting services 8,642,477 4,815,473 3,827,004
Food services 922 288 845,266 77,022
Community services - 34,701 (34,701)
Interest on long-term debt 42,499 40,502 1,997

Total expenses 15,736,013 12,683,852 3,052,161

Change in net position (188,812) 1,745,776 (1,934,588)
Net position - Beginning 19,013,446 16,774,608 2,238,838
Restatement (1,588) 493,062 (494,650)
Net position - Ending $ 18,823,046 $ 19,013,446 $ (190,400)



Revenues by Source

Unrestricted grants

and contributions charges for :
50% services Unrestricted

0% investment
Capital grants and earings

contributions 4%
0% Property taxes
20%

‘Gain or (loss) on
disposal of capital
assets
—_ -2%

Unrestricted state wa

aid
72%



Expenditures by Function

Food services Community services
6% 0.6%
Interest on long-term
debt
0.4%
Instruction
39%

Total supporting Eee

services
55%



GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

General Current Expense Fund

This is the principal operation fund which accounts for all financial resources of the Board
except those required to be accounted for in another fund. The fund balance increased from
$3,024,332 to $3,491,667, during the fiscal year ended June 30, 2024. As previously
discussed, this increase of $467,335 was due primarily to a reduction of salaries payable.

Special Revenue Fund

This is an operating fund of the Board and accounts for all revenues and expenditures
attributable to state and federal grants and other revenue sources that are legally restricted to
expenditures for specific purposes. The fund balance increased from ($794,545) to $26,004
during the fiscal year ended June 30, 2024. This increase of $820,549 was due primarily to
the reduction of reimbursements receivable.

Special Revenue School Activity Fund

This is a separate special revenue fund to account for the financial resources received and
held by each school to support co-curricular and extra-curricular student activities in which
the Board has administrative involvement. The fund balance decreased from $257,222 to
$242,757 during the fiscal year ended June 30, 2024. This decrease of $14,465 was due
primarily to reclassifying food service payments to the food service project in the Special
Revenue Fund.

Special Revenue ESSERF Fund

This is a separate special revenue fund to account for all revenue and expenditures
attributable to funds received as part of the Coronavirus Aid, Relief, and Economic Security
(CARES) Act, The Coronavirus Response and Relief Supplemental Appropriations (CRRSA)
Act, and the American Rescue Plan (ARP) Act, which are legally restricted to expenditures
for specific purposes. The fund balance increased from ($29,274) to $18,339 during the
fiscal year ended June 30, 2024. This increase of $47,613 was due primarily to the reduction
of reimbursements receivable.

Capital Projects Fund

This is a separate fund used to account for all financial resources used to acquire or
construct specific major capital facilities other than by the sale of bonds or the reservation of
monies in a permanent improvement fund. The fund balance decreased from $565,920 to
$150,006 during the fiscal year ended June 30, 2024. This decrease of $415,914 was due
primarily to completion of the Animal Processing SBA project.

General Fund Budgetary Highlights

During the year, the Board revised the budget. Budget amendments were to reflect changes in
programs and related funding. The difference between the original budget and the final amended
budget was an increase of $1,940,219 or 17.29% in total general fund expenditures. The most
significant differences, including the differences between the original and final budget figures, and
significant variances between the actual amounts and final budget amounts may be summarized
as follows.

12


GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

Capital Asset, Right-of-Use Assets, and Debt Administration

Capital assets - The Board’s investment in capital assets for its governmental activities
as of June 30, 2024, amounts to $16,456,795 (net of accumulated depreciation). This
investment in capital assets includes land, buildings and improvements, furniture and
equipment, and vehicles. The total decrease in the Board’s investment in capital assets
for the current fiscal year was 3.09 percent.

Major capital asset events during the current fiscal year included the following:

e The completion of a few projects that were included in CIP during 2023.

2024 2023
Governmental Governmental
Activities Activities Variance
Land $ 445,000 $ 445,000 $ =
Land improvements 337,903 384,200 (46,297)
Buildings and improvements 14,219,137 12,050,358 2,168,779
Furniture and equipment 857,525 716,120 141,405
Vehicles 597,230 741,790 (144,560)
Construction in process - 2,644,519 (2,644,519)
Total capital assets $ 16,456,795 $ 16,981 ,987 $ (525,192)

Additional information on the Board’s capital assets can be found in Note 6 to the basic
financial statements.

Right-of-Use assets - The Board’s investment in Right-of-use assets for its
governmental activities as of June 30, 2024, amounts to $291,633 (net of accumulated
amortization). This investment in right-of-use assets includes land, buildings, furniture
and equipment, and vehicles. The total decrease in the Board’s investment in right-of-
use assets for the current fiscal year was 8.97 percent.

Major right-of-use asset events during the current fiscal year included the following:

e Two leases expired and two were added along with recognizing current amortization.

2024 2023
Governmental Governmental
Activities Activities Variance
Furniture and equipment $ 139,179 $ 121,849 $ 17,330
SBITAs 152,454 198,532 (46,078)
Total right-ofuse assets $ 291,633 $ 320,381 $ (28,748)

Additional information on the Board’s right-of-use assets can be found in Note 8 to the

basic financial statements.

13


GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

Long-term debt. At the end of the current fiscal year, the Board had total bonded debt
outstanding of $466,672 and capital lease obligations of $1,267,567. Employees of the
Board are eligible to receive special termination benefits in the form of convertible sick
leave earned but not used prior to retirement. Upon retirement, an employee’s
accumulated sick leave may be converted to a greater retirement benefit or to payment of
the retired employee’s health insurance premiums. The cost of additional retirement
benefits is the liability of the West Virginia Consolidated Public Retirement Board and
therefore is not recorded in the Board’s financial statements. However, the cost of the
health insurance premiums must be absorbed by the last agency employing the retiree.
Historically, the West Virginia Legislature has appropriated funds for the Board for
payment of these costs. However, because such appropriations are at the discretion of
the Legislature and therefore not guaranteed, the liability for the cost of sick leave
convertible to health insurance premiums is recorded in the Board’s financial statements.
At June 30, 2024, obligation for compensated absences for vacations was $15,310 at
June 30, 2024.

2024 2023
Governmental Governmental
Activities Activities Variance
QZAB Bonds $ 466,672 $ 533,338 $ (66,666)
Finance Lease obligations 145,580 124,094 21,486
Energy Savings Equipment 1,267,567 1,349,480 (81,913)
Net pension liability 469,076 627,481 (158,405)
Net OPEB liability - 26,312 (26,312)
Compensated absences 15,310 7,586 7,724
Total debt outstanding $ 2,364,205 $ 2,668,291 $ (304,086)

Additional information on the Board’s long-term debt can be found in Note 7 to the basic financial

statements.

Factors Bearing on the Board’s Future

At the time these financial statements were prepared and audited, the Board was aware of
circumstances that could significantly affect its financial health in the future:

e COVID-19 resources have provided a boost for the county in previous years. With the
funding expiring during fiscal year 2025, it is uncertain how losing this revenue source will
affect the county in future years, however, we do not believe it will be a significant impact
as the learning loss and other issues left behind by COVID-19 are currently being
addressed with general current and excess levy funding.

14


GILMER COUNTY BOARD OF EDUCATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Unaudited

Contacting the Board’s Financial Management

This financial report is designed to provide our citizens and taxpayers with a general overview of
the Board’s finances and to demonstrate the Board’s accountability for the money it receives. If
you have questions about this report or need additional financial information, contact the Board
Office, 454 Vanhorn Drive, Glenville, WV 26351.

15


GILMER COUNTY BOARD OF EDUCATION

STATEMENT OF NET POSITION
JUNE 30, 2024

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES

Assets:
Cash and cash equivalents
Investments
Taxes receivable, net of allowance for uncollectible taxes
Other receivables
Other prepaid expenses
Net other post employment benefit (OPEB) asset - Proportionate Share
Due from other governments:
PEIA allocation receivable
Reimbursements receivable
Capital Assets:
Land
Land improvements
Buildings and improvements
Furniture and equipment
Vehicles
Less accumulated depreciation

Total capital assets, net of depreciation
Right-of-Use Assets:
Equipment

Subscription-based information technology arrangements (SBITAs)

Less accumulated amortization
Total ROU assets, net of amortization
Total assets

Deferred outflows of resources:
Pension
Other post employment benefit (OPEB)
Total deferred outflows of resources

Total assets and deferred outflows of resources

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION

Liabilities:
Salaries payable and related payroll liabilities
PEIA premiums payable
Compensated absences
Accounts payable
Long-term obligations:
Due within one year:
Bonds and contracts
Finance lease liability
Due beyond one year:
Bonds and contracts
Finance lease liability
Net pension liability - Proportionate Share
Total liabilities

Deferred inflows of resources:
Pension
Other post employment benefit (OPEB)
Total deferred inflows of resources

Total liabilities and deferred inflows of resources

Net Position:
Net Investment in Capital Assets
Restricted for:

Excess levy

Special projects

Capital projects
Unrestricted

Total net position

See notes to the financial statements.

Governmental
Activities

$ 4,043,073
303,000

156,138

57,408

61,282

39,330

177,580
362,612

445,000
1,015,354

20,406,860
1,498,459
2,043,130

(8,952,008)

16,456,795

210,517
276,471
(195,355)
291,633

21,948,851

496,130
55,419
551,549

$__22,500,400_

$ 648,715
214,023

15,310

154,257

150,594
39,109

1,583,645
106,471
469,076

3,381,200

202,184
93,970
296,154

$3,677,364

$ 14,722,556

63,026
287,100
150,006

3,600 358

$ 18,823,046


GILMER COUNTY BOARD OF EDUCATION

STATEMENT OF ACTIVITIES
FYE JUNE 30, 2024

Functions

Governmental activities:
Instruction $
Supporting services:
Students
Instructional staff
General administration
School administration
Central services
Operation and maintenance of facilities
Student transportation
Other support services
Food services
Interest on long-term debt/finance leases

Total governmental activities $

Expenses

6,128,749 §$

767,903
711,167
484,938
599,636
422,072
4,628,016
1,028,212
533
922,288
42,499

15,736,013 $

General revenues:

Property taxes
Unrestricted state aid
Unrestricted investment earnings

Unrestricted grants and contributions

Program Revenues

Charges for
Services

25,862

25,862

$

$

Gain (loss) on disposal of capital assets

Total general revenues

Change in net position

Net position - beginning

Net position - beginning, as restated

Net position - ending

Operating
Grants and

Contributions

3,382,209

189,437
375,922

275,383
764

654,703

4,878,418

Prior period adjustments - (See Note 16)

See notes to the financial statements.

17

Net (Expense),
Revenue & Changes
in Net Position

Governmental Activities

$

(2,746,540)

(578,466)
(335,245)
(484,938)
(599,636)
(422,072)

(4,352,633)

(1,027,448)

(533)
(241,723)
(42,499)

(10,831,733)

2,227,961
7,922,951
163,964
534,813

(206,768)

10,642,921

(188,812)
19,013,446

(1,588)
19,011,858
18,823,046


GILMER COUNTY BOARD OF EDUCATION

BALANCE SHEET - GOVERNMENTAL FUNDS

JUNE 30, 2024 65
1 61 Special 71 12 57
General Special Revenue Special Revenue Excess Capital
Current Revenue School Activity ESSERF Levy Projects Total
Expense Fund Fund Fund Fund Fund Governmental

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES

Assets:
Cash and cash equivalents $ 3,742,409 §$ - § 242,757 §$ - § 57,907 § - § 4,043,073
Investments - - - - - 303,000 303,000
Taxes receivable, net 109,883 - - - 46,255 - 156,138
Other receivables 57,408 - - - - - 57,408
Retirement Forfeiture 61,282 - - 61,262
Due from other governments:
PEIA allocation receivable 177,580 - - - - - 177,580
Reimbursements receivable - 208,982 - 143,615 - 10,015 362,612
Due from other funds 288,482 - - - - - 288,482
Total assets 4,437,044 208,982 242,757 143,615 104,162 313,015 5,449,575
TOTAL ASSETS PLUS DEFERRED OUTFLOWS OF RESOURCES 4,437,044 208,982 242,757 143,615 104,162 313,015 5,449,575
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Liabilities:
Salaries payable and related payroll liabilities 563,133 72,625 - 22,957 - - 648,715
PEIA premiums payable 181,304 28,553 - 4,166 - - 214,023
Accounts payable & Payable to others 91,770 13,404 - - 8,007 41,076 184,257
Due to other funds - 68,396 - 98,153 - 121,933 288,462
Total liabilities 826207 —i<“‘z#VOUOUUU!U€F©€©™©€FU-UO~«6ov6S~—“—s*~*~*~*~*~SSOOSC‘CONSN#C#C#O#NWOOONSOOOOO#O#«*4S« 477
Deferred inflows of resources 119,170 - - - 33,129 - 152,299
Total deferred inflows of resources —_119,770—~—~C~—“‘“‘<‘C;SKO™”™;™”™”™”™WWOWOC~™OWOWOWOWUWUWUUU”U”U”~CS S”™~<“s*~S*s~s~sssSSC~‘“‘;*C*S*~C~«SS 2,
Fund Balances:
Nonspendable 61,282 - - - - - 61,282
Restricted - 26,004 242,757 18,339 63,026 150,006 500,132
Assigned 2,256,698 - 7 - - 2,256,698
Unassigned 1,173,687 - - - - - 1,173,687
Total fund balances 3,457,667 26,004 242,757 76,535 63,026 150,006 3,951,759
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES § 4,437,044 § 208,982 §$ 242,757 §$ 143,615 § 104,162 §$ 313,015 § 5,449,575
Amounts reported for governmental activities in the statement of net position differ due to:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds 16,456,795
Right-of-use assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds 291,633
Other deferred charges are not reported in the funds 41,676
Property taxes receivable and food service billings receivable will be collected this year but are not available soon enough to pay for the current period's expenditures, and are therefore deferred in
the funds 110,623
Deferred outflows and inflows of resources related to pensions and OPEB are applicable
to future periods and, therefore, are not reported in the funds
Deferred outflows of resources related to pensions 496,130
Deferred inflows of resources related to pensions (202,184)
Deferred outflows of resources related to OPEB 55,419
Deferred inflows of resources related to OPEB (93,970)
Some liabilities, including net pension and OPEB obligations, are not due and payable in the
current period and, therefore, are not reported in the funds
Bonds payable, due within one year (150,594)
Bonds payable, due beyond one year (1,583,645)
Compensated absences (15,310)
Net pension liability - proportionate share (469,076)
Net OPEB liability (asset) - proportionate share 39,330
Finance lease liability, due within one year (39,109)
Finance lease liability, due beyond one year (106,471)

Net position of governmental activities

See notes to the financial statements.
18


GILMER COUNTY BOARD OF EDUCATION

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
FYE JUNE 30, 2024

65
17 67 Special
General Special Revenue
Current Revenue School Activity
Expense Fund Fund
Revenues:
Property taxes $ 2,269,599 §$ - §$ - §$
Other Local sources 247,404 167,134 344,062
State sources 9,035,303 526,813 -
Federal sources 105,719 2,191,835 -
Total revenues 11,658,025 2,885,782 344,062
Expenditures:
Instruction 6,144,265 752,450 389,727
Supporting services:
Students 659,784 134,740 -
Instructional staff 520,877 263,536 -
General administration 464,034 1,170 -
School administration 707,782 - -
Central Services 449,100 4,780 -
Operation and maintenance of facilities 1,067,689 5,126 -
Student transportation 915,678 764 -
Other support services 533 - -
Food services 51,008 844,471 -
Capital outlay 8,103 - -
Debt service:
Principal retirement 148,579 - -
Interest and fiscal charges 33,197 - -
Finance Leases:
Principal payment expense 36,697 - -
Interest Expense 9,302 - -
Total expenditures 11,216,628 2,007,037 389,727
Excess (deficiency) of revenues over
expenditures 441,397 878,745 (45,665)
Other financing sources (uses):
Proceeds from disposal of real or personal properi 18,105 - -
Proceeds from finance lease 8,103 - -
Transfers in 86,053 5,803 31,200
Transfers (out) (86,323) (63,999) -
Total other financing sources (uses) 25,938 (68,196) 31,200
Net change in fund balances 467,335 820,549 (14,465)
Fund balances - beginning 3,024,332 (794,545) 257,222
Fund balances - ending $ 3,491,667 $ 26,004 $ 242,757 $

See notes to the financial statements.

19

71

Special

Revenue

ESSERF
Fund

- §&

1,264,367
1,264,367

279,046

62,439
8,730

275,295

538,772

1,164,282

100,085

(62,472)
(52,472)

47,613

(29,274)

18,339 $

12
Excess
Levy
Fund

926,558 $

1,593

928,151

463,590
2,986
6,149

205
19,917

257,447
107,362

48,736

906,392

21,759

(783)
(783)

20,976

42,050

63,026 $

57
Capital
Projects

Total

Fund Governmental

- $
41
712,414

712,455

1,208,890

1,208,890

(496,435)

80,521

80,521
(415,914)

565,920

150,006 $

3,196,157
760,234
10,274,530
3,561,921

17,792,842

8,029,078

859,949
799,292
465,409
727,699
453,880
1,605,557
1,023,804
533
944,215
1,755,765

148,579
33,197

36,697
9,302

16,892,956

899,886

18,105
8,103
203,577

(203,577)

26,208
926,094

3,065,705

3,991,799


GILMER COUNTY BOARD OF EDUCATION

RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

FYE JUNE 30, 2024

Net change in fund balances - total governmental funds $ 926,094

Amounts reported for governmental activities in the statement of
activities are different due to:

Governmental funds report capital outlays as expenditures.

However, in the statement of net position, the cost of capital assets is

allocated over their estimated useful lives and reported as

depreciation expense. The effect on net position is the amount by

which capital outlays exceed depreciation in the current period.
Depreciation expense (798,288)
Capital outlays 3,142,488

Governmental funds report capital outlays as expenditures.

However, in the statement of net position, the cost of lease assets is

allocated over their estimated useful lives and reported as

amortization expense. The effect on net position is the amount by

which capital outlays exceed amortization in the current period.
Amortization expense (39,265)
Capital outlays 8,103

Governmental funds report capital outlays as expenditures.
However, in the statement of net position, the cost of SBITA assets is
allocated over their estimated useful lives and reported as
amortization expense. The effect on net position is the amount by
which capital outlays exceed amortization in the current period.
Amortization expense (46,078)

Certain receivables will be collected this year but are not available
soon enough to pay for the current period's expenditures. This is the
amount by which such receivables increased (decreased).

Property taxes receivable (968, 196)
Operating Grants and Contributions 41,676

A portion of the change in fund balances is the proceeds from finance
leases. Those proceeds are not considered revenue items for the
purpose of this statement. (8,103)

The repayment of the principal of long-term debt (e.g., bonds, leases)
consumes the current financial resources of governmental funds.
However, such repayment has no effect on net position. 148,579

Differences in the cost and accumulated depreciation on disposed

capital assets are reported as a loss and reduction in net position in

the statement of activities.
Cost of assets disposed (4,018,301)
Accumulated depreciation of assets disposed 1,148,909

Compensated absences are reported as liabilities in the statement of
net position, but are only reported in government funds to the extent
they have matured. This is the amount by which compensated
absences (increased)/decreased.
Accrued vacation payable (7,724)

Governmental funds report district pension contributions as
expenditures. However, in the Statement of Activities, the cost of
pension benefits earned net of employee contributions is reported as
pension expense
District pension contributions 106,161

Cost of benefits earned net of employee contributions (78,546)

Governmental funds report district OPEB contributions as
expenditures. However, in the Statement of Activities, the cost of
OPEB benefits earned net of employee contributions is reported as

OPEB expense
District OPEB contributions 9,237
Cost of benefits earned net of employee contributions 207,746

Finance Lease payables are reported as liabilities in the statement of

net position, but are only reported in government funds to the extent

they have matured. This is the amount by which finance lease

payables decreased. 36,697

Change in net position of governmental activities $ (188,811)

See notes to the financial statements.
20


GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Note 1 - Summary of Significant Accounting Policies:

The accompanying financial statements have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) as applied to local government units. The
Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles.

A. Reporting Entity:

The Gilmer County Board of Education (School Board) is a corporation created under the authority of
West Virginia Code §18-5-1 et seq. and is composed of five members nominated and elected by the
voters of the county for four-year terms. The Board is responsible for the supervision and control of the
county school district and has the authority, subject to State statutes and the rules and regulations of the
State Board, to control and manage all the non-charter public schools and school interests in the county.

GASB Statement 14 establishes the criteria for determining the governmental reporting entity and the
component units that should be included within the reporting entity. Under the provisions of this
statement, the School Board is considered to be a primary government, since it is a separate legal entity,
has its own elected governing body, and is fiscally independent of other local governments. The School
Board has no component units, defined by GASB Statement 14 as other legally separate organizations
for which the elected board members are financially accountable.

B. District-wide and fund financial statements:

The district-wide financial statements (the statement of net position and the statement of activities)
display information about the School Board as a whole. These statements include the financial activities
of the overall government, except for fiduciary fund activities. Fiduciary funds are reported only in the
Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position at the fund
financial statement level.

The Statement of Activities presents a comparison between direct expenses and program revenues for
each function of the school district's governmental activities. Direct expenses are those that are
specifically associated with a function and, therefore, are clearly identifiable to a particular function.

Depreciation expenses and amortization expenses for capital assets and right-of-use assets,
respectively, that can be specifically identified with a function are included in its direct expenses.
Depreciation and amortization expense for “shared” capital assets (such as a school building that may be
used for instructional services, student and instructional staff support services, school administration,
and child nutrition services) and right-of-use assets are distributed proportionally among the various
functions. Indirect expense allocations that have been made in the funds have been reversed for the
statement of activities. Interest on general long-term debt liabilities is considered an indirect expense
and is reported in the Statement of Activities as a separate line.

Program revenues include: grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function, restricted state aid, tuition, and other fees and charges paid
by students. Revenues that are not considered as program revenues are classified as general revenue
and include property taxes, unrestricted state aid, unrestricted investment earnings, gain on sale of
capital assets, and federal and state grants not restricted to a specific purpose.

The fund financial statements provide information about the individual funds maintained by the School
Board. All funds maintained by the school district are considered to be major funds for reporting
purposes and are discretely presented in the accompanying financial statements.

21



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

The funds maintained by the Board are:

General Current Expense Fund: The General Current Expense Fund is the operating fund of the
School Board and accounts for all revenues and expenditures not encompassed within other
funds. All general tax revenues and other receipts that are not allocated by law or contractual
agreement to other funds are accounted for in this fund. General operating expenditures and the
capital improvement costs that are not paid through other funds are paid from the General
Current Expense Fund.

Special Revenue Fund: The Special Revenue Fund is an operating fund of the School Board
and accounts for all revenues and expenditures attributable to state and federal grants and other
revenue sources that are legally restricted to expenditure for specific purposes.

Special Revenue Fund: ESSERF Fund — A governmental fund type used to account for the
financial resources of LEAs, MCVCs, and ESCs received through the federal government; most
notably in regard to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the
Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, and the American
Rescue Plan (ARP) Act.

Special Revenue Fund: School Activity Fund — A governmental fund type used to account for the
resources accumulated and payments made for projects financed by the excess levy.

Excess Levy Fund — A governmental fund type used to account for the financial resources
received and held by each school to support co-curricular and extra-curricular student activities.

Capital Projects Funds: Capital Projects Funds are used to account for all resources used for the
acquisition of capital facilities by the School Board. These funds can include: a bond
construction fund, used to account for the proceeds from the issuance of general obligation
bonds; a permanent improvement fund established under the authority of West Virginia Code
§18-9B-14 to account for the proceeds of resources used for the support of various building and
permanent improvement projects, and; one or more capital projects funds used to account for
the resources used in the construction of a specific capital facility.

C. Measurement Focus and Basis of Accounting

The district-wide statements (Statement of Net Position and the Statement of Activities) were prepared
using the economic resources measurement focus and the full 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 are received. Revenues and expenses resulting from exchange and
exchange-like transactions are recognized when the exchange takes place; revenues and expenses
resulting from non-exchange transactions, such as property taxes, federal and state grants, state aid to
schools, and donations, are recognized in accordance with the requirements of GASB Statement 33.
Property taxes are recognized in the fiscal year for which the taxes are levied; state aid to schools is
recognized in the year for which the legislative appropriation is made; and grants and donations are
recognized in the fiscal year in which all eligibility requirements have been satisfied.

22



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

The governmental fund financial statements were prepared using the current financial resources
measurement focus and the modified accrual basis of accounting. Under this method, revenues are
recognized when measurable and available. “Measurable” means the amount of the transaction can be
determined and “available” means collectible within the current period or soon enough thereafter to pay
liabilities of the current period. The School Board considers all revenues available if they are collected
within (60) days after year-end. Expenditures are recorded generally when the related fund liability is
incurred, except for unmatured principal and interest on general long-term debt, claims and judgments,
and compensated absences, which are recognized as expenditures to the extent they have matured.
General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of
general long-term debt and acquisitions under finance leases and financed purchases are reported as
other financing resources.

. Encumbrances:

Encumbrance accounting is employed in governmental funds. Encumbrance accounting, under which
purchase orders, contracts and other commitments for the expenditure of monies are recorded in order
to reserve that portion of the applicable appropriation, is employed as an extension of the formal
budgetary process. Encumbrances outstanding at year-end are reported in the appropriate fund balance
category (restricted, committed or assigned) since they do not constitute expenditures or liabilities
because the commitments will be honored during the subsequent year.

Cash and Investments:

Cash on hand and deposits with banking institutions either in checking or savings accounts or other
highly liquid investments with an original maturity of three months or less are presented as cash and
cash equivalents in the accompanying financial statements.

Boards of education are authorized by statute to provide excess funds to either the State Consolidated
Investment Pool or the Municipal Bond Commission (MBC) for investment purposes, or to invest such
funds in the following classes of securities: obligations of the United States or any agency thereof;
certificates of deposit; and repurchase agreements. The School Board had no investments with the
West Virginia Municipal Bond Commission.

All deposit accounts and investments of the School Board at June 30, 2024, consisted of the following:

Estimated Fair

Carrying Amount Value Bank Balance
Certificates of Deposit $ 1,628,596 $ 1,628,596 $ 1,628,596
Deposits with financial institutions -
Individual Schools 242,757 242,757 258,456
Deposits with financial institutions -
Board of Education 2,474,720 2,474,720 3,231,502
Total investments $ 4,346,073 $ 4,346,073 $ 5,118,554

Deposits with financial institutions were entirely covered by federal deposit insurance or secured by
adequate bond or other securities held by the banking institution in the School Board’s name. Custodial
credit risk is the risk that in the event of a bank failure, the School Board’s deposits may not be returned
to it. The School Board has limited its custodial credit risk by assuring that these deposits with financial
institutions are adequately collateralized.

23



F.

GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Interfund receivables and payables:

Activities between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as either “due to/from other funds” (i.e., current portion of interfund
loans) or “advances to/from other funds’ (i.e., the non-current portion of interfund loans).

Advances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for appropriation
and are not expendable available financial resources.

Inventories:

Inventories are valued at cost or, if donated, at fair value when received. Inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.

Prepaid Items:

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements.

Capital Assets:

Purchased capital assets, which include land, buildings and improvements, furniture and equipment, and
vehicles are reported in the district-wide financial statements. The School Board defines capital assets
as assets with an initial, individual cost of $5,000 or more for land, furniture, vehicles, and equipment and
$100,000 for buildings and an estimated useful life in excess of two years. Purchased or constructed
capital assets are reported at cost or estimated historical cost. Donated capital assets are recorded at
acquisition value at the date of donation. The cost of normal maintenance and repairs that do not add to
the value of the asset or materially extended assets’ lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase is not capitalized.

Buildings and improvements, furniture and equipment, and vehicles of the School Board are depreciated
using the straight-line method over the following estimated useful lives:

Assets Years
Buildings 50
Site Improvements 20 — 35
Furniture and Equipment 5-20
Vehicles 8-12

Right-of-use_ assets, which include land, buildings, equipment, vehicles, and subscription-based
information technology arrangements (SBITAs) are reported in the district-wide financial statements.

The School Board defines lease right-of-use assets (land, buildings, equipment, and vehicles) as the
right to occupy, operate, or hold a leased asset during the rental period. This rental period must be for
greater than 12 months including any option to renew if it is reasonably certain, based on all relevant
factors, that the School Board will exercise that option. These assets do not include any lease contracts
that transfer ownership at the end of the lease.

24



J.

GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Lease Right-of-use assets are recorded at the present value of the payments expected to be made
during the lease term, including any lease payments made to the lessor at or before the commencement
of the lease term, less any lease incentives. Initial direct costs that are necessary to place the lease
asset into service are also included.

Lease Right-of-use assets (Land, buildings, equipment, and vehicles) of the School Board are amortized
using the straight-line method over the shorter period of the lease term or the useful life of the asset.

The School Board defines SBITA right-of-use assets as a contract that grants the right to use IT software
for a period of time in an exchange or exchange-like transaction. This subscription period must be for
greater than 12 months including any option to renew if it is reasonably certain, based on all relevant
factors, that the School Board will exercise that option.

SBITA Right-of-use assets are recorded at the present value of the payments expected to be made
during the subscription term, including any payments made to the vendor at or before the
commencement of the subscription term (less any incentives), and capitalizable initial implementation
costs.

SBITA Right-of-use assets of the School Board are amortized using the straight-line method over the
shorter period of the subscription term or the useful life of the underlying IT asset.

Deferred Outflow of Resources:

A deferred outflow of resources is a consumption of net position by the government that is applicable to a
future reporting period.

Pensions:

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the fiduciary net position of the
State Teacher Retirement System (TRS) and additions to/deductions from the TRS fiduciary net position
have been determined on the same basis as they are reported by TRS. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value. See Note 9 for further
discussion.

Compensated Absences and Other Post Employment Benefit Liability:

Compensated Absences:

It is the School Board’s policy to permit employees to accumulate earned but unused vacation pay
benefits. Vacation benefits can be accumulated up to 40 days and carried forward to the subsequent
fiscal year. All vacation pay is accrued when incurred and the liability for these amounts is reported in
the general long-term debt account group. Upon termination employees may be compensated for
vacation benefits accumulated. In lieu of a cash payment at retirement, employees hired prior to July 1,
2015, can elect to use accumulated annual leave toward their postemployment health care insurance
premium. Employees also earn sick leave benefits which accumulate but do not vest.

25



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Other Post Employment Benefit (OPEB) Liability:

It is the School Board’s policy to permit employees to accumulate earned but unused sick pay benefits.
Sick benefits can be accumulated for unlimited days and carried forward to the subsequent fiscal year.
When separated from employment, employees’ sick leave benefits are considered ended, and no
reimbursement is provided. However, upon retirement, an employee’s accumulated annual sick leave
may be converted to a greater retirement benefit or payment of the retired employee’s health insurance
premiums. The cost of the increased retirement option is the liability of the West Virginia Consolidated
Public Retirement Board. The payment of health insurance premiums must be absorbed by the last
agency employing the retiree and is included as part of the OPEB liability.

For 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 State
OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been
determined on the same basis as they are reported by West Virginia Retiree Health Benefit Trust Fund
(RHBT). For this purpose, benefit payments are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value. See Note 10 for further discussion.

Long-term Obligations:

In the district-wide financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, statement of net position. Bond premiums and
discounts are deferred and amortized over the life of the bonds using the effective interest method.
Bonds payable is reported net of the applicable bond premium or discount. Issuance costs, whether or
not withheld from the actual debt proceeds received, are reported as expenses during the period in
which the bonds were issued.

In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt issued is reported as other financing sources.
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.

Deferred Inflow of Resources

A deferred inflow of resources is an acquisition of net position by the government that is applicable to a
future reporting period.

Net Position:

Net position is classified into four categories according to external donor restrictions or availability of
assets for satisfaction of School Board obligations. The School Board’s net position is classified as
follows:

e Net Investment in Capital Assets - This represents the School Board’s total investment in capital
assets, net of accumulated depreciation and reduced by the balances of any outstanding debt
obligations related to those capital assets. To the extent debt has been incurred but not yet
expended for capital assets, such amounts are not included as a component of invested capital
assets, net of related debt.

26



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

e Restricted net position, expendable - This includes resources in which the School Board is legally
or contractually obligated to spend in accordance with restrictions imposed by external third parties
including grantors, donors, or laws or regulations of other governments, or imposed by law through
constitutional provisions or enabling legislation.

e Unrestricted net position - This represents resources derived from other than capital assets or
restricted net position. These resources are used for transactions relating to the general operation of
the School Board and may be used at the discretion of the School Board to meet current expenses
for any lawful purpose.

P. Fund Equity:

Effective July 1, 2010, the School Board adopted GASB Statement No. 54 “Fund Balance Reporting and
Governmental Fund Type Definitions,” which establishes new standards of accounting and financial
reporting that are intended to improve the clarity and consistency of the fund balance information
provided to financial report users. The classifications are based primarily on the extent to which the
School Board is bound to honor constraints on the specific purposes for which the amounts in those
funds can be spent. Fund balances are reported in the following categories:

Nonspendable fund balances include amounts that cannot be spent because they are in a
nonspendable form, such as inventory, or prepaid expense amounts, or they are legally or
contractually required to be maintained intact, such as the corpus of a permanent fund.

Restricted fund balances are restricted due to legal restrictions from creditors, grantors, or laws
and regulations of other governments or by legally enforceable enabling legislation or
constitutional provisions.

Committed fund balances are amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the highest level of decision-making authority, which for
the county is the five-member School Board. Said specific purposes and amounts are recorded
in the official School Board minutes of the fiscal year ended June 30, 2024. Those committed
amounts cannot be used for any other purpose unless the School Board removes or changes
the specified use by taking the same type of action it employed to previously commit those
amounts. Committed fund balance also incorporates contractual obligations to the extent that
existing resources in the fund have been specifically committed for use in satisfying those
contractual requirements.

Assigned fund balances are constrained by the intent to use funds for specific purposes but are
neither restricted nor committed. Intent can be expressed by the five-member School Board or
by a body or official to which the School Board has delegated the authority to assign amounts to
be used for specific purposes. By reporting particular amounts that are not restricted or
committed in a special revenue, capital projects, debt service, or permanent fund, the School
Board has assigned those amounts to the purposes of the respective funds.

Unassigned fund balance is the residual classification for the general fund. This classification
represents fund balance that has not been assigned to other funds and that has not been
restricted, committed, or assigned to specific purposes within the general fund. In other funds,
any negative fund balances would be unassigned.

2/



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

. Elimination and Reclassifications:

In the process of aggregating data for the statement of net position and the statement of activities, some
amounts reported as interfund activity and balances in the funds were eliminated or reclassified.
Interfund receivables and payables were eliminated to minimize the “grossing up” effect on assets and
liabilities within the governmental activities column.

Accounting Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and
the reported amounts of revenues and expenditures during the reporting period. Actual results could
differ from those estimates.

. Restricted Resources:

Restricted resources should be applied first when an expense is incurred for purposes for which both
restricted and unrestricted net positions are available. If an expense is incurred for purposes for which
committed, assigned and unassigned fund balances are all available, the fund balances should be
reduced in the following order: committed, assigned, and then unassigned.

. Newly Adopted Statements Issued by the GASB:

The Governmental Accounting Standards Board has also issued Statement No. 100, Accounting
Changes and Error Corrections, effective for fiscal years beginning after June 15, 2023. The primary
objective of this Statement is to enhance accounting and financial reporting requirements for accounting
changes and error corrections to provide more understandable, reliable, relevant, consistent, and
comparable information for making decisions or assessing accountability. The adoption of GASB
Statement No. 100 did not have an effect on the financial statements.

Recent Statements Issued by the GASB:

The Governmental Accounting Standards Board has also issued Statement No. 101, Compensated
Absences, effective for fiscal years beginning after December 15, 2023. The objective of this Statement
is to better meet the information needs of financial statement users by updating the recognition and
measurement guidance for compensated absences. The School Board has not yet determined the effect
that the adoption of GASB Statement No. 101 may have on its financial statements.

The Governmental Accounting Standards Board has also issued Statement No. 103, Financial Reporting
Model Improvements, effective for fiscal years beginning after June 15, 2025. The objective of this
Statement is to improve key components of the financial reporting model. The purposes of the
improvements are to enhance the effectiveness of the financial reporting model in providing information
that is essential for decision making and assessing a government’s accountability and address certain
application issues identified through pre-agenda research conducted by the GASB. The School Board
has not yet determined the effect that the adoption of GASB Statement No. 101 may have on its financial
statements.

28



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Note 2 - Stewardship, Compliance and Accountability:

Deficiencies in Net Changes in Fund Balances and Deficit Fund Balances:

The following funds had deficiencies in net changes in fund balances for the year ended June 30, 2024:

Fund Amount
Special Revenue School Activity Fund $14,465
Capital Projects Fund $415,914

Funds sufficient to provide for the excess expenditures were made available from other sources within
each fund and the deficiency had no impact on the financial results of the Funds.

The School Board had no funds with a deficit fund balance at June 30, 2024.

Note 3 - Risk Management:

The School Board is exposed to various risks or loss related to torts, theft, or damage to and destruction of
assets, errors and omissions, injuries to employees, and natural disasters. The School Board, pursuant to
the provisions of State law, participates in the following risk management programs administered by the
State.

Board of Risk and Insurance Management (BRIM): The Board participates in the West Virginia Board of
Risk and Insurance Management, a common risk insurance pool for all State agencies, component units,
boards of education and other local governmental agencies who wish to participate. The School Board pays
an annual premium to BRIM for its general insurance coverage. Fund underwriting and rate setting policies
are established by BRIM. The cost of all coverage as determined by BRIM is paid by the participants. The
BRIM risk pool retains the risk of the first $2 million per property event and purchases excess insurance on
losses above that level. BRIM has a $1 million per occurrence coverage maximum on all third-party liability
claims.

Public Employees Insurance Agency (PEIA): The School Board provides employees health and basic life
insurance benefits through the Public Employees Insurance Agency. PEIA was established by the State of
West Virginia to provide a program of health and life insurance for employees of State agencies, institutions
of higher learning, boards of education, and component units of the State. In addition, local governmental
agencies and certain charitable and public service organizations may request to be covered. PEIA provides
a general employee benefit insurance program which includes hospital, surgical, major medical, prescription
drug and basic life and accidental death. Fund underwriting and rate setting policies are established by the
PEIA Finance Board. The cost of all coverage as determined by the Finance Board is paid by the
participants.

Health coverage under these programs has no lifetime maximum benefit, while life insurance coverage is
limited to $10,000. Members may purchase up to an additional $500,000 of life insurance coverage.
Premiums are established by PEIA and are paid monthly. The PEIA risk pool retains the risk for the health
and prescription features of its indemnity plan, has fully transferred the risks of coverage of the Managed
Care Organization (MCO) Plan to the plan provider and has transferred risk of life insurance coverage to a
third-party insurer.

29



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Workers Compensation Fund (WCF): Traveler's Insurance Company provides workers’ compensation
coverage to Gilmer County Board of Education. The cost of all coverage, as determined by Traveler’s
Insurance Company, is paid by the School Board.

The Traveler’s Insurance Company’s risk pool retains the risk related to the compensation of injured
employees under the program.

Note 4 - Property Taxes:

All property in the State is classified as follows for ad valorem tax purposes:

Class|- All tangible personal property employed exclusively in agriculture, including horticulture and
grazing; all products of agriculture, including livestock, while owned by the producer.

Class IIl- All property owned, used and occupied by the owner exclusively for residential purposes; all
farms, including land used for horticulture and grazing, occupied and cultivated by their
owners or bona fide tenants.

Class III - All real and personal property situated outside of municipalities, exclusive of Class | and Il
property.

Class IV - All real and personal property situated inside of municipalities, exclusive of Class | and Il
property.

According to West Virginia Code §11-8-6c, the maximum rates that county boards of education may impose
on the various classes of property are: Class | - 22.95¢ per $100 of assessed valuation; Class Il - 45.90¢ per
$100 of assessed valuation; Class III - 91.80¢ per $100 of assessed valuation; and Class IV - 91.80¢ per
$100 of assessed valuation.

Pursuant to West Virginia Code §11-8-6f, however, the rates of levy for county boards are to be reduced
uniformly statewide and proportionately for all classes of property so that the total statewide property tax
revenues to be realized from the regular levy tax collections for the forthcoming year will not increase by
more than one percent of the current year’s projected property tax revenues, exclusive of increases due to
new construction, improvements to existing real property, or newly acquired personal property, unless the
State Legislature holds a public hearing. The amounts to be paid to the Assessors Valuation Fund are also
to be excluded from the calculation.

County boards of education are also authorized to impose an additional (excess) levy not to extend beyond
five years if approved by at least a majority of the voters. The rates of levy cannot exceed the maximum
rates specified above and must be proportional for all classes of property.

The assessed valuations and levy rates levied by the School Board per $100 of assessed valuation for each
class of property for the fiscal year ended June 30, 2024, were:

Class of Assessed Valuations Current Excess
Property For Tax Purposes Expense Levy
Class | $ 19.40¢ 1.84¢
Class II $ 112,272,792 38.80¢ 15.68¢
Class III $ 207,993,696 17.60¢ 31.36¢
Class IV $ 30,884,433 17.60¢ 31.36¢

30



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

The taxes on real property and the interest and other charges upon such taxes attach as an enforceable lien
on the first day of July each year. There is no lien denominated as such on personal property. However,
statutes provide that the sheriff of a county may distrain for delinquent taxes any goods and chattels
belonging to a person assessed. All current taxes assessed on real and personal property may be paid in
two installments. The first installment is payable on September first of the year for which the assessment is
made, and becomes delinquent on October first, and the second installment is payable on the first day of the
following March and becomes delinquent on April first.

Taxes paid on or before the date when they are payable, including both first and second installments, are
subject to a discount of two and one-half percent. If taxes are not paid on or before the date on which they
become delinquent, including both first and second installments, interest at the rate of nine percent per
annum is added from the date they become delinquent until paid.

Taxes Receivable

Taxes receivable as of June 30, 2024, for the School Board’s funds are as follows:

General
Current Excess Levy
Expense Fund Fund
Taxes receivable $ 213,589 $ 88,165

Less: allowance for uncollectible (103,706) (41,910)
Taxes receivable, net $ 109,883 $ 46,255

Note 5 - Excess Levy:

The School Board had an excess levy in effect during the fiscal year ended June 30, 2024. The levy was
authorized by the voters of the county at an election held on May 8, 2022 for the fiscal years ended
June 30,2024 through June 30, 2028 to provide funds for the following purposes: repair and maintenance of
facilities. Supplies, textbooks, extracurricular activities and substitutes.

A total of $928,151 was received by the School Board from the excess levy during the fiscal year ended June
30, 2024.

31



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Note 6 - Capital Assets:

Capital asset balances and activity for the year ended June 30, 2024, is as follows:

Capital assets, non-depreciable:
Land
Construction in process

Total non-depreciable capital assets

Capital assets, depreciable:
Land improvements
Buildings and improvements
Furniture and equipment
Vehicles

Total depreciable capital assets

Less accumulated depreciation for:
Land improvements
Buildings and improvements
Furniture and equipment
Vehicles
Total accumulated depreciation

Total depreciable capital assets, net

Total capital assets, net

Beginning Balance

$

$

445,000
2,644,519

3,089,519

1,015,354
17,778,798
2,056,822
2,344,123

23,195,097

(631,154)
(5,728,440)
(1,340,702)
(1,602,333)

(9,302,629)
13,892,468

16,981,987

$

Restatement

Additions Disposals Ending Balance
$ - § - §$ 445,000
= (2,644,519) -

- (2,644,519) 445,000

- - 1,015,354
2,628,062 - 20,406,860
452,721 (1,011,084) 1,498,459
61,705 (362,698) 2,043,130
3,142,488 (1,373,782) 24,963,803
(46,297) - (677,451)
(459,283) = (6,187,723)
(86,443) 786,211 (640,934)
(206,265) 362,698 (1,445,900)
(798 ,288) 1,148,909 (8,952,008)
2,344,200 (224,873) 16,011,795

$ 2,344,200 $ (2,869,392) $ 16,456,795

Depreciation expense was charged to functions/programs of the governmental activities as follow s:

Instruction
Supporting Services:
Instructional Staff
Central administration
Business
Operation and maintenance of facilities
Transportation
Food services

Total Depreciation expense - governmental

activities

32

$

$

576,135

9,279
2,895
860
25,463
158,496
25,160
798 288



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Note 7 - Long-term Debt:

Long-term liability activity for the year ended June 30, 2024, is as follows:

Balance, Amounts due

Beginning of Balance, End of within one Amounts due

Year Restatement Additions Deductions Year year past one year

2013 QZAB Bonds $ 533,338 §$ - § - § 66,666 $ 466,672 $ 66,666 $ 400,006
Finance Lease Liability 124,094 50,080 8,103 36,697 145,580 39,109 106,471
Truist Financed Purchase Lease 1,349,480 - - 81,913 1,267,567 83,928 1,183,639
Compensated Absences 7,586 - 7,724 - 15,310 - 15,310
Proportionate share of net pension liability 627 481 - - 158,405 469,076 - 469,076
Long-term liabilities $ 2,641,979 $ 50,080 $ 15,827 $ 343,681 $ 2,364,205 $ 189,703 $ 2,174,502

Note 8 — Leases that Transfer Ownership, Short-Term Leases, and Right-of-Use Assets:

The School Board has entered into various lease/purchase agreements with the private sector, primarily for
equipment. These agreements, accounted for as lease contracts that transfer ownership, are for various
terms. While these agreements contain clauses indicating that their continuation is subject to continuing
appropriation by the Legislature, these leases are accounted for as lease contracts that transfer ownership
and are considered noncancelable for financial reporting purposes.

Short-term leases with the lease payments recorded as expenditures during the life of the lease. Short-term
leases are defined as a lease that, at the commencement of the lease term, has a maximum possible term
under the lease contract of 12 months or less, including any option to extend, regardless of their probability
of being exercised. The School Board had no short-term leases.

Finance leases, all leases that do not meet the requirements of a short-term lease or a contract that transfer
ownership, require the School Board to recognize a right-of-use asset and the related lease liability. Right-of-
use assets, which include land, buildings, equipment, and vehicles are reported in the district-wide financial
statements and are recorded at the present value of the payments expected to be made during the lease
term, including any lease payments made to the lessor at or before the commencement of the lease term,
less any lease incentives. Initial direct costs that are necessary to place the lease asset into service are also
included. These assets are amortized using the straight-line method over the shorter period of the lease term
or the useful life of the asset.

Subscription-Based Information Technology Agreements (SBITAs), contracts that convey control of the right-
to use another party’s IT software for a term longer than 12 months, require the School Board to recognize a
right-of-use asset and the related SBITA liability. SBITAs are reported in the district-wide financial
statements and are recorded at the present value of the payments expected to be made during the
agreement term, including any payments made to the vendor at the commencement of the subscription term,
capitalizable initial implementation costs, less any vendor incentives received at the commencement of the
subscription term. These assets are amortized using the straight-line method over the shorter period of the
subscription term or the useful life of the asset.

33



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

The School Board has entered into lease contracts that transfer ownership pursuant to the provisions of
West Virginia Code §18-5-9a whereby energy conservation equipment has been installed in several of the
schools (or description of other equipment being leased). The equipment is leased from Truist Bank for a
period of 15 years beginning February 14, 2022. At the end of the contract period, the School Board will
have ownership of the equipment. By contract, the School Board has the option of discontinuing the lease
purchase and returning the equipment at the end of any fiscal year, if funding for the lease payments for the
next fiscal year is not available. The future minimum lease obligations as of June 30, 2024, are as follows:

Year Ending June 30 Interest Rate Principal Interest Total
2025 2.46% $ 83,928 $ 31,182 $ 115,110
2026 2.46% 85,993 29,118 115,111
2027 2.46% 88,108 27,002 115,110
2028 2.46% 90,276 24,835 115,111
2029 2.46% 94,496 22,614 117,110
2030-2034 2.46% 497,753 17,798 575,551
2035-2039 2.46% 327,013 16,319 343,332
Total $ 1,267,567 $ 228,868 $ 1,496,435

The School Board has entered into a lease contract that transfers ownership agreement pursuant to the
provisions of federal legislation which authorizes the issuance of qualified zone academy bonds (QZABs).
The funding was used for various equipment and those assets are leased from United National Bank for a
period of 15 years beginning July 1, 2015. At the end of the contract period, the School Board will have
ownership of the equipment. By contract, the School Board has the option of discontinuing the lease
purchase and returning the equipment at the end of any fiscal year, if funding for the lease payments for the
next fiscal year is not available.

The following is a summary of the future minimum required payments by year under the lease purchase
agreement together with the present value of the net minimum payments as of June 30, 2024 for the School
Board's leases that transfer ownership:

Year Ending June 30 Interest Rate Principal Interest Total
2025 0.00% $ 66,666 $ - § 66,666
2026 0.00% 66,666 - 66,666
2027 0.00% 66,666 - 66,666
2028 0.00% 66,666 - 66,666
2029 0.00% 66,666 - 66,666
2030-2034 0.00% 133,342 - 133,342
Total $ 466,672 $ - $ 466,672

34



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

The School Board has entered into various leases for copiers and postage machines. The details are as
follows:

e Lease 022-2023-001 is for 10 copiers used throughout the school system. The lease originated on
August 9, 2022, and ends on November 9, 2027. The agreement is for $1,124 monthly during the
term of the lease. A bank interest rate of 5.2% provided by United Bank was used to calculate
principal and interest payments.

e Lease 022-2024-001 is for a postage machine located at the high school. The lease originated
March 25, 2024, and ends on March 25, 2029. The agreement is for $484.08 quarterly during the
term of the lease. A bank interest rate of 5.2% provided by United Bank was used to calculate
principal and interest payments.

e Lease 022-2020-001 is for a postage machine located at the central office. The lease originated on
January 19, 2020, and ends on January 21, 2025. The agreement is for $777.45 quarterly during the
term of the lease. A bank interest rate of 5.2% provided by United Bank was used to calculate
principal and interest payments.

e Lease 022-2022-001 is for 6 copiers used throughout the school system. The lease originated on
October 3, 2022, and ended on December 3, 2027. The agreement was for $2,287 monthly during
the term of the lease. A bank interest rate of 5.2% provided by United Bank was used to calculate
principal and interest payments.

e Lease 022-2022-002 is for a postage machine located at the central office. The lease originated
October 16, 2022, and ends on October 15, 2027. The agreement was for $751.65 quarterly during
the term of the lease. A bank interest rate 5.2% provided by United Bank was used to calculate
principal and interest payments.

The School Board has entered into subscription-based technology information agreements for various
curriculum courses as follows:

e Lease 022-2021-001 is for K-8 language arts curriculum. The terms of the agreement are for 6 years
running from July 1, 2021 to June 30, 2027. The total cost of the program is $110,450 and was paid
at the beginning of the term.

e Lease 022-2021-002 is for intro to literature 6-12 curriculum. The terms of the agreement are for 6
years running from July 1, 2021 to June 30, 2027. The total cost of the program is $80,711 and was
paid at the beginning of the term.

e Lease 022-2022-003 is for Middle School science curriculum. The terms of the agreement are for 6
years running from July 1, 2022 to June 30, 2028. The total cost of the program is $19,530 and was
paid at the beginning of the term.

e Lease 022-2022-004 is for science and health 9-12 curriculum. The terms of the agreement are for 6
years running from July 1, 2022 to June 30, 2028. The total cost of the program is $31,162 and was
paid at the beginning of the term.

e Lease 022-2022-005 is for intro to science K-5 curriculum. The terms of the agreement are for 6
years running from July 1, 2022 to June 30, 2028. The total cost of the program is $34,828 and was
paid at the beginning of the term.

35



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Right-of Use asset balances and activity for the year ended June 30, 2024, is as follows:

Beginning Balance Restatement Additions Eliminations Ending Balance
Right-of-use Assets:
Furniture and equipment $ 143,664 §$ 58,750 §$ 8,103 $ - § 210,517
SBITAs 276,471 - - - 276,471
Total lease assets 420,135 58,750 8,103 - 486,988
Less accumulated Amortization for:
Furniture and equipment (21,815) (10,258) (39,265) - (71,338)
SBITAs (77,939) - (46,078) - (124,017)
Total accumulated amortization (99,754) (10,258) (85,343) - (195,355)
Total right-of-use assets, net $ 320,381 $ 48,492 § (77,240) $ - § 291,633

Amortization expense w as charged to functions/programs of the governmental activities as follow s:

Instruction $ 46,078

Supporting Services:
Central administration 39,265
Total amortization expense - governmental activities $ 85,343

Finance Lease liability activity for the year ended June 30, 2024, is included in Note 7 — Long-term Debt.

The Board’s future payment requirements for finance leases is as follows:

Finance Leases

Year Ending June 30 Principal Interest Total
2025 $ 39,010 § 7,498 § 46,508
2026 40,631 5,137 45,768
2027 43,118 2,643 45,761
2028 21,187 419 21,606
2029 1,634 28 1,662
Total $ 145,580 §$ 15,725 §$ 161,305

Note 9 - Employee Retirement System:

All full-time board of education employees are required to participate in one of two statewide, cost-sharing,
multiple-employer retirement benefit plans, the Teachers’ Retirement System (TRS) or the Teachers’ Defined
Contribution Retirement System (TDC). For the year ended June 30, 2024, the School Board’s total payroll
for all employees was $7,903,639 and the payroll was $7,392,617 for employees covered by the two
retirement programs.

36



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Of the total amount appropriated by the State for retirement, the portion equal to the employers’ average
required contribution rate for both the defined benefit and the defined contribution plans is considered to be
the employers’ contribution for the current cash flow requirements for personnel funded under the Public
School Support Program and is reflected as state revenue (Contributions For/On Behalf of the LEA) in the
School Board’s financial statements prepared using the current financial resources measurement focus and
the modified accrual basis of accounting. The balance is considered to be the State’s contribution toward the
past service unfunded liability and is included as a for/on behalf revenue and expenditure in the School
Board’s financial statements prepared using the current financial resources measurement focus and the
modified accrual basis of accounting. The State’s contribution to TRS on-behalf of the School Board meets
the GASB Statement No. 68 definition of a special funding source. Therefore, the School Board has
recorded pension expense and revenue for the portion of the State’s total proportionate share of collective
pension expense that is associated with the School Board in the financial statements prepared on the
economic resources focus and accrual basis of accounting.

Conversion of leave for post-retirement: For employees hired for the first time and first becoming a member
of the Teachers’ Retirement System (TRS) before July 1, 2015, upon retirement, an employee’s vacation and
sick leave may be converted to a greater retirement benefit or payment of health insurance premiums. The
cost of the increased retirement benefit or payment of health insurance premiums must be absorbed by the
last agency employing the retiree. For employees hired for the first time and first becoming a member of the
Teachers’ Retirement System (TRS) on or after July 1, 2015, there is no provision to convert an employee’s
unused vacation and sick leave to a greater retirement benefit or payment of health insurance premiums.

A. Teachers’ Retirement System (TRS):

Plan Description:

The Teachers’ Retirement System is a cost-sharing, multiple-employer public employee defined benefit
retirement system, which was established on July 1, 1941, and was closed for new members on July 1,
1991. Beginning July 1, 2005, all new employees become members of this plan. The West Virginia
Legislature passed Senate Bill 529 in 2015 essentially adding a second tier of retirement benefits for
those eligible to be a member of TRS who are hired for the first time and first become a member of TRS
on or after July 1, 2015. Chapter 18, Article 7A of the West Virginia State Code assigns the authority to
establish and amend the provisions of the plan to the State Legislature.

Benefits provided: Prior to the passage of Senate Bill 529, to qualify for full benefits, a member must be
age 60 with at least five years of credited service or be age 55 with at least 30 years of credited service
or any age with at least 35 years of credited service. A member may receive a disability benefit after
completing ten years of service, if the member is disabled for six months, unable to perform his or her
regular occupation, and the Retirement Board expects the disability to be permanent. With the passage
of Senate Bill 529, to qualify for full benefits, employees hired for the first time and first becoming a
member of TRS on or after July 1, 2015, must meet the following conditions:
e age 62 for an employee who goes directly into retirement with no break in service,
e age 64 for employees with a break in service between employment and retirement and less than
20 years of TRS service,
e age 63 for those with a break in service between employment and retirement and 20 or more
years of TRS service,

37



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

With the passage of Senate Bill 529, to qualify for reduced annuity benefits employees hired for the first
time and first becoming a member of TRS on or after July 1, 2015, must meet the following conditions:

e between the ages of 60 and 62 and having a minimum of 10 years of contributing service,

e between the ages of 57 and 62 and having 20 or more years of contributing service.

e between the ages of 55 and 62 and having 30 or more years of contributing service.

Upon retirement members select one of five benefit payment options. If a member terminates
employment with at least five years of credited service, he may freeze his membership until he qualifies
for retirement or he may withdraw his contributions from the plan. The employers’ contributions remain
with the plan. Retirement benefits are based on two percent of the average member's five highest fiscal
years of total earnings from covered employment during the member's last 15 years of service.

The normal form of benefit is a single life annuity paid monthly, in an amount equal to 2% of the final
average salary times years of credited service. Other forms of benefits may be elected subject to
actuarial reduction: Cash Refund Annuity, 50% or 100% Contingent Joint and Survivor Annuities, and ten
year Certain and Life Annuities. Pre-retirement death benefits are paid to the spouse of a deceased
member who had attained the age 50 and completed 25 years of credited service. The annuity payment
is computed as if the member had retired on the date of death with a 100% Joint and Survivor pension. If
the member's age and service are less than that required, the sum of the accumulated member's and
employer contributions with interest is paid to the member's beneficiary or estate.

Contribution Requirements and Payments Made: This is a fully qualified plan by the Internal Revenue
Service. Therefore, all employee contributions are tax deferred. Participants contribute 6% of their gross
compensation and the board of education contributes 15% of covered members’ gross compensation to
the retirement plan, for a total of 21% annually for those who became members prior to July 1, 1991.
Participants who became members after July 1, 2005, contribute 6% of their gross compensation and the
board of education contributes 7.5% of covered members’ gross compensation to the retirement plan, for
a total of 13.5% annually.

The employers’ contributions are derived from state appropriations and county funds. Federally funded
grant programs provide the funding for the employer contributions for salaries paid from federal grants.

Net Pension Liability, Pension Expense, and Deferred Outflows and Deferred Inflows of
Resources:

At June 30, 2024, the School Board reported a liability for its proportionate share of the TRS net pension
liability that reflected a reduction for State pension support provided to the School Board. The amount
recognized by the School Board as its proportionate share of the net pension liability, the related State
support, and the total portion of the net pension liability that was associated with the School Board were
as follows:

School Board's proportionate share of the net pension liability $ 469,076

State's proportionate share of the net pension liability
associated w ith the School Board. 5,777 487
Total portion of net pension liability associated with the school board $ 6,246 563

38



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

The TRS net pension liability was measured as of June 30, 2023, and the total pension liability was
determined by an actuarial valuation as of July 1, 2022, rolled forward to the measurement date. The
School Board’s proportion of the net pension liability was based on its proportionate share of employer
and non-employer contributions to the TRS Plan for the fiscal year ended on the measurement date.

For the year ended June 30, 2023, the School Board’s proportion was 0.020489 percent, which was an
decrease of .003907 from its proportion measured as of June 30, 2022 (0.024396 percent).

For the year ended June 30, 2024, the School Board recognized pension expense of $809,973 and for
support provided by the State, revenue of $731,427. At June 30, 2024, the School Board reported
deferred outflows and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Net difference betw een projected and actual earnings
on pension plan investments $ 8,262 $ -
Differences betw een expected and actual experience 17,123 1,179
Changes in proportion and differences betw een School Board
contributions and proportionate share of contributions 344,788 201,005
Changes in assumptions 19,796 -
District contributions subsequent to the measurement date 106,161 -
Total $ 496,130 $ 202,184

School Board contributions subsequent to the measurement date will be recognized as a reduction of the
net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Years ending June 30,

2025 $§$ (792)
2026 79,852
2027 119,722
2028 (10,334)
2029 (663)
Thereafter =
Total $ 187,785

Actuarial Assumptions:

For TRS, the actuarial assumptions used in the July 1, 2022, valuation, with update procedures used to
roll forward the total pension liability to June 30, 2023, were based on the results of an actuarial
experience study for the period July 1, 2015, to June 30, 2020. These assumptions are as follows:

39



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Actuarial cost method: Individual entry age normal cost with level percentage of payroll
Asset valuation method: Fair value

Amortization method: Level dollar, fixed period

Amortization Period: Through Fiscal Year 2034

Actuarial assumptions:
Investment rate of return: 7.25%, net of investment expense
Projected salary increases:
Educators: 2.75% - 5.90%
Non-Educators: 2.75% - 6.50%

Inflation rate: 2.75%
Discount rate: 7.25%

Mortality rates:

Active-100% of Pub-2010 General Employee Table, headcount-weighted, projected with Scale
MP-2019

Healthy Male Retirees-100% of Pub-2010 General Retiree Male Table, headcount-weighted,
projected with Scale MP-2019

Healthy Female Retirees-112% of Pub-2010 General Retiree Female Table, headcount-
weighted, projected with Scale MP-2019

Disabled Males-107% of Pub-2010 General /Teachers Disabled Male Table, headcount-
weighted, projected with Scale MP-2019

Disabled Females-113% of Pub-2010 General /Teachers Disabled Female Table, headcount-
weighted, projected with Scale MP-2019

Beneficiary Males-101% of Pub-2010 Contingent Survivor Male Table, headcount-weighted,
projected with Scale MP-2019

Beneficiary Females-113% of Pub-2010 Contingent Survivor Female Table, headcount-
weighted, projected with Scale MP-2019

Withdrawal rates:
Educators 7.00% - 35.00%
Non-Educators 2.30% - 18.00%

Disability rates: 0.004% - 0.563%
Retirement rates: 15% - 100%

Date range of most recent experience study: 2015 - 2020

40



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Investment Asset Allocation:

The long-term rate of return on pension plan investments was determined using the building block
method in which estimates of expected 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 weighing the expected future real rates of
return by the target asset allocation percentages and by adding expected inflation. The target allocation
and best estimates of long-term geometric rates of return for each major asset class are summarized in
the following table:

Long-Term

Target Expected Real

Asset Class Allocation Rate of Return
Domestic Equity 27.5% 6.5%
International Equity 27.5% 9.1%
Fixed Income 15.0% 4.3%
Real Estate 10.0% 5.8%
Private Equity 10.0% 9.2%
Hedge Funds 10.0% 4.6%

Total 100.0%

Discount Rate:

The discount rate used to measure the total pension liability was 7.25%. The projections of cash flows
used to determine the discount rates assumed that employer contributions will continue to follow the
current funding policies. Based on those assumptions, the fiduciary net position of the TRS Plan was
projected to be available to make all projected future benefit payments of the current plan members.
Therefore, the long-term expected rates of return on pension plan investments were applied to all
periods of projected benefit payments to determine the total pension liability.

The following table presents the School Board’s proportionate share of its net pension liability calculated

using the discount rate of 7.25% and the impact of using a discount rate that is 1% higher or lower than
the current rate.

1.0% Decrease Current Discount Rate 1.0% Increase

6.25% 7.25% 8.25%

School Board's proportionate share of

the TRS net pension liability $ 720,383 §$ 469,076 $ 255,785

Payables to the pension plan:

41



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

At June 30, 2024, the School Board reported no liability for its unpaid legally required contributions to the
pension plan.

B. Teachers’ Defined Contribution Retirement System:

Plan Description: All School Board employees hired after July 1, 1991, but before July 1, 2005, participated
in the Teachers’ Defined Contribution Retirement System. Employees in the Teachers' Defined Benefit
System could freeze their benefits in the old plan and become a member of this plan. Members with less
than five years of service in the old defined benefit plan could change to this plan and transfer the funds that
were deposited in the old plan to this plan. Once a member transferred to the defined contribution plan, the
member was not allowed to rejoin the defined benefit plan.

Effective July 1, 2005, the Teachers’ Defined Contribution Plan was closed to new membership. All
employees hired after that date became members of the Teachers’ Defined Benefit Retirement System
which was reopened for participation on July 1, 2005. [Existing members of the Teachers’ Defined
Contribution Plan were given the option to transfer membership to the Teachers’ Defined Benefit Retirement
System during the 2008-09 fiscal year. To earn full benefits at retirement, however, members electing to
transfer were required to contribute the 1.5% difference between the two plans’ employee contribution rates.

A unique feature of the Teachers’ Defined Contribution Plan is that each member chooses the investment
options and may make changes at any time. The investment options are: Great-West SF Balanced Trust,
Great-West Lifetime 2015 Trust Il, Great-West Lifetime 2025 Trust Il, Great-West Lifetime 2035 Trust II,
Great-West Lifetime 2045 Trust Il, Great-West Lifetime 2055 Trust Il, American Funds EuroPacific R65,
Franklin Mutual Global Discovery Fund — Z, DFA US Targeted Value R1, T. Rowe Price Diversified Small
Cap Growth, Vanguard Small-Cap Index Fund — Inv, American Century Heritage Inv, Scout Mid Cap, Fidelity
New Millennium, Putnam Equity Income Y, Vanguard Large Cap Index Inv, Western Asset Core Plus Bond
A, TIAA-CREF High-Yield Inst, Vanguard Interim-Term Bond Index Fund, and VALIC Fixed Annuity Option.

Employees are eligible to participate from the date of employment. Employee contributions are fully vested,
and employer contributions and earnings vest with the member as follows: one-third after 6 years, two-thirds
after 9 years, and 100% after 12 years. The member is fully vested at death or disability. As of June 30,
2023, this plan had approximately $9.4B in net position held in trust for pension benefits. Retirement or
disability benefits are based solely on the accumulation of dollars in the member's individual account at the
time of retirement. The accounting administration of the Plan is the responsibility of Great West Retirement
Services, an independent third-party administrator.

Funding Status: There is no unfunded liability for a defined contribution plan since a member's total
maximum lifetime benefit is limited to that which has accumulated in the member's account from employee
and employer coniributions and all investment earnings thereon. Any forfeited, unvested employer
contributions are, by statute, to be transferred to the Teachers’ Defined Benefit Retirement System.

Contribution Requirements and Payments Made: This is a fully-qualified plan by the Internal Revenue
Service. Therefore, all employee contributions are tax deferred. Participants contribute 4.5% of their gross
salary and the board of education contributes 7.5% of covered members’ gross compensation to the
retirement plan, for a total of 12% annually.

42



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Total payments reflected in the School Board’s financial statements to the defined contribution plan for the
fiscal year ended June 30, 2024, were:

Employees’ contributions (4.5%) $ 1,721
Employer's contributions (7.5%) 2,868

4,589
Total contributions $

Note 10 - Post-Employment Benefits Other Than Pension:

General Information:

Other post-employment benefits in West Virginia consist mainly of: Allowing employees hired prior to July 1,
2001, to convert unused annual, sick and/or personal leave to paid-up West Virginia Public Employees
Insurance Agency (PEIA) premiums and allowing retirees to purchase PEIA health insurance at a deeply
discounted premium rate.

As a result, the West Virginia Legislature passed HB 4654 in 2006 adding a new article to the State Code,
WVC §5-16D-1 et seq. The article, among other things, created the West Virginia Retiree Health Benefit
Trust Fund (RHBT) for the purpose of administering retiree post-employment health care benefits, vested the
responsibility for operation of the fund with the PEIA Finance Board, and required the board to have an
actuarial valuation conducted at least biannually.

All retired employees are eligible to obtain health insurance coverage through PEIA with the retired
employee’s premium contribution established by the PEIA Finance Board. The PEIA Finance Board has
allowed retirees to obtain health insurance coverage at essentially the same premium rate as active
employees with the difference between the retirees’ premium contributions and the cost of providing health
care to retirees subsidized by the State. It is this subsidy that has created the major portion of the OPEB
actuarial liability.

Plan Description:

The West Virginia Other Postemployment Benefit Plan (the Plan) is a cost sharing, multiple employer,
defined benefit other post-employment benefit plan and covers the retirees of State agencies, colleges and
universities, county boards of education, and other government entities as set forth in the West Virginia Code
§5-16D-2. The financial activities of the Plan are accounted for in the RHBT, a fiduciary fund of the State of
West Virginia, established July 1, 2006, as an irrevocable trust. The Plan is administered by a combination
of PEIA and RHBT staff. The Plan administers and provides medical and prescription drug benefits to
certain retired members receiving pension benefits under the PERS, TRS, TDCRS, TIAA-CREF, Plan G,
Troopers Plan A or Troopers Plan B pension systems, as administered by the CPRB.

The Plan sponsor provides a capped pay-as-you-go subsidy to each covered retired member, as well as a
fully insured retiree life insurance program.

Retiree contributions are set each year by the RHBT and approved by the PEIA Finance Board. Increases to
retiree contributions may reflect healthcare inflation, claim experience, and premium increases above the
plan sponsor capped pay-as-you-go subsidy. Retiree contributions depend on date of hire and years of
service at retirement. Members hired on or after July 1, 2010, pay retiree healthcare contributions with no
sponsor provided implicit or explicit subsidy. Members hired before July 1, 2010, pay retiree healthcare
contributions that are reduced by a sponsor subsidy which depends on the member's years of service at
retirement.

43



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Details regarding this plan and a copy of the RHBT financial report can be obtained by contacting Public
Employees Insurance Agency, 601 57th Street SE, Suite 2, Charleston, West Virginia 25304-2345, or by
calling (888) 680-7342.

Benefits provided:

Upon retirement, the public employees who elected to participate in the PEIA insurance plan are eligible to
credit unused sick or annual leave towards insurance coverage, according to the following formulas:

Retired employees who elected to participate in the PEIA insurance plan prior to July 1, 1988: Those without
dependents may credit two days of unused sick or annual leave towards one month of insurance coverage;
the retirees with dependents may credit three days of unused sick or annual leave towards one month of
insurance coverage.

Retired employees who elected to participate in the PEIA insurance plan between July 1, 1988, and June 30,
2001: those without dependents may credit two days of unused sick or annual leave towards one-half month
of insurance coverage; the retirees with dependents may credit three days of unused sick or annual leave
towards one-half month of insurance coverage.

Employees hired on or after July 1, 2001, may not apply any unused sick or annual leave towards the cost of
health insurance premiums.

In the alternative to applying unused sick and annual leave to health insurance, all employees participating in
the PEIA insurance plan, and who are members of the State Teachers’ Defined Benefit Retirement System
prior to July 1, 2015, may apply unused sick and annual leave towards an increase in the employee's
retirement benefits with those days constituting additional credited service. The cost for the employees who
elect this option is reflected as a liability of the State Teachers’ Retirement System and not included as an
OPEB obligation.

Contributions:
WVC §5-16D-3 states that contribution requirements of the members and the participating employers are set
each year by the RHBT and approved by the PEIA Finance Board. All participating employers are required
by statute to contribute to the RHBT this premium at the established rate for every active policyholder per
month. The paygo rates for June 30, 2024, and 2023, respectively, were:
2024 2023

PAYGO premium $0 $70
Contributions to the OPEB plan from the School Board were $0 for the year end June 30, 2024. Employees
are not required to contribute to the OPEB plan.
The State of West Virginia (the State) is a non-employer contributing entity that provides funding through
Senate Bill 469 which was passed February 10, 2012, granting OPEB liability relief to the 55 County Boards

of Education effective July 1, 2012. This special funding under the school aid formula subsidizes employer
contributions of the county boards of education and contributes to the overall unfunded OPEB liability.

44



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

The State is a non-employer contributing entity that provides funding through Senate Bill 419, effective July
1, 2012, and amended by West Virginia Code §11-21-96. For fiscal years beginning on and after July 1,
2016, this Senate Bill and corresponding State Code section requires that an annual amount of $30 million
from the State shall be dedicated for payment of the unfunded liability of the RHBT fund. The $30 million
annual contribution is to continue through July 1, 2037, or until the unfunded liability has been eliminated,
whichever comes first.

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB

At June 30, 2024, the School Board reported a liability for its proportionate share of the net OPEB liability
(asset) that reflected a reduction for State OPEB support provided to the School Board. The amount
recognized by the School Board as its proportionate share of the net OPEB liability (asset), the related State
support, and the total portion of the net OPEB liability (asset) that was associated with the School Board
were as follows:

School Board's proportionate share of the net OPBB liability (asset) $ (39,330)

State's proportionate share of the net OPEB liability (asset)
associated w ith the School Board. (160,765)
Total portion of net OPEB liability (asset) associated with the school board $ (200,095)

The RHBT OPEB actuarial valuation, which was used as the underlying basis for certain information in the
Schedules, is as of June 30, 2022, was based on a measurement date of June 30, 2023, and was prepared
for the purposes of complying with the requirements of GASB Statement 75 for the Plan Employer's fiscal
year ended June 30, 2024, financial reporting.

For the year ended June 30, 2023, the School Board’s proportion was 0.024853 percent, which was an
increase of 0.001212 from its proportion measured as of June 30, 2022 (0.023641 percent).

For the year ended June 30, 2024, the School Board recognized OPEB expense of $369,817 and for support
provided by the State, revenue of $240,347. At June 30, 2024, the School Board reported deferred outflows
of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between projected and actual investment earnings $ - $ 656
Differences betw een expected and actual non-investment experience - 22,894
Changes in proportion and differences betw een School Board
contributions and proportionate share of contributions 35,337 48,477
Changes in assumptions 10,845 21,943
School Board contributions subsequent to the measurement date 9,237 -
Total $ 55,419 $ 93,970

45



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

School Board contributions subsequent to the measurement date will be recognized as a reduction of the net
OPEB liability in the year ending June 30, 2025. Other amounts reported as deferred outflows and deferred
inflows of resources related to pensions will be recognized in OPEB expense as follows:

Actuarial Assumptions:

Years ending June 30,

2025 §$ (45,798)
2026 (3,385)
2027 2,858

2028 (1,463)
Total §$ (47,788)

The net OPEB liability was determined by an actuarial valuation as of June 30, 2022, using the following
actuarial assumptions. These assumptions were based on the results of an actuarial experience study for the
period July 1, 2015, to June 30, 2020, and apply to all periods included in the measurement, unless

otherwise specified.

Actuarial cost method:
Amortization method:
Amortization period:
Asset valuation method:
Investment rate of return:
Inflation:

Wage inflation:

Salary increases:

Retirement age:

Mortality:

Entry Age Normal Cost Method

Level percentage of payroll, closed

20-year closed period as of June 30, 2017

Market value

7.40%, net of OPEB plan investment expense, including inflation
2.50%

2.75% for PERS and TRS, and 3.25% for Troopers

Rates based on 2015-2020 OPEB Experience Study and dependent
on pension plan participation and attained age, and range from
2.75% to 5.18%, including inflation. Rates were first applied to the
2020 valuation.

Rates based on 2015-2020 OPEB experience study and vary by
pension plan participation and age/service at retirement. Rates first
applied to the 2020 valuation.

Postretirement: Pub-2010 General Healthy Retiree Mortality Tables
(100% males, 108% females) projected with MP-2021 for TRS. Pub-
2010 General Below Median Healthy Retiree Tables (106% males,
113% females) projected with MP-2021 for PERS. Pub-2010 Public
Safety Healthy Retiree Mortality Tables (100% males, 100%
females) projected with Scale MP-2021 for Troopers A and B. Pre-
Retirement: Pub-2010 General Employee Mortality Tables (100%
males, 100% females) projected with Scale MP-2021 for TRS. Pub-
2010 Below-Median Income General Employee Mortality Tables
projected with Scale MP-2021 for PERS. Pub-2010 Public Safety
Employee Mortality Tables projected with Scale MP-2021 for
Troopers A & B.

46



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Healthcare cost trend rates: Trend rate for pre-Medicare and Medicare per capita costs of 7.0%
medical and 8.0% drug. The trends increase over four years to
9.0% and 9.5%, respectively. The trends then decrease linearly for
5 years until ultimate trend rate of 4.50% is reached in plan year end

2032.

Aging factors: Based on the 2013 SOA Study “Health Care Costs From Birth to
Death”

Expenses: Health administrative expenses are included in the development of

the per capita claims costs. Operating expenses are included as a
component of the annual expense.

Investment Asset Allocation:

The long-term rates of return on OPEB plan investments were determined using a building-block method in
which estimates of expected future real rates of return 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 rates
of return by the target asset allocation percentage. Target asset allocations, capital market assumptions
(CMA), and forecast returns were provided by the Plan’s investment advisors, including the West Virginia
Investment Management Board (WV-IMB). The projected return for the Money Market Pool held with the
West Virginia Board of Treasury Investments (“WV-BTI”) was estimated based on the WV-IMB assumed
inflation of 2.0% plus a 25-basis point spread.

The target allocation and estimates of annualized long-term expected real returns assuming a 10-year
horizon are summarized below:

Target Long-term Rates of

Asset Class Allocation Return
Global Equity 55.0% 4.8%
Core Plus Fixed Income 15.0% 2.1%
Core Real Estate 10.0% 4.1%
Hedge Fund 10.0% 2.4%
Private Equity 10.0% 6.8%
Total 100.0%

A single discount rate of 6.65% was used to measure the total OPEB liability. This single discount rate was
based on the expected rate of return on OPEB plan investments of 7.40%. The projection of cash flows used
to determine this single discount rate assumed that employer contributions will be made in accordance with
the prefunding and investment policies. Based on these assumptions, the OPEB 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 OPEB plan investments was applied to all periods of
projected benefit payments to determine the total OPEB liability.

47



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

The following table presents the School Board’s proportionate share of its net OPEB liability calculated using
the discount rate of percent and the impact of using a discount rate that is 1% higher or lower than the
current rate.

1.0% Decrease Current Discount Rate 1.0% Increase

6.40% 7.40% 8.40%
School Board's proportionate share of
the RHBT net OPEB liability (asset) $ (6,655) $ (39,330) $ (75,166)

Healthcare Cost Trend Rate:

The following table presents the School Board’s proportionate share of its net OPEB liability calculated using
the current healthcare cost trend rate and the impact of using a healthcare cost trend rate that is 1% higher
or lower than the current rate.

Current
Healthcare
Cost Trend
1.0% Decrease Rate 1.0% Increase
School Board's proportionate
share of the RHBT
net OPES liability (asset) $ (100,189) $ (39,330) $ 33,044

Payables to the OPEB Plan:

At June 30, 2024, the School Board reported a no liability for its unpaid legally required contributions to the
OPEB plan.

Opt-Out Employer Balance Reallocation

Certain employers that meet the Plan’s opt-out criteria are no longer required to make contributions to the
Plan. These opt-out employers have no continuing involvement with the Plan. Accordingly, the amounts
previously allocated to such employers for the net OPEB liability and related deferred inflows and outflows
are reallocated to the remaining employers participating in the cost sharing plan. The plan reallocates these
balances to the remaining active employers based on their proportionate share of contributions made in the
period of reallocation.

Note 11 - Pending Litigation:

The School Board is involved in a number of legal proceedings and claims, involving students, employees
and citizens who have sued the School Board for damages. While it is not possible to determine the ultimate
outcome of any lawsuit with certainty, management believes that the ultimate outcome will not have a
material adverse effect on the financial position of the School Board. The School Board’s insurance through
the State Board of Risk and Insurance Management appears adequate to fully cover any potential liability.

48



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Note 12 - Fund Balance

The detailed components of the various fund balance categories as of June 30, 2024, are as follows:

Total

61,282

437,106
63,026

156,698
2,100,000
1,173,687

Special Special
General Special Revenue Revenue Excess Capital
Current Revenue School Activity ESSERF Levy Projects
Fund Balances Expense Fund Fund Fund Fund Fund Governmental
Nonspendable:
CPRB Forfeiture $ 61,282 § - §$ - $ - $ - §& - §$
Restricted for:
Special Projects - 26,004 242,757 18,339 - 150,006
Excess Levies - - - - 63,026
Assigned to:
Encumbrances 156,698
FY 2025 Budget 2,100,000
Unassigned 1,173,687
Total fund
balances $ 3,491,667 $ 26,004 $ 242,757 $ 18,339 $ 63,026 $ 150,006 $

3,991,799

Note 13 - Commitments, Contingencies and Subsequent Events:
The School Board had encumbrances totaling $ 210,308 as of June 30, 2024, in the following funds:

General Special

Current Special Revenue -

Expense Revenue ESSERF | Debt Service
Total Encumbrances $ 156,698 $ 15,011 $ 35,961 $ 2,638
Portion in Restricted - 15,011 35,961 2,638
Portion in Assigned 156,698 - - -

Encumbrances are classified as Restricted, Committed, or Assigned fund balance depending on the specific

purpose of the encumbrance.

During the fiscal year ended June 30, 2024, the School Board was awarded a grant of $ $724,693 from the

School Building Authority (SBA) to finance the construction of the GCHS Cooler/Freezer.

Under the terms of certain federal grant programs, periodic audits may be made, and certain costs may be
questioned as not being appropriate expenses. Laws and regulations governing the grant programs and
allowability of program costs are complex and subject to interpretation. Accordingly, such audits could lead to
disallowances requiring reimbursements to the grantor agencies, which could be material to the School
Board’s financial statements. The management of the School Board believes that the School Board is in
compliance with applicable laws and regulations, in all material respects. Based on prior experience, the

School Board believes such disallowances, if any, would be immaterial.

49



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Effective with the fiscal year ended June 30, 2015, the Medicaid school-based health services program
through the West Virginia Department of Health and Human Resources (DHHR), Bureau for Medical
Services has a cost settlement requirement. This change was required by the federal Centers for Medicare
and Medicaid Services (CMS). Revenue for services provided during the fiscal year ended June 30, 2024,
has been recognized in accordance with the fee-for-service billings because there is insufficient data to
estimate the cost settlement amounts. The final cost settlement for the fiscal year ended June 30, 2023, was
received by the School Board during June 2024. As such, Medicaid revenue has been adjusted accordingly
within the accompanying financial statements. The final cost settlement for the fiscal year ended June 30,
2024, will not be available until spring or summer of 2025. Laws and regulations governing the Medicaid
program are complex and subject to interpretation. Management of the School Board believes that it is in
compliance, in all material respects, with all applicable laws and regulations and is not aware of any pending
or threatened investigations involving allegations of potential wrongdoing that would have a material effect on
its financial statements. Compliance with such laws and regulations can be subject to future government
review and interpretation. Accordingly, such reviews could lead to disallowances and/or significant
regulatory action, including fines, penalties and exclusion from the Medicaid program resulting in
reimbursement of previously reported revenue, which could be material to the School Board’s financial
statements.

The School Board owns various buildings which are known to contain asbestos and/or other environmental
issues. The School Board is not required by federal, state or local law to remove asbestos from its buildings.
The School Board is required under federal environmental health and safety regulations to manage the
presence of asbestos and other environmental issues in its buildings in a safe condition. The School Board
addresses its responsibility to manage the presence of asbestos and other environmental issues in its
buildings on a case-by-case basis. Significant problems of dangerous asbestos conditions are abated as the
conditions become known. The School Board also addresses the presence of asbestos as_ building
renovation or demolition projects are undertaken and through asbestos operation and maintenance
programs directed at containing, managing, or operating with the asbestos in a safe condition.

Note 14 - Interfund Balances and Transfers

The composition of interfund balances as of June 30, 2024 is as follows:

Receivable Fund Payable Fund Amount
General Current Expense Fund Special Revenue Fund $ 68,396
Special Revenue ESSERF Fund $ 98,153
Capital Projects Fund $ 121,933

Interfund Transfers

During the year ended June 30, 2024, the General Current Expense Fund transferred $80,521 to the Capital
Projects Fund to help with the construction projects occurring during the year and 5,803 to the Special
Revenue Fund for Staff Development. The Special Revenue Fund transferred $33,998 to the General
Current Expense Fund for indirect costs, attendance incentive and $30,000 to the Special Revenue School
Activities Fund for Faculty Senate. The Special Revenue ESSERF Fund transferred $52,472 to the General
Current Expense Fund for indirect costs.

50



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

Note 15 - Major Sources of Revenue:

The largest single source of revenue received by the School Board is state aid funds through the Public-
School Support Program. In addition, the School Board receives financial assistance from federal and state
governments in the form of grants. The disbursement of funds received under these programs generally
requires compliance with terms and conditions specified in the grant agreements and is subject to audit by
the School Board’s independent auditor and state and federal regulatory agencies. Any disallowed claims
resulting from such audits could become a liability of the general fund or other applicable fund. Based on
prior experience, the School Board believes such disallowance, if any, would be immaterial.

Note 16 — Restatement:

The School Board found a Finance Lease that was omitted in the June 30, 2023 report. Beginning net
position has been restated as follows:

Government - Wide

Statements
Beginning net position as previously reported at June 30, 2023 19,013,446
ROU Asset: Finance Lease 58,750
Accumulated Amortization: Finance Lease (10,258)
Finance Lease Liability (50,080)
Net position as restated, July 1, 2023 19,011,858

Note 17 — COVID 19 Pandemic

On January 30, 2020, the World Health Organization declared the coronavirus outbreak a “Public Health
Emergency of International Concern” and on March 11, 2020, declared it to be a pandemic. Actions taken
around the world to help mitigate the spread of coronavirus include restrictions on travel, quarantines in
certain areas, and forced closures for certain types of public places and businesses. The coronavirus and
actions taken to mitigate the spread of it have had and are expected to continue to have an adverse impact
on the economies and financial markets of many counties, including the geographical area in which the
School Board operates.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted. The
CARES Act provided federal stimulus dollars to assist state agencies, local school districts, businesses,
organizations, families, students, and other entities during the COVID-19 pandemic. As a state, West
Virginia received more than a billion dollars under the federal CARES Act. Approximately $86.6 million of
those dollars were specifically put into a fund titled the Elementary and Secondary School Emergency Relief
Fund (ESSERF). This allocation is specifically earmarked to assist schools to address the impact that
COVID-19 has had, and continues to have, on elementary and secondary schools in West Virginia. The
School Board received $245,822 from these funds to help mitigate the expenses incurred directly from
COVID-19.



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS
For The Fiscal Year Ended June 30, 2024

On December 27, 2020, The Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act
was enacted. The CRRSA Act provided federal stimulus dollars to assist local school districts during the
Covid-19 pandemic. As a state, West Virginia received approximately $339 million dollars under the CRRSA,
and approximately $305.9 million of those dollars were specifically put into a fund titled the Elementary and
Secondary School Emergency Relief Fund Il (ESSERF Il). This allocation is specifically earmarked to assist
schools to address the on-going impact of COVID-19 on elementary and secondary schools in West Virginia.
The School Board received $1,106,211 from these funds to help mitigate the expenses incurred directly from
COVID-19.

On March 11, 2021, The American Rescue Plan Elementary and Secondary School Emergency Relief (“ARP
ESSER”) Fund, authorized under the American Rescue Plan (“ARP”) Act of 2021, provided federal stimulus
dollars to assist local school districts during the Covid-19 pandemic. As a State, West Virginia received
approximately $761.4 million dollars under the ARP Act, and approximately $738.6 million of those dollars
were specifically put into a fund titled ARP ESSER to support schools in safely reopening and sustaining the
safe operation of schools while meeting the academic, social, emotional, and mental health needs of
students resulting from the coronavirus disease 2019 (“COVID-19”) pandemic. The School Board received
$2,434,530 from these funds to help mitigate the expenses incurred directly from COVID-19.

It is unknown how long the adverse conditions from COVID-19 will last and what the complete financial effect
will be to the School Board.

52



REQUIRED SUPPLEMENTARY INFORMATION

53



GILMER COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUAL - GENERAL FUND
FYE JUNE 30, 2024

Revenues:

Property taxes $
Other Local sources

State sources

Federal sources

Total revenues

Expenditures:

Instruction
Supporting services:
Students
Instructional staff
General administration
School administration
Central services
Operation and maintenance of facilities
Student transportation
Other
Food services
Community services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Finance Leases:
Principal payment expense
Interest Expense

Total expenditures

Excess (deficiency) of revenues over
expenditures

Other financing sources (uses):

Proceeds from disposal of real or personal property
Proceeds from finance lease

Transfers in

Transfers (out)

Total other financing sources (uses)

Change in fund balances
Fund balances - beginning

Fund balances - ending $

Budgeted Amounts
Regulatory Basis
Original Final
2,110,037 $ 2,110,037
52,909 133,929
9,070,393 9,330,565
11,233,339 11,574,531
5,983,507 7,548,358
792,790 745,970
310,864 428,741
487,953 633,117
820,954 706,829
326,808 337,661
1,123,697 1,121,037
1,333,499 1,278,519
12,000 18,180
- 49,456
- 264,423
148,579 148,579
33,197 33,197
11,373,848 13,314,067
(140,509) (1,739,536)
311,042 656,766
(1,170,533) (1,935,810)
(859,491) (1,279,044)
(1,000,000) (3,018,580)
1,000,000 3,018,580
- $ -

Actual

GAAP

Basis
Amounts

$ 2,269,599 $
247,404
9,035,303
105,719

11,658,025

6,144,265

659,784
520,877
464,034
707,782
449,100
1,067,689
915,678
533
51,008

8,103

148,579
33,197

36,697
9,302

11,216,628

441,397

18,105

8,103
86,053
(86,323)

25,938
467 335

3,024,332

$ 3,491,667 $

See notes to the required supplementary information.

Variance With
Final Budget

159,562
113,475
(295,262)
105,719

83,494

1,404,093

86,186
(92,136)
169,083

(953)

(111,439)

53,348
362,841

17,647

(1,552)

256,320

(36,697)
(9,302)

2,097 439

2,180,933

18,105
8,103

(570,713)
1,849,487

1,304,982
3,485,915

5,752

3,491,667


GILMER COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - SPECIAL REVENUE FUND
FYE JUNE 30, 2024

Actual
Budgeted Amounts GAAP
Regulatory Basis Basis Variance With
Original Final Amounts Final Budget
Revenues:
Local sources $ 21,416 §$ 196,509 $ 167,134 §$ (29,375)
State sources 425,904 597,277 526,813 (70,464)
Federal sources 1,293,778 2,537,754 2,191,835 (345,919)
Total revenues 1,741,098 3,331,540 2,885,782 (445,758)
Expenditures:
Instruction 505,379 982,274 752,450 229,824
Supporting services:
Students 96,464 221,850 134,740 87,110
Instructional staff 205,220 406,875 263,536 143,339
General administration - 1,170 1,170 -
School administration - 4,524 - 4,524
Central services - 4,780 4,780 -
Operation and maintenance of facilities - - 5,126 (5,126)
Student transportation - 764 764 -
Food services 946,432 1,239,509 844,471 395,038
Total expenditures 1,753,495 2,861,746 2,007,037 854,709
Excess (deficiency) of revenues over
expenditures (12,397) 469,794 878,745 408,951
Other financing sources (uses):
Transfers in 259,755 259,803 5,803 (254,000)
Transfers (out) (250,358) (133,909) (63,999) 69,910
Total other financing sources (uses) 9,397 125,894 (58, 196) (184,090)
Change in fund balances (3,000) 595,688 820,549 224,861
Fund balances - beginning - (595,688) (794,545) (198,857)
Fund balances - ending $ (3,000) $ - §$ 26,004 $ 26,004

See notes to the required supplementary information.
55


GILMER COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - SPECIAL REVENUE FUND SCHOOL ACTIVITY FUND
FYE JUNE 30, 2024

Actual
Budgeted Amounts GAAP
Regulatory Basis Basis Variance With
Original Final Amounts Final Budget
Revenues:
Local sources $ - § - §$ 344062 $ 344,062
Total revenues - - 344,062 344,062
Expenditures:
Instruction - - 389,727 (389,727)
Total expenditures - - 389,727 (389,727)
Excess (deficiency) of revenues over
expenditures - - (45,665) (45,665)
Other financing sources (uses):
Transfers in - - 31,200 31,200
Total other financing sources (uses - - 31,200 31,200
Change in fund balances - - (14,465) (14,465)
Fund balances - beginning - - 257,222 257 222
Fund balances - ending $ - §$ - § 242,757 §$ 242,757

See notes to the required supplementary information.
56


GILMER COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - SPECIAL REVENUE FUND - ESSERF
FYE JUNE 30, 2024

Actual
Budgeted Amounts GAAP
Regulatory Basis Basis Variance With
Original Final Amounts Final Budget
Revenues:
Federal sources $ 130,315 $ 2,447,582 $ 1,264,367 $ (1,183,215)
Total revenues 130,315 2,447,582 1,264,367 (1,183,215)
Expenditures:
Instruction 130,315 311,772 279,046 32,726
Supporting services:
Students - 60,312 62,439 (2,127)
Instructional staff - 8,730 8,730 -
Operation and maintenance of facilities - 379,676 275,295 104,381
Capital outlay - 538,772 538,772 -
Total expenditures 130,315 1,299,262 1,164,282 134,980
Excess (deficiency) of revenues over
expenditures - 1,148,320 100,085 (1,048,235)
Other financing sources (uses):
Transfers (out) - (78,663) (52,472) 26,191
Total other financing sources (uses) - (78,663) (52,472) 26,191
Change in fund balances - 1,069,657 47,613 (1,022,044)
Fund balances - beginning - (1,069,657) (29,274) 1,040,383
Fund balances - ending $ - § - §$ 18,339 $ 18,339

See notes to the required supplementary information.
57


GILMER COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - SPECIAL REVENUE FUND - EXCESS LEVY
FYE JUNE 30, 2024

Actual
Budgeted Amounts GAAP
Regulatory Basis Basis Variance With
Original Final Amounts Final Budget
Revenues:
Federal sources $ 870,119 $ 870,119 $ 926,558 $ 56,439
Other local sources - - 1,593 1,593
Total revenues 870,119 870,119 928,151 58,032
Expenditures:
Instruction 532,835 680,356 463,590 216,766
Supporting services:
Students - - 2,986 (2,986)
Instructional staff - - 6,149 (6,149)
General administration - - 205 (205)
School Administration - - 19,917 (19,917)
Operation and maintenance of facilities 256,023 336,483 257,447 79,036
Student transportation 52,239 82,239 107,362 (25,123)
Food services 29,022 54,022 48,736 5,286
Total expenditures 870,119 1,153,100 906,392 246,708
Excess (deficiency) of revenues over
expenditures - (282,981) 21,759 304,740
Other financing sources (uses):
Transfers (out) - - (783) (783)
Total other financing sources (uses) - - (783) (783)
Change in fund balances - (282,981) 20,976 303,957
Fund balances - beginning - 42,050 42,050 -
Fund balances - ending $ - $ (240,931) $ 63,026 $ 303,957

See notes to the required supplementary information.
58


GILMER COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE BOARD'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
FOR THE MEASUREMENT PERIOD ENDED JUNE 30, 2023

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014

Board's proportion of the net pension liability (asset) 0.020489% 0.024396% 0.007574% 0.003317% 0.024586% 0.012127% 0.012283% 0.012770% 0.017785% 0.011851%
Board's proportionate share of the net pension liability (asset) $ 469,076 § 627,481 $ 118,365 § 106,839 § 731,476 $ 378,636 § 378,636 $ 524,843 § 454,721 § 488,511
State's proportionate share of the net pension liability (asset) associated with the Board 5,777,487 9,019,791 1,890,526 1,743,374 11,738,857 6,763,996 6,763,996 7,282,032 10,710,620 8,227,087
Total
Board's covered payroll $ 6,875,677 $ 6,495,215 $ 6,516,867 $ 5,839,733 $ 5,605,978 $ 4,091,691 $ 4,091,691 $ 5,238,282 $ 5,366,285 $ 4,881,306
Board's proportionate share of the net pension liability (asset) as a percentage

of its covered payroll 6.822% 9.661% 1.816% 1.830% 13.048% 9.254% 9.254% 10.019% 8.474% 10.008%
Plan fiduciary net position as a percentage of the total pension liability 80.42% 77.78% 86.38% 70.89% 72.64% 71.20% 67.85% 61.42% 66.25% 65.95%

See notes to the required supplementary information.
59


GILMER COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF BOARD CONTRIBUTIONS
TEACHERS RETIREMENT SYSTEM
FYE JUNE 30, 2024

2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Contractually required contribution $ 576,077  §$ 539,173 $ 436,632 § 440,914 $ 460,768 § 439,073 $ 396,514 § 439,512 $ 426,240 § 457,855
Contributions in relation to the contractually required contribution (576,077) (639,173) (436,632) (440,914) (460,768) (439,073) (396,514) (439,512) (426,240) (457,855)
Contribution deficiency (excess) - - - - - - - - - -
Board's covered payroll $ 7,354,378 $$ 6,875,677 $ 6,495,215 $$ 6,516,867 $ 5,839,733 $$ 5,605,978 $ 4,091,691 $ 4,091,691 $ 5,238,282 $$ 5,366,285
Contributions as a percentage of covered payroll 7.833% 7.842% 6.722% 6.766% 7.890% 7.832% 9.691% 10.742% 8.137% 8.532%

See notes to the required supplementary information.
60


GILMER COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE BOARD'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY (ASSET)
FOR THE MEASUREMENT PERIOD ENDED JUNE 30, 2023

2023 2022 2021 2020 2019 2018 2017

Board's proportion of the net OPEB liability (asset) 0.024853% 0.023641% 0.016574% 0.029997 % 0.033119% 0.049077% 0.028982%
Board's proportionate share of the net OPEB liability (asset) $ (39,330) $ 26,312 $ (4,928) $ 132,495 $ 549,492 $ 1,052,910 $ 712,658
State's proportionate share of the net OPEB liability (asset) associated with the Board (160,765) 105,839 (22,244) 613,691 2,499,988 2,721,390 3,333,025
Total (200,095) 132,151 (27,172) 746,186 3,049,480 3,774,300 4,045,683
Board's covered payroll $ 4,711,249 $ 4,527,173 $ 4,282,419 $ 4,334,897 $ 4,165,985 $ 4,091,691 $ 4,468,723
Board's proportionate share of the net OPEB liability (asset) as a percentage

of its covered payroll -0.835% 0.581% -0.115% 3.056% 13.190% 25.733% 15.948%
Plan fiduciary net position as a percentage of the total OPEB liability 109.66% 93.59% 101.81% 73.49% 39.69% 30.98% 25.10%

Data prior to 2017 is unavailable.

See notes to the required supplementary information.
61


GILMER COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF BOARD CONTRIBUTIONS
RETIREE HEALTH BENEFIT TRUST FUND
FYE JUNE 30, 2024

2024 2023 2022 2021 2020 2019 2018
Contractually required contribution $ 9,237 $ 63,118 $ 105,804 § 189,749 $ 220,725 $ 238,753 §$ 192,874
Contributions in relation to the contractually required contribution (9,237) (63,118) (105,804) (189,749) (220,725) (238,753) (192,874)
Contribution deficiency (excess) - - - - - - -
Board's covered payroll $ 5,367,217 $ 4,711,249 § 4,527,173 §$ 4,282,419 $ 4,334,897 $ 4,165,985 $ 4,091,691
Contributions as a percentage of covered payroll 0.172% 1.340% 2.337% 4.431% 5.092% 5.731% 4.714%

Data prior to 2018 is unavailable.

See notes to the required supplementary information.
62


GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
For The Fiscal Year Ended June 30, 2024

A. Budgets and Budgetary Accounting:

All boards of education within West Virginia are required by statute to prepare annual budgets and levy
rate estimates on prescribed forms and submit these for approval. Budgets are presented on the
regulatory basis of accounting for all governmental funds. The regulatory basis of accounting for West
Virginia Boards of Education does not include amounts for other post-employment benefits billed by
PEIA beyond the retiree subsidy (pay-as-you-go) amount because only the retiree subsidy amounts are
required to be remitted according to WVC 5-16d-6(e). Certain other transactions, such as

(e.g., forfon behalf unfunded retirement contributions, etc.) are also not included in the School Board’s
regulatory basis budget. Budgets are not adopted for custodial funds. The following procedures are
followed in preparing the annual budget:

1. Pursuant to State statute, the School Board is required to hold a meeting or meetings between
the seventh and twenty-eighth days of March to ascertain its financial condition and to determine
the amount that is to be raised from the levy of taxes for the fiscal year commencing July 1. The
School Board adjourns the meeting and submits its Schedule of Proposed Levy Rates to the
State Auditor's Office for approval. The School Board then reconvenes its meeting on the third
Tuesday of April to formally lay the approved levy.

2. The School Board is also required to submit its proposed budget for the subsequent year to the
State Board of Education for approval by the date established in the budget calendar. The
School Board is also required to hold a public hearing on the proposed budget before it is
submitted for approval. The proposed budget must be made available for public inspection for at
least 10 days before the public hearing is held.

Revisions to the budget are authorized only with the prior written approval of the State Board of
Education.

B. Excess of Expenditures over Appropriations:

For the year ended June 30, 2024, expenditures exceeded appropriations in the funds listed at the
function level, which, according to State Board Policy, is the level at which budgetary controls must be

maintained.
Special
General Revenue Special
Current Special School Revenue Excess
Expense Revenue Activity ESSERF Lew
Function Fund Fund Fund Fund Fund
Instruction - - (389,727) - -
Students - - - (2,127) (2,986)
Instructional Staff (92,136) - - - (6,149)
General Administration - - - - (205)
School Administration (953) - - - (19,917)
Central Serices (111,439) - - - -
Student Transportation - - - - (25,123)
Food Serices (1,552) - - - -
Operation - (5,126) - - -
Finance Leases:
Principal Payment (36,697) - - - -
Interest Expense (9,302) - - - -

63



GILMER COUNTY BOARD OF EDUCATION

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

For The Fiscal Year Ended June 30, 2024

The over-expenditures in these programs were funded by a reduction of expenditures in the remaining
instructional programs, available beginning fund balance, revenues received in excess of the anticipated
amounts budgeted.

C. Changes in Assumptions

The actuarial assumptions used in the total pension liability calculation can change from year to year.
Please see table below which summarizes the actuarial assumptions used for the respective measurement

2015 — 2020: 2014:
3% 2.2%

dates.

Inflation

Salary
Increases

Investment
Rate of
Return

Mortality

2021-23

2.75%
2021-23

Educators: 2.75%-
5.90%

Non-Educators:
2.75%-6.50%

2021-23

7.25 %, net of
pension plan
investment expense

2022-23
Active: 100% of

Pub-2010 General
Employee Tables,

headcount-weighted,

projected with Scale
MP-2019. Retired:
healthy males —
100% of Pub-2010
General Retiree
Male Table,

headcount-weighted,

projected with Scale
MP-2019, healthy
females — 112% of
Pub-2010 General
Retiree Female
Table, headcount-
weighted, projected
with Scale MP-2019;
disabled males —
107% of Pub-2010
General/Teachers
Disabled Male

2020:

State — 3.00%-
6.00%

Non-State 3.00%-
6.50%

2014-2020:

7.5 %, net of
pension plan

investment expense,

including inflation
2020-2021:

Active: Pub-2010

General Employee
Tables, headcount-
weighted, projected

with Scale MP-2019.

Retired: healthy
males — Pub-2010
General Retiree
Male Table,

headcount-weighted,

projected with Scale
MP-2019, healthy
females — 112% of
Pub-2010 General
Retiree Female
Table, headcount-
weighted, projected

with Scale MP-2019;

disabled males —
107% of Pub-2010
General/Teachers
Disabled Male
Table, headcount-

2018-2019:

For teacher members,
salary increases are
based on member
experience, dependent
on age and gender,
ranging from 3.00 to
6.00%. For non-
teacher members,
salary increases are
based on member
experience, dependent
on age and gender,
ranging from 3.00 to
6.50%

2016-2019:

Active: RP-2000, Non-
Annuitant table,
projected with Scale
AA on a fully
generational basis.
Retired: healthy males
— 97% of RP-2000
Healthy Annuitant
table, projected with
Scale AA on a fully
generational basis,
healthy females — 94%
of RP-2000 Healthy
Annuitant table,
projected with Scale
AA on a fully
generational basis;
disabled males — 96 %
of RP-2000 Disabled
Annuitant table,
projected with Scale
AA on a fully
generational basis,

2016-2017:

For teacher
members, salary
increases are based
on member
experience,
dependent on age
and gender, ranging
from 3.00 to 6.00%.
For non-teacher
members, salary
increases are based
on member
experience,
dependent on age
and gender, ranging
from 3.00 to 6.00%

2014-15:

Active — RP2000,
non-annuitant
monthly mortality
table, retired —
RP2000 healthy
annuitant, scale AA;
disabled — RP2000
disabled annuitant
mortality table, scale
AA.

2014-2015:

For teacher members,
salary increases are
based on member
experience, dependent
on age and gender,
ranging from 3.75-
5.25%. For non-teacher
members, salary
increases are based on
member experience,
dependent on age and
gender, ranging from
3.40-6.50%.



GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
For The Fiscal Year Ended June 30, 2024

Table, headcount- weighted, projected disabled females —
weighted, projected with Scale MP-2019, | 101% of RP-2000
with Scale MP-2019, | disabled females — Disabled Annuitant
disabled females — 113% of Pub-2010 table, projected with
113% of Pub-2010 General/Teachers Scale AA on a fully
General/Teachers Disabled Female generational basis.
Disabled Female Table, headcount-

Table, headcount- weighted, projected
weighted, projected with Scale MP-2019
with Scale MP-2019

Rate a8 vk Sf
Rate 7.25% 75%

65



The actuarial assumptions used in the total OPEB liability calculation can change from year to year. Please
see table below which summarizes the actuarial assumptions used for the respective measurement dates.

2023

2022

2017-2019

Inflation

Salary Increases

2.50%

Specific to the OPEB
covered group. Ranging
from 2.75% to 5.18 %,
including inflation.

2.25%

Specific to the
OPEB covered
group. Ranging
from 2.75% to
5.18 %,
including
inflation.

Specific to the
OPEB covered
group. Ranging
from 2.75% to
5.18 %, including
inflation.

Specific to the OPEB
covered group.
Ranging from 2.75%
to 5.18 %, including
inflation.

2.75%

Dependent upon
pension system.
Ranging from 3.0%
to 6.5%

Investment Rate

7.40%, net of OPEB plan

6.65%, net of

6.65%, net of

6.65%, net of OPEB

7.15%, net of OPEB

of Return investment expense, OPEB plan OPEB plan plan investment plan investment
including inflation investment investment expense, including expense, including
expense, expense, inflation inflation
including including inflation
inflation
Mortality Postretirement: Pub-2010 Post Post Retirement: | Post Retirement: Post-Retirement: RP
General Healthy Retiree Retirement: Pub-2010 Pub-2010 General — 2000 Healthy
Mortality Tables (100% Pub-2010 General Healthy Healthy Retiree Annuitant Mortality
males, 108% females) General Retiree Mortality | Mortality Tables Table projected with
projected Healthy Retiree | Tables projected | projected with MP- Scale AA on a fully
with MP-2021 for TRS. Mortality Tables | with MP-2019 2019 and scaling generational basis
Pub-2010 General Below projected with and scaling factors of 100% for
Median Healthy Retiree MP-2021 and factors of 100% males and 108% for

Tables (106% males, 113%

scaling factors

for males and

females.

females) projected with MP- | of 100% for 108% for Pre-retirement: Pub-
2021 for PERS. Pub-2010 males and females. 2010 General
Public Safety Healthy 108% for Pre-retirement: Employee Mortality
Retiree Mortality Tables females. Pub-2010 Tables projected
(100% Pre-retirement: General with MP-2019.
males, 100% females) Pub-2010 Employee
projected with Scale MP- General Mortality Tables
2021 for Employee projected with
Troopers A and B. Mortality Tables | MP-2019.
Pre-Retirement: Pub-2010 projected with
General Employee Mortality | MP-2021.
Tables (100% males, 100%
females) projected with
Scale
MP-2021 for TRS. Pub-
2010 Below-Median Income
General Employee Mortality
Tables projected with Scale
MP-2021 for PERS. Pub-
2010 Public Safety
Employee
Mortality Tables projected
with Scale MP-2021 for
Troopers A & B.
Discount Rate 7.40% 6.65% 6.65% 6.65% 7.15%

66



2023

2022

2021

2020

2019

2018

2017

Healthcare
Cost Trend
Rates

Trend rate
for pre-
Medicare
and
Medicare
per capita
costs of
7.0%
medical and
8.0% drug.
The trends
increase
over four
years to
9.0% and
9.5%,
respectively.
The trends
then

decrease
linearly for 5
years until
ultimate
trend rate of
4.50% is

reached in
plan year
end

2032.

Trend rate for
pre-Medicare
per capita
costs of 7.0%
for plan year
end 2023,
decreasing by
0.50% for two
years then by
0.25% each
year
thereafter,
until ultimate
trend rate of
4.25% is
reached in
plan year end
2032. Trend
rate for
Medicare per
capita costs
of 8.83% for
plan year end
2023,
decreasing
ratably each
year
thereafter,
until ultimate
trend rate of
4.25% is
reached in
plan year end
2032

Trend rate for
pre-Medicare
per capita
costs of 7.0%
for plan year
end 2020,
decreasing
by 0.50% for
one year then
by 0.25%
each year
thereafter,
until ultimate
trend rate of
4.25% is
reached in
plan year end
2032. Trend
rate for
Medicare per
capita costs
of 9.15% for
plan year end
2023,
decreasing
ratably each
year
thereafter,
until ultimate
trend rate of
4.25% is
reached in
plan year end
2036.

Trend rate for
pre-Medicare
per capita
costs of 7.0%
for plan year
end 2021,
6.50% for
plan year end
2023,
decreasing
by 0.25%
each year
thereafter,
until ultimate
trend rate of
4.25% is
reached in
plan year
2032. Trend
rate for
Medicare per
capita costs
of 31.11% for
plan year end
2022. 9.15%
for plan year
end 2023,
8.40% for
plan year end
2024,
decreasing
gradually
each year
thereafter,
until ultimate
trend rate of
4.25% is
reached in
plan year end
2036.

67

Trend rate for
pre-Medicare
per capita
costs of 8.5%
for plan year
end 2020,
decreasing by
0.5% each
year
thereafter,
until ultimate
trend rate of
4.5% is
reached in
plan year
2028. Trend
rate for
Medicare per
capita costs of
3.1% for plan
year end
2020. 9.5%
for plan year
end 2021,
decreasing by
0.5% each
year
thereafter,
until ultimate
trend rate of
4.5% is
reached in
plan year end
2031.

Actual trend
used for fiscal
year 2018. For
fiscal years on
and after 2019,
trend starts at
8.0% and
10.0% for pre
and post-
Medicare,
respectively,
and gradually
decreases to
an ultimate
trend rate of
4.50%. Excess
trend rate of
0.13% and
0.00% for pre
and post-
Medicare,
respectively, is
added to
healthcare
trend rates
pertaining to
per capita
claims costs
beginning in
2022 to
account for the
Excise Tax.

Actual trend
used for fiscal
year 2017. For
fiscal years on
and after 2018,
trend starts at
8.5% and
9.75% for pre
and post-
Medicare,
respectively,
and gradually
decreases to
an ultimate
trend rate of
4.50%. Excess
trend rate of
0.14% and
0.29% for pre
and post-
Medicare,
respectively, is
added to
healthcare
trend rates
pertaining to
per capita
claims costs
beginning in
2020 to
account for the
Excise Tax.



OTHER SUPPLEMENTARY INFORMATION

68



GILMER COUNTY BOARD OF EDUCATION
OTHER SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - CAPITAL PROJECTS FUND
FYE JUNE 30, 2024

Actual
Budgeted Amounts GAAP
Regulatory Basis Basis Variance With
Original Final Amounts Final Budget
Revenues:
Other Local sources $ - § - § 41 $ 41
State sources - 1,437,107 712,414 (724,693)
Total revenues - 1,437,107 712,455 (724,652)
Expenditures:
Capital outlay - 2,323,454 1,208,890 1,114,564
Total expenditures - 2,323,454 1,208,890 1,114,564
Excess (deficiency) of revenues over
expenditures - (886,347) (496,435) 389,912
Other financing sources (uses):
Transfers in - 142,698 80,521 (62,177)
Transfers (out) - (62,177) - 62,177
Total other financing sources (uses) - 80,521 80,521 -
Change in fund balances - (805,826) (415,914) 389,912
Fund balance - beginning - 805,826 565,920 (239,906)
Fund balance - ending $ - § - §$ 150,006 $ 150,006

See notes to the other supplementary information.
69


GILMER COUNTY BOARD OF EDUCATION

OTHER SUPPLEMENTARY INFORMATION
SCHEDULE OF EXCESS LEVY REVENUES AND EXPENDITURES

FYE JUNE 30, 2024
Current Year Levy To Date
Estimated Estimated
Per Levy Per Levy
Call Actual Variance Call Actual Variance
Excess Levy Collections $ 749,546 § 928,151 § 178,605 $ 4,497,276 $ 4,901,354 $ 404,078

Expenditures (County Specific Levy Call):
Repair and Maintenance of Facilities

To provide funds to repair and maintain all school facilities, to defray some cost for

utilities, purchase necessary custodial supplies and equipment, and to continue

existing maintenance contracts on equipment. 215,546 246,562 31,016 1,133,276 1,340,904 207,628
Supplies, Textbooks and Operations

To include funding for supplies, supplemental textbooks, workbooks, fine arts,

technology and media library operations, to defray vocational and extended

curriculum costs and to establish and restore supplements to counyt support

organizations. 233,000 152,997 (80,003) 1,733,000 1,054,298 (678,702)
Supplements and Transportation

To include provision for supplements and transportation for extracurricular
secondary school programs, after school tutoring, band program, elementary and
secondary sports programs, monies for professional development and defray cost

of monies for substitutes inclusive of professional and service personnel. 301,000 507,617 206,617 1,631,000 1,763,851 132,851
Total Expenditures 749,546 907,176 157,630 4,497,276 4,159,053 (338,223)
Excess (Deficiency) of Collections over Expenditures $ - $ 20,975 $ 20,975 $ - $ 742,301 $ 742,301

See notes to the other supplementary information.
70


GILMER COUNTY BOARD OF EDUCATION

OTHER SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN SCHOOL ACTIVITY FUNDS
FYE JUNE 30, 2024

Cash Balance Revenues Expenditures Cash Balance

Beginning Received Paid Ending
Gilmer Co Elementary $ 75,146 $ 53,431 $ 69,179 $ 59,398
Gilmer County High School 182,076 343,593 342,311 183,358
Total $ 257,222 $ 397,024 $411,490 B 242,756

See notes to the other supplementary information.
71


GILMER COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE GRANT RECEIPTS AND EXPENDITURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2024

Beginning Ending
Total Grant Balance Current Year Current Year Balance Amount

Awarding Agency Grant Name Grant Identification Period of Award Award (7/1/23) Receipts Expenditures (6/30/24) Receivable
WVDE SPECIAL ED-STATE FY24 GRTAWD04022400000508 _7/1/23-11/15/25 $ 56,378 § - § 56,378 § 56,378 § = $ i
WVDE SP ED-STATE WVCASE MENT24 GRTAWD04022400004171 6/1/24-7/31/25 1,500 - - - - -
WVDE SP ED-STATE CPI CERT-FY24 GRTAWD04022400004210 6/1/24-7/31/25 3,898 - - - - -
WVDE SECONDARY BLOCK GRTAWD04022000000588 | 8/19/19-6/30/20 7,006 3,777 - 3,777 - -
WVDE ST VOC ED-EQUIP REPLACE GRTAWD04022100000862 7/1/20-7/31/21 1,742 1,334 - 535 799 -
WVDE SECONDARY BLOCK GRTAWD04022200000696 7/1/21-4/30/24 34,595 13,291 - 4,683 8,608 -
WVDE SECONDARY BLOCK GRTAWD04022300000515 7/1/22-6/30/25 28,140 17,561 - - 17,561 -
WVDE VOCATIONAL-EQUIP REPLACE GRTAWD04022300000440 7/1/22-6/30/25 3,436 804 - - 804 -
WVDE STATE VOCATIONAL EDUC GRTAWD04022400000659 _ 7/1/23-6/30/26 36,781 - 36,781 4,306 32,475 -
WVDE VOC-STATE INC-HS WORK-SUB GRTAWD04022400002794 12/20/23-6/30/25 344 - 344 344 - -
WVDE VOCTL EQUIP REPLACEMENT GRTAWD04022400000802 7/1/23-6/30/26 3,871 - 3,871 - 3,871 -
WVDE STATE VOC FORMULA GRTAWD04021900000276 7/1/18-7/31/19 7,006 5,648 - 561 5,087 -
WVDE STATE VOC TRAVEL GRTAWD04021 900000363 7/1/18-7/31/19 1,543 1,422 - 100 1,322 -
WVDE STATE VOC EQUIPMENT GRTAWD04021900000480 7/1/18-7/31/19 1,742 1,742 - 710 1,032 -
WVDE CELEBRATING SUCCESS GCHS GRTAWD04022000005734 6/15/20-11/30/20 1,000 1,000 - - 1,000 -
WVDE EARLY LITERACY GRTAWD04022200000915 7/1/21-4/30/24 8,086 515 - - 515 -
WVDE FY23 EARLY LITERACY GRTAWD04022300000787 7/1/22-3/31/25 7,337 7,337 - 7,337 - -
WVDE EARLY LITERACY FY24 GRTAWD04022400001030 7/1/23-3/31/26 8,843 - 8,843 6,460 2,383 -
WVDE INVEST CONF REIMB-FY24 GRTAWD04022400003915 5/15/24-10/31/24 14,100 - 14,100 - 14,100 -
WVDE TRUANCY DIVERSION FY22 GRTAWD04022200003001 7/1/21-7/31/23 28,554 416 - 416 - -
WVDE TRUANCY DIVERSION FY23 GRTAWD04022300002543 7/1/22-6/30/25 28,554 (28,554) 28,554 - - -
WVDE TRUANCY DIVERSION FY24 GRTAWD04022400004032 7/1/23-12/31/24 28,554 - 28,554 28,554 - -
WVDE TRUANCY DIVERSION GRTAWD04021900001715 7/1/18-7/31/20 28,554 30 - 30 - -
WVDE FY22 CIS-STATE REG GRTAWD04022200006046 6/1 5/22-6/30/24 220,500 27,145 - 27,145 - -
WVDE ClS FUNDS GRTAWD04022400001428 7/1/23-6/30/26 213,750 - 213,750 161,743 52,007 -
WVDE TECH REPAIR & MOD GRTAWD04021 800004883 7/1/17-2/28/19 1,460 582 - - 582 -
WVDE TOOLS FOR SCHOOLS GRTAWD04022200004242 7/1/21-6/30/24 27,419 181 - 181 - -
WVDE FY23 TOOLS FOR SCHOOLS GRTAWD04022300002629 7/1/22-6/30/25 27,176 14,135 - 14,135 - -
WVDE FY24 TOOLS FOR SCHOOLS GRTAWD04022400001976 7/1/23-6/30/26 27,049 - 27,049 13,898 13,151 -
WVDE STATE-SOC. STUDIES FAIR GRTAWD04022200003314 7/1/21-6/30/24 4,000 2,696 - 2,696 - -
WVDE STATE-TEACHER LEADERSHIP GRTAWD04022200005549 5/1 1/22-6/30/24 2,000 2,000 - 2,000 - -
WVDE FY23 STATE SOC. STUDIES GRTAWD04022300002179 9/12/22-6/30/25 4,000 2,659 - 2,476 183 -
WVDE FY23 TEACHER OF YR GRTAWD04022300003838 2/1/23-6/30/25 300 11 - 11 - -
WVDE FY23 TEACHER/LEADERSHIP GRTAWD04022300004198 3/6/23-6/30/25 2,000 2,000 - 2,000 - -
WVDE SUMMER 2023 INVECT CONF GRTAWD04022300004905 5/1/23-6/30/25 13,750 13,750 - 8,013 5,737 -
WVDE FY24 STATE SOCIAL STUDIES GRTAWD04022400002660 11/16/23-6/30/25 4,000 - 4,000 - 4,000 -
WVDE FY24 TEACHER OF THE YEAR) + GRTAWD04022400003066 2/5/24-6/30/25 300 - 300 300 - -
WVDE FY24 TEACHER/LEADER GRTAWD04022400003392 3/29/24-6/30/25 2,000 - 2,000 1,552 448 -
WVDE HIGH SCHOOLS THATWORKFY2 GRTAWD04022400002574 = 10/30/23-1 1/30/24 2,500 - 2,500 242 2,258 -
WVDE NB CLASSROOM-FY24 GRTAWD04022400003839 5/2/24-9/30/25 200 - 200 - 200 -
WVDE INVEST MATH FACILIT-FY24 GRTAWD04022400004292 6/3/24-6/30/26 182 - - 182 (182) 182
WVDE TECHNOLOGY MODEL SCHOOL! GRTAWD04021800003708 1/1/18-7/31/23 226,000 57,102 (54,626) 2,476 - -
WVDE VAR PROJ & CAP. IMPROVEME GRTAWDO04021900002486 7/1/18-7/31/19 5,000 497 - - 497 -
WVDE MATH 4 LIFE GRTAWD04021900003390 11/9/18-7/31/19 10,000 3,061 - 1,272 1,789 -
WVDE SUMMER WV LEARNING GRTAWD04021900005372 4/15/19-6/30/19 1,600 99 - 14 85 -
WVDE FEE REIMB-TUIT-NB TEACH GRTAWD04022400004445 7/1/23-7/31/24 1,445 - - 1,445 (1,445) 1,445
WVDE STATE CHLD NUTR MATCHING GRTAWD04022300004608 4/1/23-6/30/25 12,000 12,000 - 12,000 - -
WVDE FOOD SERVICE-STATE MATCH GRTAWD04022400003565 4/1/24-6/30/26 12,000 - 12,000 - 12,000 -
WVDE FOOD SERVICE-STATE MATCH2 GRTAWD04022400004209 4/1/24-6/30/26 4,800 - - - - -
WVDE FOOD SCRATCH TRAIN-24 GRTAWD04022400002269 10/1/23-7/31/25 2,000 - 2,000 - 2,000 -
WVDE 24 BACKPACK GRANT GRTAWD04022400002049 9/1/23-7/31/25 6,861 - 6,861 - 6,861 -
WVDHHR CMH MENTAL HEALTH GRANT GRTAWD04022400001545 10/1/23-9/30/24 90,000 - - 31,891 (31,891) 31,891

TOTAL: § 164,241 $ 384,598 $ 367,972 $ 180,867 § 1,627

See notes to the other supplementary information.
72


GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE OTHER SUPPLEMENTARY INFORMATION
For The Fiscal Year Ended June 30, 2024

A. Budgets and Budgetary Accounting:

All boards of education within West Virginia are required by statute to prepare annual budgets and levy
rate estimates on prescribed forms and submit these for approval.
regulatory basis of accounting for all governmental funds. The regulatory basis of accounting for West
Virginia Boards of Education does not include amounts for other post-employment benefits billed by
PEIA beyond the retiree subsidy (pay-as-you-go) amount because only the retiree subsidy amounts are
required to be remitted according to WVC 5-16d-6(e). Certain other transactions (e.g., for/on behalf
unfunded retirement contributions, Tools for Schools, etc.) are also not included in the School Board’s

regulatory basis budget. Budgets are not adopted for custodial funds. The following procedures are

followed in preparing the annual budget:

1.

Revisions to the budget are authorized only with the prior written approval of the State Board of

Pursuant to State statute, the School Board is required to hold a meeting or meetings between
the seventh and twenty-eighth days of March to ascertain its financial condition and to determine
the amount that is to be raised from the levy of taxes for the fiscal year commencing July 1. The
School Board adjourns the meeting and submits its Schedule of Proposed Levy Rates to the
State Auditor's Office for approval. The School Board then reconvenes its meeting on the third
Tuesday of April to formally lay the approved levy.

The School Board is also required to submit its proposed budget for the subsequent year to the
State Board of Education for approval by the date established in the budget calendar. The
School Board is also required to hold a public hearing on the proposed budget before it is
submitted for approval. The proposed budget must be made available for public inspection for at
least 10 days before the public hearing is held.

Education.

73

Budgets are presented on the


GILMER COUNTY BOARD OF EDUCATION

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FYE JUNE 30, 2024

Federal Grantor
Pass-Through Grantor
Program or Cluster Title

U.S. DEPARTMENT OF AGRICULTURE
Passed Through West Virginia Department of Education:
Nutrition Cluster:
School Breakast Program
National School Lunch Program
Cash Assistance
Non-Cash Assistance (Food Distribution)
Total National School Lunch Program
Summer Food Program
Total Nutrition Cluster

Total U.S. Department of Agriculture

U.S DEPARTMENT OF EDUCATION

Passed Through West Virginia Department of Education
Title | Grants to Local Educational Agenices
Title | Grants to Local Educational Agenices
Title | Grants to Local Educational Agenices
Total-Title |

Special Education Cluster:

IDEA Part B School Age Entitlement:
IDEA Part B School Age Entitlement
IDEA Part B School Age Entitlement
IDEA Part B School Age Entitlement
IDEA Part B School Age Entitlement
Total-IDEA Part B School Age Entitlement

IDEA Part B Preschool Grants
IDEA Part B Preschool Grants
IDEA Part B Preschool Grants
Total-IDEA Part B Preschool Grants
Total-Special Education Cluster

Career and Technical Education
Title II Improving Teacher Quality
Title II Improving Teacher Quality
Total-Title II Improving Teacher Quality
Rural Education
Title I\V-Student Support and Academic Enrichment Program
Title IV-Student Support and Academic Enrichment Program
Total- Title IV-Student Support and Academic Enrichment Program
COVID-19 Elementary and Secondary School Emergency Relief Fund
Total U.S Department of Education

Total Federal Expenditures

The notes are an integral part of this schedule.

74

Federal
AL
Number

10.553

10.555
10.555

10.559

84.010A
84.010A
84.010A

84.027A
84.027A
84.027A
84.027A

84.173A
84.173A

84.048A

84.367

84.367

84.358B

84.424

84.424

84.425U

Pass - Through
Entity
Identifying
Number

N/A

N/A
N/A

N/A

GRTAWD04022200002944
GRTAWD04022300001562
GRTAWD04022400001 147

GRTAWD04022200001604
GRTAWD04022300001 170
GRTAWD04022400000380
GRTAWD04022400002174

GRTAWD04022400000440
GRTAWD04022200001533

GRTAWD04022400000937
GRTAWD04022300001623
GRTAWD04022400001241
GRTAWD04022400001366
GRTAWD04022300001691
GRTAWD04022400001311

GRTAWD04022100005832

Total
Federal
Expenditures

$ 158,311

323,557
41,575
365,132
12,727
536,170

536,170

8,062
18,745
220,178
246,985

41,589
23,028
234,169
889
299,675

17,616
340
17,956
317,631
4,025
2,135
36,081
38,216
16,148
852
19,025
19,877
1,216,754

1,859,636

$ 2,395,806


GILMER COUNTY BOARD OF EDUCATION

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2024

NOTE A -— BASIS OF PRESENTATION

The accompanying Schedule of Federal Awards Receipts and Expenditures (the Schedule) includes the
federal award activity of Gilmer County Board of Education, Gilmer County, West Virginia (the Board)
under programs of the federal government for the year ended June 30, 2024. The information on this
Schedule is prepared 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.

NOTE B —- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported on the Schedule are reported on the basis of accounting prescribed by the West
Virginia Department of Education, which is a comprehensive basis of accounting other than accounting
principles generally accepted in the United States of America. Such expenditures are recognized following
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 may or may not be allowable or may be limited as to reimbursement. Negative amounts shown
on the Schedule represent adjustments or credits made in the normal course of business to amounts reported
as expenditures in prior years.

NOTE C - INDIRECT COST RATE

The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform
Guidance.

NOTE D - CHILD NUTRITION CLUSTER

The Board comingles cash receipts from the U.S. Department of Agriculture with similar State grants. When
reporting expenditures on this Schedule, the Board assumes it expends federal monies first.

NOTE E —- FOOD DONATION PROGRAM
The Board reports commodities consumed on the Schedule at the entitlement value. The Board allocated

donated food commodities to the respective program that benefitted from the use of those donated food
commodities.

15


PERRY

& Associates CPAs

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
REQUIRED BY GOVERNMENT AUDITING STANDARDS

Gilmer County Board of Education
Gilmer County

454 Vanhorn Dr.

Glenville, WV 26351

To the Board of Education:

We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities and each major fund of the Gilmer County Board of Education, Gilmer County, (the Board) as
of and for the year ended June 30, 2024, and the related notes to the financial statements, which
collectively comprise the Board’s basic financial statements and have issued our report thereon dated
March 26, 2025.

Report on the Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Board’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 opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Board’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the Board’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the Board’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.

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 identified a certain deficiency in internal control, described in the
accompanying schedule of findings as item 2024-001 that we consider to be a material weakness.

Marietta, OH St. Clairsville, OH Cambridge, OH Wheeling, WV Vienna, WV

Beyond the Numbers perrycpas.com

16


Gilmer County Board of Education

Gilmer County

Independent Auditor's Report on Internal Control over
Financial Reporting and on Compliance and Other Matters
Required by Government Auditing Standards

Page 2

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Board’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.

Board’s Response to Finding

Government Auditing Standards requires the auditor to perform limited procedures on the Board's
response to the finding identified in our audit and described in the accompanying schedule of findings and
corrective action plan. The Board’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.

Purpose of This Report

The 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 Board’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 Board's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.

Perry and Associates
Certified Public Accountants, A.C.
Marietta, Ohio

March 26, 2025

‘7




Gilmer County Board of Education

Gilmer County

Independent Auditor’s Report on Compliance with Requirements
Applicable to the Major Federal Program and on Internal Control
Over Compliance Required by the Uniform Guidance

Page 3

Responsibilities of Management for Compliance

The Board’s Management 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 Board’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance

Our 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 Board'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 Board’s compliance with the requirements of the major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:

e exercise professional judgment and maintain professional skepticism throughout the audit.

e 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 Board’s compliance with the compliance requirements
referred to above and performing such other procedures as we considered necessary in the
circumstances.

e obtain an understanding of the Board'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 Board’s internal control over
compliance. Accordingly, no such opinion is expressed.

We 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.

79


Gilmer County Board of Education

Gilmer County

Independent Auditor’s Report on Compliance with Requirements
Applicable to the Major Federal Program and on Internal Control
Over Compliance Required by the Uniform Guidance

Page 2

Report on Internal Control Over Compliance

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 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.

Our 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.

Our 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.

The 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 this testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Perry and Associates
Certified Public Accountants, A.C.
Marietta, Ohio

March 26, 2025

80


GILMER COUNTY BOARD OF EDUCATION
GILMER COUNTY

SCHEDULE OF FINDINGS
2 CFR § 200.515
FOR THE YEAR ENDED JUNE 30, 2024

| 1. SUMMARY OF AUDITOR’S RESULTS |

(d)(1)(i) Type of Financial Statement Opinion Unmodified

(d)(1)(ii) Were there any material weaknesses in internal | Yes
control reported at the financial statement level
(GAGAS)?

(d)(1) (ii) Were there any significant deficiencies in
internal control reported at the financial
statement level (GAGAS)?

(d)(1)(iii) Was there any reported material
noncompliance at the financial statement level
(GAGAS)?

(d)(1)(iv) Were there any material weaknesses in internal
control reported for major federal programs?
(d)(1)(iv) Were there any significant deficiencies in

internal control reported for major federal
programs?

(d)((v) Type of Major Programs’ Compliance Opinion Unmodified

(d)(1)(vi) Are there any reportable findings under 2 CFR
§ 200.516(a)?
(d)(1)(vii) Major Programs (list): Education Stabilization Fund,
AL #84.425
(d)(1) (viii) Dollar Threshold: Type A/B Programs Type A: > $ 750,000
Type B: all others

(d)(1)(ix) | Low Risk Auditee under 2 CFR § 200.5207 INO

2. FINDINGS RELATED TO THE FINANCIAL STATEMENTS
REQUIRED TO BE REPORTED IN ACCORDANCE WITH GAGAS

FINDING NUMBER 2024-001
Material Weakness
Financial Reporting
The Board should have procedures and controls in place to prevent and detect errors in financial reporting.
For fiscal year 2024, the following financial statement errors and omissions were noted:
e  Intrafund transfers were incorrectly included in the amounts for Transfers In and Transfers Out in

the General, Special Revenue, and Capital Projects Funds. Intrafund transfers should be eliminated
for financial statement presentation.

81


GILMER COUNTY BOARD OF EDUCATION
GILMER COUNTY

SCHEDULE OF FINDINGS
2 CFR § 200.515
FOR THE YEAR ENDED JUNE 30, 2024

2. FINDINGS RELATED TO THE FINANCIAL STATEMENTS
REQUIRED TO BE REPORTED IN ACCORDANCE WITH GAGAS (CONTINUED)

FINDING NUMBER 2024-001 (CONTINUED)

Financial Reporting (Continued)

e Year-end entries for Due To and Due From were not completed for the General, Special Revenue,
ESSERF, and Capital Projects Funds. These entries are necessary to eliminate negative cash
balances in the Special Revenue, ESSERF, and Capital Projects Funds and to properly show the
amounts that are due to the General Fund.

e The Board incorrectly classified earmarked amounts as Committed Fund Balance in the General
Fund. Per GASB 54, Committed Fund Balance classification must be designated as such by the
Board via formal action.

e A BVA schedule was not accurately prepared for the Special Revenue Excess Levy Fund as
required.

To help ensure accuracy and reliability in the financial reporting process, we recommend that management
perform a detailed review of its draft financial statements, notes and supplemental information before it is
presented for audit. The review should review should ensure all information in note disclosures and
supplementary schedules are supported by the financial statements or other supporting documentation.

Managements Response: See Corrective Action Plan

3. FINDINGS FOR FEDERAL AWARDS

None.

82


SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024



CORRECTIVE ACTION PLAN