Document type | other |
---|---|
Date | 2024-06-30 |
Source URL | https://go.boarddocs.com/wv/gilmer/Board.nsf/files/DFBNTG6179D3/$file/Gilmer_County_Board_of_Education_24.pdf |
Entity | gilmer_county_schools (Gilmer Co., WV) |
Entity URL | https://boe.gilmer.k12.wv.us/ |
Raw filename | Gilmer_County_Board_of_Education_24.pdf |
Stored filename | 2024-06-30-a1ad874506930ed88bcc3bcf8ae2b819-other.txt |
Parent document: 2025-04-15-1334af4452ad353768053b711aff6b59-other.txt
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