Document type | other |
---|---|
Date | 2024-06-30 |
Source URL | https://go.boarddocs.com/wv/jac/Board.nsf/files/D93RET6DAF24/$file/JCBOE%20Annual%20Financial%20Statement%20-%2006302024.pdf |
Entity | jackson_county_schools (Jackson Co., WV) |
Entity URL | https://www.boe.jack.k12.wv.us/ |
Raw filename | JCBOE%20Annual%20Financial%20Statement%20-%2006302024.pdf |
Stored filename | 2024-06-30-e1756857ad4a0aabc1025a2524acd679-other.txt |
Parent document: September 19, 2024, Regular Session-09-19-2024.pdf
ANNUAL FINANCIAL STATEMENTS OF THE JACKSON COUNTY BOARD OF EDUCATION AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2024 JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 Our discussion and analysis of the Jackson County Board of Education’s (Board) 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 $86.9 million (net position) at the close of the most recent fiscal year. Of this amount, $21.2 million (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors. e The Board's total net position increased by approximately $4.9 million. This increase is primarily a result of the overall increase in fixed assets, operating grants and contributions, property taxes, and unrestricted state aid. e As of the close of the current fiscal year, the Board’s governmental funds reported combined ending fund balances of approximately $27.1 million, an increase of approximately $1.6 million in comparison with the prior year. e At the end of the current fiscal year, unassigned fund balance for the general fund represented a fund balance of approximately $14.9 million. This balance was impacted by increased revenues including property taxes as a result of an increase in assessed values. e In addition, the Board transferred approximately $600 thousand to the capital project fund to implement the top priorities of the comprehensive educational facilities plan. The fund balance of this fund is approximately $5.9 million at June 30. 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 of 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. JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 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 following 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 of 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 five 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 fund, the special revenue fund, special revenue school activity fund, special revenue stabilization fund and the capital projects fund, all of which are considered major funds. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the governmental entity. Fiduciary funds are not reflected in the district- wide financial statement because the Board cannot use these funds to finance its operations. The basic fiduciary fund financial statement can be found on the pages following the basic financial statements. JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 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 following the basic financial statements. 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 approximately $86.9 million at the close of the most recent fiscal year. The following summarizes the statement of net position at June 30, 2024 in comparison with June 30, 2023: ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current and other assets Capital assets Net OPEB asset - Proportionate share ROU Assets Deferred outflows of resources Total assets and deferred outflows of resources LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities and deferred inflows of resources: Current and other liabilities Long-term liabilities outstanding Deferred inflows of resources Net pension liability - Proportionate share Net other post employment benefit (OPEB) liability - Proportionate share Net other post employment benefit (OPEB) liability - Dental & Vision Asset Retirement Obligation (ARO) liability Total liabilities and deferred inflows of resources Net position: Net Investment in Capital Assets Restricted Unrestricted Total net position Total liabilities, deferred inflows of resources, and net position 2024 Governmental Activities $ 34,854,105 58,802,729 314,527 692,042 2,376,579 _$_97,030,982_ $ 5,915,251 560,994 675,478 2,965,306 10,117,029 58,091,563 7,594,841 21,236,549 __ 86,922,953 _ $97,039,982 2023 Governmental Activities $ 32,211,808 56,425,849 993,407 2,824,946 S_92,456,010_ $ 4,947,721 857,076 1,358,812 3,096,182 198,394 10,458,185 56,562,180 6,882,424 18,553,221 81,997,825 $ 92,456,010 Variance $ 2,642,297 2,376,880 314,527 (301,365) (448,367) $ 4,583,972 $ 967,530 (296,082) (683,334) (130,876) (198,394) (341,156) 1,529,383 712,417 2,683,328 4,925,128 $4,583,972 JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 The key elements of the increase of the Board's net position for the year ended June 30, 2024 are as follows: Current and other assets increased by approximately $2.6 million primarily due to an increase in cash and cash equivalents primarily due to an increase in revenues. Capital assets increased by approximately $2.4 million which represents the net amount of capital asset additions above depreciation expense. The Board has a GASB 96 SBITA Right of Use Asset of approximately $692 thousand. GASB 68/71 requires the Board to record its proportionate share of the net pension liability, deferred outflows and deferred inflows. The net pension liability increased by approximately $131 thousand to approximately $3.0 million at June 30. GASB 75 requires the Board to record its proportionate share of the Net OPEB liability, deferred outflows and deferred inflows. The Net OPEB liability decreased by approximately $513 thousand to a Net OPEB asset of approximately $315 thousand at June 30. Deferred outflows decreased by approximately $448 thousand and deferred inflows decreased by approximately $683 thousand. The largest portion of the Board’s net position (67%) 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 not 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 (9%) represents resources that are subject to external restrictions on how they may be used. The majority of the restricted balance is for a scholarship fund endowment and capital projects. The remaining balance of unrestricted net position (24%) represents cash and other receivable balances and may be used to meet the Board's obligations to students, employees, and creditors and to honor next year’s budget. JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 The Board’s net position increased by approximately $4.9 million during the current year. The following summarizes these variances: Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Unrestricted state aid Unrestricted investment earnings Unrestricted grants and contributions Gain or (loss) on disposal of capital assets Total revenues Expenses: Instruction Supporting services: Students Instructional staff General administration School administration Central services Operation and maintenance of facilities Student transportation Other Total supporting services Food services Community services Interest on long-term debt Total expenses Change in net position before transfers Transfers Change in net position Net position - Beginning Restatement Net position - Ending 2024 Governmental Activities $ 3,092,076 6,794,329 3,645,811 25,093,453 26,274,486 1,217,498 314,484 66,432,137 33,669,344 4,926,312 1,964,793 1,106,518 3,239,038 572,399 7,450,497 4,887,551 204,270 23,942,838 3,806,006 65,016 23,805 61,507,009 4,925,128 4,925,128 81,997,825 $ 86,922,953 2023 Governmental Activities $ 3,248,131 8,889,463 4,851,868 22,286,245 21,979,561 562,578 463,205 25,161 62,306,212 28,584,468 4,371,349 1,513,376 1,041,043 2,886,266 462,810 7,204,775 4,223,173 18,436 21,721,228 3,394,927 62,409 27,946 53,790,978 8,515,234 8,515,234 72,763,982 718,609 $81,997,825 Variance $ (156,055) (2,095,134) (1,206,057) 2,807,208 4,294,925 654,920 (148,721) 25,161 4,125,925 5,084,876 554,963 451,417 65,475 352,772 109,589 245,722 664,378 (222,706) 2,221,610 411,079 2,607 4,141 7,716,031 (3,590, 106) (3,590, 106) 9,233,843 (718,609) $4,925,128 The key elements of the increase of the Board’s revenues and expenses for the year ended June 30, 2024 are as follows: e Operating grants and contributions decreased by approximately $2.1 million which was primarily the result of a decrease in several operating grants during 2024 and the timing of the receipt of grant funds. e Capital grants and contributions decreased by approximately $1.2 million which was primarily the result of the completion of several ESSERF construction grants for 2024. e Property taxes increased by approximately $2.8 million which was primarily the result of an increase in the assessed values in the County. -5- JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 e Unrestricted state aid increased by approximately $4.3 million which was primarily the result of the GASB 68 and 75 activity and an increase from personnel raises. e Overall expenses increased by approximately $7.7 million primarily as a result of increases in instruction. The following chart shows the Board’s revenues for fiscal year ended June 30, 2024 by source: Revenues by Source Unrestricted grants and contributions 0.47% Charges for Operating grants and contributions 10.23% Unrestricted investment Capital grants and earnings contributions 1.83% 5.49% . Property taxes laa state 37.77% 39.56% Gain or (loss) on disposal of capital assets 0.00% The following chart shows the Board’s expenditures for fiscal year ended June 30, 2024 by function: Expenditures by Function Community — Interest on 0.11% long-term debt Food services 0.04% 6.19% Total supporting services \ . 38.93% \— Instruction 54.74% JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 Financial Analysis of the Board’s Funds As noted earlier, the School Board uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the Board’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Board's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As the Board completed the year, its governmental funds reported a combined fund balance of approximately $27.1 million. The net change in fund balance was an increase of approximately $1.6 million. Governmental funds report the differences between their assets, deferred outflows, liabilities, and deferred inflows as fund balance, which is divided into nonspendable, restricted, committed, assigned, and unassigned portions. Nonspendable, restricted, committed, and assigned indicate the portion of the Board’s fund balances that are not available for appropriation. The unassigned fund balance is available expendable financial resources in governmental funds. The Board had an unassigned fund balance of approximately $14.9 million. The Board had four major funds for the fiscal year ended June 30, 2024. Those funds are the General Current Expense Fund, Special Revenue Fund, Special Revenue School Activity Fund, Special Revenue Fund — Stabilization Fund and the Capital Projects Fund. 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 approximately $18.6 million to $19.5 million during the fiscal year ended June 30, 2024. This increase of approximately $923 thousand was due primarily to the Board's increase in state revenue sources. 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 approximately $431 thousand to $671 thousand during the fiscal year ended June 30, 2024. This increase of approximately $240 thousand was due primarily to certain State grants received in advance of expenditures. Special Revenue Federal Stimulus and Stabilization 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 remained at zero as all revenues received were expended. JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 Special Revenue School Activity Fund This is a separate special revenue fund to account for all school activity. The fund balance went from $1.1 million to $1.0 million a decrease of $31 thousand due to the normal activity of the individual schools. 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 increased from approximately $5.4 million to $5.9 million during the fiscal year ended June 30, 2024. This increase of approximately $500 thousand was due primarily to the transfer in of funds for implementation of the top priorities of the comprehensive educational facilities plan. 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 approximately $10.9 million or twenty percent in total general fund expenditures. The most significant differences are related to budget carryover transactions. 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 approximately $58.8 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, furniture and equipment, and vehicles. The total increase in the Board’s investment in capital assets for the current fiscal year was approximately $2.4 million. Major capital asset events during the current fiscal year included the following: e Capital assets increased by approximately $2.4 million which represents the net amount of capital asset additions over depreciation expense. Capital asset additions included construction for the new HVAC project at Ripley Middle School and Cottageville Elementary, purchases of furniture and equipment, and the purchase of transportation and other vehicles. 2024 2023 Governmental Governmental Activities Activities Variance Land $ 3,234,846 $ 3,234,846 $ - Land improvements - - - Buildings and improvements 47,449,608 41,660,912 5,788,696 Furniture and equipment 2,373,969 2,294,857 79,112 Vehicles 2,906,653 3,081,564 (174,911) Construction in process 2,837,653 6,153,670 (3,316,017) Total capital assets $ 58,802,729 $ 56,425,849 $ 2,376,880 Additional information on the Board’s capital assets can be found in notes to the basic financial statements. JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 SBITA - The Board follows GASB 96 and recorded the SBITA Right of Use Assets in the amount of $692 thousand as of June 30, 2024. 2024 2023 Governmental Governmental Activities Activities Variance Land $ - $ s $ i Buildings - - - Furniture and equipment - - - Vehicles - - - SBITAs 692,042 993,407 (301,365) Total right-of-use assets $ 692,042 $ 993,407 $ (301,365) Long-term debt. At the end of the current fiscal year, the Board had no bonded debt and had finance lease obligations of approximately $711 thousand. The Board was required to report its proportionate share of the net pension liability with the adoption of GASB 68/71 of approximately $3.0 million. GASB 75 requires the Board to report its proportionate share of the net OPEB liability (asset) which was approximately $315 thousand. The Board also did not have a compensated absence liability. 2024 2023 Governmental Governmental Activities Activities Variance General obligation bonds $ - $ - - Finance Lease obligations 711,166 857,076 (145,910) SBITA obligations - - Compensated absences - - - Net pension liability - proportionate share 2,965,306 3,096,182 (130,876) Net OPEB liability (asset) - proportionate share (314,527) 198,394 (512,921) Net OPEB liability - dental & vision - - - Total debt outstanding $ 3,361,945 $ 4,151,652 $_ (789,707) Additional information on the Board’s long-term debt can be found in notes 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 While enrollment increased slightly for fiscal year 2023, enrollment had declined for the previous nine consecutive years and for 2024 which significantly impacts state aid revenue available to the Board. e Assessed valuations for tax purposes remained consistent with the prior year in 2024 with the addition of some businesses in the county. JACKSON COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS For the Fiscal Year Ended June 30, 2024 e The COVID-19 Pandemic has resulted in numerous changes in how the Board conducts its operations on a day to day basis. The Board in previous years added a number of positions with ESSERF funding and eliminated a significant number of those positions at the end of 2024. During 2024, the Board spent approximately $4.4 million in expenditures related to COVID-19 and anticipates spending approximately $60 thousand in 2025. The Board was awarded several grants from the CARES Act funding of approximately $15.0 million for spending through 2024. 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 at 1 School Street, Ripley, West Virginia 25271. = 10 JACKSON COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION FOR THE FISCAL YEAR ENDED JUNE 30, 2024 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets: Cash and cash equivalents Investments Inventory Taxes receivable, net of allowance for uncollectible taxes Food service receivable Other receivables Prepaid Workers' Compensation Other prepaid expenses Due from other governments: State aid receivable PEIA allocation receivable Reimbursements receivable Capital Assets: Land Land improvements Buildings and improvements Furniture and equipment Vehicles Construction in process Less accumulated depreciation Total capital assets, net of depreciation Right-of-Use Assets: Subscription-based information technology arrangements (SBITAs) Less accumulated amortization Total ROU assets, net of amortization Net other post employment benefit (OPEB) asset - Proportionate share Total assets Deferred outflows of resources: Pension Other post employment benefit (OPEB) Other Total deferred outflows of resources Total assets and deferred outflows of resources LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND NET POSITION Liabilities: Salaries payable and related payroll liabilities PEIA premiums payable Accounts payable Other post employment benefit payable Long-term obligations: Due within one year: Finance lease obligation Due beyond one year: Finance lease obligation Net pension liability - Proportionate Share Net other post employment benefit (OPEB) liability - Proportionate Share Net other post employment benefit (OPEB) liability - Dental & Vision 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: Debt service Special projects Capital projects Unrestricted Total net position The notes are an integral part of the financial statements. His Governmental Activities $ 18,887,705 10,125,825 338,161 2,203,490 2,881 175,431 5,106 111,268 209,348 767,380 2,027,510 3,234,846 89,264,712 8,682,542 8,367,451 2,837,653 ‘ (53,584,475) 58,802,729 1,254,077 (562,035) 692,042 314,527 94,663,403 1,843,465 533,114 2,376,579 S__97,039,982_ $ 3,764,193 888,101 1,087,659 25,126 150,172 560,994 2,965,306 9,441,551 311,172 364,306 675,478 $10,117,029 ° 58,091,563 1,691,186 5,903,655 21,236,549 TS 86,922,953 JACKSON COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Program Revenues Operating Charges for Grants and Functions Expenses Services Contributions Governmental activities: Instruction $ 33,669,344 $ - $ 4,525,594 Supporting services: Students 4,926,312 790,129 1,279,059 Instructional staff 1,964,793 - 491,169 General administration 1,106,518 - - School administration 3,239,038 - - Central services 572,399 - - Operation and maintenance of facilities 7,450,497 - - Student transportation 4,887,551 - - Other support services (204,270) - - Food services 3,806,006 2,301,947 498,507 Community services 65,016 - - Interest on long-term debt/finance leases 23,805 - - Total governmental activities 61,507,009 3,092,076 6,794,329 General revenues: Property taxes Unrestricted state aid Unrestricted investment earnings Unrestricted grants and contributions Extraordinary item - other post employment benefits Gain (loss) on disposal of capital assets Gain (loss) on termination of ROU assets Transfers in Transfers (out) Total general revenues, extraordinary items and transfers Change in net position Net position - beginning Prior period adjustments - (See Note ) Net position - beginning, as restated Net position - ending The notes are an integral part of the financial statements. 29's $ Capital Grants and Contributions 3,645,811 3,645,811 Net (Expense), Revenue & Changes in Net Position Governmental Activities $ (29,143,750) (2,857,124) (1,473,624) (1,106,518) (3,239,038) (572,399) (3,804,686) (4,887,551) 204,270 (1,005,552) (65,016) 23,805 47,974,793) 25,093,453 26,274,486 1,217,498 314,484 2,417,214 (2,417,214) 52,899,921 4,925,128 81,997,825 81,997,825 $ 86,922,953 JACKSON COUNTY BOARD OF EDUCATION BALANCE SHEET - GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Special General Special Revenue Special Revenue Capital Current Revenue School Activity ESSERF Projects Total Expense Fund Fund Fund Fund Governmental ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets: Cash and cash equivalents $s 11,438,759 $ 451,333 $ 1,020,238 $ - $ 5,977,375 $ 18,887,705 Investments 10,000,000 125,825 - - - 10,125,825 Inventory 238,132 100,029 - - : 338,161 Taxes receivable, net 2,203,490 - : : : 2,203,490 Prepaid Workers' Comp 5,106 - - - - 5,106 Food service receivable, net : 2,881 - - - 2,881 Other receivables 175,431 - - - - 175,431 Other prepaid expenses 111,268 - - - - 111,268 Due from other governments: State aid receivable 209,348 - : - - 209,348 PEIA allocation receivable 767,380 - : - : 767,380 Reimbursements receivable - 623,114 - 1,404,396 - 2,027,510 Oue from other funds 1,189,104 * : 1,189,104 Total assets 26,338,018 1,303,182 1,020,238 1,404,396 5,977,375 36,043,209 Deferred outflows of resources - - si Total deferred outflows of resources - - : = = TOTAL ASSETS PLUS DEFERRED OUTFLOWS OF RESOURCES $ 26,338,018 $ 1,303,182 $ 1,020,238 $ 1,404,396 $ 5,977,375 $ 36,043,209 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Salaries payable and related payroll liabilities $ 3,097,854 $ 486,935 $ - $ 179.404 $ - $ 3,764,193 Other post employment benefits payable 20,434 3,672 - 1,020 - 25,126 PEIA premiums payable 732,122 121,111 - 34,868 - 888,101 Accounts payable & Payable to others 996,304 17,634 - - 73,721 1,087,659 Due to other fiscal agents - - - Due to other funds : - - 1,189,104 : 1,189,104 Total liabilities 4,846,714 629,352 - 1,404,396 73,721 6,954,183 Deferred inflows of resources 1,947,137 2,881 - : - 1,950,018 Total deferred inflows of resources 1,947,137 2,881 - : - 1,950,018 Fund Balances: Nonspendable 354,506 100,029 - - - 454,535 Restricted - 570,919 1,020,238 - §.903,655 7,494,812 Committed 1,062,569 : - - : 1,062,569 Assigned 3,261,385 - : - - 3,261,385 Unassigned 14,865,707 - - - - 14,865,707 Total fund balances 19,544,167 670,948 1,020,238 : 5,903,655 27,139,008 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 26,338,018 $ 1,303,181 $ 1,020,238 $ 1,404,396 S 5,977,376 $ 36,043,209 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 58,802,729 Right-of-use assets used in governmental activities are not financial resources and, therefore, are not reported in the funds 692,042 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 1,950,018 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 1,843,465 Deferred inflows of resources related to pensions (311,172) Deferred outflows of resources related to OPEB 533,114 Deferred inflows of resources related to OPEB (364,306) 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 Accrued sick leave payable (711,166) Net pension liability - proportionate share (2,965,306) Net OPEB liability - proportionate share 314,527 Asset Retirement Obligation (ARO) Liability Finance lease liability, due within one year Finance lease liability, due beyond one year Financed purchases and other, due within one year Financed purchases and other, due beyond one year SBITA liability, due within one year SBITA liability, due beyond one year Net position of governmental activities $ 86,922,953 The notes are an integral part of the financial statements. a BN JACKSON COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Special General Revenue Special Capital Current Special School Activity Revenue Projects Total Expense Revenue Fund ESSERF Fund Governmental Revenues: Property taxes $ 24,904,356 $ - §$ - $ - §$ - $ 24,904,356 Other Local sources 1,289,606 149,486 1,363,266 - . 2,802,358 State sources 30,920,174 1,244,282 - - 51,096 32,215,552 Federal sources 484,639 5,890,142 - 4,437,197 - 10,811,978 Miscellaneous sources 37,963 - - - - 37,963 Total revenues 57,636,738 7,283,910 1,363,266 4,437,197 51,096 70,772,207 Expenditures: Instruction 27,135,994 3,271,338 1,366,943 2,035,492 - 33,809,767 Supporting services: Students 4,321,215 618,256 - 252,398 - 5,191,869 Instructional staff 1,236,402 217,692 - 632,228 - 2,086,322 General administration 1,147,653 - - - - 1,147,653 School administration 3,433,649 - - 103,873 - 3,537,522 Central Services 460,209 §;725 - 146,503 - 612,437 Operation and maintenance of facilities 9,856,328 4,220 - 416,144 - 10,276,692 Student transportation 5,185,626 9,499 . - - 5,195,125 Other support services - - - - - - Food services 174,348 3,803,483 - - - 3,977,831 Community services 65,016 - - - - 65,016 Capital outlay 2,543,433 - - 376,089 147,441 3,066,963 Debt service: Principal retirement 145,910 - . - - 145,910 Interest and fiscal charges 23,805 - - - - 23,805 Total expenditures 55,729,588 7,930,213 1,366,943 3,962,727 147,441 69,136,912 Excess (deficiency) of revenues over expenditures 1,907,150 (646,303) (3,677) 474,470 (96,345) 1,635,295 Other financing sources (uses): Transfers in 643,788 1,050,201 123,225 . 600,000 2,417,214 Transfers (out) (1,628,060) (164,331) (150,353) (474,470) - (2,417,214) Total other financing sources (uses) (984,272) 885,870 (27,128) (474,470) 600,000 - Extraordinary Item: Other post employment benefits - - = = = x Net change in fund balances 922,878 239,567 (30,805) - 503,655 1,635,295 Fund balances - beginning 18,621,289 431,381 1,051,043 - 5,400,000 25,503,713 Prior period adjustments - (See Note __) - a = = é Fund balances - beginning, as restated 18,621,289 431,381 1,051,043 - 5,400,000 25,503,713 Fund balances - ending $ 19,544,167 $ 670,948 $ 1,020,238 $ - $5,903,655 $ 27,139,008 The notes are an integral part of the financial statements. =A JACKSON COUNTY BOARD OF EDUCATION RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Net change in fund balances - total governmental funds $ 1,635,295 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 (3,531,168) Capital outlays 13,897,307 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 - Capital outlays - 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 (301,365) Capital outlays 2 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 189,097 Operating Grants and Contributions 547 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 (8,231,264) Accumulated depreciation of assets disposed 242,005 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 615,673 Cost of benefits earned net of employee contributions (583,407) 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 137,196 Cost of benefits earned net of employee contributions 709,302 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. 145,910 Change in net position of governmental activities $ 4,925,128 The notes are an integral part of the financial statements. wh JACKSON COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION - FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Fiduciary Funds- Custodial ““Multi-County Vocational Centers ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets: Cash and cash equivalents $ 905,618 Prepaid Expenses - Receivables 340,187 Total assets 1,245,805 Deferred outflows of resources: Total deferred outflows of resources - Total assets and deferred outflows of resources $ 1,245,805 LIABILITIES AND DEFERRED INFLOWS OF RESOURCES Liabilities: Accounts payable and accrued liabilities $ 410,880 Due to other funds . Total liabilities 410,880 Deferred inflows of resources: Total deferred inflows of resources - Total liabilities and deferred inflows of resources $ 410,880 Net Position: Nonspendable $ - Restricted 805,478 Assigned 29,447 Unassigned ~ Total Net Position: $ 834,925 The notes are an integral part of the financial statements. Gu JACKSON COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Fiduciary Funds- Custodial Multi-County Vocational Centers UU ENE EE EERE EEE ESRI EEEEIEEE EEE Additions Other Local sources $ 797,260 State Sources 2,917,021 Federal Sources 630,353 Transers in - Total Additions 4,344,634 Deductions Instruction $ 2,333,176 Supporting Services 1,089,772 Capital Outlay 1,177,832 Transfers Out = Total deductions 4,600,780 Change in fiduciary net position (256,146) Fiduciary net position - beginning of the year 1,091,071 Fiduciary net position - end of the year $ 834,925 The notes are an integral part of the financial statements. ee JACKSON COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Actual Adjustments Actual Budgeted Amounts GAAP. for Regulatory Regulatory Basis Basis Regulatory Basis Variance With Original Final Amounts Basis Amounts Final Budget Revenues: Property taxes $ 22,792,125 $ 22,792,125 $ 24,904,356 $ - $ 24,904,356 $ 2,112,231 Other Local sources 100,000 140,687 1,289,606 - 1,289,606 1,148,919 State sources 30,988,546 30,739,640 30,920,174 - 30,920,174 180,534 Federal sources 433,458 433,458 484,639 - 484,639 51,181 Miscellaneous sources - - 37,963 - 37,963 37,963 Total revenues 54,314,129 54,105,910 57,636,738 - 57,636,738 3,530,828 Expenditures: Instruction 28,955,436 29,680,756 27,135,994 - 27,135,994 2,544,762 Supporting services: Students 4,417,610 4,669,114 4,321,215 - 4,321,215 347,899 Instructional staff 1,274,630 1,348,072 1,236,402 - 1,236,402 111,670 General administration 1,240,596 1,449,033 1,147,653 - 1,147,653 301,380 School administration 3,622,684 3,572,505 3,433,649 - 3,433,649 138,856 Central services 453,937 $02,552 460,209 - 460,209 42,343 Operation and maintenance of facilities 6,846,752 11,660,705 9,856,328 - 9,856,328 1,804,377 Student transportation 5,544,832 6,174,378 5,185,626 - 5,185,626 988,752 Other - - - - - - Food services 182,274 181,952 174,348 - 174,348 7,604 Community services 65,858 65,858 65,016 - 65,016 842 Capital outlay - 4,180,951 2,543,433 - 2,543,433 1,637,518 Debt service: Principal retirement 141,769 145,911 145,910 - 145,910 1 Interest and fiscal charges 27,947 23,805 23,805 - 23,805 - Finance Leases: - - Principal payment expense - - - - - - Interest Expense - - - - - - SBITAs: - - Principal payment expense - - - - - . Interest Expense - - - - - - Total expenditures 52,774,325 63,655,592 55,729,588 - 55,729,588 7,926,004 Excess (deficiency) of revenues over expenditures 1,539,804 (9,549,682) 1,907,150 - 1,907,150 11,456,832 Other financing sources (uses): Proceeds from disposal of real or personal property - 5 = « Proceeds from the sale of bonds - = a > Transfers in 54,632 54,632 643,788 - 643,788 589,156 Transfers (out) 2,094,436 8,733,076 1,628,060) - 1,628,060 7,105,016 Total other financing sources (uses) 2,039,804 8,678,444 984,272 - 984,272 7,694,172 Change in fund balances (500,000) (18,228,126) 922,878 - 922,878 19,151,004 Fund balances - beginning 500,000 18,228,126 18,621,289 - 18,621,289 393,163 Fund balances - ending $ - $ - $ 19,544,167 $ - $ 19,544,167 $ 19,544,167 The notes are an integral part of the financial statements. 6 JACKSON COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Actual Adjustments Actual Budgeted Amounts GAAP for Regulatory Regulatory Basis Basis Regulatory Basis Variance With Original Final Amounts Basis Amounts Final Budget Revenues: Local sources $ 30,150 $ 156,398 $ 149,486 $ - $ 149,486 $ (6,912) State sources 624,982 1,319,376 1,244,282 - 1,244,282 (75,094) Federal sources 4,901,546 6,960,006 5,890,142 - 5,890,142 (1,069,864) Miscellaneous sources - - - - - . Total revenues §,556,678 8,435,780 7,283,910 - 7,283,910 1,151,870 Expenditures: Instruction 3,019,439 3,992,057 3,271,338 - 3,271,338 720,719 Supporting services: Students 253,491 921,403 618,256 - 618,256 303,147 Instructional staff 345,202 632,361 217,692 - 217,692 414,669 General administration - - - - - - School administration - - - - - - Central services §,737 5,725 §,725 - 5,725 - Operation and maintenance of facilities 1,500 7,000 4,220 - 4,220 2,780 Student transportation 15,071 16,417 9,499 - 9,499 6,918 Other - - - - - - Food services 3,456,042 4,080,583 3,803,483 - 3,803,483 277,100 Community services - - - - Capital outlay - - - - Debt service: Principal retirement - - - - - - Interest and fiscal charges : - : - - - Total expenditures 7,096,482 9,655,546 7,930,213 - 7,930,213 1,725,333 Excess (deficiency) of revenues over expenditures 1,539,804 1,219,766 646,303 - 646,303 573,463 Other financing sources (uses): Transfers in 1,594,436 1,594,424 1,050,201 - 1,050,201 (544,223) Transfers (out) 45,632) 176,119 164,331 - 164,331 11,788 Total other financing sources (uses 1,548,804 1,418,305 885,870 - 885,870 §32,435) Change in fund balances 9,000 198,539 239,567 - 239,567 41,028 Fund balances - beginning 9,000 198,539 431,381 - 431,381 629,920 Fund balances - ending $ -_ $ - $ 670,948 $ - $ 670,948 $ 670,948 The notes are an integral part of the financial statements. a9 '- JACKSON 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 FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Actual Adjustments Actual Budgeted Amounts GAAP for Regulatory Regulatory Basis Basis Regulatory Basis Variance With Original Final Amounts Basis Amounts Final Budget Revenues: Local sources $ : $ 1,363,266 $ (1,363,266) $ - §$ - State sources - - - - - - Federal sources ~ - 2 7 i . Miscellaneous sources - - = = 2 5 Total revenues - - 1,363,266 (1,363,266) - - Expenditures: Instruction - 1,366,943 (1,366,943) - - Supporting services: Students - - = = = a Instructional staff - - - - - - General administration - < = = % - School administration - - - - - - Central services - - é = z 2 Operation and maintenance of facilities - - - - - - Student transportation - - - - - - Other - = = = = = Food services - - a = = = Community services - - = = A a Capital outlay - - = = A 7 Debt service: Principal retirement - - - = 3 “ Interest and fiscal charges - - - - - - Total expenditures - - 1,366,943 1,366,943 - - Excess (deficiency) of revenues over expenditures - - (3,677) 3,677 - - Other financing sources (uses): Proceeds from disposal of real or personal - - - - - - Proceeds from the sale of bonds - - - - - - Transfers in - - 123,225 (130,191) (6,966) (6,966) Transfers (out) - - (150,353) 157,319 6,966 6,966 Total other financing sources (uses - - (27,128) 27,128 - - Change in fund balances - - (30,805) 30,805 - - Fund balances - beginning = 1,051,043 1,051,043 - - Fund balances - ending $ - $ - $ 1,020,238 $ (1,020,238) $ - $ - The notes are an integral part of the financial statements. -10- JACKSON COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - SPECIAL REVENUE FUND - ESSERF FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Actual Adjustments Actual Budgeted Amounts GAAP for Regulatory Regulatory Basis Basis Regulatory Basis Variance With Original Final Amounts Basis Amounts Final Budget Revenues: Local sources $ - $ - $ - $ - §$ - $ = State sources - - - - - - Federal sources 1,978,930 5,238,063 4,437,197 - 4,437,197 (800,866) Miscellaneous sources - - - - - - Total revenues 1,978,930 5,238,063 4,437,197 - 4,437,197 800,866 Expenditures: Instruction 1,650,406 2,070,642 2,035,492 - 2,035,492 35,150 Supporting services: Students 328,524 269,977 252,398 - 252,398 17,579 Instructional staff - 643,226 632,228 - 632,228 10,998 General administration - - - - - - School Administration - 103,873 103,873 - 103,873 - Central services - 146,503 146,503 - 146,503 - Operation and maintenance of facilities - 416,144 416,144 - 416,144 - Student transportation - - - - - - Other Support Services - - - - - - Food services - - - - - - Community services - - - - - - Capital outlay - 376,089 376,089 - 376,089 - Debt service: Principal retirement - - - - - - Interest and fiscal charges : : - - - - Total expenditures 1,978,930 4,026,454 3,962,727 - 3,962,727 63,727 Excess (deficiency) of revenues over expenditures - 1,211,609 474,470 - 474,470 737,139) Other financing sources (uses): Transfers in - - - - - - Transfers (out) - 482,950 474,470 - 474,470) 8,480 Total other financing sources (uses - (482,950) (474,470) - (474,470) 8,480 Change in fund balances - 728,659 - - - (728,659) Fund balances - beginning - (728,659) - - - 728,659 Fund balances - ending $ -_$ 0) $ -_ $ - $ - $ 0 oo OOO OOOOOOewewei"ilTwywqwehi"—=_ooeeeeeeeeS So The notes are an integral part of the financial statements. -11- JACKSON COUNTY BOARD OF EDUCATION OTHER SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CAPITAL PROJECTS FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Actual Adjustments Actual Budgeted Amounts GAAP for Regulatory Regulatory Basis Basis Regulatory Basis Variance With Original Final Amounts Basis Amounts Final Budget Revenues: Other Local sources $ - $ - §$ - $ - $ - $ = State sources - 13,547,398 51,096 - 51,096 (13,496,302) Federal sources - - - - - - Miscellaneous sources : - - - - - Total revenues - 13,547,398 51,096 - 51,096 (13,496,302) Expenditures: Capital outlay - 19,547,398 147,441 - 147,441 19,399,957 Operation and Maintenance of Facilities - - - - - - Total expenditures - 19,547,398 147,441 - 147,441 19,399,957 Excess (deficiency) of revenues over expenditures -" 6,000,000) (96,345 - 96,345 5,903,655 Other financing sources (uses): Proceeds from disposal of real or personal pri - - - - - - Proceeds from the sale of bonds - - - - - - Proceeds from capital leases - - - - - - Transfers in - 600,000 600,000 - 600,000 - Transfers (out) - - - - - - Total other financing sources (uses) - 600,000 600,000 - 600,000 - Change in fund balances - (5,400,000) 503,655 - 503,655 5,903,655 Fund balance - beginning - 5,400,000 5,400,000 - 5,400,000 - Fund balance - ending $ - $ - $ 5,903,655 $ - $ 5,903,655 $ 5,903,655 The notes are an integral part of the financial statements. -12- Excess Levy Collections Expenditures (County Specific Levy Call): Transportation owned motor vehicles and where necessary to purchase new and JACKSON COUNTY BOARD OF EDUCATION 4 OTHER SUPPLEMENTARY INFORMATION SCHEDULE OF EXCESS LEVY REVENUES AND EXPENDITURES FOR THE FISCAL YEAR ENDED JUNE 30, 2024 additional motor vehicles in order to facilitate a safe and efficient school system. Instructional Supplies and Equipment To provide funds to distribute free textbooks and workbooks to all students and to supply and equip elementary and secondary schools. Facilities Maintenance and Construction facilities, to defray utility costs, and to provide funds for land and for the construction of buildings thereon or upon any land now owned by the Board of Education. Personnel To provide funds for the employment of additional school system personnel to meet the needs of the school system and to maintain and/or increase the present supplement to the state basic salary scale and provide benefits for all school personnel. Total Expenditures Current Year Levy To Date Estimated Estimated Per Levy Per Levy Call Actual Variance Call Actual Variance $ 9,396,815 $ 13,608,231 $ 4,211,416 $ 37,587,260 $ 59,780,778 $ 22,193,518 469,841 680,412 210,571 1,879,364 2,989,039 1,109,675 939,681 1,360,823 421,142 3,758,724 5,978,078 2,219,354 2,349,204 3,402,058 1,052,854 9,396,816 14,945,195 5,548,379 5,638,089 8,164,939 2,526,850 22,552,356 35,868,467 13,316,111 9,396,815 13,608,231 4,211,416 37,587,260 59,780,778 22,193,518 $ : $ - $ : $ : $ 2 $ : Excess (Deficiency) of Collections over Expenditures The notes are an integral part of the financial statements. sige JACKSON COUNTY BOARD OF EDUCATION OTHER SUPPLEMENTAL INFORMATION SCHEDULE OF CHANGES IN SCHOOL ACTIVITY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Cash Balance Revenues Expenditures Cash Balance Received Paid Ravenswood High School $ 352,769 $ 599,664 $ 644,783 $ 307,650 Ripley High School 354,257 330,990 324,054 361,193 Ravenswood Middle School 95,086 131,621 147,008 79,699 Ripley Middle School 117,910 285,331 251,429 151,812 Cottageville Elementary School 24,743 12,368 12,390 24,721 Evans Elementary School 8,276 13,718 11,069 10,925 Fairplain Elementary School 26,210 7,122 9,882 23,450 Gilmore Elementary School 13,804 13,410 14,913 12,301 Kenna Elementary School 15,509 21,487 20,280 16,716 Henry J. Kaiser Elementary School 22,654 37,670 44,251 16,073 Ravensood Grade School 9,614 11,403 13,939 7,078 Ripley Elementary School 10,211 28,670 30,261 8,620 je Sub-Total $ 1,051,043 $ 1,493,454 $ 1,524,259 $ 1,020,238 Roane-Jackson Technical Center 341,999 367,536 212,649 496,886 ee ee Total $ 1,393,042 $ 1,860,990 $ 1,736,908 $ 1,517,124 The notes are an integral part of the financial statements. 244i JACKSON 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 Jackson 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 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. JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 i The funds maintained by the Board are: General Current Expense Fund: The General Current Expense Fund is the operating fund of the 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 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: Federal Stimulus and Stabilization 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 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 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. Custodial Funds: Custodial funds are used to account for assets that the School Board holds for others in a custodial capacity. These include: Multi-county vocational centers (MCVC’s) for the purpose of providing high quality, cost effective educational programs and to provide vocational training, respectively, in which the county board of education serves as the fiscal agent; school activity funds to account for the assets of the individual schools of the district, the student clubs, and school support organizations; and may include a scholarship fund to account for contributions and donations made to the school district by a benefactor for the purpose of providing scholarships for graduates of the school district. 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. JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 i 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 Board considers all revenues available if they are collected within 30 days after year-end, except the PEIA receivable which is considered available if collected within 60 days. 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. Custodial funds are custodial in nature (assets equal liabilities) and do not present results of operations or have a measurement focus. Custodial funds are accounted for using the accrual basis of accounting. These funds are used to account for assets that the School Board holds for others in a custodial capacity. D. 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. To the extent unassigned fund balance is available, 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. E. 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 of 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. Funds of the Board are temporarily invested by the West Virginia Municipal Bond Commission specifically on behalf of the Board as part of the Commission's consolidated investment pool. These investments are considered cash and cash equivalents due to their liquid nature. Investments of the Board at June 30, 2024, consisted of certificates of deposit with a balance of $10,125,825. 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 board's name. Custodial credit risk is the risk that in the event of a bank failure, the Board’s deposits may not be returned to it. The Board has limited its custodial credit risk by assuring that these deposits with financial institutions are adequately collateralized. F. Food Service Receivables: The accounts receivable for the Food Service Program has been reduced by $52,000 for uncollectible accounts. The allowance for uncollectible accounts was estimated based upon historical data maintained by the Board as well as current economic conditions. JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 a G. 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. H. Inventories: Inventories are valued at cost using the first-in first out method or, if donated, at fair value when received. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. I. 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. J. Capital Assets: Capital assets, which include land, buildings and improvements, furniture and equipment, and vehicles are reported in the district-wide financial statements. The 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 estimated fair 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 Board are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings 50 -- 70 Site Improvements 20 - 35 Furniture and Equipment 5-20 Vehicles 8-12 JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 K. Right-of-Use Assets: 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. 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. L. 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. The Board’s deferred outflows for the government wide financials include the Board’s current year retirement and OPEB contributions for pension expense that will impact future reporting periods and the differences between the employer contributions and proportionate share of contributions. M. Pension: 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 10 for further discussion. JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 N. Compensated Absences and Other Post Employment Benefit Liability: Compensated Absences: It is the Board’s policy to permit 260 days employees to earn vacation but upon separation from employment and at the fiscal year end, no vacation benefits can be carried forward to the subsequent fiscal year or paid except for the Superintendent which will be paid for any unused vacation days. 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. Other Post Employment Benefit (OPEB) Liability: It is the 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 11 for further discussion. O. 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. P. 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. Balances of deferred inflows of resources may be presented in the statement of net position or governmental fund balance sheet as aggregations of different types of deferred amounts. The amount included for the General Current Expense Fund consists of taxes receivable ($1,947,137). The amount included in the Special Revenue Fund is for Food Service payments receivable ($2,881). Deferred inflows for the government wide financials include the proportionate share of the Board’s net difference between projected and actual investment earnings, difference between expected and actual experience, the differences between the employer contributions and proportionate share of contributions, and changes in assumptions. _ JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 Q. Net Position: Net position is classified into four categories according to external donor restrictions or availability of assets for satisfaction of Board obligations. The Board’s net position is classified as follows: Invested in capital assets, net of related debt - This represents the 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. Restricted net position, expendable - This includes resources in which the 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. Restricted net position, nonexpendable - This includes endowment and similar type funds in which donors or other outside sources have stipulated, as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose of producing present and future income, which may either be expended or added to the principal. The Board has a restricted nonexpendable scholarship account in the amount of $125,825 which is included in the special revenue fund. 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 Board and may be used at the discretion of the Board to meet current expenses for any lawful purpose. R. Fund Equity: Effective July 1, 2010, the 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 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: e Non-spendable fund balances include amounts that cannot be spent because they are in a non- spendable 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. e 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. e 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 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. =f JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 e 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 Board has assigned those amounts to the purposes of the respective funds. e 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. . 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. 99, Omnibus 2022, effective for fiscal years ending after December 15, 2021. The requirements of this Statement are effective as follows: * The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance. * The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. * The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 The objective of this Statement is to enhance comparability in accounting and financial reporting by addressing practice issues that have been identified during implementation and application of certain GASB Statements and accounting and financial reporting for financial guarantees. The School Board has not yet determined the effect that the adoption of GASB Statement No. 99 may have on its financial statements. 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 School Board has not yet determined the effect that the adoption of GASB Statement No. 100 may have on its financial statements. W. 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. GASB has also issued Statement No. 102, Certain Risk Disclosures, which is effective for fiscal years beginning after June 15, 2024. The objective of this statement is to provide financial statement users with information about risks due to concentrations or constraints common in a governmental environment. The standard requires an assessment of whether any concentrations or constraints increase the government's vulnerability to significant impacts, and whether events associated with concentrations and/or constraints have occurred or are more likely than not to occur within one year of issuance of the financial statements. Further, additional detailed disclosures may be required in certain situations. The School Board has not yet determined the effect that the adoption of GASB Statement No. 102 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. 103 may have on its financial statements. Note 2 - Stewardship, Compliance and Accountability: The special revenue school activity fund had a deficiency in net change in fund balance of $30,805. 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 fund. None of the funds had a deficit fund balance. JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 Note 3 - Risk Management: The 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 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 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 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. Workers Compensation Fund (WCF): For the fiscal year ended June 30, 2024, workers’ compensation coverage was provided by Encova. The cost of all coverage as determined by Encova is paid by the Board. Encova’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 Il - 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 Ill - All real and personal property situated outside of municipalities, exclusive of Class | and II 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 II - 45.90¢ per $100 of assessed valuation; Class Ill - 91.80¢ per $100 of assessed valuation; and Class IV - 91.80¢ per $100 of assessed valuation. = « JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 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 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 Permanent Bond Property For Tax Purposes Expense Levy Improvement Purposes Class | $ - 19.40¢ 22.95¢ n/a n/a Class II $ 612,648,658 38.80¢ 45.90¢ n/a n/a Class Ill $ 991,798,130 77.60¢ 91.80¢ n/a n/a ClassIV $ 191,786,034 77.60¢ 91.80¢ n/a n/a 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 Board's funds are as follows: General Current Expense Fund Taxes receivable $ 3,465,442 Less: allowance for uncollectible (1,261,952) Taxes receivable, net $2,203,490 44% JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 Note 5 - Excess Levy: The 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 September 21, 2017 for the fiscal years ended June 30, 2020 through June 30, 2024 to provide funds for the following purposes: A. To provide funds to repair, improve and maintain the existing Board-owned motor vehicles and where necessary to purchase new and additional motor vehicles in order to facilitate a safe and efficient school system at the rate of five percent (5%) of the total annual additional levy proceeds, for an approximate annual cost of $469,841 To provide funds to distribute free textbooks and workbooks to all students in the Jackson County School District, and to supply and equip elementary and secondary schools at the rate of ten percent (10%) of the total annual additional levy proceeds, for an approximate annual cost of $939,681 To provide funds to repair, improve, add to, and maintain all school facilities, to defray utility costs and to provide funds for land and for the construction of buildings thereon or upon any land now owned by the Board of Education at the rate of twenty-five percent (25%) of the total annual additional levy proceeds, for an approximate annual cost of $2,349,204 To provide funds for the employment of additional school system personnel to meet the needs of the school system and to maintain and/or increase the present supplement to the state basic salary scale and provide benefits for all school personnel at the rate of sixty percent (60%) of the total annual additional levy proceeds, for an approximate annual cost of $5,638,089 A total of $13,608,231 was received by the Board from the excess levy during 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: Beginning Ending Balance Additions Disposals Balance Capital assets, non-depreciable: Land $ 3,234,846 $ - §$ - $ 3,234,846 Construction in process 6,153,670 4,673,242 (7,989,259) 2,837,653 Total non-depreciable capital assets 9,388,516 4,673,242 7,989,259 6,072,499 Capital assets, depreciable: Buildings and improvements 81,275,453 7,989,259 - 89,264,712 Furniture and equipment 7,768,107 914,435 - 8,682,542 Vehicles 8,289,085 320,371 242,005 8,367,451 Total depreciable capital assets 97,332,645 9,224,065 (242,005) 106,314,705 Less accumulated depreciation for: Buildings and improvements (39,614,541) (2,200,563) - (41,815,104) Furniture and equipment (5,473,250) (835,323) - (6,308,573) Vehicles 5,207,521 495,282 242,005 5,460,798 Total accumulated depreciation 50,295,312 3,531,168 242,005 53,584,475 Total depreciable capital assets, net 47,037,333 5,692,897 - 52,730,230 Total capital assets, net $ 56,425,849 $ 10,366,139 $ (7,989,259) $ 58,802,729 = 49% JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 Depreciation expense was charged to functions/programs of the governmental activities as follows: Instruction $ 2,909,390 Supporting Services: Students 1,333 Instructional Staff - Central administration 8,621 School administration 3,938 Business - Operation and maintenance of facilities 126,630 Transportation 443,039 Other support services - Food services 38,217 Community Services Total Depreciation expense - governmental activities $ 3,531,168 Note 7 - Long-term Debt: Long-term liability activity for the year ended June 30, 2024 is as follows: Balance, Balance, Amounts Beginning of End of due within Amounts due Year Restatement Additions Deductions Year one year past one year Finance obligations $ 857,076 §$ - $ - $ 145910 $ 711,166 $ 150,172 $ 560,994 Proportionate share of net pension liability 3,096,182 - - 130,876 2,965,306 - 2,965,306 Proportionate share of net OPEB liability 198,394 - - 512,921 (314,527) - (314,527) Long-term liabilities $ 4,151,652 $ -_$§ -__$ 789,707 $3,361,945 $ 150172 $ 3,211,773 Note 8 - Leases: The Board has entered into a finance lease obligation agreement 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 BB&T Governmental Finance for a period of fifteen years beginning July 8, 2014. At the end of the contract period, the Board will have ownership of the equipment. By contract, the 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 Amount 2025 $ 169,715 2026 169,715 2027 169,715 2028 169,715 2029 84,857 763,717 Less: Amount representing interest (52,550) Present value of minimum lease payments $ 711,167 ~ IZ JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 The assets acquired through capital leases are as follows: Asset: Buildings $ 2,052,438 Less: Accumulated Depreciation Buildings (1,068,978) Total Assets, net accumulated depreciation $ 983,460 Note 9 - 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. Short-term lease expenditures for the year ended June 30, 2024 were $26,610. 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. The School Board entered into various SBITA agreements for the purchase of various software leases which cover different years and subscription periods. At the end of the contract period, the School Board will not have ownership of the subscription software. All of the subscription payments are paid in the year incurred and not SBITA lease liability exists. -14- JACKSON 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 Ending Balance Restatement Additions Eliminations Balance Right-of-use Assets: Land $ - §$ - §$ - §$ - §$ - Buildings - - - - - Furniture and equipment - - - - - Vehicles - - - - - SBITAs 1,808,190 - - (554,113) 1,254,077 Total lease assets 1,808,190 - - (554,113) 1,254,077 Less accumulated Amortization for: Land - . - - - Buildings - - - - - Furniture and equipment - - - - - Vehicles - - - - . SBITAs (814,783) - (301,365) 554,113 (562,035) Total accumulated amortization (814,783) - (301,365) 554,113 (562,035) Total right-of-use assets, net $ 993,407 $ -_ $ (301,365) $ -_ $ 692,042 Amortization expense was charged to functions/programs of the governmental activities as follows: Instruction $ 301,365 Supporting Services: Students Instructional Staff Central administration School administration Business Operation and maintenance of facilities Transportation Other support services Food services Community Services - Total amortization expense - governmental activities $ 301,365 Note 10 - 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 $33,912,498 and the payroll was $31,714,420 for employees covered by the two retirement programs. 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. =45- JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 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: ° 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, 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: ° 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. ° 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. wif Gia JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 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 $ 2,965,306 State's proportionate share of the net pension liability associated with the School Board. 36,552,007 Total portion of net pension liability associated with the school board $ 39,517,313 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 0.129523 percent, which was an increase of 0.009146 from its proportion measured as of June 30, 2022 (0.120377 percent). For the year ended June 30, 2024, the School Board recognized pension expense of $5,174,005 and for support provided by the State, revenue of $4,590,598. 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 Resource of Resources Net difference between projected and actual earnings on pension plan investments $ 52,230 - Differences between expected and actual experience 108,246 7,451 Changes in proportion and differences between School Board contributions and proportionate share of contributions 942,173 303,721 Changes in assumptions 125,143 - District contributions subsequent to the measurement date 615,673 - Total $ 1,843,465 $ 311,172 -17- JACKSON 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 pension liability in the year ending June 30, 2024. 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 $ 258,397 2026 34,882 2027 574,364 2028 47,152 2029 1,823 Thereafter - Total $ 916,618 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: 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 - 18 - JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 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 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 weighting 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% 6.3% 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. ={Q\= JACKSON 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 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. Current 1.0% Discount 1.0% Decrease Rate Increase 6.25% 7.25% 8.25% School Board's proportionate share of the TRS net pension liability $ 4,553,963 $ 2,965,307 $ 1,616,965 Payables to the pension plan: At June 30, 2023, the School Board reported a liability of $0 for its unpaid legally required contributions to the pension plan. . 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 II, Great-West Lifetime 2025 Trust II, Great-West Lifetime 2035 Trust Il, Great-West Lifetime 2045 Trust Il, Great-West Lifetime 2055 Trust Il, American Funds EuroPacific R5, 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 Interm-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 $9.4 billion 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. =90= JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 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 contributions 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. 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%) $ 152,460 Employer's contributions (7.5%) 254,100 Total contributions $ 406,560 Note 11 - 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. DF JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 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. 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 pay-go 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 $137,196 for the year end June 30, 2024. Employees are not required to contribute to the OPEB plan. wi DD = JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 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. 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. The State is a non-employer contributing entity that provides funding through West Virginia State Code §11B- 2-32. The Financial Stability Fund is a plan to transfer an annual amount of $5 Million to the RHBT from special revenue funds to be used to lower retiree premiums, to help reduce benefit cuts, to help reduce premium increases or any combination thereof. The $5 million transferred pursuant to this Code shall be transferred annually into the RHBT through June 30, 2022. These transfers were not extended past FY21. 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 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, the related State support, and the total portion of the net OPEB liability that was associated with the School Board were as follows: School Board's proportionate share of the net OPEB liability (asset) $ (314,527) State's proportionate share of the net OPEB liability (asset) associated with the School Board. (1,285,670) Total portion of net OPEB liability (asset) associated with the school board $ (1,600,197) 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 0.198754804 percent, which was an increase of 0.020501615 from its proportion measured as of June 30, 2022 at 0.178253189 percent. «95. JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 For the year ended June 30, 2024, the School Board recognized OPEB expense of $(3,686,051) and for support provided by the State, revenue of $(2,976,749). 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 Resource of Resources Difference between projected and actual investment earnings $ . $ 5,245 Differences between expected and actual non-investment experience - 183,088 Changes in proportion and differences between School Board contributions and proportionate share of contributions 309,189 491 Changes in assumptions 86,729 175,482 School Board contributions subsequent to the measurement date 137,196 - Total $ 533,114 $ 364,306 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, 2024. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in OPEB expense as follows: Years ending June 30, 2025 $ 40,397 2026 (28,308) 2027 31,226 2028 (11,704) 2029 - Thereafter - Total $ 31,611 Actuarial Assumptions: 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: — Entry Age Normal Cost Method Amortization method: Level percentage of payroll, closed Amortization period: 20-year closed period as of June 30, 2017 Asset valuation method: Market value Investment rate of return: 7.40%, net of OPEB plan investment expense, including inflation Inflation: 2.50% Wage inflation: 2.75% for PERS and TRS, and 3.25% for Troopers Salary increases: 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. Retirement age: 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. -24- JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 Mortality: Healthcare cost trend rates: Aging factors: Expenses: Investment Asset Allocation: 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. 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. Based on the 2013 SOA Study “Health Care Costs From Birth to Death” 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. 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: Long-term Target 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% =95% JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 A single discount rate of 7.40% 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. The following table presents the School Board's proportionate share of its net OPEB liability calculated using the discount rate of 7.40 percent and the impact of using a discount rate that is 1% higher or lower than the current rate. Current 1.0% Discount 1.0% Decrease Rate Increase 6.40% 7.40% 8.40% School Board's proportionate share of the WV-RHBT net OPEB liability $ (53,220) $___ (314,528) $___ (601,121) Healthcare Cost Trend Rate: The following table presents the School Board's proportionate share of its net pension liability calculated using the healthcare cost trend rate and the impact of using a discount rate that is 1% higher or lower than the current rate. Current Healthcare 1.0% Cost Trend 1.0% Decrease Rates Increase School Board's proportionate share of the WV-RHBT net OPEB liability $ (801,232) $__ (314,528) $ 264,257 Payables to the OPEB Plan: At June 30, 2024, the School Board reported a liability of $25,126 for its unpaid legally required contributions to the OPEB plan. The liability is included in the balance of OPEB liability — pay go portion on the Governmental Funds Balance Sheet and the Statement of Net Position. 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. -26- JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 Note 12 - Pending Litigation: The Board is involved in a number of legal proceedings and claims, involving students, employees and citizens who have sued the 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 Board. The Board’s insurance through the State Board of Risk and Insurance Management appears adequate to fully cover any potential liability. Note 13 - Payments On Behalf: The Board may receive commitments or payments made by the State or an intermediate governmental jurisdiction for the benefit of the Board or contributions of equipment or supplies. Such revenue includes the payment to a pension fund by the State or an intermediate unit on behalf of the Board’s employees for services rendered to the Board. The revenues recorded as payments on behalf of the Board are as follows: Retirement allocation by the State Unfunded retirement liability allocation by the State PEIA allocations from the State Donated Foods Charter Schools Note 14 - Fund Balance: $ 1,733,021 $ 4,598,497 $ 4,171,796 $ 270,036 $ 110,758 The detailed components of the various fund balance categories as of June 30, 2024 are as follows: General Special Current Special Revenue Capital Expense Revenue School Activity Projects Fund Balances Fund Fund Fund Fund Nonspendable: Inventory $ 238,132 $ 100,029 $ - § - Prepaid Items 116,374 - . - Restricted for: Special Projects - 570,919 1,020,238 - Capital Projects - - - 5,903,655 Debt Service - Arbitrage Payments : - - Excess Levies - - - Committed to: Designated Projects 1,062,569 *TBD - - Assigned to: Encumbrances 3,261,385 - - - *TBD - - - - Unassigned 14,865,707 - - - Total fund balances $ 19,544,167 $ 670,948 $ 1,020,238 $ 5,903,655 aD = Total Governmental Funds $ 338,161 116,374 1,591,157 5,903,655 1,062,569 3,261,385 14,865,707 $27,139,008 JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 Note 15 - Commitments, Contingencies and Subsequent Events: The Board had encumbrances totaling $4,285,588 as of June 30, 2024 in the following funds: General Current Special Capital Expense Revenue Stabilization Projects Fund Fund Fund Fund $3,261,385 $ 106694 $11,799 $ 905,710 To the extent that unassigned fund balance is available, encumbrances are classified as Restricted, Committed, or Assigned fund balance depending on the specific purpose of the encumbrance. The Board completed a major HVAC renovation project at Cottageville Elementary School costing $2,843,105 and another at Ripley Middle School costing $3,251,662 during fiscal year 2024. The majority of the funds for the HVAC renovations came from ESSER funds. The Board received a School Building Authority grant in the amount of $13,547,398 in January 2024 for an addition and renovations at Ripley Middle School. The Board has set aside matching funds of $6,000,000 for the Ripley Middle project. No construction contracts have been awarded at this time. The Board has designated a portion of the unassigned balance of the General Current Expense Fund at June 30, 2024 to be expended for the following purposes: Purpose Amount Concrete Rock Garden at Cottageville Elementary $ 1,200 Carpet Removal/Tile Installation at Cottageville Elementary 3,500 Cafeteria Tables for Evans Elementary 10,000 Gym Ceiling Repair/Replacement at Evans Elementary 25,000 PK-1 Lockers at Fairplain Elementary 20,000 Repair/Paint Entrance Eves at Fairplain Elementary 2,000 Playground Equipment Match for Fairplain Elementary 20,000 Walkie Talkies for Gilmore Elementary 920 Copier for Gilmore Elementary 6,000 Risers for Gilmore Elementary 6,000 Shade Structure for Henry J Kaiser Elementary 4,000 Door Swipe Access for Henry J Kaiser Elementary 3,000 Risograph for Henry J Kaiser Elementary 5,000 Metal Benches for Henry J Kaiser Elementary 4,500 Buddy Bench for Henry J Kaiser Elementary 1,100 Front Office Safety Shield for Kenna Elementary 5,000 Mac Lab for Kenna Elementary 17,500 “99 < JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 Copier for Kenna Elementary 6,500 Promethean Boards for Ravenswood Grade 15,000 Belkin Wired Tablet Keyboards for Ravenswood Grade 2,200 Playground Equipment Match for Ravenswood Grade 20,000 Playground Equipment Match for Ripley Elementary 30,000 ELC Kitchen at Ripley Elementary 54,016 Cafeteria Cameras for Ripley Elementary 2,350 Key Swipes for Ripley Elementary 6,600 Ceiling Tile Replacement for Ravenswood Middle Second Floor 11,139 Display Rails for Ravenswood Middle 307 Perforated Window Design for Ripley Middle Library 2,200 Security Cameras for Ripley Middle 2,700 Restroom Renovations in Ravenswood High Ag Building 20,000 Cameras for Ravenswood High 4,500 Metal Awning for Ravenswood High 15,000 Exterior Lighting for Ravenswood High 20,000 Family & Consumer Science Kitchen Upgrades at Ripley High 18,000 Exterior Camera Updates for Ripley High 1,600 Front Entrance Facade for Ripley High (with Alumni Association) 15,000 SUV Replacement 46,412 Service Truck for Transportation 46,825 Bus Camera Upgrades 80,000 Exterior Lighting 7,500 CEFP Contribution 500,000 Total Committed Fund Balance — Designated Projects $ 1,062,569 “IG JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 ee 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 Board's financial statements. The management of the Board believes that the Board is in compliance with applicable laws and regulations, in all material respects. Based on prior experience, the Board believes such disallowances, if any, would be immaterial. 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 Board owns various buildings which are known to contain asbestos and/or other environmental issues. The Board is not required by federal, state or local law to remove asbestos from its buildings. The 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 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 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 16 - Interfund Balances and Transfers: The special revenue ESSERF fund has a due to balance of $1,189,104 to the general current expense fund. . Funds were transferred from the general current expense fund to projects in the special revenue funds for staff development ($20,660), foster grandparent meal payments ($3,824), and the county contribution to the food service program ($1,003,576). Funds were transferred from the general current expense fund to the capital projects fund ($600,000) to complete the county matching funds for the Ripley Middle School renovation. Funds were transferred from the special revenue fund ($44,931) and from the stabilization fund ($474,470) to the general current expense fund for indirect costs. Funds were transferred from the special revenue fund to the school activity fund for faculty senate ($119,400). Funds were transferred from the school activity fund to the special revenue fund for food service collections ($25,965) and to the general current expense fund for reimbursement of field trips, supplies, payment of gate workers, etc. ($124,386). 23D « JACKSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 2024 Note 17 - Major Sources of Revenue: The largest single source of revenue received by the Board is state aid funds through the Public School Support Program. In addition, the 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 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 Board believes such disallowance, if any, would be immaterial. Note 18 - 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 $1.203.502 from these funds to help mitigate the expenses incurred directly from COVID-19. 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 II (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 $5,271,069 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 2022, 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 $11,528,352 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. -31- REQUIRED SUPPLEMENTARY INFORMATION « Wie JACKSON COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION For The Fiscal Year Ended June 30, 2023 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 for all governmental funds. Budgets are not adopted for agency funds and the special revenue school activity fund. 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. 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 dates. Salary 2021 -23 2020: 201 8-201 9: 2016-2017: 2014-2015: Increases Educators: 2.75%- | State —3.00%- For teacher members, For teacher For teacher members, 5.90% 6.00% salary increases are members, salary salary increases are based on member increases are based | based on member Non-Educators: Non-State 3.00%- experience, dependent | on member experience, dependent 2.75%-6.50% 6.50% on age and gender, experience, on age and gender, ranging from 3.00 to dependent on age ranging from 3.75- 6.00%. For non- and gender, ranging | 5.25%. For non-teacher teacher members, from 3.00 to 6.00%. members, salary salary increases are For non-teacher increases are based on based on member members, salary member experience, experience, dependent | increases are based | dependent on age and on age and gender, on member gender, ranging from ranging from 3.00 to experience, 3.40-6.50%. 6.50% dependent on age and gender, ranging from 3.00 to 6.00% Rate of 7.25%, netof | 7.5%, netof Return pension plan pension plan investment expense | investment expense, including inflation Mortality 2022-23 2020-2021: 2016-2019: 2014-15: Active: 100% of Active: Pub-2010 Active: RP-2000, Non- Active — RP2000, Pub-2010 General General Employee Annuitant table, non-annuitant Employee Tables, Tables, headcount- projected with Scale monthly mortality headcount-weighted, i _ projected AA on a full table, retired — Discount Rate 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. Inflation 2.50% 2.25% 2.25% 2.25% Salary Increases Investment Rate of Return JACKSON COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION For The Fiscal Year Ended June 30, 2023 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 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 2021-23 7.25% Specific to the OPEB covered group. Ranging from 2.75% to 5.18 %, including inflation. 7.40%, net of OPEB plan investment expense, including inflation 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- weighted, projected with Scale MP-2019, disabled females — 113% of Pub-2010 General/Teachers Disabled Female Table, headcount- weighted, projected with Scale MP-2019 2014-2020: 7.5% Specific to the OPEB covered group. Ranging from 2.75% to 5.18 %, including inflation. 6.65%, net of OPEB plan investment expense, including inflation generational basis. — 97% of RP-2000 Healthy Annuitant table, projected with Scale AA on a fully generational basis, of RP-2000 Healthy Annuitant table, projected with Scale AA on a fully generational basis; disabled males — 96 Annuitant table, projected with Scale AA on a fully generational basis, disabled females — 101% of RP-2000 Disabled Annuitant table, projected with Scale AA on a fully generational basis. Specific to the OPEB covered group. Ranging from 2.75% to 5.18 %, including inflation. 6.65%, net of OPEB plan investment expense, including inflation ee Retired: healthy males healthy females — 94% of RP-2000 Disabled RP2000 healthy AA. % Specific to the OPEB covered group. Ranging from 2.75% to 5.18 %, including inflation. 6.65%, net of OPEB plan investment expense, including inflation annuitant, scale AA; disabled - RP2000 disabled annuitant mortality table, scale 2017-2019 2.75% Dependent upon pension system. Ranging from 3.0% to 6.5% 7.15%, net of OPEB plan investment expense, including inflation JACKSON COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION For The Fiscal Year Ended June 30, 2023 Post-Retirement: RP — 2000 Healthy Annuitant Mortality Table projected with Scale AA on a fully generational basis Post Retirement: Pub-2010 General Healthy Retiree Mortality Tables projected with MP- 2019 and scaling factors of 100% for males and 108% for Post Retirement: Pub-2010 General Healthy Retiree Mortality Tables projected with MP-2019 and scaling factors of 100% Post Retirement: Pub-2010 General Healthy Retiree Mortality Tables projected with MP-2021 and 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 Mortality 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 108% for females. Pre-retirement: Pub-2010 General Employee Mortality Tables Pre-retirement: Pub-2010 General Employee Mortality Tables projected with MP-2019. Employee Mortality Tables projected with MP-2019. Public Safety Healthy Retiree Mortality Tables (100% males, 100% females) projected with Scale MP- 2021 for Troopers A and B. Pre-Retirement: Pub-2010 Healthcare Cost Trend Rates Scale Employee 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 General Employee Mortality Tables (100% males, 100% females) projected with MP-2021 for TRS. Pub- 2010 Below-Median Income General Employee Mortality Tables projected with Scale MP-2021 for PERS. Pub- 2010 Public Safety Mortality Tables projected with Scale MP-2021 for 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, projected with MP-2021. 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, 6.65% 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 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, 6.65% 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 7.15% 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 4.50% is decreasing decreasing 2022. 9.15% | decreasing by reached in ratably each ratably each for plan year 0.5% each plan year year year end 2023, year end thereafter, thereafter, 8.40% for thereafter, 2032. until ultimate until ultimate | plan year end until ultimate trend rate of trend rate of 2024, trend rate of 4.25% is 4.25% is decreasing 4.5% is reached in reached in gradually reached in plan yearend | plan year end each year plan year end 2032 2036. thereafter, 2031. until ultimate trend rate of 4.25% is reached in plan year end JACKSON COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION For The Fiscal Year Ended June 30, 2023 2036. trend rates pertaining to per capita claims costs beginning in 2022 to account for the Excise Tax. =«'96~ trend rates pertaining to per capita claims costs beginning in 2020 to account for the Excise Tax. OTHER SUPPLEMENTARY INFORMATION = BF is JACKSON COUNTY BOARD OF EDUCATION OTHER SUPPLEMENTARY INFORMATION For The Fiscal Year Ended June 30, 2023 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 for all governmental funds. Budgets are not adopted for agency 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 Revisions to the budget are authorized only with the prior written approval of the State Board of Education. - 38 - STATE OF WEST VIRGINIA COUNTY OF JACKSON, TO WIT; We, the undersigned President and Secretary of the Board of Education of the County of Jackson, hereby state under oath that the preceding attached financial statements of the funds of the Jackson County Board of Education as of and for the fiscal year ended June 30, 2024 are true and accurate to the best of our knowledge and belief. However, these statements are unaudited and thereby subject to change. President Secretary Subscribed and sworn to before me in my said County, the 19th day of September, 2024. My commission expires on the 19th day of July, 2028.