JCBOE%20Annual%20Financial%20Statement%20-%2006302024.pdf

Parent document: September 19, 2024, Regular Session-09-19-2024.pdf

Text

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.