scott county audit, fy 2013-2014
DESCRIPTION
The Tennessee Comptroller's audit of Scott County finances for the fiscal year ending June 30, 2014.TRANSCRIPT
ANNUAL FINANCIAL REPORT SCOTT COUNTY, TENNESSEE
FOR THE YEAR ENDED JUNE 30, 2014
ANNUAL FINANCIAL REPORT
SCOTT COUNTY, TENNESSEE
FOR THE YEAR ENDED JUNE 30, 2014
COMPTROLLER OF THE TREASURY JUSTIN P. WILSON
DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE
Director
STEPHEN ALRED BRYAN W. BURKLIN, CPA, CGFM ANDREW WAY, CPA Audit Manager MARK FAWVER ASHLEY ROOKARD AMY SOSVILLE, CPA DOUG SANDIDGE, CISA, CFE Auditor 4 State Auditors
This financial report is available at www.comptroller.tn.gov
2
Exhibit Page(s)
Summary of Audit Findings 6-7
INTRODUCTORY SECTION 8
Scott County Officials 9
FINANCIAL SECTION 10
Independent Auditor's Report 11-14BASIC FINANCIAL STATEMENTS: 15
Government-wide Financial Statements:Statement of Net Position A 16-17Statement of Activities B 18-19
Fund Financial Statements:Governmental Funds:
Balance Sheet C-1 20-25Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position C-2 26Statement of Revenues, Expenditures, and Changes in
Fund Balances C-3 27-30Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Fundsto the Statement of Activities C-4 31
Statements of Revenues, Expenditures, and Changes in FundBalances - Actual (Budgetary Basis) and Budget:
General Fund C-5 32-34Ambulance Service Fund C-6 35Highway/Public Works Fund C-7 36
Proprietary Funds:Statement of Net Position D-1 37Statement of Revenues, Expenses, and Changes in Net Position D-2 38Statement of Cash Flows D-3 39
Fiduciary Funds:Statement of Fiduciary Assets and Liabilities E 40
Index and Notes to the Financial Statements 41-84REQUIRED SUPPLEMENTARY INFORMATION: 85
Schedule of Funding Progress – Pension Plans – Primary Government andDiscretely Presented Scott County School Department F-1 86
Schedule of Funding Progress – Other Postemployment BenefitsPlans – Primary Government and Discretely Presented Scott CountySchool Department F-2 87
Notes to the Required Supplementary Information 88
SCOTT COUNTY, TENNESSEETABLE OF CONTENTS
3
Exhibit Page(s)
COMBINING AND INDIVIDUAL FUND FINANCIALSTATEMENTS AND SCHEDULES: 89
Nonmajor Governmental Funds: 90-91Combining Balance Sheet G-1 92-95Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances G-2 96-97Schedules of Revenues, Expenditures, and Changes in Fund
Balances – Actual and Budget:Solid Waste/Sanitation Fund G-3 98Drug Control Fund G-4 99General Capital Projects Fund G-5 100
Major Governmental Funds: 101Schedules of Revenues, Expenditures, and Changes in Fund
Balances – Actual and Budget:General Debt Service Fund H-1 102Rural Debt Service Fund H-2 103
Fiduciary Funds: 104Combining Statement of Fiduciary Assets and Liabilities I-1 105Combining Statement of Changes in Assets and Liabilities –
All Agency Funds I-2 106-108Component Unit:
Discretely Presented Scott County School Department: 109Statement of Activities J-1 110Balance Sheet – Governmental Funds J-2 111-112Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position J-3 113Statement of Revenues, Expenditures, and Changes in Fund
Balances – Governmental Funds J-4 114-115Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Fundsto the Statement of Activities J-5 116
Schedules of Revenues, Expenditures, and Changes in FundBalances – Actual (Budgetary Basis) and Budget:
General Purpose School Fund J-6 117-118School Federal Projects Fund J-7 119Central Cafeteria Fund J-8 120
4
Exhibit Page(s)
Miscellanous Schedules: 121Schedule of Changes in Long-term Notes, Other Loans, Capital
Leases, and Bonds K-1 122-124Schedule of Long-term Debt Requirements by Year K-2 125-126Schedule of Notes Receivable K-3 127Schedule of Transfers – Primary Government and Discretely
Presented Scott County School Department K-4 128Schedule of Salaries and Official Bonds of Principal Officials –
Primary Government and Discretely Presented ScottCounty School Department K-5 129
Schedule of Detailed Revenues – All Governmental Fund Types K-6 130-139Schedule of Detailed Revenues – All Governmental Fund Types –
Discretely Presented Scott County School Department K-7 140-142Schedule of Detailed Expenditures – All Governmental Fund Types K-8 143-159Schedule of Detailed Expenditures – All Governmental Fund Types –
Discretely Presented Scott County School Department K-9 160-167Schedule of Detailed Receipts, Disbursements, and Changes in
Cash Balances – City Agency Funds K-10 168
SINGLE AUDIT SECTION 169
Auditor's Report on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of FinancialStatements Performed in Accordance With GovernmentAuditing Standards 170-172
Auditor's Report on Compliance for Each Major Program; Report onInternal Control Over Compliance; and Report on the Schedule ofExpenditures of Federal Awards Required by OMB Circular A-133 173-175
Schedule of Expenditures of Federal Awards and State Grants 176-177Schedule of Audit Findings Not Corrected 178Schedule of Findings and Questioned Costs 179-187Auditee Reporting Responsibilities 188
5
Summary of Audit Findings Annual Financial Report Scott County, Tennessee
For the Year Ended June 30, 2014
Scope We have audited the basic financial statements of Scott County as of and for the year ended June 30, 2014.
Results
Our report on Scott County’s financial statements is unmodified. Our audit resulted in eight findings and recommendations, which we have reviewed with Scott County management. Detailed findings, recommendations, and management’s responses are included in the Single Audit section of this report.
Findings The following are summaries of the audit findings: OFFICES OF DIRECTOR OF FINANCE AND DIRECTOR OF SCHOOLS ♦ The School Federal Projects Fund had a deficit in unassigned fund balance at
June 30, 2014.
OFFICES OF DIRECTOR OF FINANCE AND COUNTY MAYOR ♦ Some purchase orders were issued after the purchases were made. ♦ Expenditures exceeded appropriations.
OFFICE OF HIGHWAY SUPERINTENDENT ♦ A Highway Department employee obtained county fuel for personal use. ♦ The Highway Department had purchasing deficiencies. ♦ Vehicles were not labeled as property of the Highway Department.
6
OFFICES OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK, CLERK AND MASTER, AND REGISTER OF DEEDS ♦ Duties were not segregated adequately. OFFICE OF REGISTER OF DEEDS ♦ Multiple employees operated from the same cash drawer.
7
INTRODUCTORY SECTION
8
Scott County Officials June 30, 2014 Officials Jeff Tibbals, County Mayor Donald Sexton, Superintendent of Roads Billy Hall, Director of Schools Jimmy Byrd, Trustee Steve Thompson, Assessor of Property Patricia Phillips, County Clerk Donnie Phillips, Circuit and General Sessions Courts Clerk Jane Lloyd, Clerk and Master Porter Rector, Jr., Register of Deeds Ronnie Phillips, Sheriff Brian Strunk, Director of Finance Board of County Commissioners Jeff Tibbals, County Mayor, Chairman Brian Armstrong June Jeffers Ronnie Blevins Sam Lyles Willie Boyatt Kenny Morrow Harold Chambers Ernest Phillips David Day Dennis Sexton Hertis Phillips Mike Slaven David Jeffers Paul Strunk Financial Management Committee Mike Slaven, Chairman Kenny Morrow Jeff Tibbals, County Mayor Paul Strunk Donald Sexton, Superintendent of Roads Hertis Phillips Billy Hall, Director of Schools Board of Education James Sexton, Chairman Randy Henry Tony Sexton John Thompson Brian Strunk Richard Smith Esther Abbott Audit Committee Jerry Slaven Melvin Stephens Dave Cross
9
FINANCIAL SECTION
10
STATE OF TENNESSEE COMPTROLLER OF THE TREASURY
DEPARTMENT OF AUDIT DIVISION OF LOCAL GOVERNMENT AUDIT
SUITE 1500 JAMES K. POLK STATE OFFICE BUILDING
NASHVILLE, TENNESSEE 37243-1402 PHONE (615) 401-7841
Independent Auditor's Report
Scott County Mayor and Board of County Commissioners Scott County, Tennessee To the County Mayor and Board of County Commissioners: Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Scott County, Tennessee, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the county’s basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Scott County Emergency Communications District, which represent 4.9 percent, 6.4 percent, and 1.4 percent, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Scott County Emergency Communications District, is based solely on the report of the other auditors. We
11
conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Scott County, Tennessee, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons for the General, Ambulance Service, and Highway/Public Works funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As described in Note V.B., Scott County has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 67, Financial Reporting for Pension Plans and GASB Statement No. 70, Accounting and Reporting for Nonexchange Financial Guarantees, which have an effective date of June 30, 2014. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic
12
financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the schedules of funding progress – pension plan and other postemployment benefits plan on pages 86 - 88 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Scott County’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service and Rural Debt Service funds, combining and individual fund financial statements of the Scott County School Department (a discretely presented component unit), and miscellaneous schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service and Rural Debt Service funds, combining and individual fund financial statements of the Scott County School Department (a discretely presented component unit), and miscellaneous schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, based on our audit and the procedures performed as described above, the combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service and Rural Debt Service funds, combining and individual fund financial statements of the Scott County School Department (a discretely presented component unit), and miscellaneous schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
13
The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 17, 2015, on our consideration of Scott County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Scott County’s internal control over financial reporting and compliance. Very truly yours,
Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee February 17, 2015 JPW/yu
14
BASIC FINANCIAL STATEMENTS
15
Exhi
bit A
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Net
Pos
ition
June
30,
201
4
Scot
tEm
erge
ncy
Coun
tyCo
mm
unic
a-G
over
nmen
tal
Busi
ness
-typ
eSc
hool
tions
Activ
ities
Activ
ities
Tota
lD
epar
tmen
tD
istr
ict
ASSE
TS
Cash
$14
7,40
0$
0$
147,
400
$8,
517
$1,
405,
688
Equi
ty in
Poo
led
Cash
and
Inve
stm
ents
2,63
8,83
48,
790
2,64
7,62
46,
958,
308
0In
vent
orie
s44
,161
17,3
2061
,481
00
Acco
unts
Rec
eiva
ble
1,96
3,94
85,
780
1,96
9,72
81,
128
17,0
04Al
low
ance
for
Unc
olle
ctib
les
(1,4
57,1
59)
0(1
,457
,159
)0
0D
ue fr
om O
ther
Gov
ernm
ents
979,
352
097
9,35
21,
168,
719
0D
ue fr
om C
ompo
nent
Uni
ts5,
279
05,
279
00
Prop
erty
Tax
es R
ecei
vabl
e4,
736,
029
04,
736,
029
2,13
9,99
70
Allo
wan
ce fo
r U
ncol
lect
ible
Pro
pert
y Ta
xes
(344
,587
)0
(344
,587
)(1
55,2
74)
0Pr
epai
d It
ems
00
00
5,35
4N
otes
Rec
eiva
ble
- Lon
g-te
rm78
,076
078
,076
00
Capi
tal A
sset
s: A
sset
s N
ot D
epre
ciat
ed:
La
nd
1,96
4,88
50
1,96
4,88
591
0,56
10
Ass
ets
Net
of A
ccum
ulat
ed D
epre
ciat
ion:
Bu
ildin
gs a
nd Im
prov
emen
ts13
,551
,676
013
,551
,676
18,2
92,4
780
O
ther
Cap
ital A
sset
s2,
251,
367
02,
251,
367
1,32
2,41
815
0,82
3
Infr
astr
uctu
re3,
400,
950
03,
400,
950
00
Tota
l Ass
ets
$29
,960
,211
$31
,890
$29
,992
,101
$30
,646
,852
$1,
578,
869
DEF
ERRE
D O
UTF
LOW
S O
F RE
SOU
RCES
Def
erre
d Ch
arge
on
Refu
ndin
g$
348
$0
$34
8$
0$
0To
tal D
efer
red
Out
flow
s of
Res
ourc
es$
348
$0
$34
8$
0$
0
(Con
tinue
d)
Com
pone
nt U
nits
Prim
ary
Gov
ernm
ent
16
Exhi
bit A
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Net
Pos
ition
(Con
t.)
Scot
tEm
erge
ncy
Coun
tyCo
mm
unic
a-G
over
nmen
tal
Busi
ness
-typ
eSc
hool
tions
Activ
ities
Activ
ities
Tota
lD
epar
tmen
tD
istr
ict
LIAB
ILIT
IES
Acco
unts
Pay
able
$34
9,62
4$
31,8
30$
381,
454
$14
,915
$0
Accr
ued
Payr
oll
51,0
140
51,0
142,
724,
819
0Ac
crue
d In
tere
st P
ayab
le27
,555
027
,555
00
Payr
oll D
educ
tions
Pay
able
89,3
7560
89,4
3522
1,23
31,
269
Due
to S
tate
of T
enne
ssee
4,91
90
4,91
96,
510
0D
ue to
Pri
mar
y G
over
nmen
t0
00
5,27
90
Oth
er C
urre
nt L
iabi
litie
s0
00
299,
430
0N
oncu
rren
t Lia
bilit
ies:
Due
With
in O
ne Y
ear
2,45
2,80
70
2,45
2,80
70
17,6
70 D
ue in
Mor
e Th
an O
ne Y
ear
(net
of u
nam
ortiz
ed p
rem
ium
on
debt
)36
,282
,032
036
,282
,032
2,82
7,10
40
Tota
l Lia
bilit
ies
$39
,257
,326
$31
,890
$39
,289
,216
$6,
099,
290
$18
,939
DEF
ERRE
D IN
FLO
WS
OF
RESO
URC
ES
Def
erre
d Cu
rren
t Pro
pert
y Ta
xes
$4,
184,
667
$0
$4,
184,
667
$1,
891,
924
$0
Tota
l Def
erre
d In
flow
s of
Res
ourc
es$
4,18
4,66
7$
0$
4,18
4,66
7$
1,89
1,92
4$
0
NET
PO
SITI
ON
Net
Inve
stm
ent i
n Ca
pita
l Ass
ets
$7,
979,
267
$0
$7,
979,
267
$20
,525
,457
$15
0,82
3Re
stri
cted
for:
Gen
eral
Gov
ernm
ent
3,17
40
3,17
40
0 A
dmin
istr
atio
n of
Jus
tice
12,6
650
12,6
650
0 P
ublic
Saf
ety
95,7
400
95,7
400
0 S
ocia
l, Cu
ltura
l, an
d Re
crea
tion
530
530
0 H
ighw
ay/P
ublic
Wor
ks62
0,59
10
620,
591
00
Deb
t Ser
vice
701,
422
070
1,42
20
0 C
apita
l Pro
ject
s29
8,25
50
298,
255
00
Oth
er P
urpo
ses
16,5
220
16,5
220
0 E
duca
tion
00
094
6,67
30
Unr
estr
icte
d(2
3,20
9,12
3)0
(23,
209,
123)
1,18
3,50
81,
409,
107
Tota
l Net
Pos
ition
$(1
3,48
1,43
4)$
0$
(13,
481,
434)
$22
,655
,638
$1,
559,
930
The
note
s to
the
finan
cial
sta
tem
ents
are
an
inte
gral
par
t of t
his
stat
emen
t.
Com
pone
nt U
nits
Prim
ary
Gov
ernm
ent
17
Exhi
bit B
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Act
iviti
esFo
r th
e Ye
ar E
nded
Jun
e 30
, 201
4
Scot
tEm
erge
ncy
Ope
ratin
gCa
pita
lCo
unty
Com
mun
ica-
Char
ges
for
Gra
nts
and
Gra
nts
and
Gov
ernm
enta
lBu
sine
ss-t
ype
Scho
oltio
nsFu
nctio
ns/P
rogr
ams
Expe
nses
Serv
ices
Cont
ribu
tions
Cont
ribu
tions
Activ
ities
Activ
ities
Tota
lD
epar
tmen
tD
istr
ict
Prim
ary
Gov
ernm
ent:
Gov
ernm
enta
l Act
iviti
es:
G
ener
al G
over
nmen
t$
3,55
0,60
7$
423,
687
$14
4,84
2$
78,4
58$
(2,9
03,6
20)$
0$
(2,9
03,6
20)
$0
$0
F
inan
ce87
3,26
050
4,27
50
0(3
68,9
85)
0(3
68,9
85)
00
A
dmin
istr
atio
n of
Jus
tice
782,
205
524,
536
64,7
830
(192
,886
)0
(192
,886
)0
0
Pub
lic S
afet
y3,
758,
292
1,29
9,03
417
4,20
00
(2,2
85,0
58)
0(2
,285
,058
)0
0
Pub
lic H
ealth
and
Wel
fare
2,39
1,72
82,
239,
044
235,
361
235,
000
317,
677
031
7,67
70
0
Soc
ial,
Cultu
ral,
and
Recr
eatio
nal
Serv
ices
106,
224
08,
760
0(9
7,46
4)0
(97,
464)
00
A
gric
ultu
re a
nd N
atur
al R
esou
rces
25,9
980
00
(25,
998)
0(2
5,99
8)0
0
Hig
hway
s2,
591,
515
10,2
952,
453,
017
466,
242
338,
039
033
8,03
90
0
Edu
catio
n2,
166,
477
00
0(2
,166
,477
)0
(2,1
66,4
77)
00
In
tere
st o
n Lo
ng-t
erm
Deb
t1,
108,
956
00
0(1
,108
,956
)0
(1,1
08,9
56)
00
Tota
l Gov
ernm
enta
l Act
iviti
es$
17,3
55,2
62$
5,00
0,87
1$
3,08
0,96
3$
779,
700
$(8
,493
,728
)$0
$(8
,493
,728
)$
0$
0
Busi
ness
-typ
e Ac
tiviti
es:
P
ublic
Util
ity -
Sew
er$
274,
599
$17
9,37
5$
0$
0$
0$
(95,
224)
$(9
5,22
4)$
0$
0To
tal B
usin
ess-
type
Act
iviti
es$
274,
599
$17
9,37
5$
0$
0$
0$
(95,
224)
$(9
5,22
4)$
0$
0
Tota
l Pri
mar
y G
over
nmen
t$
17,6
29,8
61$
5,18
0,24
6$
3,08
0,96
3$
779,
700
$(8
,493
,728
)$(9
5,22
4)$
(8,5
88,9
52)
$0
$0
Com
pone
nt U
nits
: S
cott
Cou
nty
Scho
ol D
epar
tmen
t$
25,0
88,1
80$
315,
069
$4,
522,
941
$2,
159,
560
$0
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8,09
0,61
0)$
0 E
mer
genc
y Co
mm
unic
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istr
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260,
597
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Tota
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,777
$46
5,88
3$
4,66
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9,56
0$
0$
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0$
(18,
090,
610)
$33
,077
(Con
tinue
d)
Net
(Exp
ense
) Rev
enue
and
Cha
nges
in N
et P
ositi
onCo
mpo
nent
Uni
tsPr
ogra
m R
even
ues
Prim
ary
Gov
ernm
ent
18
Exhi
bit B
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Act
iviti
es (C
ont.)
Scot
tEm
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ncy
Ope
ratin
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pita
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unty
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ges
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and
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sine
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nctio
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rogr
ams
Expe
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Cont
ribu
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Cont
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Activ
ities
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ities
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rope
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60
404,
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00
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rope
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686,
462
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6,46
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l19
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192,
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354,
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4,31
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579,
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itiga
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s12
8,15
90
128,
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ess
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s13
8,23
70
138,
237
00
O
ther
Tax
es14
1,41
60
141,
416
2,20
70
Gra
nts
and
Cont
ribu
tions
Not
Res
tric
ted
to S
peci
fic P
rogr
ams
2,82
5,66
70
2,82
5,66
716
,873
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71,1
30 U
nres
tric
ted
Inve
stm
ent I
ncom
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097
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4 M
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ous
37,8
6115
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53,4
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,442
0To
tal G
ener
al R
even
ues
$8,
062,
938
$15
,626
$8,
078,
564
$20
,069
,932
$76
,354
Tran
sfer
s$
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,820
) $62
5,82
0$
0$
0$
0Sp
ecia
l Ite
m -
Cont
ribu
tion
of C
apita
l Ass
ets
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own
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unts
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0(3
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,481
)(3
,386
,481
)0
0Ch
ange
in N
et P
ositi
on$
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56,6
10) $
(2,8
40,2
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(3,8
96,8
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$1,
979,
322
$10
9,43
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et P
ositi
on, J
uly
1, 2
013
(12,
424,
824)
2,84
0,25
9(9
,584
,565
)20
,676
,316
1,45
0,49
9
Net
Pos
ition
, Ju
ne 3
0, 2
014
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3,48
1,43
4)$
0$
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481,
434)
$22
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$1,
559,
930
The
note
s to
the
finan
cial
sta
tem
ents
are
an
inte
gral
par
t of t
his
stat
emen
t.
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ram
Rev
enue
sPr
imar
y G
over
nmen
t
Net
(Exp
ense
) Rev
enue
and
Cha
nges
in N
et P
ositi
onCo
mpo
nent
Uni
ts
19
Exh
ibit
C-1
Scot
t Cou
nty,
Ten
ness
eeB
alan
ce S
heet
Gov
ernm
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dsJu
ne 3
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014
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/G
ener
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ebt
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tG
ener
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rvic
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orks
Serv
ice
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ASS
ETS
Cas
h$
100
$0
$0
$0
$0
Equ
ity in
Poo
led
Cas
h an
d In
vest
men
ts82
0,07
771
,074
20,3
551,
182,
483
37,1
77In
vent
orie
s44
,161
00
00
Acc
ount
s R
ecei
vabl
e16
5,91
51,
725,
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6,44
214
,412
0A
llow
ance
for
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0(1
,457
,159
)0
00
Due
from
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er G
over
nmen
ts10
1,91
40
875,
211
00
Due
from
Oth
er F
unds
1,28
20
00
0D
ue fr
om C
ompo
nent
Uni
ts5,
279
00
00
Prop
erty
Tax
es R
ecei
vabl
e3,
288,
952
00
335,
538
795,
821
Allo
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ce fo
r U
ncol
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pert
y Ta
xes
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,912
)0
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9,74
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otes
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00
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$4,
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$33
9,07
0$
902,
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580,
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$77
3,85
1
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s Pa
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177,
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2631
,788
00
Payr
oll D
educ
tions
Pay
able
50,6
8028
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9,27
70
0D
ue to
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00
00
0D
ue to
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te o
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ness
ee0
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266
70
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litie
s$
228,
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3$
149,
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rope
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s$
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6,38
2$
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284,
063
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0,15
9
(Con
tinue
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20
Exh
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Ten
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eeB
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$12
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7$
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19,3
82$
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77O
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nava
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ue25
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156,
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s of
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ourc
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3,06
4,56
4$
153,
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6,85
7$
381,
521
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1,93
6
FUN
D B
ALA
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ES
Non
spen
dabl
e:In
vent
ory
$44
,161
$0
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tric
ted:
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tric
ted
for
Gen
eral
Gov
ernm
ent
3,17
40
00
0R
estr
icte
d fo
r A
dmin
istr
atio
n of
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tice
12,6
650
00
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estr
icte
d fo
r Pu
blic
Saf
ety
15,4
130
00
0R
estr
icte
d fo
r So
cial
, Cul
tura
l, an
d R
ecre
atio
nal S
ervi
ces
530
00
0R
estr
icte
d fo
r H
ighw
ays/
Publ
ic W
orks
00
463,
734
00
Res
tric
ted
for
Deb
t Ser
vice
00
067
7,81
80
Res
tric
ted
for
Cap
ital P
roje
cts
00
00
0R
estr
icte
d fo
r O
ther
Pur
pose
s16
,522
00
00
Com
mitt
ed:
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mitt
ed fo
r G
ener
al G
over
nmen
t25
,698
00
00
Com
mitt
ed fo
r Pu
blic
Hea
lth a
nd W
elfa
re0
72,8
180
00
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mitt
ed fo
r O
ther
Ope
ratio
ns4,
433
00
00
Com
mitt
ed fo
r H
ighw
ays/
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ic W
orks
00
132,
257
00
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mitt
ed fo
r D
ebt S
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00
521,
430
41,9
15A
ssig
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over
nmen
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530
00
00
Ass
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d fo
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nanc
e1,
238
00
00
(Con
tinue
d)
Maj
or F
unds
21
Exh
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Scot
t Cou
nty,
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ness
eeB
alan
ce S
heet
Gov
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ES
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:A
ssig
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for
Adm
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trat
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of J
ustic
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5,07
9$
0$
0$
0$
0A
ssig
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for
Publ
ic S
afet
y45
,589
00
00
Ass
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d fo
r Pu
blic
Hea
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re43
00
00
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r So
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, Cul
tura
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944
00
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15,5
280
00
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ssig
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for
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pera
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386
00
00
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ssig
ned
702,
497
00
00
Tota
l Fun
d B
alan
ces
$89
9,95
3$
72,8
18$
595,
991
$1,
199,
248
$41
,915
Tota
l Lia
bilit
ies,
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erre
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flow
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und
Bal
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s$
4,19
2,76
8$
339,
070
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2,00
8$
1,58
0,76
9$
773,
851
(Con
tinue
d)
Maj
or F
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22
Exh
ibit
C-1
Scot
t Cou
nty,
Ten
ness
eeB
alan
ce S
heet
Gov
ernm
enta
l Fun
ds (C
ont.)
Oth
erG
over
n-To
tal
men
tal
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ernm
enta
lFu
nds
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s
ASS
ETS
Cas
h$
147,
300
$14
7,40
0E
quity
in P
oole
d C
ash
and
Inve
stm
ents
507,
668
2,63
8,83
4In
vent
orie
s0
44,1
61A
ccou
nts
Rec
eiva
ble
52,0
241,
963,
948
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wan
ce fo
r U
ncol
lect
ible
s0
(1,4
57,1
59)
Due
from
Oth
er G
over
nmen
ts2,
227
979,
352
Due
from
Oth
er F
unds
01,
282
Due
from
Com
pone
nt U
nits
05,
279
Prop
erty
Tax
es R
ecei
vabl
e31
5,71
84,
736,
029
Allo
wan
ce fo
r U
ncol
lect
ible
Pro
pert
y Ta
xes
(20,
788)
(344
,587
)N
otes
Rec
eiva
ble
- Lon
g-te
rm0
78,0
76
Tota
l Ass
ets
$1,
004,
149
$8,
792,
615
LIA
BIL
ITIE
S
Acc
ount
s Pa
yabl
e$
3,82
0$
349,
624
Acc
rued
Pay
roll
051
,014
Payr
oll D
educ
tions
Pay
able
1,19
889
,375
Due
to O
ther
Fun
ds1,
282
1,28
2D
ue to
Sta
te o
f Ten
ness
ee0
4,91
9To
tal L
iabi
litie
s$
6,30
0$
496,
214
DE
FER
RE
D IN
FLO
WS
OF
RE
SOU
RC
ES
Def
erre
d C
urre
nt P
rope
rty
Taxe
s$
284,
063
$4,
184,
667
(Con
tinue
d)
Non
maj
or
Fund
s
23
Exh
ibit
C-1
Scot
t Cou
nty,
Ten
ness
eeB
alan
ce S
heet
Gov
ernm
enta
l Fun
ds (C
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erG
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n-To
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men
tal
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ernm
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lFu
nds
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sD
EFE
RR
ED
INFL
OW
S O
F R
ESO
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CE
S (C
ont.)
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erre
d D
elin
quen
t Pro
pert
y Ta
xes
$9,
706
$18
3,78
2O
ther
Def
erre
d/U
nava
ilabl
e R
even
ue0
413,
947
Tota
l Def
erre
d In
flow
s of
Res
ourc
es$
293,
769
$4,
782,
396
FUN
D B
ALA
NC
ES
Non
spen
dabl
e:In
vent
ory
$0
$44
,161
Res
tric
ted:
Res
tric
ted
for
Gen
eral
Gov
ernm
ent
03,
174
Res
tric
ted
for
Adm
inis
trat
ion
of J
ustic
e0
12,6
65R
estr
icte
d fo
r Pu
blic
Saf
ety
80,3
2795
,740
Res
tric
ted
for
Soci
al, C
ultu
ral,
and
Rec
reat
iona
l Ser
vice
s0
53R
estr
icte
d fo
r H
ighw
ays/
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ic W
orks
046
3,73
4R
estr
icte
d fo
r D
ebt S
ervi
ce0
677,
818
Res
tric
ted
for
Cap
ital P
roje
cts
288,
549
288,
549
Res
tric
ted
for
Oth
er P
urpo
ses
016
,522
Com
mitt
ed:
Com
mitt
ed fo
r G
ener
al G
over
nmen
t0
25,6
98C
omm
itted
for
Publ
ic H
ealth
and
Wel
fare
334,
820
407,
638
Com
mitt
ed fo
r O
ther
Ope
ratio
ns0
4,43
3C
omm
itted
for
Hig
hway
s/Pu
blic
Wor
ks0
132,
257
Com
mitt
ed fo
r D
ebt S
ervi
ce0
563,
345
Ass
igne
d:A
ssig
ned
for
Gen
eral
Gov
ernm
ent
06,
530
Ass
igne
d fo
r Fi
nanc
e0
1,23
8
(Con
tinue
d)
Non
maj
or
Fund
s
24
Exh
ibit
C-1
Scot
t Cou
nty,
Ten
ness
eeB
alan
ce S
heet
Gov
ernm
enta
l Fun
ds (C
ont.)
Oth
erG
over
n-To
tal
men
tal
Gov
ernm
enta
lFu
nds
Fund
s
FUN
D B
ALA
NC
ES
(Con
t.)
Ass
igne
d (C
ont.)
:A
ssig
ned
for
Adm
inis
trat
ion
of J
ustic
e$
0$
5,07
9A
ssig
ned
for
Publ
ic S
afet
y38
445
,973
Ass
igne
d fo
r Pu
blic
Hea
lth a
nd W
elfa
re0
43A
ssig
ned
for
Soci
al, C
ultu
ral,
and
Rec
reat
iona
l Ser
vice
s0
944
Ass
igne
d fo
r A
gric
ultu
re a
nd N
atur
al R
esou
rces
015
,528
Ass
igne
d fo
r O
ther
Ope
ratio
ns0
386
Una
ssig
ned
070
2,49
7To
tal F
und
Bal
ance
s$
704,
080
$3,
514,
005
Tota
l Lia
bilit
ies,
Def
erre
d In
flow
s of
Res
ourc
es, a
nd F
und
Bal
ance
s$
1,00
4,14
9$
8,79
2,61
5
The
note
s to
the
finan
cial
sta
tem
ents
are
an
inte
gral
par
t of t
his
stat
emen
t.
Non
maj
or
Fund
s
25
Exhibit C-2
Scott County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionJune 30, 2014
Amounts reported for governmental activities in the statement of net position (Exhibit A) are different because:
Total fund balances - balance sheet - governmental funds (Exhibit C-1) $ 3,514,005
(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 1,964,885 Add: infrastructure net of accumulated depreciation 3,400,950 Add: buildings and improvements net of accumulated depreciation 13,551,676 Add: other capital assets net of accumulated depreciation 2,251,367 21,168,878
(2) Long-term liabilities are not due and payable in the current periodand therefore are not reported in the governmental funds. Less: notes payable $ (1,978,648) Less: other loans payable (22,995,538) Less: bonds payable (10,685,000) Add: deferred amount on refunding 348 Less: compensated absences payable (184,240) Less: landfill postclosure care costs (2,520,869) Less: other postemployment benefits liability (188,154) Less: accrued interest on bonds, notes, and capital leases (27,555) Less: unamortized premium on debt (182,390) (38,762,046)
(3) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 597,729
Net position (deficit) of governmental activities (Exhibit A) $ (13,481,434)
The notes to the financial statements are an integral part of this statement.
26
Exhi
bit C
-3
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Chan
ges
in F
und
Bala
nces
Gov
ernm
enta
l Fun
dsFo
r the
Yea
r End
ed J
une
30, 2
014
Hig
hway
/G
ener
alRu
ral
Ambu
lanc
ePu
blic
Deb
tD
ebt
Gen
eral
Serv
ice
Wor
ksSe
rvic
eSe
rvic
e
Reve
nues
Loca
l Tax
es$
3,72
6,03
7$
0$
235
$1,
094,
425
$89
2,14
6Li
cens
es a
nd P
erm
its27
,581
00
940
0Fi
nes,
For
feitu
res,
and
Pen
altie
s15
3,39
90
00
0Ch
arge
s fo
r Cur
rent
Ser
vice
s33
5,90
31,
797,
113
00
0O
ther
Loc
al R
even
ues
307,
967
10,7
7288
,966
132,
343
0Fe
es R
ecei
ved
from
Cou
nty
Offi
cial
s84
7,65
60
00
0St
ate
of T
enne
ssee
2,31
9,86
60
2,32
5,66
90
0Fe
dera
l Gov
ernm
ent
86,2
1723
5,00
047
6,99
20
0O
ther
Gov
ernm
ents
and
Citi
zens
Gro
ups
97,9
090
028
,600
351,
092
Tota
l Rev
enue
s$
7,90
2,53
5$
2,04
2,88
5$
2,89
1,86
2$
1,25
6,30
8$
1,24
3,23
8
Expe
nditu
res
Curr
ent:
Gen
eral
Gov
ernm
ent
$1,
153,
560
$0
$0
$0
$0
Fina
nce
848,
630
00
00
Adm
inis
trat
ion
of J
ustic
e77
0,68
10
00
0Pu
blic
Saf
ety
3,57
0,63
80
00
0Pu
blic
Hea
lth a
nd W
elfa
re25
9,50
52,
109,
782
00
0So
cial
, Cul
tura
l, an
d Re
crea
tiona
l Ser
vice
s12
9,58
10
00
0Ag
ricu
lture
and
Nat
ural
Res
ourc
es25
,998
00
00
Oth
er O
pera
tions
1,17
1,66
90
00
0H
ighw
ays
235
03,
076,
257
00
Deb
t Ser
vice
:Pr
inci
pal o
n D
ebt
00
350,
152
1,12
6,74
01,
027,
903
Inte
rest
on
Deb
t0
059
,909
136,
220
389,
307
Oth
er D
ebt S
ervi
ce0
00
301,
807
207,
839
Tota
l Exp
endi
ture
s$
7,93
0,49
7$
2,10
9,78
2$
3,48
6,31
8$
1,56
4,76
7$
1,62
5,04
9
(Con
tinue
d)
Maj
or F
unds
27
Exhi
bit C
-3
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Chan
ges
in F
und
Bala
nces
Gov
ernm
enta
l Fun
ds (C
ont.)
Hig
hway
/G
ener
alRu
ral
Ambu
lanc
ePu
blic
Deb
tD
ebt
Gen
eral
Serv
ice
Wor
ksSe
rvic
eSe
rvic
e
Exce
ss (D
efic
ienc
y) o
f Rev
enue
sO
ver E
xpen
ditu
res
$(2
7,96
2)$
(66,
897)
$(5
94,4
56)
$(3
08,4
59)
$(3
81,8
11)
Oth
er F
inan
cing
Sou
rces
(Use
s)N
otes
Issu
ed$
0$
0$
1,02
2,20
5$
0$
0Re
fund
ing
Deb
t Iss
ued
00
01,
490,
000
8,12
0,00
0Pr
emiu
ms
on D
ebt I
ssue
d0
00
21,5
4215
2,32
0Tr
ansf
ers
In85
,271
00
48,4
240
Tran
sfer
s O
ut(5
,780
)(5
0,00
0)(4
8,42
4)(3
6,02
0)0
Paym
ents
to R
efun
ded
Deb
t Esc
row
Age
nt0
00
(1,4
58,5
16)
(8,1
00,3
99)
Tota
l Oth
er F
inan
cing
Sou
rces
(Use
s)$
79,4
91$
(50,
000)
$97
3,78
1$
65,4
30$
171,
921
Net
Cha
nge
in F
und
Bala
nces
$51
,529
$(1
16,8
97)
$37
9,32
5$
(243
,029
)$
(209
,890
)Fu
nd B
alan
ce, J
uly
1, 2
013
848,
424
189,
715
216,
666
1,44
2,27
725
1,80
5
Fund
Bal
ance
, Jun
e 30
, 201
4$
899,
953
$72
,818
$59
5,99
1$
1,19
9,24
8$
41,9
15
(Con
tinue
d)
Maj
or F
unds
28
Exhi
bit C
-3
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Chan
ges
in F
und
Bala
nces
Gov
ernm
enta
l Fun
ds (C
ont.)
Oth
erG
over
n-To
tal
men
tal
Gov
ernm
enta
lFu
nds
Fund
s
Reve
nues
Loca
l Tax
es$
209,
270
$5,
922,
113
Lice
nses
and
Per
mits
028
,521
Fine
s, F
orfe
iture
s, a
nd P
enal
ties
44,4
8119
7,88
0Ch
arge
s fo
r Cur
rent
Ser
vice
s19
1,37
22,
324,
388
Oth
er L
ocal
Rev
enue
s28
,031
568,
079
Fees
Rec
eive
d fr
om C
ount
y O
ffici
als
084
7,65
6St
ate
of T
enne
ssee
111,
961
4,75
7,49
6Fe
dera
l Gov
ernm
ent
079
8,20
9O
ther
Gov
ernm
ents
and
Citi
zens
Gro
ups
047
7,60
1To
tal R
even
ues
$58
5,11
5$
15,9
21,9
43
Expe
nditu
res
Curr
ent:
Gen
eral
Gov
ernm
ent
$49
,003
$1,
202,
563
Fina
nce
22,1
3187
0,76
1Ad
min
istr
atio
n of
Jus
tice
30,4
7880
1,15
9Pu
blic
Saf
ety
82,3
893,
653,
027
Publ
ic H
ealth
and
Wel
fare
140,
648
2,50
9,93
5So
cial
, Cul
tura
l, an
d Re
crea
tiona
l Ser
vice
s0
129,
581
Agri
cultu
re a
nd N
atur
al R
esou
rces
025
,998
Oth
er O
pera
tions
108,
151
1,27
9,82
0H
ighw
ays
16,4
543,
092,
946
Deb
t Ser
vice
:Pr
inci
pal o
n D
ebt
02,
504,
795
Inte
rest
on
Deb
t0
585,
436
Oth
er D
ebt S
ervi
ce0
509,
646
Tota
l Exp
endi
ture
s$
449,
254
$17
,165
,667
(Con
tinue
d)
Non
maj
or
Fund
s
29
Exhi
bit C
-3
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Chan
ges
in F
und
Bala
nces
Gov
ernm
enta
l Fun
ds (C
ont.)
Oth
erG
over
n-To
tal
men
tal
Gov
ernm
enta
lFu
nds
Fund
s
Exce
ss (D
efic
ienc
y) o
f Rev
enue
sO
ver E
xpen
ditu
res
$13
5,86
1$
(1,2
43,7
24)
Oth
er F
inan
cing
Sou
rces
(Use
s)N
otes
Issu
ed$
0$
1,02
2,20
5Re
fund
ing
Deb
t Iss
ued
09,
610,
000
Prem
ium
s on
Deb
t Iss
ued
017
3,86
2Tr
ansf
ers
In0
133,
695
Tran
sfer
s O
ut(3
5,27
1)(1
75,4
95)
Paym
ents
to R
efun
ded
Deb
t Esc
row
Age
nt0
(9,5
58,9
15)
Tota
l Oth
er F
inan
cing
Sou
rces
(Use
s)$
(35,
271)
$1,
205,
352
Net
Cha
nge
in F
und
Bala
nces
$10
0,59
0$
(38,
372)
Fund
Bal
ance
, Jul
y 1,
201
360
3,49
03,
552,
377
Fund
Bal
ance
, Jun
e 30
, 201
4$
704,
080
$3,
514,
005
The
note
s to
the
finan
cial
sta
tem
ents
are
an
inte
gral
par
t of t
his
stat
emen
t.
Non
maj
or
Fund
s
30
Exhibit C-4
Scott County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesFor the Year Ended June 30, 2014
Amounts reported for governmental activities in the statement of activities (Exhibit B) are different because:
Net change in fund balances - total governmental funds (Exhibit C-3)$ (38,372)
(1) Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of these assets is allocated over their useful lives and reported as depreciation expense. The difference between capital outlays and depreciation is itemized asfollows: Add: capital assets purchased in the current period $ 1,257,674 Less: current-year depreciation expense (1,097,628) 160,046
(2) The net effect of various miscellaneous transactions involving capital assets(sales, trade-ins, and donations) is to increase net position. Add: assets donated and capitalized $ 1,088,517 Less: net book value of disposed assets (616,307) 472,210
(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2014 $ 597,729 Less: deferred delinquent property taxes and other deferred June 30, 2013 (611,870) (14,141)
(4) The issuance of long-term debt (e.g., bonds, notes, other loans, leases) providescurrent financial resources to governmental funds, while the repaymentof the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, hasany effect on net position. Also, governmental funds report the effectof premiums, discounts, and similar items when debt isfirst issued, whereas these amounts are deferred and amortized in thestatement of activities. This amount is the effect of these differencesin the treatment of long-term debt and related items: Add: change in premium on debt issuances $ (160,997) Less: capital outlay note proceeds (1,022,205) Less: refunding debt proceeds (9,610,000) Add: principal payments on notes 807,948 Add: principal payments on other loans 771,000 Add: principal payments on bonds 854,000 Add: principal payments on capital leases 71,847 Less: contributions from the School Department for capital leases (71,847) Less: debt assumed from the enterprise fund (584,021) Add: principal amount of debt refunded 9,477,430 Less: refunding debt proceeds contributed to the School Department (2,166,477) Less: change in deferred amount on refunding debt (801) (1,634,123)
(5) Some expenses reported in the statement of activities do not requirethe use of current financial resources and therefore are not reportedas expenditures in the governmental funds. Change in accrued interest payable $ 55,548 Change in compensated absences payable (10,608) Change in other postemployment benefits liability (10,567) Change in landfill postclosure care costs (36,603) (2,230)
Change in net position of governmental activities (Exhibit B) $ (1,056,610)
The notes to the financial statements are an integral part of this statement.
31
Exhi
bit C
-5
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bala
nce
- Act
ual (
Budg
etar
y Ba
sis)
and
Bud
get
Gen
eral
Fun
dFo
r th
e Ye
ar E
nded
Jun
e 30
, 201
4
Actu
alVa
rian
ceRe
venu
es/
with
Fin
alAc
tual
Add:
Expe
nditu
res
Budg
et -
(GAA
PEn
cum
bran
ces
(Bud
geta
ryPo
sitiv
eBa
sis)
6/30
/201
4Ba
sis)
Ori
gina
lFi
nal
(Neg
ativ
e)
Reve
nues
Loca
l Tax
es$
3,72
6,03
7$
0$
3,72
6,03
7$
3,56
8,83
2$
3,59
3,98
2$
132,
055
Lice
nses
and
Per
mits
27,5
810
27,5
8125
,000
25,0
002,
581
Fine
s, F
orfe
iture
s, a
nd P
enal
ties
153,
399
015
3,39
913
0,00
013
0,00
023
,399
Char
ges
for
Curr
ent S
ervi
ces
335,
903
033
5,90
338
5,00
038
5,00
0(4
9,09
7)O
ther
Loc
al R
even
ues
307,
967
030
7,96
736
4,50
029
2,28
615
,681
Fees
Rec
eive
d fr
om C
ount
y O
ffici
als
847,
656
084
7,65
681
5,00
081
5,00
032
,656
Stat
e of
Ten
ness
ee2,
319,
866
02,
319,
866
1,91
3,30
62,
452,
930
(133
,064
)Fe
dera
l Gov
ernm
ent
86,2
170
86,2
1717
,000
106,
956
(20,
739)
Oth
er G
over
nmen
ts a
nd C
itize
ns G
roup
s97
,909
097
,909
094
,209
3,70
0To
tal R
even
ues
$7,
902,
535
$0
$7,
902,
535
$7,
218,
638
$7,
895,
363
$7,
172
Expe
nditu
res
Gen
eral
Gov
ernm
ent
Coun
ty C
omm
issi
on$
154,
855
$1,
638
$15
6,49
3$
166,
958
$16
6,95
8$
10,4
65Co
unty
May
or/E
xecu
tive
150,
362
177
150,
539
152,
165
152,
165
1,62
6Co
unty
Att
orne
y55
,054
055
,054
55,2
1255
,212
158
Elec
tion
Com
mis
sion
183,
899
2,97
118
6,87
016
7,15
120
7,25
320
,383
Regi
ster
of D
eeds
159,
890
164
160,
054
160,
298
160,
298
244
Coun
ty B
uild
ings
449,
500
1,58
045
1,08
041
0,91
145
7,16
16,
081
Fina
nce
Acco
untin
g an
d Bu
dget
ing
272,
291
2827
2,31
927
5,15
027
5,15
02,
831
Prop
erty
Ass
esso
r's O
ffice
201,
803
020
1,80
320
1,52
720
1,52
7(2
76)
Coun
ty T
rust
ee's
Offi
ce15
5,23
425
415
5,48
816
0,58
216
0,58
25,
094
Coun
ty C
lerk
's O
ffice
219,
302
956
220,
258
226,
587
226,
587
6,32
9Ad
min
istr
atio
n of
Jus
tice
Circ
uit C
ourt
247,
201
1,27
324
8,47
427
6,39
426
3,05
614
,582
Gen
eral
Ses
sion
s Co
urt
315,
212
3,80
631
9,01
830
0,87
831
9,67
866
0
(Con
tinue
d)
Budg
eted
Am
ount
s
32
Exhi
bit C
-5
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bala
nce
- Act
ual (
Budg
etar
y Ba
sis)
and
Bud
get
Gen
eral
Fun
d (C
ont.)
Actu
alVa
rian
ceRe
venu
es/
with
Fin
alAc
tual
Add:
Expe
nditu
res
Budg
et -
(GAA
PEn
cum
bran
ces
(Bud
geta
ryPo
sitiv
eBa
sis)
6/30
/201
4Ba
sis)
Ori
gina
lFi
nal
(Neg
ativ
e)
Expe
nditu
res
(Con
t.)Ad
min
istr
atio
n of
Jus
tice
(Con
t.)Ch
ance
ry C
ourt
$13
8,20
1$
0$
138,
201
$13
8,22
5$
138,
225
$24
Dis
tric
t Att
orne
y G
ener
al45
,466
045
,466
40,0
0045
,500
34O
ffice
of P
ublic
Def
ende
r24
,601
024
,601
12,0
0033
,995
9,39
4Pu
blic
Saf
ety
Sher
iff's
Dep
artm
ent
1,50
9,17
43,
191
1,51
2,36
51,
540,
713
1,56
7,76
255
,397
Adm
inis
trat
ion
of th
e Se
xual
Offe
nder
Reg
istr
y0
200
200
03,
000
2,80
0Ja
il1,
787,
081
29,3
441,
816,
425
1,43
4,35
51,
924,
680
108,
255
Juve
nile
Ser
vice
s21
6,97
71,
675
218,
652
233,
278
233,
278
14,6
26Fi
re P
reve
ntio
n an
d Co
ntro
l2,
000
02,
000
2,00
02,
000
0Ci
vil D
efen
se41
,445
041
,445
30,0
5043
,242
1,79
7Re
scue
Squ
ad8,
000
08,
000
8,00
08,
000
0Co
unty
Cor
oner
/Med
ical
Exa
min
er5,
961
05,
961
6,00
26,
002
41Pu
blic
Hea
lth a
nd W
elfa
reLo
cal H
ealth
Cen
ter
67,1
2843
67,1
7161
,058
84,2
5817
,087
Oth
er L
ocal
Hea
lth S
ervi
ces
192,
172
019
2,17
219
8,04
719
8,04
75,
875
Gen
eral
Wel
fare
Ass
ista
nce
144
014
42,
250
2,25
02,
106
Oth
er L
ocal
Wel
fare
Ser
vice
s61
061
244
244
183
Soci
al, C
ultu
ral,
and
Recr
eatio
nal S
ervi
ces
Seni
or C
itize
ns A
ssis
tanc
e80
,727
080
,727
75,5
7980
,779
52Li
brar
ies
48,8
5494
449
,798
52,8
2552
,825
3,02
7Ag
ricu
lture
and
Nat
ural
Res
ourc
esAg
ricu
ltura
l Ext
ensi
on S
ervi
ce25
,998
15,5
2841
,526
42,6
5243
,852
2,32
6O
ther
Ope
ratio
nsTo
uris
m52
,084
386
52,4
7058
,550
58,5
506,
080
Airp
ort
360,
065
036
0,06
529
1,56
832
4,46
8(3
5,59
7)Ve
tera
ns' S
ervi
ces
45,4
010
45,4
0145
,501
45,5
0110
0
(Con
tinue
d)
Budg
eted
Am
ount
s
33
Exhi
bit C
-5
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bala
nce
- Act
ual (
Budg
etar
y Ba
sis)
and
Bud
get
Gen
eral
Fun
d (C
ont.)
Actu
alVa
rian
ceRe
venu
es/
with
Fin
alAc
tual
Add:
Expe
nditu
res
Budg
et -
(GAA
PEn
cum
bran
ces
(Bud
geta
ryPo
sitiv
eBa
sis)
6/30
/201
4Ba
sis)
Ori
gina
lFi
nal
(Neg
ativ
e)
Expe
nditu
res
(Con
t.)O
ther
Ope
ratio
ns (C
ont.)
Cont
ribu
tions
to O
ther
Age
ncie
s$
84,5
43$
0$
84,5
43$
52,0
00$
84,5
99$
56M
isce
llane
ous
629,
576
062
9,57
649
3,24
263
6,79
37,
217
Hig
hway
sH
ighw
ay a
nd B
ridg
e M
aint
enan
ce23
50
235
235
235
0To
tal E
xpen
ditu
res
$7,
930,
497
$64
,158
$7,
994,
655
$7,
372,
187
$8,
263,
712
$26
9,05
7
Exce
ss (D
efic
ienc
y) o
f Rev
enue
sO
ver
Expe
nditu
res
$(2
7,96
2)$
(64,
158)
$(9
2,12
0)$
(153
,549
)$
(368
,349
)$
276,
229
Oth
er F
inan
cing
Sou
rces
(Use
s)N
otes
Issu
ed$
0$
0$
0$
50,0
00$
50,0
00$
(50,
000)
Tran
sfer
s In
85,2
710
85,2
7116
0,00
018
2,00
0(9
6,72
9)Tr
ansf
ers
Out
(5,7
80)
0(5
,780
)0
(5,7
80)
0To
tal O
ther
Fin
anci
ng S
ourc
es$
79,4
91$
0$
79,4
91$
210,
000
$22
6,22
0$
(146
,729
)
Net
Cha
nge
in F
und
Bala
nce
$51
,529
$(6
4,15
8)$
(12,
629)
$56
,451
$(1
42,1
29)
$12
9,50
0Fu
nd B
alan
ce, J
uly
1, 2
013
848,
424
084
8,42
459
7,00
059
7,00
025
1,42
4
Fund
Bal
ance
, Jun
e 30
, 201
4$
899,
953
$(6
4,15
8)$
835,
795
$65
3,45
1$
454,
871
$38
0,92
4
The
note
s to
the
finan
cial
sta
tem
ents
are
an
inte
gral
par
t of t
his
stat
emen
t.
Budg
eted
Am
ount
s
34
Exh
ibit
C-6
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bal
ance
- A
ctua
l (B
udge
tary
Bas
is) a
nd B
udge
tA
mbu
lanc
e Se
rvic
e Fu
ndFo
r the
Yea
r End
ed J
une
30, 2
014
Act
ual
Var
ianc
eR
even
ues/
with
Fin
alA
ctua
lA
dd:
Exp
endi
ture
sB
udge
t -(G
AA
PE
ncum
bran
ces
(Bud
geta
ryPo
sitiv
eB
asis
)6/
30/2
014
Bas
is)
Ori
gina
lFi
nal
(Neg
ativ
e)
Rev
enue
sC
harg
es fo
r Cur
rent
Ser
vice
s$
1,79
7,11
3$
0$
1,79
7,11
3$
2,05
7,23
1$
2,05
7,23
1$
(260
,118
)O
ther
Loc
al R
even
ues
10,7
720
10,7
720
010
,772
Fede
ral G
over
nmen
t23
5,00
00
235,
000
023
3,96
31,
037
Tota
l Rev
enue
s$
2,04
2,88
5$
0$
2,04
2,88
5$
2,05
7,23
1$
2,29
1,19
4$
(248
,309
)
Exp
endi
ture
sPu
blic
Hea
lth a
nd W
elfa
reA
mbu
lanc
e/E
mer
genc
y M
edic
al S
ervi
ces
$2,
109,
782
$22
,144
$2,
131,
926
$1,
902,
231
$2,
236,
440
$10
4,51
4To
tal E
xpen
ditu
res
$2,
109,
782
$22
,144
$2,
131,
926
$1,
902,
231
$2,
236,
440
$10
4,51
4
Exc
ess
(Def
icie
ncy)
of R
even
ues
Ove
r Exp
endi
ture
s$
(66,
897)
$(2
2,14
4)$
(89,
041)
$15
5,00
0$
54,7
54$
(143
,795
)
Oth
er F
inan
cing
Sou
rces
(Use
s)Tr
ansf
ers
Out
$(5
0,00
0)$
0$
(50,
000)
$(1
55,0
00)
$(1
55,0
00)
$10
5,00
0To
tal O
ther
Fin
anci
ng S
ourc
es$
(50,
000)
$0
$(5
0,00
0)$
(155
,000
)$
(155
,000
)$
105,
000
Net
Cha
nge
in F
und
Bal
ance
$(1
16,8
97)
$(2
2,14
4)$
(139
,041
)$
0$
(100
,246
)$
(38,
795)
Fund
Bal
ance
, Jul
y 1,
201
318
9,71
50
189,
715
231,
413
231,
413
(41,
698)
Fund
Bal
ance
, Jun
e 30
, 201
4$
72,8
18$
(22,
144)
$50
,674
$23
1,41
3$
131,
167
$(8
0,49
3)
The
note
s to
the
finan
cial
sta
tem
ents
are
an
inte
gral
par
t of t
his
stat
emen
t.
Bud
gete
d A
mou
nts
35
Exhibit C-7
Scott County, TennesseeStatement of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetHighway/Public Works FundFor the Year Ended June 30, 2014
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesLocal Taxes $ 235 $ 235 $ 235 $ 0Other Local Revenues 88,966 2,000 77,044 11,922State of Tennessee 2,325,669 2,237,040 2,465,465 (139,796)Federal Government 476,992 0 161,287 315,705
Total Revenues $ 2,891,862 $ 2,239,275 $ 2,704,031 $ 187,831
ExpendituresHighways
Administration $ 114,218 $ 112,397 $ 113,447 $ (771)Highway and Bridge Maintenance 1,706,914 942,574 1,749,274 42,360Operation and Maintenance of Equipment 392,450 300,611 425,127 32,677Other Charges 123,433 64,843 127,937 4,504Employee Benefits 60,111 74,872 64,329 4,218Capital Outlay 679,131 300,000 761,812 82,681
Principal on DebtHighways and Streets 350,152 350,151 354,302 4,150
Interest on DebtHighways and Streets 59,909 45,403 79,208 19,299
Total Expenditures $ 3,486,318 $ 2,190,851 $ 3,675,436 $ 189,118
Excess (Deficiency) of RevenuesOver Expenditures $ (594,456) $ 48,424 $ (971,405) $ 376,949
Other Financing Sources (Uses)Notes Issued $ 1,022,205 $ 0 $ 1,019,829 $ 2,376Transfers Out (48,424) (48,424) (48,424) 0
Total Other Financing Sources $ 973,781 $ (48,424) $ 971,405 $ 2,376
Net Change in Fund Balance $ 379,325 $ 0 $ 0 $ 379,325Fund Balance, July 1, 2013 216,666 171,079 171,079 45,587
Fund Balance, June 30, 2014 $ 595,991 $ 171,079 $ 171,079 $ 424,912
The notes to the financial statements are an integral part of this statement.
Budgeted Amounts
36
Exhibit D-1
Scott County, TennesseeStatement of Net PositionProprietary FundJune 30, 2014
PublicUtilityFund
ASSETS
Current Assets:Equity in Pooled Cash and Investments $ 8,790Accounts Receivable 17,320Due from Other Funds 5,780
Total Assets $ 31,890
LIABILITIES
Current Liabilities:Accounts Payable $ 31,830Payroll Deductions Payable 60
Total Liabilities $ 31,890
NET POSITION
Unrestricted Net Position $ 0
The notes to the financial statements are an integral part of this statement.
Business-type Activities -
Major Enterprise Fund
37
Exhibit D-2
Scott County, TennesseeStatement of Revenues, Expenses, and Changes
in Net PositionProprietary FundFor the Year Ended June 30, 2014
PublicUtilityFund
Operating RevenuesCharges for Services $ 179,375Miscellaneous Refunds 15,626
Total Operating Revenue $ 195,001
Operating ExpensesSalaries $ 24,916Fringe Benefits 3,630Accounting Services 5,677Communication 829Postal Charges 111Permits 892Other Contracted Services 40,520Diesel Fuel 267Electricity 31,725Equipment and Machinery Parts 61,207Gasoline 137Water and Sewer 598Other Supplies and Materials 864Vehicle and Equipment Insurance 1,680Workers' Compensation Insurance 845Trustee's Commission 1,775Depreciation 75,125
Total Operating Expenses $ 250,798Operating Income (Loss) $ (55,797)
Nonoperating Revenues (Expenses)Interest on Debt $ (23,802)
Total Nonoperating Revenues (Expenses) $ (23,802)
Income Before Contributions and Transfers $ (79,599)Transfers In 41,800Contribution by County - Assumption of Enterprise Fund Long-term Debt 584,021Special Item - Contribution of Capital Assets to Town of Huntsville (3,386,481)
Change in Net Position $ (2,840,259)Net Position, July 1, 2013 2,840,259
Net Position, June, 30, 2014 $ 0
The notes to the financial statements are an integral part of this statement.
Business-type Activities -
Major Enterprise
Fund
38
Exhibit D-3
Scott County, TennesseeStatement of Cash FlowsProprietary FundFor the Year Ended June 30, 2014
PublicUtilityFund
Cash Flows from Operating Activities Receipts from Customers and Users $ 177,501 Other Operating Income 8,126 Salaries and Fringe Benefits (28,998) Payments to Vendors (125,244)Net Cash Provided By (Used In) Operating Activities $ 31,385
Cash Flows from Capital and Related Financing Activities Purchase of Capital Assets $ (19,412) Principal Paid on Bonds (23,258) Interest Paid on Bonds (25,193)Net Cash Provided By (Used In) Capital and Related Financing Activities $ (67,863)
Cash Flows from Noncapital Financing Activities Transfers from Other Funds $ 36,020Net Cash Provided By (Used In) Noncapital Financing Activities $ 36,020
Increase (Decrease) in Cash $ (458)Cash, July 1, 2013 9,248
Cash, June 30, 2014 $ 8,790
Reconciliation of Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ (55,797) Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Depreciation 75,125 Changes in Assets and Liabilities: (Increase) Decrease in Current Operating Receivables (1,874) Increase (Decrease) in Current Operating Liabilities 13,931
Net Cash Provided By (Used In) Operating Activities $ 31,385
Non-cash Capital and Financing Transactions Assumption of Debt by County Governmental Activities $ 584,021 Contribution of Capital Assets to City of Huntsville (3,386,481)
The notes to the financial statements are an integral part of this statement.
Business-type Activities -
Major Enterprise
Fund
39
Exhibit E
Scott County, TennesseeStatement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2014
ASSETS
Cash $ 548,906Equity in Pooled Cash and Investments 318,793Accounts Receivable 1,140Due from Other Governments 359,068Property Taxes Receivable 1,479,092Allowance for Uncollectible Taxes (101,268)
Total Assets $ 2,605,731
LIABILITIES
Accounts Payable $ 15,986Payroll Deductions Payable 891Due to Other Taxing Units 1,786,152Due to Litigants, Heirs, and Others 570,066Due to Joint Ventures 232,636
Total Liabilities $ 2,605,731
The notes to the financial statements are an integral part of this statement.
AgencyFunds
40
Note Page(s)
I. Summary of Significant Accounting PoliciesA. Reporting Entity 43B. Government-wide and Fund Financial Statements 44C. Measurement Focus, Basis of Accounting, and Financial
Statement Presentation 45D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and
Net Position/Fund Balance1. Deposits and Investments 482. Receivables and Payables 493. Inventories 494. Capital Assets 505. Deferred Outflows/Inflows of Resources 506. Compensated Absences 517. Long-term Obligations 518. Net Position and Fund Balance 52
II. Reconciliation of Government-wide and Fund Financial StatementsA. Explanation of Certain Differences Between the Governmental Fund
Balance Sheet and the Government-wide Statement of Net Position 54B. Explanation of Certain Differences Between the Governmental Fund
Statement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 54
III. Stewardship, Compliance, and AccountabilityA. Budgetary Information 54B. Fund Deficit 55C. Expenditures Exceeded Appropriations 55
IV. Detailed Notes on All FundsA. Deposits and Investments 56B. Notes Receivable 57C. Capital Assets 57D. Interfund Receivables, Payables, and Transfers 61E. Income from Operating Lease Commitments 62F. Capital Lease 62G. Long-term Obligations 63H. Pledges of Future Revenues 69I. On-Behalf Payments 69J. Short-term Debt 69
SCOTT COUNTY, TENNESSEEIndex of Notes to the Financial Statements
41
Note Page(s)
V. Other InformationA. Risk Management 70B. Accounting Changes 70C. Subsequent Events 71D. Contingent Liabilities 71E. Change in Administration 71F. Landfill Closure and Postclosure Care Costs 71G. Joint Venture 71H. Jointly Goverened Organization 72I. Retirement Commitments 72J. Other Postemployment Benefits (OPEB) 75K. Termination Benefits 78L. Office of Central Accounting, Budgeting, and Purchasing 78M. Purchasing Laws 78
VI. Other Notes - Discretely Presented Scott County EmergencyCommunications District 79
SCOTT COUNTY, TENNESSEEIndex of Notes to the Financial Statements (Cont.)
42
43
SCOTT COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2014
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Scott County’s financial statements are presented in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments. The following are the more significant accounting policies of Scott County:
A. Reporting Entity
Scott County is a public municipal corporation governed by an elected 14-member board. As required by GAAP, these financial statements present Scott County (the primary government) and its component units. The component units discussed below are included in the county's reporting entity because of the significance of their operational or financial relationships with the county.
Blended Component Unit – The Scott County Airport Authority was established by the Scott County Commission to provide oversight of the county’s airport operations. The County Commission appoints all members of the authority’s board. All revenues generated by the authority’s projects have been assigned to the county for payment of obligations of the airport authority, and most financial transactions are accounted for through the county’s General Fund. Long-term debt of the authority was assumed by the county and refinanced as general obligation debt of the county. That debt is retired through the General Debt Service Fund.
Discretely Presented Component Units – The following entities meet the criteria for discretely presented component units of the county. They are reported in separate columns in the government-wide financial statements to emphasize that they are legally separate from the county.
The Scott County School Department operates the public school system in the county, and the voters of Scott County elect its board. The School Department is fiscally dependent on the county because it may not issue debt, and its budget and property tax levy are subject to the County Commission’s approval. The School Department’s taxes are levied under the taxing authority of the county and are included as part of the county’s total tax levy.
The Scott County Emergency Communications District provides a simplified means of securing emergency services through a uniform emergency number for the residents of Scott County, and the County Commission appoints its governing body. The district is funded primarily through a service charge
44
levied on telephone services. Before the issuance of most debt instruments, the district must obtain the County Commission’s approval. The Scott County School Department does not issue separate financial statements from those of the county. Therefore, basic financial statements of the School Department are included in this report as listed in the table of contents. Complete financial statements of the Scott County Emergency Communications District can be obtained from its administrative office at the following address:
Administrative Office:
Scott County Emergency Communications District P.O. Box 406 Huntsville, TN 37756
Related Organization – The Scott County Industrial Development Board is a related organization of Scott County. The County Commission appoints the board members, but the county’s accountability for the organization does not extend beyond making the appointments.
B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. However, when applicable, interfund services provided and used between functions are not eliminated in the process of consolidation in the Statement of Activities. Governmental activities are normally supported by taxes and intergovernmental revenues. Business-type activities, which rely to a significant extent on fees and charges, are required to be reported separately from governmental activities in government-wide financial statements. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The Scott County School Department component unit only reports governmental activities in the government-wide financial statements. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.
45
Scott County issues all debt for the discretely presented Scott County School Department. There were no debt issues contributed by the county to the School Department during the year ended June 30, 2014, except for proceeds from the refunding debt issue discussed in Note IV.G.
Separate financial statements are provided for governmental funds, proprietary funds (enterprise), and fiduciary funds. The fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and the major enterprise fund are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary funds financial statements, except for agency funds, which have no measurement focus. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Fund financial statements of Scott County are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, deferred outflow of resources, liabilities, deferred inflow of resources, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. Scott County only reports one proprietary fund, an enterprise fund. It has no internal service funds to report. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. Major individual governmental funds and the major enterprise fund are reported as separate columns in the fund financial statements. All other governmental funds are aggregated into a single column on the fund financial statements. The fiduciary funds in total are reported in a single column. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they become both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the county considers revenues other than grants to be available if they are collected within 30 days after year-end. Grants and similar items are recognized as revenue as soon as
46
all eligibility requirements imposed by the provider have been met and the revenues are available. Scott County considers grants and similar revenues to be available if they are collected within 60 days after year-end. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Principal and interest on long-term debt are recognized as fund liabilities when due or when amounts have been accumulated in the debt service funds for payments to be made early in the following year. Property taxes for the period levied, in-lieu-of tax payments, sales taxes, interest, and miscellaneous taxes are all considered to be susceptible to accrual and have been recognized as revenues of the current period. Applicable business taxes, litigation taxes, state-shared excise taxes, fines, forfeitures, and penalties are not susceptible to accrual since they are not measurable (reasonably estimable). All other revenue items are considered to be measurable and available only when the county receives cash.
Proprietary and fiduciary funds financial statements are reported using the economic resources measurement focus, except for agency funds, which have no measurement focus, and the accrual basis of accounting. Revenues are recognized when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Scott County reports the following major governmental funds:
General Fund – This is the county’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Ambulance Service Fund – This special revenue fund accounts for the transactions of the Scott County Ambulance Service. Patient charges are the foundational revenues of this fund. Highway/Public Works Fund – This special revenue fund accounts for transactions of the county’s Highway Department. Local and state gasoline/fuel taxes are the foundational revenues of this fund.
General Debt Service Fund – This fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. Rural Debt Service Fund – This fund is used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest, and related cost for debt issued that benefit the areas of Scott County outside the Special School District (Oneida).
47
Scott County reports the following major proprietary fund: Public Utility Fund – This fund was used to account for the operation of the county-owned wastewater treatment facility. This fund was closed during the year. The county donated the capital assets of the system to the Town of Huntsville.
Additionally, Scott County reports the following fund types:
Capital Projects Funds – These funds are used to account for financial resources to be used in the acquisition or construction of major capital projects.
Agency Funds – These funds account for amounts collected in an agency capacity by the constitutional officers, local sales taxes received by the state to be forwarded to the various cities in Scott County, the city school system’s share of educational revenues, state grants and other restricted revenues held for the benefit of the Judicial District Drug Task Force, and restricted revenues held for the benefit of the Office of District Attorney General. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. They do, however, use the accrual basis of accounting to recognize receivables and payables.
The discretely presented Scott County School Department reports the following major governmental funds:
General Purpose School Fund – This fund is the primary operating fund for the School Department. It is used to account for general operations of the School Department. School Federal Projects Fund – This special revenue fund is used to account for restricted federal revenues, which must be expended on specific education programs. Central Cafeteria Fund – This special revenue fund is used to account for the cafeteria operations in each of the schools. Service charges and federal grants are the foundational revenues of this fund.
Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided; (2) operating grants and contributions; and (3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. The county has one proprietary fund, an enterprise fund, used to account for the county’s wastewater facility. Operating revenues and expenses generally result from providing services in connection with the
48
fund’s principal ongoing operations. The principal operating revenues of the county’s enterprise fund are charges for services. Operating expenses for the enterprise fund include various operational expenses for wastewater treatment.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
1. Deposits and Investments
For purposes of the Statement of Cash Flows, cash includes cash on deposit with the county trustee. State statutes authorize the government to make direct investments in bonds, notes, or treasury bills of the U.S. government and obligations guaranteed by the U.S. government or any of its agencies; deposit accounts at state and federal chartered banks and savings and loan associations; repurchase agreements; the State Treasurer’s Investment Pool; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; nonconvertible debt securities of certain federal government sponsored enterprises; and the county’s own legally issued bonds or notes. The county trustee maintains a cash and internal investment pool that is used by all funds and the discretely presented Scott County School Department. Each fund’s portion of this pool is displayed on the balance sheets or statements of net position as Equity in Pooled Cash and Investments. Income from these pooled investments is assigned to various funds based on budgetary allocations. Scott County and the School Department have adopted a policy of reporting U.S. Treasury obligations, U.S. agency obligations, and repurchase agreements with maturities of one year or less when purchased on the balance sheet at amortized cost. Certificates of deposit are reported at cost. Investments in the State Treasurer’s Investment Pool are reported at fair value. The State Treasurer’s Investment Pool is not registered with the Securities and Exchange Commission (SEC) as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. Accordingly, the pool qualifies as a 2a7-like pool and is reported at the net asset value per share (which approximates fair value) even though it is calculated using the amortized cost method. State statutes require the state treasurer to administer the pool under the same terms and conditions, including collateral requirements, as prescribed for other funds invested by the state treasurer. All other investments are reported at fair value. No investments required to be reported at fair value were held at the balance sheet date.
49
2. Receivables and Payables
Activity between funds for unremitted current collections outstanding at the end of the fiscal year are referred to as due to/from other funds. All ambulance and property tax receivables are shown with an allowance for uncollectibles. The allowance for uncollectible property taxes is equal to four percent of total taxes levied. The allowance for ambulance receivables is comprised of estimated amounts of write-offs involving Medicare and Medicaid and estimated amounts of other collections based on historical collection data. Property taxes receivable are recognized as of the date an enforceable legal claim to the taxable property arises. This date is January 1 and is referred to as the lien date. However, revenues from property taxes are recognized in the period for which the taxes are levied, which is the ensuing fiscal year. Since the receivable is recognized before the period of revenue recognition, the entire amount of the receivable, less an estimated allowance for uncollectible taxes, is reported as a deferred inflow of resources as of June 30.
Property taxes receivable are also reported as of June 30 for the taxes that are levied, collected, and reported as revenue during the current fiscal year. These property taxes receivable are presented on the balance sheet as a deferred inflow of resources to reflect amounts not available as of June 30. Property taxes collected within 30 days of year-end are considered available and accrued. The allowance for uncollectible taxes represents the estimated amount of the receivable that will be filed in court for collection. Delinquent taxes filed in court for collection are not included in taxes receivable since they are neither measurable nor available.
Property taxes are levied as of the first Monday in October. Taxes become delinquent and begin accumulating interest and penalty the following March 1. Suit must be filed in Chancery Court between the following February 1 to April 1 for any remaining unpaid taxes. Additional costs attach to delinquent taxes after a court suit has been filed. Most payables are disaggregated on the face of the financial statements. Other current liabilities in the discretely presented Scott County School Department represent amounts due for health insurance premiums, which will be drawn by the insurance pool during July and August.
3. Inventories
Inventories of Scott County are recorded at cost, determined on the first-in, first-out method. Inventories of governmental funds are
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recorded as expenditures when consumed rather than when purchased. Inventories are offset in the nonspendable fund balance account in governmental funds.
4. Capital Assets
Governmental funds do not capitalize the cost of capital outlays; these funds report capital outlays as expenditures upon acquisition. Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, and similar items), are reported in the governmental and business-type columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of $5,000 or more and an estimated useful life of more than three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant, equipment, and infrastructure of the primary government and the discretely presented School Department are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings and Improvements 40Other Capital Assets 5 - 15Infrastructure 20 - 50
5. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government-wide Statement of Net Position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This
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amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has items that qualify for reporting in this category. Accordingly, the items are reported in the government-wide Statement of Net Position and the governmental funds balance sheet. These revenues are from the following sources: current and delinquent property taxes and various receivables for revenues, which do not meet the availability criteria in governmental funds. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
6. Compensated Absences It is the primary government’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. The discretely presented School Department’s policy allows employees to accumulate sick pay benefits but not vacation benefits. There is no liability for unpaid accumulated sick leave since there is no policy to pay any amounts when employees separate from service with the government, except upon retirement as discussed in Note V.I. All vacation pay is accrued when incurred in the government-wide financial statements for the county. A liability for vacation pay is reported in governmental funds only if amounts have matured, for example, as a result of employee resignations and retirements. Vacation benefits are accrued when earned in the enterprise fund.
7. Long-term Obligations In the government-wide financial statements and the proprietary fund in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities or proprietary fund type Statement of Net Position. Debt premiums and discounts are deferred and amortized over the life of the new debt using the straight-line method. Debt issuance costs are expensed in the period incurred. In refunding transactions, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources or a deferred inflow of resources and recognized as a component of interest expense in a systematic and rational manner over the remaining life of the refunded debt or the life of the new debt issued, whichever is shorter.
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In the fund financial statements, governmental funds recognize debt premiums and discounts, as well as debt issuance costs, 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. Only the matured portion (the portion that has come due for payment) of long-term indebtedness, including bonds payable, is recognized as a liability and expenditure in the governmental fund financial statements. Liabilities and expenditures for other long-term obligations, including compensated absences, landfill postclosure care costs, and other postemployment benefits, are recognized to the extent that the liabilities have matured (come due for payment) each period.
8. Net Position and Fund Balance
In the government-wide financial statements and the proprietary fund in the fund financial statements, equity is classified as net position and displayed in three components:
a. Net investment in capital assets – Consists of capital assets,
including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position – Consists of net position with constraints
placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or (2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position – All other net position that does not
meet the definition of restricted or net investment in capital assets.
As of June 30, 2014, Scott County had $22,499,297 in outstanding debt for capital purposes of the discretely presented Scott County School Department. In accordance with state statutes, certain county school debt proceeds must be shared with other public school systems in the county, the Oneida Special School District, based on an average daily attendance proration. The debt is a liability of Scott County, but the capital assets acquired are reported in the financial statements of the other entities. Therefore, Scott County has incurred a liability significantly decreasing its unrestricted net position with no corresponding increase in the county’s capital assets.
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It is the county’s policy that restricted amounts would be reduced first followed by unrestricted amounts when expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available. Also, it is the county’s policy that committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of these unrestricted fund balance classifications could be used. In the fund financial statements, governmental funds report fund balance in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in these funds can be spent. These classifications may consist of the following:
Nonspendable Fund Balance – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund Balance – includes amounts that have constraints placed on the use of the resources that are either (a) externally imposed by creditors, grantors, contributors or laws and regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal resolutions of the County Commission, the county’s highest level of decision-making authority and the Board of Education, the School Department’s highest level of decision-making authority, and shall remain binding unless removed in the same manner. Assigned Fund Balance – includes amounts that are constrained by the county’s intent to be used for specific purposes, but are neither restricted nor committed (excluding stabilization arrangements). The County Commission has by resolution authorized the county’s Financial Management Committee to make assignments for the general government. The Board of Education makes assignments for the School Department. Unassigned Fund Balance – the residual classification of the General and General Purpose School funds. 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 and General Purpose School funds.
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II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. Explanation of certain differences between the governmental fund
balance sheet and the government-wide Statement of Net Position Primary Government Exhibit C-2 includes explanations of the nature of individual elements of items required to reconcile the balance sheet of governmental funds with the government-wide Statement of Net Position. Discretely Presented Scott County School Department Exhibit J-3 includes explanations of the nature of individual elements of items required to reconcile the balance sheet of governmental funds with the government-wide Statement of Net Position.
B. Explanation of certain differences between the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the government-wide Statement of Activities
Primary Government Exhibit C-4 includes explanations of the nature of individual elements of items required to reconcile the net changes in fund balances – total governmental funds with the change in net position of governmental activities reported in the government-wide Statement of Activities. Discretely Presented Scott County School Department Exhibit J-5 includes explanations of the nature of individual elements of items required to reconcile the net change in fund balances – total governmental funds with the change in net position of governmental activities reported in the government-wide Statement of Activities.
III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all governmental funds except the Constitutional Officers – Fees Fund (special revenue fund), which is not budgeted, and the capital projects funds (except for the General Capital Projects Fund), which adopt project length budgets. All annual appropriations lapse at fiscal year-end.
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The county is required by state statute to adopt annual budgets. Annual budgets are prepared on the basis in which current available funds must be sufficient to meet current expenditures. Expenditures and encumbrances may not legally exceed appropriations authorized by the County Commission and any authorized revisions. Unencumbered appropriations lapse at the end of each fiscal year. The budgetary level of control is at the major category level established by the County Uniform Chart of Accounts, as prescribed by the Comptroller of the Treasury of the State of Tennessee. Major categories are at the department level (examples of General Fund major categories: County Commission, Board of Equalization, County Mayor/Executive, County Attorney, etc.). Management may make revisions within major categories, but only the County Commission may transfer appropriations between major categories. During the year, several supplementary appropriations were necessary.
The county’s budgetary basis of accounting is consistent with GAAP, except instances in which encumbrances are treated as budgeted expenditures. The difference between the budgetary basis and GAAP basis is presented on the face of each budgetary schedule.
B. Fund Balance Deficit The School Federal Projects Fund (special revenue fund) of the discretely presented Scott County School Department had a deficit in unassigned fund balance of $54,799 at June 30, 2014. This deficit resulted from the failure to request reimbursements through federal grants on a timely basis. The deficit in unassigned fund balance was liquidated when revenues were recognized after June 30, 2014.
C. Expenditures Exceeded Appropriations Total expenditures exceeded total appropriations approved by the County Commission in the General Capital Projects Fund by $11. Expenditures exceeded appropriations approved by the County Commission in certain major appropriations categories (the legal level of control) of the following funds:
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AmountFund/Major Appropriation Category Overspent
General: Finance: Property Assessor's Office $ 276 Other Operations: Airport 35,597
Highway/Public Works: Highways: Administration 771
Expenditures that exceed appropriations are a violation of state statutes. These expenditures in excess of appropriations were funded by greater than anticipated revenues and by available fund balances.
IV. DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments Scott County and the Scott County School Department participate in an internal cash and investment pool through the Office of Trustee. The county trustee is the treasurer of the county and in this capacity is responsible for receiving, disbursing, and investing most county funds. Each fund’s portion of this pool is displayed on the balance sheets or statements of net position as Equity in Pooled Cash and Investments. Cash reflected on the balance sheets or statements of net position represents nonpooled amounts held separately by individual funds. Deposits Legal Provisions. All deposits with financial institutions must be secured by one of two methods. One method involves financial institutions that participate in the bank collateral pool administered by the state treasurer. Participating banks determine the aggregate balance of their public fund accounts for the State of Tennessee and its political subdivisions. The amount of collateral required to secure these public deposits must equal at least 105 percent of the average daily balance of public deposits held. Collateral securities required to be pledged by the participating banks to protect their public fund accounts are pledged to the state treasurer on behalf of the bank collateral pool. The securities pledged to protect these accounts are pledged in the aggregate rather than against each account. The members of the pool may be required by agreement to pay an assessment to cover any deficiency. Under this additional assessment agreement, public fund accounts covered by the pool are considered to be insured for purposes of custodial credit risk disclosure.
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For deposits with financial institutions that do not participate in the bank collateral pool, state statutes require that all deposits be collateralized with collateral whose market value is equal to 105 percent of the uninsured amount of the deposits. The collateral must be placed by the depository bank in an escrow account in a second bank for the benefit of the county. Investments Legal Provisions. Counties are authorized to make direct investments in bonds, notes, or treasury bills of the U.S. government and obligations guaranteed by the U.S. government or any of its agencies; deposits at state and federal chartered banks and savings and loan associations; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; nonconvertible debt securities of certain federal government sponsored enterprises; and the county’s own legally issued bonds or notes. These investments may not have a maturity greater than two years. The county may make investments with longer maturities if various restrictions set out in state law are followed. Counties are also authorized to make investments in the State Treasurer’s Investment Pool and in repurchase agreements. Repurchase agreements must be approved by the state Comptroller’s Office and executed in accordance with procedures established by the State Funding Board. Securities purchased under a repurchase agreement must be obligations of the U.S. government or obligations guaranteed by the U.S. government or any of its agencies. When repurchase agreements are executed, the purchase of the securities must be priced at least two percent below the fair value of the securities on the day of purchase. The county had no pooled and nonpooled investments as of June 30, 2014.
B. Notes Receivable Notes receivable are reflected in the General Debt Service Fund for amounts due from the sale of the Scott County Hospital to Pioneer Health Services, Inc., which occurred in November 2013. Terms of the sales agreement included a sale price of $106,676, which was the amount necessary to retire the county’s outstanding debt on the hospital. Pioneer paid $28,600 of this amount in January 2014, and agreed to pay the balance of $78,076 in three equal annual installments due December 2014 through December 2016. The amount of the receivable not expected to be received within one year is $52,050. In the fund financial statements, the receivable is offset by deferred revenues since none of the amounts due meet the availability criteria for revenue recognition in governmental funds.
C. Capital Assets Capital assets activity for the year ended June 30, 2014, was as follows:
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Primary Government Governmental Activities
Balance Balance7-1-13 Increases Decreases 6-30-14
Capital Assets Not Depreciated:Land $ 1,983,885 $ 0 $ (19,000) $ 1,964,885Total Capital Assets Not Depreciated $ 1,983,885 $ 0 $ (19,000) $ 1,964,885
Capital Assets Depreciated:Buildings and Improvements $ 21,624,430 $ 535,959 $ (2,950,630) $ 19,209,759Infrastructure 3,380,223 543,826 0 3,924,049Other Capital Assets 4,438,786 1,266,406 (310,599) 5,394,593Total Capital Assets Depreciated $ 29,443,439 $ 2,346,191 $ (3,261,229) $ 28,528,401
Less Accumulated Depreciation For:Buildings and Improvements $ 7,589,158 $ 475,005 $ (2,406,080) $ 5,658,083Infrastructure 447,322 75,777 0 523,099Other Capital Assets 2,854,222 546,846 (257,842) 3,143,226Total Accumulated Depreciation $ 10,890,702 $ 1,097,628 $ (2,663,922) $ 9,324,408
Total Capital Assets Depreciated, Net $ 18,552,737 $ 1,248,563 $ (597,307) $ 19,203,993
Governmental Activities Capital Assets, Net $ 20,536,622 $ 1,248,563 $ (616,307) $ 21,168,878
Decreases include hospital assets with an estimated original cost of $2,969,630 and accumulated depreciation of $2,406,080, which were sold to Pioneer Health Services. See Note IV.B. for further discussion of this sale. Business-type Activities
Balance Balance7-1-13 Increases Decreases 6-30-14
Capital Assets Not Depreciated:Land $ 10,000 $ 0 $ (10,000) $ 0Total Capital Assets Not Depreciated $ 10,000 $ 0 $ (10,000) $ 0
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Business-type Activities (Cont.)
Balance Balance7-1-13 Increases Decreases 6-30-14
Capital Assets Depreciated:Buildings and Improvements $ 349,487 $ 0 $ (349,487) $ 0Infrastructure 2,088,680 0 (2,088,680) 0Other Capital Assets 1,966,448 19,412 (1,985,860) 0Total Capital Assets Depreciated $ 4,404,615 $ 19,412 $ (4,424,027) $ 0
Less Accumulated Depreciation For:Buildings and Improvements $ 121,122 $ 10,152 $ (131,274) $ 0Infrastructure 334,520 25,524 (360,044) 0Other Capital Assets 516,779 39,449 (556,228) 0Total Accumulated Depreciation $ 972,421 $ 75,125 $ (1,047,546) $ 0
Total Capital Assets Depreciated, Net $ 3,432,194 $ (55,713) $ (3,376,481) $ 0
Business-type Activities Capital Assets, Net $ 3,442,194 $ (55,713) $ (3,386,481) $ 0
During the year, Scott County discontinued operations of its business-type activities, which consisted of the Public Utility Fund. Capital assets of the fund were donated to the Town of Huntsville. By interlocal agreement, the Town of Huntsville agreed to assume operations of the utility. Depreciation expense was charged to functions of the primary government as follows: Governmental Activities:
General Government $ 574,099Administration of Justice 2,208Public Safety 226,970Public Health and Welfare 126,685Social, Cultural, and Recreational Services 5,243Highways 162,423
Total Depreciation Expense - Governmental Activities $ 1,097,628
Business-type Activities:
Sewer $ 75,125Total Depreciation Expense - Business-type Activities $ 75,125
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Discretely Presented Scott County School Department Capital assets activity for the year ended June 30, 2014, was as follows: Governmental Activities:
Balance Balance7-1-13 Increases 6-30-14
Capital Assets Not Depreciated:Land $ 910,561 $ 0 $ 910,561Total Capital Assets Not Depreciated $ 910,561 $ 0 $ 910,561
Capital Assets Depreciated:Buildings and Improvements $ 28,833,306 $ 38,483 $ 28,871,789Other Capital Assets 4,785,862 323,082 5,108,944Total Capital Assets Depreciated $ 33,619,168 $ 361,565 $ 33,980,733
Less Accumulated Depreciation For:Buildings and Improvements $ 9,877,684 $ 701,627 $ 10,579,311Other Capital Assets 3,498,168 288,358 3,786,526
Total Accumulated Depreciation $ 13,375,852 $ 989,985 $ 14,365,837
Total Capital Assets Depreciated, Net $ 20,243,316 $ (628,420) $ 19,614,896
Governmental Activities Capital Assets, Net $ 21,153,877 $ (628,420) $ 20,525,457
The School Department had no decreases in capital assets to report for the year ended June 30, 2014. Depreciation expense was charged to functions of the discretely presented Scott County School Department as follows:
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Governmental Activities:
Instruction $ 6,004Support Services 934,057Operation of Non-instructional Services 49,924
Total Depreciation Expense - Governmental Activities $ 989,985
D. Interfund Receivables, Payables, and Transfers The composition of interfund balances as of June 30, 2014, was as follows: Due to/from Other Funds: Receivable Fund Payable Fund Amount
Primary Government: General Nonmajor governmental $ 1,282 Public Utility General 5,780
These balances resulted from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur and payments between funds are made. The balance in the Public Utility Fund totaling $5,780 was in-transit from the General Fund at June 30, 2014. Due to/from Primary Government and Component Units: Receivable Fund Payable Fund Amount
Component Unit:Primary Government: School Department: General General Purpose School $ 5,279
Interfund Transfers: Interfund transfers for the year ended June 30, 2014, consisted of the following amounts:
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Primary Government
General PublicGeneral Debt Service Utility
Transfers Out Fund Fund Fund
General Fund 0 0 $ 5,780Ambulance Service Fund $ 50,000 $ 0 $ 0Highway/Public Works Fund 0 48,424 0General Debt Service Fund 0 0 36,020Nonmajor governmental funds 35,271 0 0
Total $ 85,271 $ 48,424 $ 41,800
Transfers In
Discretely Presented Scott County School Department
GeneralPurposeSchool
Transfer Out Fund
School Federal Projects Fund $ 26,000
Transfer In
Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and to use unrestricted revenues collected in the General Fund to finance various programs accounted for in the other funds in accordance with budgetary authorizations.
E. Income from Operating Lease Commitments Scott County has leased operations of its nursing home to Preferred Health Services. The initial lease agreement expired August 31, 2013; however, the lease has been extended for a period of five years and will now expire August 31, 2018. Terms of the agreement call for Preferred Health Services to assume most of the current assets and liabilities of the nursing home and to pay Scott County a monthly fee. The current payments under this agreement are $103,226 annually. The agreement includes a cancellation clause; therefore, a schedule of future income is not presented for this agreement.
F. Capital Lease
On May 15, 2008, Scott County entered into a 19-year lease-purchase agreement on behalf of the School Department for energy efficiency upgrades
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and equipment for school facilities. The terms of the agreement require total lease payments of $2,499,652 plus interest of 4.62 percent. Lease payments were scheduled to be made through 2027. The General Purpose School Fund was making contributions to the primary government for the lease payments. However, on June 30, 2014, the leased equipment was purchased with proceeds from the Refunding Bond Series 2014B discussed in Note IV.G., thereby terminating this lease-purchase agreement.
G. Long-term Obligations
Primary Government General Obligation Bonds, Notes, and Other Loans Scott County issues general obligation bonds and other loans to provide funds for the acquisition, construction, and renovation of major capital facilities for the primary government and the discretely presented School Department. In addition, general obligation bonds have been issued to refund other general obligation bonds. Capital outlay notes are also issued to fund capital facilities and other capital outlay purchases, such as equipment. General obligation bonds, capital outlay notes, and other loans are direct obligations and pledge the full faith and credit of the government. General obligation bonds, capital outlay notes, and other loans outstanding were issued for original terms of up to 21 years for bonds, up to 12 years for notes, and up to 27 years for other loans. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. Outstanding notes totaling $1,922,351 will be retired from the Highway/Public Works Fund. All other notes, bonds, and other loans outstanding will be retired from the debt service funds. General obligation bonds, capital outlay notes, and other loans outstanding as of June 30, 2014, for governmental activities are as follows:
OriginalInterest Final Amount Balance
Type Rate Maturity of Issue 6-30-14
General Obligation Bonds 3 to 4.5 % 6-1-28 $ 1,250,000 $ 1,075,000General Obligation Bonds - Refunding 2 to 3.4 6-1-35 9,610,000 9,610,000Capital Outlay Notes 2.94 to 4.99 6-30-17 3,695,777 1,978,648Other Loans Variable 5-25-35 27,594,938 22,995,538
Scott County has entered into loan agreements with the Montgomery County Public Building Authority and the City of Clarksville Public Building Authority (PBAs). These loan agreements provide for the PBAs to loan funds to Scott County for various renovation and construction projects on an as needed basis. These loans are repayable at interest rates that are tax-exempt
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variable rates determined by the remarketing agent daily or weekly, depending on the particular program. In addition, the county pays various other fees (administrative, letter of credit, debt remarketing, etc.) in connection with these loans. The following table summarizes loan agreements outstanding at June 30, 2014:
OtherOriginal Interest Fees onAmount Outstanding Rates Variableof Loan Principal Interest as of Rate
Description Agreement 6-30-14 Type 6-30-14 Debt
Montgomery County Public Building Authority
Building and Equipment $ 1,000,000 $ 410,600 Variable .12% 1.23%Various School Projects 3,000,000 1,642,000 Variable .45% .63Justice Center 10,000,000 8,261,938 (1) Variable .07% 1.07%
City of Clarksville Public Building Authority
School Renovations and Improvements 13,940,000 12,681,000 Variable .11% 1.02%
Total $ 22,995,538
(1) Total available at June 30, 2014, for future draws under this loan agreement is $345,062.
The annual requirements to amortize all general obligation bonds, notes, and other loans outstanding as of June 30, 2014, including interest and other loan fees, are presented in the following tables: Year EndingJune 30 Principal Interest Total
2015 $ 665,000 $ 268,447 $ 933,4472016 630,000 273,526 903,5262017 640,000 259,826 899,8262018 595,000 245,826 840,8262019 595,000 232,726 827,7262020-2024 3,230,000 952,262 4,182,2622025-2029 4,100,000 409,251 4,509,2512030-3034 190,000 24,990 214,9902035 40,000 1,360 41,360
Total $ 10,685,000 $ 2,668,214 $ 13,353,214
Bonds
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Year EndingJune 30 Principal Interest Total
2015 $ 747,184 $ 63,936 $ 811,1202016 832,398 32,620 865,0182017 399,066 8,062 407,128
Total $ 1,978,648 $ 104,618 $ 2,083,266
Notes
Year EndingJune 30 Principal Interest Other Fees Total
2015 $ 807,400 $ 27,614 $ 227,153 $ 1,062,1672016 845,000 26,270 219,665 1,090,9352017 883,600 24,872 211,818 1,120,2902018 924,400 23,419 203,604 1,151,4232019 967,300 21,910 195,000 1,184,2102020-2024 5,122,900 84,926 832,513 6,040,3392025-2029 5,363,000 53,915 581,261 5,998,1762030-3034 6,846,000 26,106 278,706 7,150,8122035 1,235,938 1,242 12,447 1,249,627
Total $ 22,995,538 $ 290,274 $ 2,762,167 $ 26,047,979
Other Loans
There is $1,241,163 available in the debt service funds to service long-term debt. Debt per capita, including notes, bonds, and other loans totaled $1,163, for residents living inside the Oneida Special School District and $1,694, for residents living outside the Oneida Special School District. Changes in Long-term Obligations Long-term obligations activity for the year ended June 30, 2014, was as follows:
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Governmental Activities:
OtherBonds Notes Loans
Balance, July 1, 2013 $ 7,879,000 $ 2,541,323 $ 23,766,538Additions (1) 9,610,000 1,022,205 0Reductions (6,804,000) (1,584,880) (771,000)
Balance, June 30, 2014 $ 10,685,000 $ 1,978,648 $ 22,995,538
Balance Due Within One Year $ 665,000 $ 747,184 $ 807,400
Capital CompensatedLeases Absences
Balance, July 1, 2013 $ 2,238,324 $ 173,632Additions 0 162,256Reductions (2,238,324) (151,648)
Balance, June 30, 2014 $ 0 $ 184,240
Balance Due Within One Year $ 0 $ 147,392
LandfillClosure/ Other
Postclosure PostemploymentCare Costs Benefits
Balance, July 1, 2013 $ 2,484,266 $ 177,587Additions 47,003 13,117Reductions (10,400) (2,550)
Balance, June 30, 2014 $ 2,520,869 $ 188,154
Balance Due Within One Year $ 90,831 $ 0
(1) Includes amounts to refund debt, which was previously reflected as business-type activity debt as discussed in the Public Utility Fund (enterprise fund) section of this note.
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Analysis of Noncurrent Liabilities Presented on Exhibit A:
Total Noncurrent Liabilities, June 30, 2014 $ 38,552,449Less: Balance Due Within One Year (2,457,807)Add: Unamortized Premium on Debt 182,390
Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 36,277,032 During the year, the discretely presented Scott County School Department contributed $351,092 to the primary government’s Rural Debt Service Fund for the retirement of debt issued for school purposes. Compensated absences and other postemployment benefits will be paid from the employing funds, primarily the General, Ambulance Service, and Highway/Public Works funds. Landfill closure/postclosure care costs will be paid from the Solid Waste/Sanitation Fund. Current Refunding During the year, Scott County issued $1,490,000 of General Obligation Refunding Bonds Series 2014A to provide resources for a current refunding of the 2003 General Obligation Refunding Bond, the 2004 General Obligation Bonds, the 2007 Revenue and Tax Bonds, and a capital outlay note. As a result, the refunded debt was redeemed and the liabilities have been removed from the governmental activities column of the Statement of Net Position. The transaction resulted in a decrease of $219,806 in future debt service payments and an economic gain (difference between the present value of the debt service payments of the refunded and refunding debt) of $147,344 was obtained. The decrease in future debt service payments is a result of lower interest rates on the refunding debt. During the year, Scott County issued $8,120,000 of Rural School Refunding Bonds Series 2014B to provide resources for a current refunding of the 2004 Rural School Refunding Bonds, the 2004 Rural School Bonds, four capital outlay notes, and the 2008 Energy Efficiency upgrades capital lease. As a result, the refunded notes and bonds were redeemed and the liabilities have been removed from the governmental activities column of the Statement of Net Position. The transaction resulted in a decrease of $1,223,130 in future debt service payments and an economic gain (difference between the present value of the debt service payments of the refunded and refunding debt) of $1,078,884 was obtained. The decrease in future debt service payments is a result of lower interest rates on the refunding debt.
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Public Utility Fund (enterprise fund) During the year, Scott County discontinued operation of the Public Utility Fund (enterprise fund). Long-term debt that was associated with the Public Utility Fund was refunded by proceeds from the refunding Bond Series 2014A on June 30, 2014. The refunding bond is reflected as debt of the governmental operations. Changes in Long-term Obligations Long-term obligations activity for the Public Utility Fund for the year ended June 30, 2014, was as follows: Business-type Activities:
Balance, July 1, 2013 $ 607,279Reductions (principal retirement) (23,258)Reductions (refunded by governmental activities debt) (584,021)
Balance, June 30, 2014 $ 0
Fund
PublicUtility
Bonds
Discretely Presented Scott County School Department
Changes in Long-term Obligations Long-term obligations activity for the discretely presented Scott County School Department for the year ended June 30, 2014, was as follows: Governmental Activities:
Postemployment
Balance, July 1, 2013 $ 2,532,391Additions 499,609Reductions (204,896)
Balance, June 30, 2014 $ 2,827,104
Balance Due Within One Year $ 0
Other
Benefits
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Analysis of Noncurrent Liabilities Presented on Exhibit A:
Total Noncurrent Liabilities, June 30, 2014 $ 2,827,104Less: Balance Due Within One Year 0
Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 2,827,104
Other postemployment benefits will be paid from the employing funds, primarily the General Purpose School and School Federal Projects funds.
H. Pledges of Future Revenues In March 2012, the citizens of Scott County voted to levy a motor vehicle privilege tax totaling $30 for each motor-driven vehicle. The county pledged the tax collections to repay $13,940,000 in variable rate Public Building Authority Loans issued in December 2009 to finance the construction of Robbins Elementary, Burchfield Elementary, and Oneida schools. Upon payment and retirement of this debt, the tax will terminate. The principal, estimated interest, and estimated fee requirements for the loans totaled $14,456,581, payable monthly through May 2035. For the current year, total principal, interest, and fees paid on the loan and motor vehicle privilege tax generated were $478,276 and $579,419, respectively. A portion of restricted fund balance in the General Debt Service Fund ($157,612) represents the cumulative amount that these pledged revenues have exceeded the debt service requirements for the bonds since the inception of the wheel tax.
I. On-Behalf Payments – Discretely Presented Scott County School Department The State of Tennessee pays health insurance premiums for retired teachers on-behalf of the Scott County School Department. These payments are made by the state to the Local Education Group Insurance Plan and the Medicare Supplement Plan. Both of these plans are administered by the State of Tennessee and reported in the state’s Comprehensive Annual Financial Report. Payments by the state to the Local Education Group Insurance Plan and the Medicare Supplement Plan for the year ended June 30, 2014, were $98,656 and $29,494, respectively. The School Department has recognized these on-behalf payments as revenues and expenditures in the General Purpose School Fund.
J. Short-term Debt
Scott County issued tax anticipation notes in the form of interfund loans in advance of revenue collections. These loans were necessary to provide cash for operations. Short-term debt activity for the year ended June 30, 2014, was as follows:
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Balance Balance7-1-13 Issued Paid 6-30-14
Primary Government: From General Debt Service Fund to General Fund $ 0 $ 400,000 $ (400,000) $ 0
V. OTHER INFORMATION
A. Risk Management
Scott County and the discretely presented Scott County School Department participate in the Tennessee Risk Management Trust (TN-RMT), which is a public entity risk pool created under the auspices of the Tennessee Governmental Tort Liability Act to provide governmental insurance coverage. The county and School Department pay annual premiums to the TN-RMT for their general liability, property, casualty, and workers’ compensation insurance coverage. The creation of the TN-RMT provides for it to be self-sustaining through member premiums. The Scott County School Department participates in the Local Education Group Insurance Fund (LEGIF), a public entity risk pool established to provide a program of health insurance coverage for employees of local education agencies. In accordance with Section 8-27-301, Tennessee Code Annotated (TCA), all local education agencies are eligible to participate. The LEGIF is included in the Comprehensive Annual Financial Report of the State of Tennessee, but the state does not retain any risk for losses by this fund. Section 8-27-303, TCA, provides for the LEGIF to be self-sustaining through member premiums. It is the policy of the Scott County general government to purchase commercial insurance for employee health insurance. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years.
B. Accounting Changes Provisions of Governmental Accounting Standards Board (GASB) Statement No. 67, Financial Reporting for Pension Plans and Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees became effective for the year ended June 30, 2014. GASB Statement No. 67, replaces the requirements of Statements No. 25 and No. 50 related to pension plans that are administered through trusts or equivalent arrangements. The requirements of Statements No. 25 and No. 50 remain applicable to pension plans that are not administered through trusts or equivalent arrangements.
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GASB Statement No. 70 relates to accounting and financial reporting by state and local governments that extend and receive nonexchange financial guarantees.
C. Subsequent Events On August 18, 2014 the County Commission approved tax anticipation notes loaned from the General Debt Service Fund to the General and Ambulance Service funds for $308,769 and $115,586, respectively. On August 31, 2014, Jeff Tibbals left the Office of County Mayor and was succeeded by Dale Perdue.
D. Contingent Liabilities The county is involved in several pending lawsuits. Management believes the outcome of any lawsuits not covered by insurance will not materially affect the financial statements of the primary government or the discretely presented Scott County School Department.
E. Change in Administration On December 8, 2013, Sheriff Michael Cross died, and on January 22, 2014, Ronnie Phillips was appointed sheriff.
F. Landfill Closure and Postclosure Care Costs Scott County has an active permit on file with the state Department of Environment and Conservation for a sanitary landfill. The county has provided financial assurances for estimated postclosure liabilities as required by the State of Tennessee. These financial assurances are on file with the state Department of Environment and Conservation. State and federal laws and regulations require the county to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after closure. Although closure and postclosure care costs will be paid only near of after the date that the landfill stops accepting waste, the county reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. Scott County closed its sanitary landfill in 2007. The $2,520,869 reported as postclosure care liability at June 30, 2014, represents amounts based on what it would cost to perform all postclosure care in 2014. Actual cost may be different due to inflation, changes in technology, or changes in regulations.
G. Joint Venture The Eighth Judicial District Drug Task Force (DTF) is a joint venture formed by an interlocal agreement between the district attorney general of the
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Eighth Judicial District; Campbell, Claiborne, Fentress, Scott, and Union counties; and various cities within these counties. The purpose of the DTF is to provide multi-jurisdictional law enforcement to promote the investigation and prosecution of drug-related activities. Funds for the operation of the DTF come primarily from federal grants, drug fines, and the forfeiture of drug-related assets to the DTF. The DTF is overseen by the district attorney general and is governed by a board of directors including the district attorney general, sheriffs, and police chiefs of participating law enforcement agencies within each judicial district. Scott County made no contributions to the DTF for the year ended June 30, 2014, and does not have any equity interest in this joint venture. Complete financial statements for the DTF can be obtained from its administrative office at the following address:
Administrative Office:
Office of the District Attorney General Eighth Judicial District P.O. Box 10 Huntsville, TN 37756
H. Jointly Governed Organization
The Northeast Tennessee Railroad Authority is jointly operated by Scott County in conjunction with Anderson and Campbell counties. The authority’s board consists of the county mayor of each county and one member selected by the governing body of each county; however, the counties do not have any ongoing financial interest or responsibility for the entity. Scott County did not contribute to the operations of the Northeast Tennessee Railroad Authority during the year ended June 30, 2014.
I. Retirement Commitments Plan Description Employees of Scott County are members of the Political Subdivision Pension Plan (PSPP), an agent multiple-employer defined benefit pension plan administered by the Tennessee Consolidated Retirement System (TCRS). TCRS provides retirement benefits as well as death and disability benefits. Benefits are determined by a formula using the member’s high five-year average salary and years of service. Members become eligible to retire at the age of 60 with five years of service or at any age with 30 years of service. A reduced retirement benefit is available to vested members at the age of 55. Disability benefits are available to active members with five years of service who become disabled and cannot engage in gainful employment. There is no service requirement for disability that is the result of an accident or injury occurring while the member was in the performance of duty. Members joining the system after July 1, 1979, become vested after five years of service, and members joining prior to July 1, 1979, were vested after four years of service. Benefit provisions are established in state statute found in Title 8, Chapters
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34-37 of Tennessee Code Annotated. State statutes are amended by the Tennessee General Assembly. Political subdivisions such as Scott County participate in the TCRS as individual entities and are liable for all costs associated with the operation and administration of their plan. Benefit improvements are not applicable to a political subdivision unless approved by the chief governing body. The TCRS issues a publicly available financial report that includes financial statements and required supplementary information for the PSPP. That report may be obtained by writing to the Tennessee Treasury Department, Consolidated Retirement System, 10th Floor, Andrew Jackson Building, Nashville, TN 37243-0230 or can be accessed at http://www.tn.gov/treasury/tcrs/PS/. Funding Policy Scott County requires employees to contribute five percent of their earnable compensation to the plan. The county is required to contribute at an actuarially determined rate; the rate for the fiscal year ended June 30, 2014, was 6.83 percent of annual covered payroll. The contribution requirement of plan members is set by state statute. The contribution requirement for the county is established and may be amended by the TCRS Board of Trustees. Annual Pension Cost For the year ended June 30, 2014, Scott County’s annual pension cost of $599,915 to TCRS was equal to the county’s required and actual contributions. The required contribution was determined as part of the July 1, 2011, actuarial valuation using the frozen entry age actuarial cost method. Significant actuarial assumptions used in the valuation include (a) rate of return on investment of present and future assets of 7.5 percent a year compounded annually, (b) projected three percent annual rate of inflation, (c) projected salary increases of 4.75 percent (graded) annual rate (no explicit assumption is made regarding the portion attributable to the effects of inflation on salaries), (d) projected 3.5 percent annual increase in the Social Security wage base, and (e) projected post-retirement increases of 2.5 percent annually. The actuarial value of assets was determined using techniques that smooth the effect of short-term volatility in the market value of total investments over a ten-year period. The county’s unfunded actuarial accrued liability is being amortized as a level dollar amount on a closed basis. The remaining amortization period at July 1, 2011, was seven years. An actuarial valuation was performed as of July 1, 2011, which established contribution rates effective July 1, 2012.
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Trend Information
Fiscal Year
Ended
Annual Pension
Cost (APC)
Percentage of APC
Contributed
Net Pension
Obligation
6-30-14 $599,915 100% $0 6-30-13 590,905 100 0 6-30-12 603,924 100 0
Funded Status and Funding Progress As of July 1, 2013, the most recent actuarial valuation date, the plan was 95.13 percent funded. The actuarial accrued liability for benefits was $24.22 million, and the actuarial value of assets was $23.04 million, resulting in an unfunded actuarial accrued liability (UAAL) of $1.18 million. The covered payroll (annual payroll of active employees covered by the plan) was $7.99 million, and the ratio of the UAAL to the covered payroll was 14.76 percent. The Schedule of Funding Progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. SCHOOL TEACHERS Plan Description The Scott County School Department contributes to the State Employees, Teachers, and Higher Education Employees Pension Plan (SETHEEPP), a cost-sharing multiple-employer defined benefit pension plan administered by the Tennessee Consolidated Retirement System (TCRS). TCRS provides retirement benefits as well as death and disability benefits to plan members and their beneficiaries. Benefits are determined by a formula using the member’s high five-year average salary and years of service. Members become eligible to retire at the age of 60 with five years of service or at any age with 30 years of service. A reduced retirement benefit is available to vested members who are at least 55 years of age or have 25 years of service. Disability benefits are available to active members with five years of service who become disabled and cannot engage in gainful employment. There is no service requirement for disability that is the result of an accident or injury occurring while the member was in the performance of duty. Members joining the plan on or after July 1, 1979, are vested after five years of service. Members joining prior to July 1, 1979, are vested after four years of service. Benefit provisions are established in state statute found in Title 8, Chapters 34-37 of Tennessee Code Annotated. State statutes are amended by
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the Tennessee General Assembly. A cost of living adjustment (COLA) is provided to retirees each July based on the percentage change in the Consumer Price Index (CPI) during the previous calendar year. No COLA is granted if the CPI increases less than one-half percent. The annual COLA is capped at three percent. The TCRS issues a publicly available financial report that includes financial statements and required supplementary information for the SETHEEPP. That report may be obtained by writing to the Tennessee Treasury Department, Consolidated Retirement System, 10th Floor, Andrew Jackson Building, Nashville, TN 37243-0230 or can be accessed at www.tn.gov/treasury/tcrs/Schools. Funding Policy Most teachers are required by state statute to contribute five percent of their salaries to the plan. The employer contribution rate for the School Department is established at an actuarially determined rate. The employer rate for the fiscal year ended June 30, 2014, was 8.88 percent of annual covered payroll. The employer contribution requirement for the School Department is established and may be amended by the TCRS Board of Trustees. The employer’s contributions to TCRS for the years ended June 30, 2014, 2013, and 2012, were $971,075, $963,739, and $966,694, respectively, equal to the required contributions for each year.
J. Other Postemployment Benefits (OPEB) Plan Description The primary government has a policy that allows retirees with 40 or more years of service to continue to participate in the county’s commercial health insurance plan until age 65. However, the amount of the liability for that benefit has not been determined and recorded in the financial statements due to the limited number of individuals expected to attain 40 years of service with the county prior to age 65, and also due to the limited number of years that any qualifying individual would be expected to be on the plan before reaching age 65. The liability for this postemployment benefit is not considered material to the financial statements. No retirees were receiving benefits under this policy as of June 30, 2014. Scott County and the School Department participate in the state-administered Medicare Supplement Plan and the School Department participates in the state-administered Local Education Group Insurance Plan for health care benefits. For accounting purposes, the plans are agent multiple-employer defined benefit OPEB plans. Benefits are established and amended by an insurance committee created by Section 8-27-302, Tennessee Code Annotated (TCA), for teachers and Section 8-27-701, TCA, for the Medicare Supplement Plan. Prior to reaching the age of 65, all members have
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the option of choosing between the standard or partnership preferred provider organization (PPO) plan for health care benefits. Subsequent to age 65, members who are also in the state’s retirement system may participate in a state-administered Medicare Supplement Plan that does not include pharmacy. The plans are reported in the State of Tennessee Comprehensive Annual Financial Report (CAFR). The CAFR is available on the state’s website at http://tn.gov/finance/act/cafr.html. Funding Policy The premium requirements of plan members are established and may be amended by the insurance committee. The plans are self-insured and financed on a pay-as-you-go basis with the risk shared equally among the participants. Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premium rates. The employers in each plan develop their own contribution policy in terms of subsidizing active employees or retired employees’ premiums since the committee is not prescriptive on that issue. The state does not provide a subsidy for local government participants; however, the state does provide a partial subsidy to Local Education Agency pre-65 teachers and a full subsidy based on years of service for post-65 teachers in the Medicare Supplement Plan. Retirees in the Local Education Group Insurance Plan contribute $51 to $850 per month depending on years of service and type of coverage. During the year ended June 30, 2014, the discretely presented Scott County School Department contributed $204,896 for post-employment benefits, and the primary government contributed $2,550. Annual OPEB Cost and Net OPEB Obligation
LocalEducation
Group Primary SchoolPlan Government Department
ARC $ 427,000 $ 13,000 $ 70,000Interest on the NOPEBO 87,317 7,104 13,978Adjustment to the ARC (85,068) (6,987) (13,618)Annual OPEB cost $ 429,249 $ 13,117 $ 70,360Amount of contribution (199,946) (2,550) (4,950)Increase/decrease in NOPEBO $ 229,303 $ 10,567 $ 65,410Net OPEB obligation, 7-1-13 2,182,933 177,587 349,458
Net OPEB obligation, 6-30-14 $ 2,412,236 $ 188,154 $ 414,868
Medicare Supplement Plan
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PercentageFiscal Annual of Annual Net OPEBYear OPEB OPEB Cost Obligation
Ended Plans Cost Contributed at Year End
6-30-12 Local Education Group $ 578,490 35 % $ 1,801,826 6-30-13 " 583,569 35 2,182,9336-30-14 " 429,249 47 2,412,236
6-30-12 Medicare Supplement-Primary Government 45,773 6 134,831
6-30-13 " 45,668 6 177,587 6-30-14 " 13,117 19 188,154
6-30-12 Medicare Supplement- School Department 76,492 6 278,092
6-30-13 " 76,316 6 349,458 6-30-14 " 70,360 7 414,868
Funded Status and Funding Progress The funded status of the plan as of July 1, 2013, was as follows:
LocalEducation
Group Primary SchoolPlan Government Department
Actuarial valuation date 7-1-13 7-1-13 7-1-13Actuarial accrued liability (AAL) $ 3,849,000 $ 157,000 $ 1,019,000Actuarial value of plan assets $ 0 $ 0 $ 0Unfunded actuarial accrued liability (UAAL) $ 3,849,000 $ 157,000 $ 1,019,000Actuarial value of assets as a % of the AAL 0% 0% 0%Covered payroll (active plan members) $ 10,287,444 $ N/A $ N/AUAAL as a % of covered payroll 37% N/A N/A
Medicare Supplement Plan
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The Schedule of Funding Progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial Methods and Assumptions Calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of
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sharing of costs between the employer and plan members to that point. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. In the July 1, 2013, actuarial valuation for the Local Government Plan and the Local Education Plan, the projected unit credit actuarial cost method was used, and the actuarial assumptions included a four percent investment rate of return (net of administrative expenses) and an annual health care cost trend rate was 7.5 percent for fiscal year 2014. The trend rate will decrease to seven percent in fiscal year 2015 and then be reduced by decrements to an ultimate rate of 4.7 percent by fiscal year 2044. The annual health care cost trend rate for the Medicare Supplement Plan was two percent for fiscal year 2014. The trend will increase to six percent in fiscal year 2015 and then will be reduced by decrements to an ultimate rate of 4.2 percent by fiscal year 2044. Both rates include a 2.5 percent inflation assumption. The unfunded actuarial accrued liability is being amortized as a level percentage of payroll on a closed basis over a 30-year period beginning with July 1, 2007.
K. Termination Benefits
The Scott County Board of Education adopted a policy to pay certified employees $50 for each sick leave day that they had accumulated at the time of their retirement. Since payments will be calculated and made at the actual time of retirement, the amount of future payments was not measurable at June 30, 2014. Payments totaling $31,275 were paid to three individuals who retired during the year ending June 30, 2014.
L. Office of Central Accounting, Budgeting, and Purchasing Scott County operates under provisions of the County Financial Management System of 1981. This act provides for a central system of accounting, budgeting, and purchasing for all county departments. The act also provides for the creation of a Finance Department operated under the direction of the finance director.
M. Purchasing Law
The County Financial Management System of 1981 provides for the finance director or a deputy appointed by him to serve as the county purchasing agent. The finance director serves as the purchasing agent for Scott County. All purchase orders are issued by the Finance Department. Purchases exceeding $10,000 for the Offices of County Mayor, Superintendent of Roads, and Director of Schools are required to be competitively bid.
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VI. OTHER NOTES – DISCRETELY PRESENTED SCOTT COUNTY EMERGENCY COMMUNICATIONS DISTRICT A. Summary of Significant Accounting Policies
The Financial Reporting Entity – The Scott County Emergency Communications District was formed under Tennessee Code Annotated, Title 7, Section 86, Emergency Communications Districts. The district is a component unit of Scott County, Tennessee, because the district is legally separate, the County Commission appoints the members of the board of directors of the district and can impose its will by changing the telephone surcharge rate, and the County Commission can impose its will on the district by the approval of debt and borrowings. Method of Accounting – The accompanying financial statements have been prepared using the economic resources measurement focus and the accrual basis of accounting and reflect transactions on behalf of the district, the reporting entity. Revenues are recorded when earned, and expenses are recorded when incurred, regardless of the timing of related cash flows.
Income Taxes – The district is exempt from federal income taxes because of its creation by the Scott County government. Revenue – Operating revenues consist primarily of Highland Telephone Cooperative charging residents of Scott County $.65 and businesses $2 per month. As of June 30, 2014, the district had 5,502 residential customers and 1,773 business customers. Wireless communications income is from a share of state collected revenues from cell phone usage based upon population. All other revenues and expenses are reported as nonoperating revenues and expenses. Cash – The organization treats as cash; checking account balances, savings accounts, certificates of deposit with original maturities of less than three months, and cash on hand. Cash Management – Cash temporarily idle during the year was invested in a savings account and certificates of deposit. The certificates of deposit have maturities of 12 months. The district earned $5,224 on all investments for the year ended June 30, 2014. Deposits and Investments – All deposits with financial institutions must be secured by one of two methods. One method involves financial institutions that participate in the bank collateral pool administered by the state treasurer. Participating banks determine the aggregate balance of their public fund accounts for the State of Tennessee and its political subdivisions. The amount of collateral required to secure the debt of these public deposits must equal at least 105 percent of the average daily balance of public deposits held. Collateral securities are required to be pledged by the participating banks to protect these accounts that are pledged in the
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aggregate rather than against each account. The members of the pool may be required by agreement to pay an assessment to cover any deficiency. Under this additional assessment agreement, public fund accounts covered by the pool are considered to be insured for the purpose of credit risk disclosure. For deposits with financial institutions that do not participate in the bank collateral pool, the state statutes require that all deposits be collateralized with collateral whose market value is equal to 105 percent of the uninsured amount of the deposits. The collateral must be placed by the depository bank in an escrow account in a second bank for the benefit of the entity. Scott County Emergency Communications District has an agreement with one bank for balances above FDIC limits. The carrying value of the district’s deposits was $1,405,688, and the bank balance was $1,416,717. Of that amount, $851,520 was insured by the FDIC, and the remainder was collateralized by a third-party in the district’s name. Compensated Absences – It is the district’s policy to accumulate earned but unused vacation and sick pay benefits. No liability is reported for unpaid accumulated sick leave since the district does not have a policy to pay any amount when employees separate from service with the district. Accumulated vacation pay is reported as an expenditure and a liability of the fund when material and accumulated. Capital Assets – Capital assets are defined by the government as assets with an initial, individual cost of more than $1,000 and an estimated life in excess of one year. Such assets are recorded at historical costs or estimated historical cost if purchased or constructed. Donated assets are recorded at the estimated fair market value at the date of donation. The straight-line method of depreciation is used to calculate depreciation over a five-year period. Depreciation expense for the current year was $53,532. Although mapping expenses have a useful life of more than one year, the life is very difficult to measure. Mapping expenses, therefore, are treated as expenses as incurred.
Balance Balance7-1-13 Additions Dispositions 6-30-14
EquipmentMapping Equipment $ 116,102 $ 0 $ 0 $ 116,102 Communication Equipment 240,859 0 0 240,859 Vehicles 24,500 0 0 24,500
$ 381,461 $ 0 $ 0 $ 381,461 Accumulated DepreciationMapping Equipment $ (91,885) $ (12,885) $ 0 $ (104,770) Communication Equipment (60,721) (40,647) 0 (101,368) Vehicles (24,500) 0 0 (24,500)
$ (177,106) $ (53,532) $ 0 $ (230,638) Net Investment in Capital Assets $ 204,355 $ (53,532) $ 0 $ 150,823
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Risk Management – The district is exposed to various risks of losses related to tort; theft of, damage to, and destruction of assets; errors or omissions; injuries to employees; and natural disasters. The district has obtained commercial insurance to manage these risks. Management does not believe any claims will exceed the insurance amount. Software coverage is $250,000; auto coverage includes collision and comprehensive coverage with deductibles of $250 and $500, respectively, and general liability of $2,000,000 each occurrence and $5,000,000 aggregate with $5,000 medical payments. The settlements have not exceeded insurance amounts in the past three years. Budgets – Annual budgets are adopted on a basis consistent with generally accepted accounting principles. All annual appropriations lapse at fiscal year-end. On or before May 31 of each year, the proposed budget is prepared and presented to the board for review. The board adopts the budget and amends the budget throughout the year as needed. The district is required by state statute to adopt the annual budget. The annual budget is prepared on the basis in which current available funds must be sufficient to meet current expenditures. Expenditures and encumbrances may not legally exceed appropriations authorized by the board of directors and any authorized revisions. Unencumbered appropriations lapse at the end of each year. The budgetary level of control is at the line-item level established by the County Uniform Chart of Accounts, as prescribed by the Comptroller of the Treasury of the State of Tennessee. The district’s budgetary basis of accounting is on the modified cash basis. Reconciliation to GAAP is presented on the face of the budgetary schedule. Net Position and Fund Balance – In the financial statements, equity is classified as net position and is displayed in three components:
a. Net investment in capital assets – Consists of capital assets, including restricted capital assets, net of accumulated depreciation.
b. Restricted net position – Consists of net position with constraints
placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or (2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position – All other net position that does not
meet the definition of restricted or invested in capital assets.
It is the district’s policy that restricted amounts would be reduced first followed by unrestricted amounts when expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available.
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Use of Estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could be different from those estimates.
B. The Officers’ and Employees’ Bonds of the District
The district maintains an insurance policy against officers and employee forgery or alteration as required by Tennessee Code Annotated, Section 7-86-119, with a policy limit of $12,500; theft of money and securities with a policy limit of $100,000; employee dishonesty with a policy limit of $250,000; and counterfeit United States or Canadian paper currency with a policy limit of $100,000.
C. Pension Plan Plan Description Employees of the district are members of the Political Subdivision Pension Plan (PSPP), an agent multiple-employer defined benefit pension plan administered by the Tennessee Consolidated Retirement System (TCRS). TCRS provides retirement benefits as well as death and disability benefits. Benefits are determined by a formula using the member’s high five-year average salary and years of service. Members become eligible to retire at the age of 60 with five years of service or at any age with 30 years of service. A reduced retirement benefit is available to vested members at the age of 55. Disability benefits are available to active members with five years of service who become disabled and cannot engage in gainful employment. There is no service requirement for disability that is the result of an accident or injury occurring while the member was in the performance of duty. Members joining the system after July 1, 1979, become vested after five years of service, and members joining prior to July 1, 1979, were vested after four years of service. Benefit provisions are established in state statute found in Title 8, Chapters 34-37 of Tennessee Code Annotated. State statutes are amended by the Tennessee General Assembly. Political subdivisions such as the district participate in the TCRS as individual entities and are liable for all costs associated with the operation and administration of their plan. Benefit improvements are not applicable to a political subdivision unless approved by the chief governing body. The TCRS issues a publicly available financial report that includes financial statements and required supplementary information for the PSPP. That report may be obtained by writing to the Tennessee Treasury Department, Consolidated Retirement System, 10th Floor, Andrew Jackson Building, Nashville, TN 37243-0230 or can be accessed at www.tn.gov/treasury/tcrs/PS.
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Funding Policy The district requires employees to contribute five percent of their earnable compensation. The district is required to contribute at an actuarially determined rate; the rate for the fiscal year ending June 30, 2014, was 2.65 percent of covered payroll. The contribution requirement of plan members is set by state statute. The contribution requirement for the district is established and may be amended by the TCRS Board of Trustees. For the year ending June 30, 2014, the district’s annual pension cost of $954 to TCRS was equal to the district’s required and actual contributions. The required contribution was determined as part of the July 1, 2011, actuarial valuation using the frozen entry age actuarial cost method. Significant actuarial assumptions used in the valuation include (a) rate of return on investment of present and future assets of 7.5 percent a year compounded annually, (b) projected three percent annual rate of inflation, (c) projected salary increases of 4.75 percent (graded) annual rate (no explicit assumption is made regarding the portion attributable to the effects of inflation on salaries), (d) projected 3.5 percent annual increases in the Social Security wage base, and (e) projected post retirement increases of 2.5 percent annually. The actuarial value of assets was determined using techniques that smooth the effect of short-term volatility in the market of total investments over a ten-year period. The district’s unfunded actuarial accrued liability is being amortized as a level dollar amount on a closed basis. The remaining amortization period at July 1, 2011, was zero years. An actuarial valuation was performed as of July 1, 2011, which established contribution rates effective July 1, 2012.
Trend Information
Fiscal Annual Pension Percentage of Net PensionYear Ended Cost (APC) APC Contributed Obligation
6-30-14 $ 954 100% $ 06-30-13 1,312 100 06-30-12 70,052 100 0
Funded Status and Funding Progress As of July 1, 2013, the most recent actuarial valuation date, the plan was 100 percent funded. The actuarial accrued liability for benefits was $98,000, and the actuarial value of assets was $98,000, resulting in an unfunded actuarial accrued liability (UAAL) of zero. The covered payroll (annual payroll of active employees covered by the plan) was $30,000, and the ratio of the UAAL to the covered payroll was zero percent. The Schedule of Funding Progress, presented as required supplementary information following the notes to the financial statements presents
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multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits.
REQUIRED SUPPLEMENTARY INFORMATION
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Exhibit F-1
Scott County, TennesseeSchedule of Funding Progress – Pension PlanPrimary Government and Discretely Presented Scott County School DepartmentJune 30, 2014
(Dollar amounts in thousands)
ActuarialAccrued
Actuarial LiabilityValue of (AAL) Unfunded
Actuarial Plan Frozen AAL Covered Valuation Assets Entry Age (UAAL) Payroll
Date (a) (b) (b)-(a) (c)
7-1-13 $ 23,038 $ 24,218 $ 1,180 95.13 % $ 7,991 14.76 %7-1-11 20,688 22,919 2,231 90.27 7,521 29.66 7-1-09 17,461 19,804 2,343 88.17 7,606 30.81
((b-a)/c)(a/b)
Funded
UAAL as a Percentage
Ratioof Covered
Payroll
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ernm
ent a
nd D
iscr
etel
y Pr
esen
ted
Scot
t Cou
nty
Scho
ol D
epar
tmen
tJu
ne 3
0, 2
014
(Dol
lar a
mou
nts
in th
ousa
nds)
Act
uari
alA
ccru
ed
Liab
ility
(AA
L)A
ctua
rial
Proj
ecte
dU
nfun
ded
Act
uari
alV
alue
of
Uni
tA
AL
Fund
edC
over
ed
Val
uatio
n A
sset
sC
redi
t(U
AA
L)R
atio
Payr
oll
Plan
sD
ate
(a)
(b)
(b)-(
a)(a
/b)
(c)
PRIM
AR
Y G
OV
ER
NM
EN
T
Med
icar
e Su
pple
men
t7-
1-10
$0
$43
7$
437
0%
$N
/AN
/A%
"7-
1-11
038
438
4 0
N/A
N/A
"7-
1-13
015
715
7 0
N/A
N/A
DIS
CR
ETE
LY P
RE
SEN
TED
SC
OTT
CO
UN
TY S
CH
OO
L D
EPA
RTM
EN
T
Loca
l Edu
catio
n G
roup
7-1-
100
4,38
94,
389
010
,570
42"
7-1-
110
4,94
44,
944
010
,064
49"
7-1-
130
3,84
93,
849
010
,287
37M
edic
are
Supp
lem
ent
7-1-
100
960
960
0N
/AN
/A"
7-1-
110
960
960
0N
/AN
/A"
7-1-
130
1,01
91,
019
0N
/AN
/A
UA
AL
as a
Pe
rcen
tage
of C
over
edPa
yrol
l((b
-a)/c
)
87
SCOTT COUNTY, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2014
NONE
88
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
89
Nonmajor Governmental Funds
Special Revenue Funds _______________________
Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
_______________________
Solid Waste/Sanitation Fund – The Solid Waste/Sanitation Fund is used to account for transactions associated with the operations of the county’s convenience centers. Drug Control Fund – The Drug Control Fund is used to account for revenues received from drug-related fines, forfeitures, and seizures. Constitutional Officers - Fees Fund – The Constitutional Officers - Fees Fund is used to account for operating expenses paid directly from the fee and commission accounts of the trustee, clerks, register of deeds, and sheriff.
90
Capital Projects Funds ________________________
Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.
________________________
General Capital Projects Fund – The General Capital Projects Fund is used to account for various capital expenditures of the county. Community Development/Industrial Park Fund – The Community Development/ Industrial Park Fund is used to account for the activities related to community development and industrial park projects. Education Capital Projects Fund – The Education Capital Projects Fund is used to account for capital expenditures made on behalf of the Scott County School Department. Other Capital Projects Fund – The Other Capital Projects Fund is used to account for the activities related to road resurfacing.
91
Exhi
bit G
-1
Scot
t Cou
nty,
Ten
ness
eeCo
mbi
ning
Bal
ance
She
etN
onm
ajor
Gov
ernm
enta
l Fun
dsJu
ne 3
0, 2
014
Cons
titu
-So
lidtio
nal
Gen
eral
Was
te /
Dru
gO
ffice
rs -
Capi
tal
Sani
tatio
nCo
ntro
lFe
esTo
tal
Proj
ects
ASSE
TS
Cash
$0
$0
$1,
282
$1,
282
$0
Equi
ty in
Poo
led
Cash
and
Inve
stm
ents
283,
863
80,7
110
364,
574
140,
570
Acco
unts
Rec
eiva
ble
51,9
390
051
,939
85D
ue fr
om O
ther
Gov
ernm
ents
2,22
70
02,
227
0Pr
oper
ty T
axes
Rec
eiva
ble
00
00
315,
718
Allo
wan
ce fo
r U
ncol
lect
ible
Pro
pert
y Ta
xes
00
00
(20,
788)
Tota
l Ass
ets
$33
8,02
9$
80,7
11$
1,28
2$
420,
022
$43
5,58
5
LIAB
ILIT
IES
Acco
unts
Pay
able
$2,
011
$0
$0
$2,
011
$1,
809
Payr
oll D
educ
tions
Pay
able
1,19
80
01,
198
0D
ue to
Oth
er F
unds
00
1,28
21,
282
0To
tal L
iabi
litie
s$
3,20
9$
0$
1,28
2$
4,49
1$
1,80
9
DEF
ERRE
D IN
FLO
WS
OF
RESO
URC
ES
Def
erre
d Cu
rren
t Pro
pert
y Ta
xes
$0
$0
$0
$0
$28
4,06
3D
efer
red
Del
inqu
ent P
rope
rty
Taxe
s0
00
09,
706
Tota
l Def
erre
d In
flow
s of
Res
ourc
es$
0$
0$
0$
0$
293,
769
(Con
tinue
d)
Spec
ial R
even
ue F
unds
Capi
tal
Proj
ects
Fun
ds
92
Exhi
bit G
-1
Scot
t Cou
nty,
Ten
ness
eeCo
mbi
ning
Bal
ance
She
etN
onm
ajor
Gov
ernm
enta
l Fun
ds (C
ont.)
Cons
titu
-So
lidtio
nal
Gen
eral
Was
te /
Dru
gO
ffice
rs -
Capi
tal
Sani
tatio
nCo
ntro
lFe
esTo
tal
Proj
ects
FUN
D B
ALAN
CES
Rest
rict
ed:
Rest
rict
ed fo
r Pu
blic
Saf
ety
$0
$80
,327
$0
$80
,327
$0
Rest
rict
ed fo
r Ca
pita
l Pro
ject
s0
00
014
0,00
7Co
mm
itted
:Co
mm
itted
for
Publ
ic H
ealth
and
Wel
fare
334,
820
00
334,
820
0As
sign
ed:
Assi
gned
for
Publ
ic S
afet
y0
384
038
40
Tota
l Fun
d Ba
lanc
es$
334,
820
$80
,711
$0
$41
5,53
1$
140,
007
Tota
l Lia
bilit
ies,
Def
erre
d In
flow
s of
Res
ourc
es, a
nd F
und
Bala
nces
$33
8,02
9$
80,7
11$
1,28
2$
420,
022
$43
5,58
5
(Con
tinue
d)
Spec
ial R
even
ue F
unds
Capi
tal
Proj
ects
Fun
ds
93
Exhi
bit G
-1
Scot
t Cou
nty,
Ten
ness
eeCo
mbi
ning
Bal
ance
She
etN
onm
ajor
Gov
ernm
enta
l Fun
ds (C
ont.)
Tota
lEd
ucat
ion
Non
maj
orCa
pita
lG
over
nmen
tal
Proj
ects
Tota
lFu
nds
ASSE
TS
Cash
$14
6,01
8$
146,
018
$14
7,30
0Eq
uity
in P
oole
d Ca
sh a
nd In
vest
men
ts2,
524
143,
094
507,
668
Acco
unts
Rec
eiva
ble
085
52,0
24D
ue fr
om O
ther
Gov
ernm
ents
00
2,22
7Pr
oper
ty T
axes
Rec
eiva
ble
031
5,71
831
5,71
8Al
low
ance
for
Unc
olle
ctib
le P
rope
rty
Taxe
s0
(20,
788)
(20,
788)
Tota
l Ass
ets
$14
8,54
2$
584,
127
$1,
004,
149
LIAB
ILIT
IES
Acco
unts
Pay
able
$0
$1,
809
$3,
820
Payr
oll D
educ
tions
Pay
able
00
1,19
8D
ue to
Oth
er F
unds
00
1,28
2To
tal L
iabi
litie
s$
0$
1,80
9$
6,30
0
DEF
ERRE
D IN
FLO
WS
OF
RESO
URC
ES
Def
erre
d Cu
rren
t Pro
pert
y Ta
xes
$0
$28
4,06
3$
284,
063
Def
erre
d D
elin
quen
t Pro
pert
y Ta
xes
09,
706
9,70
6To
tal D
efer
red
Inflo
ws
of R
esou
rces
$0
$29
3,76
9$
293,
769
(Con
tinue
d)
Capi
tal P
roje
cts
Fund
s (C
ont.)
94
Exhi
bit G
-1
Scot
t Cou
nty,
Ten
ness
eeCo
mbi
ning
Bal
ance
She
etN
onm
ajor
Gov
ernm
enta
l Fun
ds (C
ont.)
Tota
lEd
ucat
ion
Non
maj
orCa
pita
lG
over
nmen
tal
Proj
ects
Tota
lFu
nds
FUN
D B
ALAN
CES
Rest
rict
ed:
Rest
rict
ed fo
r Pu
blic
Saf
ety
$0
$0
$80
,327
Rest
rict
ed fo
r Ca
pita
l Pro
ject
s14
8,54
228
8,54
928
8,54
9Co
mm
itted
:Co
mm
itted
for
Publ
ic H
ealth
and
Wel
fare
00
334,
820
Assi
gned
:As
sign
ed fo
r Pu
blic
Saf
ety
00
384
Tota
l Fun
d Ba
lanc
es$
148,
542
$28
8,54
9$
704,
080
Tota
l Lia
bilit
ies,
Def
erre
d In
flow
s of
Res
ourc
es, a
nd F
und
Bala
nces
$14
8,54
2$
584,
127
$1,
004,
149
Capi
tal P
roje
cts
Fund
s (C
ont.)
95
Exhi
bit G
-2
Scot
t Cou
nty,
Ten
ness
eeCo
mbi
ning
Sta
tem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Chan
ges
in F
und
Bala
nces
Non
maj
or G
over
nmen
tal F
unds
For
the
Year
End
ed J
une
30, 2
014
Cons
titu
-Co
mm
unity
Solid
tiona
lG
ener
alD
evel
opm
ent/
Was
te /
Dru
gO
ffice
rs -
Capi
tal
Indu
stri
alSa
nita
tion
Cont
rol
Fees
Tota
lPr
ojec
tsPa
rk
Reve
nues
Loca
l Tax
es$
0$
0$
0$
0$
209,
270
$0
Fine
s, F
orfe
iture
s, a
nd P
enal
ties
044
,481
044
,481
00
Char
ges
for
Curr
ent S
ervi
ces
190,
222
01,
150
191,
372
00
Oth
er L
ocal
Rev
enue
s3,
238
10,5
450
13,7
8313
,969
0St
ate
of T
enne
ssee
39,5
030
039
,503
72,4
580
Tota
l Rev
enue
s$
232,
963
$55
,026
$1,
150
$28
9,13
9$
295,
697
$0
Expe
nditu
res
Curr
ent:
Gen
eral
Gov
ernm
ent
$0
$0
$0
$0
$49
,003
$0
Fina
nce
00
00
22,1
310
Adm
inis
trat
ion
of J
ustic
e0
01,
150
1,15
029
,328
0Pu
blic
Saf
ety
00
00
82,3
890
Publ
ic H
ealth
and
Wel
fare
137,
861
00
137,
861
2,78
70
Oth
er O
pera
tions
015
,693
015
,693
92,4
580
Hig
hway
s11
,539
00
11,5
394,
915
0To
tal E
xpen
ditu
res
$14
9,40
0$
15,6
93$
1,15
0$
166,
243
$28
3,01
1$
0
Exce
ss (D
efic
ienc
y) o
f Rev
enue
sO
ver
Expe
nditu
res
$83
,563
$39
,333
$0
$12
2,89
6$
12,6
86$
0
Oth
er F
inan
cing
Sou
rces
(Use
s)Tr
ansf
ers
Out
$0
$(2
7,00
0)$
0$
(27,
000)
$0
$(5
,858
)To
tal O
ther
Fin
anci
ng S
ourc
es (U
ses)
$0
$(2
7,00
0)$
0$
(27,
000)
$0
$(5
,858
)
Net
Cha
nge
in F
und
Bala
nces
$83
,563
$12
,333
$0
$95
,896
$12
,686
$(5
,858
)Fu
nd B
alan
ce, J
uly
1, 2
013
251,
257
68,3
780
319,
635
127,
321
5,85
8
Fund
Bal
ance
, Jun
e 30
, 201
4$
334,
820
$80
,711
$0
$41
5,53
1$
140,
007
$0
(Con
tinue
d)
Spec
ial R
even
ue F
unds
Capi
tal P
roje
cts
Fund
s
96
Exhi
bit G
-2
Scot
t Cou
nty,
Ten
ness
eeCo
mbi
ning
Sta
tem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Chan
ges
in F
und
Bala
nces
Non
maj
or G
over
nmen
tal F
unds
(Con
t.)
Tota
lEd
ucat
ion
Oth
erN
onm
ajor
Capi
tal
Capi
tal
Gov
ernm
enta
lPr
ojec
tsPr
ojec
tsTo
tal
Fund
s
Reve
nues
Loca
l Tax
es$
0$
0$
209,
270
$20
9,27
0Fi
nes,
For
feitu
res,
and
Pen
altie
s0
00
44,4
81Ch
arge
s fo
r Cu
rren
t Ser
vice
s0
00
191,
372
Oth
er L
ocal
Rev
enue
s27
90
14,2
4828
,031
Stat
e of
Ten
ness
ee0
072
,458
111,
961
Tota
l Rev
enue
s$
279
$0
$29
5,97
6$
585,
115
Expe
nditu
res
Curr
ent:
Gen
eral
Gov
ernm
ent
$0
$0
$49
,003
$49
,003
Fina
nce
00
22,1
3122
,131
Adm
inis
trat
ion
of J
ustic
e0
029
,328
30,4
78Pu
blic
Saf
ety
00
82,3
8982
,389
Publ
ic H
ealth
and
Wel
fare
00
2,78
714
0,64
8O
ther
Ope
ratio
ns0
092
,458
108,
151
Hig
hway
s0
04,
915
16,4
54To
tal E
xpen
ditu
res
$0
$0
$28
3,01
1$
449,
254
Exce
ss (D
efic
ienc
y) o
f Rev
enue
sO
ver
Expe
nditu
res
$27
9$
0$
12,9
65$
135,
861
Oth
er F
inan
cing
Sou
rces
(Use
s)Tr
ansf
ers
Out
$0
$(2
,413
)$
(8,2
71)
$(3
5,27
1)To
tal O
ther
Fin
anci
ng S
ourc
es (U
ses)
$0
$(2
,413
)$
(8,2
71)
$(3
5,27
1)
Net
Cha
nge
in F
und
Bala
nces
$27
9$
(2,4
13)
$4,
694
$10
0,59
0Fu
nd B
alan
ce, J
uly
1, 2
013
148,
263
2,41
328
3,85
560
3,49
0
Fund
Bal
ance
, Jun
e 30
, 201
4$
148,
542
$0
$28
8,54
9$
704,
080
Capi
tal P
roje
cts
Fund
s (C
ont.)
97
Exhibit G-3
Scott County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetSolid Waste/Sanitation FundFor the Year Ended June 30, 2014
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesCharges for Current Services $ 190,222 $ 102,271 $ 121,788 $ 68,434Other Local Revenues 3,238 3,000 4,206 (968)State of Tennessee 39,503 45,000 45,000 (5,497)
Total Revenues $ 232,963 $ 150,271 $ 170,994 $ 61,969
ExpendituresPublic Health and Welfare
Recycling Center $ 127,461 $ 108,271 $ 146,241 $ 18,780Postclosure Care Costs 10,400 30,000 16,485 6,085
HighwaysLitter and Trash Collection 11,539 12,000 12,000 461
Total Expenditures $ 149,400 $ 150,271 $ 174,726 $ 25,326
Excess (Deficiency) of RevenuesOver Expenditures $ 83,563 $ 0 $ (3,732) $ 87,295
Net Change in Fund Balance $ 83,563 $ 0 $ (3,732) $ 87,295Fund Balance, July 1, 2013 251,257 251,257 251,257 0
Fund Balance, June 30, 2014 $ 334,820 $ 251,257 $ 247,525 $ 87,295
Budgeted Amounts
98
Exhi
bit G
-4
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bala
nce
- Act
ual (
Budg
etar
y Ba
sis)
and
Bud
get
Dru
g Co
ntro
l Fun
dFo
r the
Yea
r End
ed J
une
30, 2
014
Actu
alVa
rian
ceRe
venu
es/
with
Fin
alAc
tual
Add:
Expe
nditu
res
Budg
et -
(GAA
PEn
cum
bran
ces
(Bud
geta
ryPo
sitiv
eBa
sis)
6/30
/201
4Ba
sis)
Ori
gina
lFi
nal
(Neg
ativ
e)
Reve
nues
Fine
s, F
orfe
iture
s, a
nd P
enal
ties
$44
,481
$0
$44
,481
$32
,500
$32
,500
$11
,981
Oth
er L
ocal
Rev
enue
s10
,545
010
,545
00
10,5
45To
tal R
even
ues
$55
,026
$0
$55
,026
$32
,500
$32
,500
$22
,526
Expe
nditu
res
Oth
er O
pera
tions
Mis
cella
neou
s$
15,6
93$
384
$16
,077
$27
,500
$27
,500
$11
,423
Tota
l Exp
endi
ture
s$
15,6
93$
384
$16
,077
$27
,500
$27
,500
$11
,423
Exce
ss (D
efic
ienc
y) o
f Rev
enue
sO
ver E
xpen
ditu
res
$39
,333
$(3
84)
$38
,949
$5,
000
$5,
000
$33
,949
Oth
er F
inan
cing
Sou
rces
(Use
s)Tr
ansf
ers
Out
$(2
7,00
0)$
0$
(27,
000)
$(5
,000
)$
(27,
000)
$0
Tota
l Oth
er F
inan
cing
Sou
rces
$(2
7,00
0)$
0$
(27,
000)
$(5
,000
)$
(27,
000)
$0
Net
Cha
nge
in F
und
Bala
nce
$12
,333
$(3
84)
$11
,949
$0
$(2
2,00
0)$
33,9
49Fu
nd B
alan
ce, J
uly
1, 2
013
68,3
780
68,3
7868
,378
68,3
780
Fund
Bal
ance
, Jun
e 30
, 201
4$
80,7
11$
(384
)$
80,3
27$
68,3
78$
46,3
78$
33,9
49
Budg
eted
Am
ount
s
99
Exhibit G-5
Scott County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetGeneral Capital Projects FundFor the Year Ended June 30, 2014
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesLocal Taxes $ 209,270 $ 208,716 $ 235,373 $ (26,103)Other Local Revenues 13,969 0 13,960 9State of Tennessee 72,458 0 84,500 (12,042)
Total Revenues $ 295,697 $ 208,716 $ 333,833 $ (38,136)
ExpendituresGeneral Government
County Buildings $ 49,003 $ 0 $ 46,250 $ (2,753)Finance
Accounting and Budgeting 20,299 0 20,370 71Property Assessor's Office 1,572 0 1,600 28County Clerk's Office 260 0 260 0
Administration of JusticeCircuit Court 12,023 0 12,050 27General Sessions Court 4,253 0 4,300 47Chancery Court 13,052 0 13,060 8
Public SafetySheriff's Department 76,794 0 76,810 16Juvenile Services 5,595 0 5,595 0
Public Health and WelfareAmbulance/Emergency Medical Services 2,787 0 2,800 13
Other OperationsAirport 92,458 0 92,500 42
HighwaysCapital Outlay 4,915 152,000 7,405 2,490
Total Expenditures $ 283,011 $ 152,000 $ 283,000 $ (11)
Excess (Deficiency) of RevenuesOver Expenditures $ 12,686 $ 56,716 $ 50,833 $ (38,147)
Net Change in Fund Balance $ 12,686 $ 56,716 $ 50,833 $ (38,147)Fund Balance, July 1, 2013 127,321 237,935 237,935 (110,614)
Fund Balance, June 30, 2014 $ 140,007 $ 294,651 $ 288,768 $ (148,761)
Budgeted Amounts
100
Major Governmental Funds
Debt Service Funds ________________________
Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.
________________________
General Debt Service Fund – The General Debt Service Fund is used to account for the accumulation of resources for, and the payment of, debt principal, interest, and related costs. Rural Debt Service Fund – The Rural Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest, and related costs for debt issued that benefit the areas of Scott County outside the Special School District (Oneida).
101
Exhibit H-1
Scott County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetGeneral Debt Service FundFor the Year Ended June 30, 2014
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesLocal Taxes $ 1,094,425 $ 1,009,431 $ 1,009,431 $ 84,994Licenses and Permits 940 800 800 140Other Local Revenues 132,343 150,000 150,000 (17,657)Other Governments and Citizens Groups 28,600 28,600 28,600 0
Total Revenues $ 1,256,308 $ 1,188,831 $ 1,188,831 $ 67,477
ExpendituresPrincipal on Debt
General Government $ 1,126,740 $ 856,950 $ 1,133,950 $ 7,210Interest on Debt
General Government 136,220 195,937 179,917 43,697Other Debt Service
General Government 301,807 265,087 318,114 16,307Total Expenditures $ 1,564,767 $ 1,317,974 $ 1,631,981 $ 67,214
Excess (Deficiency) of RevenuesOver Expenditures $ (308,459) $ (129,143) $ (443,150) $ 134,691
Other Financing Sources (Uses)Refunding Debt Issued $ 1,490,000 $ 0 $ 1,490,000 $ 0Premiums on Debt Issued 21,542 0 21,542 0Transfers In 48,424 48,424 48,424 0Transfers Out (36,020) 0 (36,020) 0Payments to Refunded Debt Escrow Agent (1,458,516) 0 (1,458,516) 0
Total Other Financing Sources $ 65,430 $ 48,424 $ 65,430 $ 0
Net Change in Fund Balance $ (243,029) $ (80,719) $ (377,720) $ 134,691Fund Balance, July 1, 2013 1,442,277 1,423,270 1,423,270 19,007
Fund Balance, June 30, 2014 $ 1,199,248 $ 1,342,551 $ 1,045,550 $ 153,698
Budgeted Amounts
102
Exhibit H-2
Scott County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetRural Debt Service FundFor the Year Ended June 30, 2014
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesLocal Taxes $ 892,146 $ 928,237 $ 928,237 $ (36,091)Other Local Revenues 0 65,000 65,000 (65,000)Other Governments and Citizens Groups 351,092 185,773 351,092 0
Total Revenues $ 1,243,238 $ 1,179,010 $ 1,344,329 $ (101,091)
ExpendituresPrincipal on Debt
Education $ 1,027,903 $ 956,057 $ 1,027,904 $ 1Interest on Debt
Education 389,307 300,598 394,070 4,763Other Debt Service
Education 207,839 46,800 218,721 10,882Total Expenditures $ 1,625,049 $ 1,303,455 $ 1,640,695 $ 15,646
Excess (Deficiency) of RevenuesOver Expenditures $ (381,811) $ (124,445) $ (296,366) $ (85,445)
Other Financing Sources (Uses)Refunding Debt Issued $ 8,120,000 $ 0 $ 8,120,000 $ 0Premiums on Debt Issued 152,320 0 152,320 0Payments to Refunded Debt Escrow Agent (8,100,399) 0 (8,100,399) 0
Total Other Financing Sources $ 171,921 $ 0 $ 171,921 $ 0
Net Change in Fund Balance $ (209,890) $ (124,445) $ (124,445) $ (85,445)Fund Balance, July 1, 2013 251,805 243,416 243,416 8,389
Fund Balance, June 30, 2014 $ 41,915 $ 118,971 $ 118,971 $ (77,056)
Budgeted Amounts
103
Fiduciary Funds __________________________
Agency Funds are used to account for assets held by the county as an agent for individuals, private organizations, other governments, and/or other funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.
__________________________ Cities - Sales Tax Fund – The Cities - Sales Tax Fund is used to account for the second half of the sales tax revenues collected inside incorporated areas of the county. These revenues are received by the county from the State of Tennessee and forwarded to the various cities on a monthly basis. Special School District Fund – The Special School District Fund is used to account for the tax levy for the Special School District (Oneida). These revenues are received by Scott County and remitted to the Special School District on a monthly basis. City School ADA - Oneida Fund – The City School ADA - Oneida Fund is used to account for the city school system’s share of education revenues collected by the county that must be apportioned between the various school systems on an average daily attendance basis. These collections are remitted to the city school system on a monthly basis. Constitutional Officers - Agency Fund – The Constitutional Officers - Agency Fund is used to account for amounts collected in an agency capacity by the county clerk, circuit and general sessions courts clerk, clerk and master, register of deeds, and sheriff. Such collections include amounts due the state, cities, other county funds, litigants, heirs, and others. Judicial District Drug Fund – The Judicial District Drug Fund is used to account for amounts held in an agency capacity for the Eighth Judicial District Drug Task Force. District Attorney General Fund – The District Attorney General Fund is used to account for restricted revenue held for the benefit of the Office of District Attorney General.
104
Exhi
bit I
-1
Scot
t Cou
nty,
Ten
ness
eeCo
mbi
ning
Sta
tem
ent o
f Fid
ucia
ry A
sset
s an
d Li
abili
ties
Fidu
ciar
y Fu
nds
June
30,
201
4
City
Cons
titu-
Citie
s -
Spec
ial
Scho
oltio
nal
Judi
cial
Dis
tric
tSa
les
Scho
ol
ADA
-O
ffice
rs -
Dis
tric
tAt
torn
eyTa
xD
istr
ict
One
ida
Agen
cyD
rug
Gen
eral
Tota
l
ASSE
TS
Cash
$0
$0
$0
$54
8,90
6$
0$
0$
548,
906
Equi
ty in
Poo
led
Cash
and
Inve
stm
ents
04,
597
49,7
190
232,
387
32,0
9031
8,79
3Ac
coun
ts R
ecei
vabl
e0
00
01,
140
01,
140
Due
from
Oth
er G
over
nmen
ts25
7,33
00
96,6
820
05,
056
359,
068
Prop
erty
Tax
es R
ecei
vabl
e0
548,
114
930,
978
00
01,
479,
092
Allo
wan
ce fo
r U
ncol
lect
ible
Pro
pert
y Ta
xes
0(3
3,46
1)(6
7,80
7)0
00
(101
,268
)
Tota
l Ass
ets
$25
7,33
0$
519,
250
$1,
009,
572
$54
8,90
6$
233,
527
$37
,146
$2,
605,
731
LIAB
ILIT
IES
Acco
unts
Pay
able
$0
$0
$0
$0
$0
$15
,986
$15
,986
Payr
oll D
educ
tions
Pay
able
00
00
891
089
1D
ue to
Oth
er T
axin
g U
nits
257,
330
519,
250
1,00
9,57
20
00
1,78
6,15
2D
ue to
Liti
gant
s, H
eirs
, and
Oth
ers
00
054
8,90
60
21,1
6057
0,06
6D
ue to
Joi
nt V
entu
re0
00
023
2,63
60
232,
636
Tota
l Lia
bilit
ies
$25
7,33
0$
519,
250
$1,
009,
572
$54
8,90
6$
233,
527
$37
,146
$2,
605,
731
Agen
cy F
unds
105
Exhibit I-2
Scott County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency FundsFor the Year Ended June 30, 2014
Beginning Ending Balance Additions Deductions Balance
Cities - Sales Tax Fund Assets Equity in Pooled Cash and Investments $ 0 $ 1,354,384 $ 1,354,384 $ 0 Due from Other Governments 252,401 257,330 252,401 257,330
Total Assets $ 252,401 $ 1,611,714 $ 1,606,785 $ 257,330
Liabilities Due to Other Taxing Units $ 252,401 $ 1,611,714 $ 1,606,785 $ 257,330
Total Liabilities $ 252,401 $ 1,611,714 $ 1,606,785 $ 257,330
Special School District Assets Equity in Pooled Cash and Investments $ 1,297 $ 323,484 $ 320,184 $ 4,597 Property Taxes Receivable 407,828 548,114 407,828 548,114 Allowance for Uncollectible Taxes (23,726) (33,461) (23,726) (33,461)
Total Assets $ 385,399 $ 838,137 $ 704,286 $ 519,250
Liabilities Due to Other Taxing Units $ 385,399 $ 838,137 $ 704,286 $ 519,250
Total Liabilities $ 385,399 $ 838,137 $ 704,286 $ 519,250
City School ADA - Oneida Fund Assets Equity in Pooled Cash and Investments $ 57,439 $ 1,400,766 $ 1,408,486 $ 49,719 Due from Other Governments 103,171 96,682 103,171 96,682 Property Taxes Receivable 943,789 930,978 943,789 930,978 Allowance for Uncollectible Taxes (51,467) (67,807) (51,467) (67,807)
Total Assets $ 1,052,932 $ 2,360,619 $ 2,403,979 $ 1,009,572
Liabilities Due to Other Taxing Units $ 1,052,932 $ 2,360,619 $ 2,403,979 $ 1,009,572
Total Liabilities $ 1,052,932 $ 2,360,619 $ 2,403,979 $ 1,009,572
(Continued)
106
Exhibit I-2
Scott County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency Funds (Cont.)
Beginning Ending Balance Additions Deductions Balance
Constitutional Officers - Agency Fund Assets Cash $ 562,817 $ 4,149,347 $ 4,163,258 $ 548,906
0 Total Assets $ 562,817 $ 4,149,347 $ 4,163,258 $ 548,906
Liabilities Due to Litigants, Heirs, and Others $ 562,817 $ 4,149,347 $ 4,163,258 $ 548,906
Total Liabilities $ 562,817 $ 4,149,347 $ 4,163,258 $ 548,906
Judicial District Drug Assets Equity in Pooled Cash and Investments $ 120,860 $ 509,593 $ 398,066 $ 232,387 Accounts Receivable 2,717 1,140 2,717 1,140 Due from Other Governments 83,762 0 83,762 0 Due from Other Funds 24,230 0 24,230 0
Total Assets $ 231,569 $ 510,733 $ 508,775 $ 233,527
Liabilities Accounts Payable $ 1,455 $ 0 $ 1,455 $ 0 Payroll Deductions Payable 2,168 891 2,168 891 Due to Joint Venture 227,946 509,842 505,152 232,636
Total Liabilities $ 231,569 $ 510,733 $ 508,775 $ 233,527
District Attorney General Assets Equity in Pooled Cash and Investments $ 11,391 $ 71,184 $ 50,485 $ 32,090 Due from Other Governments 4,483 5,056 4,483 5,056
Total Assets $ 15,874 $ 76,240 $ 54,968 $ 37,146
Liabilities Accounts Payable $ 1,720 $ 15,986 $ 1,720 $ 15,986 Due to Litigants, Heirs and Others 14,154 60,254 53,248 21,160
Total Liabilities $ 15,874 $ 76,240 $ 54,968 $ 37,146
(Continued)
107
Exhibit I-2
Scott County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency Funds (Cont.)
Beginning Ending Balance Additions Deductions Balance
Totals - All Agency Funds Assets Cash $ 562,817 $ 4,149,347 $ 4,163,258 $ 548,906 Equity in Pooled Cash and Investments 190,987 3,659,411 3,531,605 318,793 Account Receivables 2,717 1,140 2,717 1,140 Due from Other Governments 443,817 359,068 443,817 359,068 Due from Other Funds 24,230 0 24,230 0 Property Taxes Receivable 1,351,617 1,479,092 1,351,617 1,479,092 Allowance for Uncollectible Taxes (75,193) (101,268) (75,193) (101,268)
Total Assets $ 2,500,992 $ 9,546,790 $ 9,442,051 $ 2,605,731
Liabilities Accounts Payable $ 3,175 $ 15,986 $ 3,175 $ 15,986 Payroll Deductions Payable 2,168 891 2,168 891 Due to Other Taxing Units 1,690,732 4,810,470 4,715,050 1,786,152 Due to Litigants, Heirs, and Others 576,971 4,209,601 4,216,506 570,066 Due to Joint Venture 227,946 509,842 505,152 232,636
Total Liabilities $ 2,500,992 $ 9,546,790 $ 9,442,051 $ 2,605,731
108
Scott County School Department ____________________________
This section presents combining and individual fund financial statements for the Scott County School Department, a discretely presented component unit. The School Department uses a General Fund and two Special Revenue Funds.
____________________________ General Purpose School Fund – The General Purpose School Fund is used to account for general operations of the School Department. School Federal Projects Fund – The School Federal Projects Fund is used to account for restricted federal revenues, which must be expended on specific education programs. Central Cafeteria Fund – The Central Cafeteria Fund is used to account for cafeteria operations in each of the schools.
109
Exhi
bit J
-1
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Act
iviti
esD
iscr
etel
y Pr
esen
ted
Scot
t Cou
nty
Scho
ol D
epar
tmen
tFo
r th
e Ye
ar E
nded
Jun
e 30
, 201
4
Net
(Exp
ense
)Re
venu
e an
dCh
ange
s in
Net
Pos
ition
Ope
ratin
gCa
pita
lTo
tal
Char
ges
for
Gra
nts
and
Gra
nts
and
Gov
ernm
enta
lFu
nctio
ns/P
rogr
ams
Expe
nses
Serv
ices
Cont
ribu
tions
Cont
ribu
tions
Activ
ities
Gov
ernm
enta
l Act
iviti
es:
Ins
truc
tion
$14
,564
,064
$41
,437
$1,
450,
516
$2,
159,
560
$(1
0,91
2,55
1) S
uppo
rt S
ervi
ces
7,72
0,22
00
412,
976
0(7
,307
,244
) O
pera
tion
of N
on-in
stru
ctio
nal S
ervi
ces
2,80
3,89
627
3,63
22,
659,
449
012
9,18
5To
tal G
over
nmen
tal A
ctiv
ities
$25
,088
,180
$31
5,06
9$
4,52
2,94
1$
2,15
9,56
0$
(18,
090,
610)
Gen
eral
Rev
enue
s: T
axes
:
Pro
pert
y Ta
xes
Levi
ed fo
r G
ener
al P
urpo
ses
$1,
914,
605
L
ocal
Opt
ion
Sale
s Ta
xes
1,24
9,43
4
Oth
er L
ocal
Tax
es2,
207
Gra
nts
and
Cont
ribu
tions
Not
Res
tric
ted
to S
peci
fic P
rogr
ams
16,8
73,3
95 U
nres
tric
ted
Inve
stm
ent I
ncom
e84
9 M
isce
llane
ous
29,4
42To
tal G
ener
al R
even
ues
$20
,069
,932
Chan
ge in
Net
Pos
ition
$1,
979,
322
Net
Pos
ition
, Jul
y 1,
201
320
,676
,316
Net
Pos
ition
, Jun
e 30
, 201
4$
22,6
55,6
38
Prog
ram
Rev
enue
s
110
Exhi
bit J
-2
Scot
t Cou
nty,
Ten
ness
eeBa
lanc
e Sh
eet -
Gov
ernm
enta
l Fun
dsD
iscr
etel
y Pr
esen
ted
Scot
t Cou
nty
Scho
ol D
epar
tmen
tJu
ne 3
0, 2
014
Gen
eral
Scho
olTo
tal
Purp
ose
Fede
ral
Cent
ral
Gov
ernm
enta
lSc
hool
Proj
ects
Cafe
teri
aFu
nds
ASSE
TS
Cash
$0
$0
$8,
517
$8,
517
Equi
ty in
Poo
led
Cash
and
Inve
stm
ents
6,20
3,13
614
,619
740,
553
6,95
8,30
8Ac
coun
ts R
ecei
vabl
e50
449
712
71,
128
Due
from
Oth
er G
over
nmen
ts75
0,44
139
4,10
324
,175
1,16
8,71
9Pr
oper
ty T
axes
Rec
eiva
ble
2,13
9,99
70
02,
139,
997
Allo
wan
ce fo
r U
ncol
lect
ible
Pro
pert
y Ta
xes
(155
,274
)0
0(1
55,2
74)
Tota
l Ass
ets
$8,
938,
804
$40
9,21
9$
773,
372
$10
,121
,395
LIAB
ILIT
IES
Acco
unts
Pay
able
$11
,100
$3,
544
$27
1$
14,9
15Ac
crue
d Pa
yrol
l2,
324,
343
288,
835
111,
641
2,72
4,81
9Pa
yrol
l Ded
uctio
ns P
ayab
le19
3,53
120
,648
7,05
422
1,23
3D
ue to
Pri
mar
y G
over
nmen
t5,
279
00
5,27
9D
ue to
Sta
te o
f Ten
ness
ee4,
479
942
1,08
96,
510
Oth
er C
urre
nt L
iabi
litie
s26
4,16
031
,555
3,71
529
9,43
0To
tal L
iabi
litie
s$
2,80
2,89
2$
345,
524
$12
3,77
0$
3,27
2,18
6
DEF
ERRE
D IN
FLO
WS
OF
RESO
URC
ES
Def
erre
d Cu
rren
t Pro
pert
y Ta
xes
$1,
891,
924
$0
$0
$1,
891,
924
Def
erre
d D
elin
quen
t Pro
pert
y Ta
xes
82,8
440
082
,844
Oth
er D
efer
red/
Una
vaila
ble
Reve
nue
586,
388
18,4
940
604,
882
Tota
l Def
erre
d In
flow
s of
Res
ourc
es$
2,56
1,15
6$
18,4
94$
0$
2,57
9,65
0
(Con
tinue
d)
Maj
or F
unds
111
Exhi
bit J
-2
Scot
t Cou
nty,
Ten
ness
eeBa
lanc
e Sh
eet -
Gov
ernm
enta
l Fun
dsD
iscr
etel
y Pr
esen
ted
Scot
t Cou
nty
Scho
ol D
epar
tmen
t (Co
nt.)
Gen
eral
Scho
olTo
tal
Purp
ose
Fede
ral
Cent
ral
Gov
ernm
enta
lSc
hool
Proj
ects
Cafe
teri
aFu
nds
FUN
D B
ALAN
CES
Rest
rict
ed:
Rest
rict
ed fo
r Ed
ucat
ion
$29
7,07
1$
0$
649,
602
$94
6,67
3Co
mm
itted
:Co
mm
itted
for
Educ
atio
n0
100,
000
010
0,00
0As
sign
ed:
Assi
gned
for
Educ
atio
n72
,537
00
72,5
37U
nass
igne
d3,
205,
148
(54,
799)
03,
150,
349
Tota
l Fun
d Ba
lanc
es$
3,57
4,75
6$
45,2
01$
649,
602
$4,
269,
559
Tota
l Lia
bilit
ies,
Def
erre
d In
flow
s of
Res
ourc
es, a
nd F
und
Bala
nces
$8,
938,
804
$40
9,21
9$
773,
372
$10
,121
,395
Maj
or F
unds
112
Exhibit J-3
Scott County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionDiscretely Presented Scott County School DepartmentJune 30, 2014
Amounts reported for governmental activities in the statement of net position (Exhibit A) are different because:
Total fund balances - balance sheet - governmental funds (Exhibit J-2) $ 4,269,559
(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 910,561 Add: building and improvements net of accumulated depreciation 18,292,478 Add: other capital assets net of accumulated depreciation 1,322,418 20,525,457
(2) Long-term liabilities are not due and payable in the current periodand therefore are not reported in the governmental funds. Less: other postemployment benefits liability (2,827,104)
(3) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 687,726
Net position of governmental activities (Exhibit A) $ 22,655,638
113
Exhi
bit J
-4
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Chan
ges
in F
und
Bala
nces
- G
over
nmen
tal F
unds
Dis
cret
ely
Pres
ente
d Sc
ott C
ount
y Sc
hool
Dep
artm
ent
For
the
Year
End
ed J
une
30, 2
014
Gen
eral
Scho
olTo
tal
Purp
ose
Fede
ral
Cent
ral
Gov
ernm
enta
lSc
hool
Proj
ects
Cafe
teri
aFu
nds
Reve
nues
Loca
l Tax
es$
3,20
3,98
9$
0$
0$
3,20
3,98
9Li
cens
es a
nd P
erm
its57
60
057
6Ch
arge
s fo
r Cu
rren
t Ser
vice
s41
,437
027
3,63
231
5,06
9O
ther
Loc
al R
even
ues
80,9
910
2,14
583
,136
Stat
e of
Ten
ness
ee17
,423
,737
017
,167
17,4
40,9
04Fe
dera
l Gov
ernm
ent
02,
342,
943
1,58
1,72
13,
924,
664
Tota
l Rev
enue
s$
20,7
50,7
30$
2,34
2,94
3$
1,87
4,66
5$
24,9
68,3
38
Expe
nditu
res
Curr
ent:
Inst
ruct
ion
$12
,155
,046
$2,
108,
301
$0
$14
,263
,347
Supp
ort S
ervi
ces
6,14
1,45
534
6,70
20
6,48
8,15
7O
pera
tion
of N
on-in
stru
ctio
nal S
ervi
ces
1,01
7,71
40
2,04
9,34
03,
067,
054
Capi
tal O
utla
y58
,930
00
58,9
30D
ebt S
ervi
ce:
Oth
er D
ebt S
ervi
ce36
6,32
30
036
6,32
3To
tal E
xpen
ditu
res
$19
,739
,468
$2,
455,
003
$2,
049,
340
$24
,243
,811
Exce
ss (D
efic
ienc
y) o
f Rev
enue
sO
ver
Expe
nditu
res
$1,
011,
262
$(1
12,0
60)
$(1
74,6
75)
$72
4,52
7
Oth
er F
inan
cing
Sou
rces
(Use
s)In
sura
nce
Reco
very
$6,
253
$0
$0
$6,
253
Tran
sfer
s In
26,0
000
026
,000
Tran
sfer
s O
ut0
(26,
000)
0(2
6,00
0)To
tal O
ther
Fin
anci
ng S
ourc
es (U
ses)
$32
,253
$(2
6,00
0)$
0$
6,25
3
(Con
tinue
d)
Maj
or F
unds
114
Exhi
bit J
-4
Scot
t Cou
nty,
Ten
ness
eeSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res,
and
Chan
ges
in F
und
Bala
nces
- G
over
nmen
tal F
unds
Dis
cret
ely
Pres
ente
d Sc
ott C
ount
y Sc
hool
Dep
artm
ent (
Cont
.)
Gen
eral
Scho
olTo
tal
Purp
ose
Fede
ral
Cent
ral
Gov
ernm
enta
lSc
hool
Proj
ects
Cafe
teri
aFu
nds
Net
Cha
nge
in F
und
Bala
nces
$1,
043,
515
$(1
38,0
60)
$(1
74,6
75)
$73
0,78
0Fu
nd B
alan
ce, J
uly
1, 2
013
2,53
1,24
118
3,26
182
4,27
73,
538,
779
Fund
Bal
ance
, Jun
e 30
, 201
4$
3,57
4,75
6$
45,2
01$
649,
602
$4,
269,
559
Maj
or F
unds
115
Exhibit J-5
Scott County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesDiscretely Presented Scott County School DepartmentFor the Year Ended June 30, 2014
Amounts reported for governmental activities in the statement of activities (Exhibit B) are different because:
Net change in fund balances - total governmental funds (Exhibit J-4) $ 730,780
(1) Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of these assets is allocated over their useful lives and reported as depreciation expense. The difference between capital outlays and depreciation is itemized asfollows: Add: capital assets purchased in the current period $ 361,565 Less: current-year depreciation expense (989,985) (628,420)
(2) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2014 $ 687,726 Less: deferred delinquent property taxes and other deferred June 30, 2013 (754,375) (66,649)
(3) The contribution by the primary government of long-term debt (e.g., bonds, notes, other loans, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes currentfinancial resources of governmental funds. Neither transaction, however, hasany effect on net position. Add: principal contributions on leases to the primary government 71,847
(4) The primary government's refunding of debt, which was serviced by theSchool Department, will be serviced by the primary government,represents a contribution to the School Department on the government-widestatements and an increase in net assets. 2,166,477
(5) Some expenses reported in the statement of activities do not require theuse of current financial resources and therefore are not reported asexpenditures in the governmental funds. Change in other postemployment benefits liability (294,713)
Change in net position of governmental activities (Exhibit B) $ 1,979,322
116
Exhi
bit J
-6
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bala
nce
- Act
ual (
Budg
etar
y Ba
sis)
and
Bud
get
Dis
cret
ely
Pres
ente
d Sc
ott C
ount
y Sc
hool
Dep
artm
ent
Gen
eral
Pur
pose
Sch
ool F
und
For
the
Year
End
ed J
une
30, 2
014
Actu
alVa
rian
ceRe
venu
es/
with
Fin
alAc
tual
Less
:Ad
d:Ex
pend
iture
sBu
dget
-(G
AAP
Encu
mbr
ance
sEn
cum
bran
ces
(Bud
geta
ryPo
sitiv
eBa
sis)
7/1/
2013
6/30
/201
4Ba
sis)
Ori
gina
lFi
nal
(Neg
ativ
e)
Reve
nues
Loca
l Tax
es$
3,20
3,98
9$
0$
0$
3,20
3,98
9$
3,32
9,78
0$
3,32
9,78
0$
(125
,791
)Li
cens
es a
nd P
erm
its57
60
057
650
050
076
Char
ges
for
Curr
ent S
ervi
ces
41,4
370
041
,437
57,0
0057
,000
(15,
563)
Oth
er L
ocal
Rev
enue
s80
,991
00
80,9
910
74,7
146,
277
Stat
e of
Ten
ness
ee17
,423
,737
00
17,4
23,7
3716
,943
,439
17,4
94,9
42(7
1,20
5)Fe
dera
l Gov
ernm
ent
00
00
5,50
05,
500
(5,5
00)
Tota
l Rev
enue
s$
20,7
50,7
30$
0$
0$
20,7
50,7
30$
20,3
36,2
19$
20,9
62,4
36$
(211
,706
)
Expe
nditu
res
Inst
ruct
ion
Regu
lar
Inst
ruct
ion
Prog
ram
$10
,360
,760
$0
$0
$10
,360
,760
$10
,556
,260
$10
,885
,213
$52
4,45
3Al
tern
ativ
e In
stru
ctio
n Pr
ogra
m17
,639
00
17,6
3978
,115
78,1
1560
,476
Spec
ial E
duca
tion
Prog
ram
1,24
7,38
30
01,
247,
383
1,29
8,44
81,
298,
448
51,0
65Vo
catio
nal E
duca
tion
Prog
ram
529,
264
00
529,
264
636,
509
636,
509
107,
245
Supp
ort S
ervi
ces
Atte
ndan
ce86
,889
00
86,8
8990
,679
90,6
793,
790
Hea
lth S
ervi
ces
257,
972
084
425
8,81
615
1,77
627
6,97
318
,157
Oth
er S
tude
nt S
uppo
rt29
8,44
50
029
8,44
532
8,99
532
8,99
530
,550
Regu
lar
Inst
ruct
ion
Prog
ram
619,
869
081
619,
950
690,
663
675,
663
55,7
13Sp
ecia
l Edu
catio
n Pr
ogra
m18
5,42
20
018
5,42
219
5,47
019
5,47
010
,048
Oth
er P
rogr
ams
128,
150
00
128,
150
012
8,15
00
Boar
d of
Edu
catio
n43
5,80
50
043
5,80
546
1,38
946
1,38
925
,584
Dir
ecto
r of
Sch
ools
299,
327
00
299,
327
303,
184
305,
701
6,37
4O
ffice
of t
he P
rinc
ipal
851,
302
00
851,
302
921,
060
923,
460
72,1
58O
pera
tion
of P
lant
1,44
0,42
90
01,
440,
429
1,52
6,68
31,
572,
683
132,
254
Mai
nten
ance
of P
lant
196,
852
013
196,
865
266,
888
226,
888
30,0
23Tr
ansp
orta
tion
1,07
9,31
70
01,
079,
317
1,09
7,48
41,
111,
984
32,6
67Ce
ntra
l and
Oth
er26
1,67
60
026
1,67
624
5,95
326
4,45
32,
777
(Con
tinue
d)
Budg
eted
Am
ount
s
117
Exhi
bit J
-6
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bala
nce
- Act
ual (
Budg
etar
y Ba
sis)
and
Bud
get
Dis
cret
ely
Pres
ente
d Sc
ott C
ount
y Sc
hool
Dep
artm
ent
Gen
eral
Pur
pose
Sch
ool F
und
(Con
t.)
Actu
alVa
rian
ceRe
venu
es/
with
Fin
alAc
tual
Less
:Ad
d:Ex
pend
iture
sBu
dget
-(G
AAP
Encu
mbr
ance
sEn
cum
bran
ces
(Bud
geta
ryPo
sitiv
eBa
sis)
7/1/
2013
6/30
/201
4Ba
sis)
Ori
gina
lFi
nal
(Neg
ativ
e)
Expe
nditu
res
(Con
t.)O
pera
tion
of N
on-in
stru
ctio
nal S
ervi
ces
Com
mun
ity S
ervi
ces
$48
,896
$0
$0
$48
,896
$50
,000
$50
,000
$1,
104
Earl
y Ch
ildho
od E
duca
tion
968,
818
(594
)1,
118
969,
342
1,06
1,34
01,
061,
340
91,9
98Ca
pita
l Out
lay
Regu
lar
Capi
tal O
utla
y58
,930
08,
789
67,7
1925
5,55
090
,000
22,2
81O
ther
Deb
t Ser
vice
Educ
atio
n36
6,32
30
036
6,32
318
5,77
336
6,32
30
Tota
l Exp
endi
ture
s$
19,7
39,4
68$
(594
)$
10,8
45$
19,7
49,7
19$
20,4
02,2
19$
21,0
28,4
36$
1,27
8,71
7
Exce
ss (D
efic
ienc
y) o
f Rev
enue
sO
ver
Expe
nditu
res
$1,
011,
262
$59
4$
(10,
845)
$1,
001,
011
$(6
6,00
0)$
(66,
000)
$1,
067,
011
Oth
er F
inan
cing
Sou
rces
(Use
s)In
sura
nce
Reco
very
$6,
253
$0
$0
$6,
253
$0
$0
$6,
253
Tran
sfer
s In
26,0
000
026
,000
56,0
0056
,000
(30,
000)
Tota
l Oth
er F
inan
cing
Sou
rces
$32
,253
$0
$0
$32
,253
$56
,000
$56
,000
$(2
3,74
7)
Net
Cha
nge
in F
und
Bala
nce
$1,
043,
515
$59
4$
(10,
845)
$1,
033,
264
$(1
0,00
0)$
(10,
000)
$1,
043,
264
Fund
Bal
ance
, Jul
y 1,
201
32,
531,
241
(594
)0
2,53
0,64
72,
987,
271
2,98
7,27
1(4
56,6
24)
Fund
Bal
ance
, Jun
e 30
, 201
4$
3,57
4,75
6$
0$
(10,
845)
$3,
563,
911
$2,
977,
271
$2,
977,
271
$58
6,64
0
Budg
eted
Am
ount
s
118
Exhi
bit J
-7
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Rev
enue
s, E
xpen
ditu
res,
and
Cha
nges
in F
und
Bala
nce
- Act
ual (
Budg
etar
y Ba
sis)
and
Bud
get
Dis
cret
ely
Pres
ente
d Sc
ott C
ount
y Sc
hool
Dep
artm
ent
Scho
ol F
eder
al P
roje
cts
Fund
For t
he Y
ear E
nded
Jun
e 30
, 201
4
Actu
alVa
rian
ceRe
venu
es/
with
Fin
alAc
tual
Less
:Ex
pend
iture
sBu
dget
-(G
AAP
Encu
mbr
ance
s(B
udge
tary
Posi
tive
Basi
s)7/
1/20
13Ba
sis)
Ori
gina
lFi
nal
(Neg
ativ
e)
Reve
nues
Fede
ral G
over
nmen
t$
2,34
2,94
3$
0$
2,34
2,94
3$
1,97
8,33
6$
2,96
1,21
4$
(618
,271
)To
tal R
even
ues
$2,
342,
943
$0
$2,
342,
943
$1,
978,
336
$2,
961,
214
$(6
18,2
71)
Expe
nditu
res
Inst
ruct
ion
Regu
lar I
nstr
uctio
n Pr
ogra
m$
1,44
3,33
1$
(52)
$1,
443,
279
$98
7,65
1$
1,62
4,99
4$
181,
715
Spec
ial E
duca
tion
Prog
ram
615,
116
061
5,11
656
2,83
172
8,38
811
3,27
2Vo
catio
nal E
duca
tion
Prog
ram
49,8
54(1
08)
49,7
4643
,559
51,5
591,
813
Supp
ort S
ervi
ces
Oth
er S
tude
nt S
uppo
rt22
,789
022
,789
20,5
8946
,751
23,9
62Re
gula
r Ins
truc
tion
Prog
ram
275,
837
(3,8
42)
271,
995
292,
525
422,
342
150,
347
Spec
ial E
duca
tion
Prog
ram
12,5
970
12,5
9711
,500
24,4
3211
,835
Voca
tiona
l Edu
catio
n Pr
ogra
m54
90
549
2,70
055
01
Tran
spor
tatio
n34
,930
034
,930
36,2
0036
,200
1,27
0To
tal E
xpen
ditu
res
$2,
455,
003
$(4
,002
)$
2,45
1,00
1$
1,95
7,55
5$
2,93
5,21
6$
484,
215
Exce
ss (D
efic
ienc
y) o
f Rev
enue
sO
ver E
xpen
ditu
res
$(1
12,0
60)
$4,
002
$(1
08,0
58)
$20
,781
$25
,998
$(1
34,0
56)
Oth
er F
inan
cing
Sou
rces
(Use
s)Tr
ansf
ers
Out
$(2
6,00
0)$
0$
(26,
000)
$(2
0,78
1)$
(26,
000)
$0
Tota
l Oth
er F
inan
cing
Sou
rces
$(2
6,00
0)$
0$
(26,
000)
$(2
0,78
1)$
(26,
000)
$0
Net
Cha
nge
in F
und
Bala
nce
$(1
38,0
60)
$4,
002
$(1
34,0
58)
$0
$(2
)$
(134
,056
)Fu
nd B
alan
ce, J
uly
1, 2
013
183,
261
(4,0
02)
179,
259
65,8
7365
,873
113,
386
Fund
Bal
ance
, Jun
e 30
, 201
4$
45,2
01$
0$
45,2
01$
65,8
73$
65,8
71$
(20,
670)
Budg
eted
Am
ount
s
119
Exhibit J-8
Scott County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetDiscretely Presented Scott County School DepartmentCentral Cafeteria FundFor the Year Ended June 30, 2014
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesCharges for Current Services $ 273,632 $ 259,500 $ 259,500 $ 14,132Other Local Revenues 2,145 1,800 1,800 345State of Tennessee 17,167 17,500 17,500 (333)Federal Government 1,581,721 1,410,000 1,526,633 55,088
Total Revenues $ 1,874,665 $ 1,688,800 $ 1,805,433 $ 69,232
ExpendituresOperation of Non-instructional Services
Food Service $ 2,049,340 $ 1,938,800 $ 2,055,433 $ 6,093Total Expenditures $ 2,049,340 $ 1,938,800 $ 2,055,433 $ 6,093
Excess (Deficiency) of RevenuesOver Expenditures $ (174,675) $ (250,000) $ (250,000) $ 75,325
Net Change in Fund Balance $ (174,675) $ (250,000) $ (250,000) $ 75,325Fund Balance, July 1, 2013 824,277 826,635 826,635 (2,358)
Fund Balance, June 30, 2014 $ 649,602 $ 576,635 $ 576,635 $ 72,967
Budgeted Amounts
120
MISCELLANEOUS SCHEDULES
121
Exh
ibit
K-1
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Cha
nges
in L
ong-
term
Not
es, O
ther
Loa
ns, C
apita
l Lea
ses,
and
Bon
dsFo
r the
Yea
r End
ed J
une
30, 2
014
Ori
gina
l D
ate
Last
Issu
ed
Am
ount
Inte
rest
ofM
atur
ity
Out
stan
ding
Dur
ing
Deb
tO
utst
andi
ngD
escr
iptio
n of
Inde
bted
ness
of Is
sue
Rat
eIs
sue
Dat
e7-
1-13
Peri
odR
efun
ded
6-30
-14
GO
VE
RN
ME
NTA
L A
CTI
VIT
IES
NO
TES
PAYA
BLE
Pay
able
thro
ugh
Hig
hway
/Pub
lic W
orks
Fun
d
Equ
ipm
ent
$30
1,81
23.
7%
5-20
-03
5-20
-15
$50
,301
$0
$25
,151
$0
$25
,150
B
ridg
e R
epla
cem
ent/E
quip
men
t30
0,00
04.
998-
30-0
56-
30-1
710
0,00
00
25,0
000
75,0
00
Roa
d R
esur
face
30
0,00
03.
9812
-5-0
712
-1-1
613
3,33
00
33,3
340
99,9
96
Asp
halt
200,
000
3.33
1-9-
091-
10-1
566
,667
033
,333
033
,334
R
oad
Res
urfa
ce60
0,00
03.
578-
31-0
98-
28-1
540
0,00
00
66,6
670
333,
333
R
oad
Res
urfa
ce50
0,00
02.
9410
-15-
1210
-15-
1550
0,00
00
166,
667
033
3,33
3
Asp
halt
Zipp
er12
2,20
52.
949-
25-1
38-
21-1
60
122,
205
00
122,
205
B
ridg
e Im
prov
emen
ts60
0,00
03.
579-
25-1
38-
21-1
60
600,
000
00
600,
000
C
apita
l Out
lay
300,
000
3.55
12-1
6-13
12-1
6-16
030
0,00
00
030
0,00
0 T
otal
Pay
able
thro
ugh
Hig
hway
/Pub
lic W
orks
Fun
d$
1,25
0,29
8$
1,02
2,20
5$
350,
152
$0
$1,
922,
351
Pay
able
thro
ugh
Gen
eral
Deb
t Ser
vice
Fun
d
Ble
ache
rs/O
ther
Sch
ool P
roje
cts
325,
000
55-
17-0
65-
30-1
8$
135,
417
$0
$13
5,41
7$
0$
0
Hig
hway
Equ
ipm
ent
212,
300
4.9
6-19
-07
6-19
-19
106,
148
010
6,14
80
0
Avi
atio
n Pr
ojec
ts43
4,10
33.
192-
9-10
2-5-
1632
5,57
80
36,1
7528
9,40
30
Tot
al P
ayab
le th
roug
h G
ener
al D
ebt S
ervi
ce F
und
$56
7,14
3$
0$
277,
740
$28
9,40
3$
0
Pay
able
thro
ugh
Rur
al D
ebt S
ervi
ce F
und
T
rans
port
atio
n E
quip
men
t47
1,76
04.
058-
29-0
58-
29-1
4$
110,
355
$0
$54
,058
$0
$56
,297
W
infie
ld C
onst
ruct
ion
Proj
ect
388,
182
4.99
8-24
-05
6-24
-17
129,
394
032
,349
97,0
450
W
infie
ld C
onst
ruct
ion
Proj
ect
278,
277
4.74
11-3
0-05
11-3
0-17
115,
947
023
,190
92,7
570
T
rans
port
atio
n E
quip
men
t51
8,09
64.
888-
28-0
68-
28-1
825
9,04
60
43,1
7321
5,87
30
H
unts
ville
Ele
men
tary
and
Tec
hnol
ogy
Cen
ter R
oof P
roje
cts
245,
570
3.72
6-2-
086-
2-17
109,
140
027
,286
81,8
540
Tot
al P
ayab
le th
roug
h R
ural
Deb
t Ser
vice
Fun
d$
723,
882
$0
$18
0,05
6$
487,
529
$56
,297
Tota
l Not
es P
ayab
le$
2,54
1,32
3$
1,02
2,20
5$
807,
948
$77
6,93
2$
1,97
8,64
8
(Con
tinue
d)
Pai
d an
d/or
Mat
ured
Dur
ing
Peri
od
122
Exh
ibit
K-1
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Cha
nges
in L
ong-
term
Not
es, O
ther
Loa
ns, C
apita
l Lea
ses,
and
Bon
ds (C
ont.)
Ori
gina
l D
ate
Last
Issu
ed
Am
ount
Inte
rest
ofM
atur
ity
Out
stan
ding
Dur
ing
Deb
tO
utst
andi
ngD
escr
iptio
n of
Inde
bted
ness
of Is
sue
Rat
eIs
sue
Dat
e7-
1-13
Peri
odR
efun
ded
6-30
-14
GO
VE
RN
ME
NTA
L A
CTI
VIT
IES
(CO
NT.
)
OTH
ER
LO
AN
S PA
YAB
LE P
ublic
Bui
ldin
g A
utho
rity
Loa
n A
gree
men
t
Pay
able
thro
ugh
Gen
eral
Deb
t Ser
vice
Fun
d
B
uild
ing
and
Equ
ipm
ent
$1,
000,
000
V
arie
s%
3-1-
1995
5-25
-21
$45
8,60
0$
0$
48,0
00$
0$
410,
600
Just
ice
Cen
ter a
nd H
ighw
ay P
roje
cts
(1)
Var
ies
2-27
-07
5-25
-34
8,49
0,93
80
229,
000
08,
261,
938
Scho
ol R
enov
atio
ns a
nd Im
prov
emen
ts13
,940
,000
V
arie
s12
-15-
095-
25-3
513
,019
,000
033
8,00
00
12,6
81,0
00
Tot
al P
ayab
le th
roug
h G
ener
al D
ebt S
ervi
ce F
und
$21
,968
,538
$0
$61
5,00
00
$21
,353
,538
P
ayab
le th
roug
h R
ural
Deb
t Ser
vice
Fun
d
Var
ious
Sch
ools
Pro
ject
s3,
000,
000
V
arie
s10
-2-0
35-
25-2
3$
1,79
8,00
0$
0$
156,
000
0$
1,64
2,00
0
Tot
al P
ayab
le th
roug
h R
ural
Deb
t Ser
vice
Fun
d$
1,79
8,00
0$
0$
156,
000
0$
1,64
2,00
0
Tota
l Oth
er L
oans
Pay
able
$23
,766
,538
$0
$77
1,00
0$
0$
22,9
95,5
38
CA
PITA
L LE
ASE
S PA
YAB
LE P
ayab
le b
y Sc
hool
Dep
artm
ent t
hrou
gh G
ener
al P
urpo
se S
choo
l Fun
d
Ene
rgy
Effi
cien
cy U
pgra
des
2,49
9,65
24.
625-
15-0
85-
15-2
7$
2,23
8,32
4$
0$
71,8
472,
166,
477
$0
Tot
al P
ayab
le b
y Sc
hool
Dep
artm
ent t
hrou
gh G
ener
al P
urpo
se S
choo
l Fun
d$
2,23
8,32
4$
0$
71,8
47$
2,16
6,47
7$
0
Tota
l Cap
ital L
ease
s Pa
yabl
e$
2,23
8,32
4$
0$
71,8
47$
2,16
6,47
7$
0
BO
ND
S PA
YAB
LE P
ayab
le th
roug
h G
ener
al D
ebt S
ervi
ce F
und
G
ener
al O
blig
atio
n B
onds
50
0,00
05
11-1
-197
91-
1-17
$10
4,00
0$
0$
104,
000
$0
$0
R
efun
ding
3,09
3,78
41.
1 to
3.5
510
-21-
036-
1-15
115,
000
065
,000
50,0
000
G
ener
al O
blig
atio
n B
onds
, Ser
ies
2004
650,
000
4 to
4.7
12-3
0-04
5-1-
3554
0,00
00
15,0
0052
5,00
00
G
ener
al O
blig
atio
n B
onds
, Ser
ies
2008
1,25
0,00
0
3 to
4.5
2-14
-08
6-1-
281,
125,
000
050
,000
01,
075,
000
R
efun
ding
Bon
ds, S
erie
s 20
14A
1,49
0,00
0
2 to
3.4
6-30
-14
6-1-
350
1,49
0,00
00
01,
490,
000
Tot
al P
ayab
le th
roug
h G
ener
al D
ebt S
ervi
ce F
und
$1,
884,
000
$1,
490,
000
$23
4,00
0$
575,
000
$2,
565,
000
Pay
able
thro
ugh
Rur
al D
ebt S
ervi
ce F
und
R
efun
ding
6,63
0,00
03.
65 to
4.5
11-1
-199
84-
1-14
$62
0,00
0$
0$
620,
000
$0
$0
R
efun
ding
4,57
0,00
03.
75 to
4.5
12-3
0-04
5-1-
294,
570,
000
00
4,57
0,00
00
R
ural
Sch
ool B
onds
, Ser
ies
2004
805,
000
3.75
to 4
.512
-30-
045-
1-29
805,
000
00
805,
000
0
Rur
al S
choo
l Ref
undi
ng B
onds
, Ser
ies
2014
B8,
120,
000
2 to
3.2
56-
30-1
46-
1-29
08,
120,
000
00
8,12
0,00
0 T
otal
Pay
able
thro
ugh
Rur
al D
ebt S
ervi
ce F
und
$
5,99
5,00
0$
8,12
0,00
0$
620,
000
$5,
375,
000
$8,
120,
000
Tota
l Bon
ds P
ayab
le$
7,87
9,00
0$
9,61
0,00
0$
854,
000
$5,
950,
000
$10
,685
,000
(Con
tinue
d)
Pai
d an
d/or
Mat
ured
Dur
ing
Peri
od
123
Exh
ibit
K-1
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Cha
nges
in L
ong-
term
Not
es, O
ther
Loa
ns, C
apita
l Lea
ses,
and
Bon
ds (C
ont.)
Ori
gina
l D
ate
Last
Issu
ed
Am
ount
Inte
rest
ofM
atur
ity
Out
stan
ding
Dur
ing
Deb
tO
utst
andi
ngD
escr
iptio
n of
Inde
bted
ness
of Is
sue
Rat
eIs
sue
Dat
e7-
1-13
Peri
odR
efun
ded
6-30
-14
BU
SIN
ESS
-TYP
E A
CTI
VIT
IES
BO
ND
S PA
YAB
LE P
ayab
le th
roug
h Pu
blic
Util
ity F
und
R
even
ue a
nd T
ax B
onds
$25
5,00
04.
25
%
9-28
-07
8-31
-45
$23
7,27
9$
$0
$3,
258
$23
4,02
1(2
)$
0
Gen
eral
Obl
igat
ion
Bon
ds -
Ref
undi
ng49
0,00
01.
1 to
4.7
10-2
1-03
6-1-
2737
0,00
00
20,0
0035
0,00
0(2
)0
Tota
l Bon
ds P
ayab
le$
607,
279
$$
0$
23,2
58$
584,
021
$0
(1) T
he to
tal a
mou
nt a
ppro
ved
for d
raw
s un
der t
his
loan
agr
eem
ent i
s $1
0 m
illio
n, o
f whi
ch $
345,
062
had
not b
een
draw
n as
of J
une
30, 2
014.
(2) D
urin
g th
e ye
ar, t
he co
unty
clos
ed it
's bu
sine
ss-ty
pe a
ctiv
ities
(the
Pub
lic U
tility
Fun
d).
Out
stan
ding
deb
t for
this
fund
was
refu
nded
.
Pai
d an
d/or
Mat
ured
Dur
ing
Peri
od
124
Exhibit K-2
Scott County, TennesseeSchedule of Long-term Debt Requirements by Year
GOVERNMENTAL ACTIVITIES
YearEndingJune 30 Principal Interest Total
2015 $ 747,184 $ 63,936 $ 811,1202016 832,398 32,620 865,0182017 399,066 8,062 407,128
Total $ 1,978,648 $ 104,618 $ 2,083,266
YearEndingJune 30 Principal Interest Other Fees Total
2015 $ 807,400 $ 27,614 $ 227,153 $ 1,062,1672016 845,000 26,270 219,665 1,090,9352017 883,600 24,872 211,818 1,120,2902018 924,400 23,419 203,604 1,151,4232019 967,300 21,910 195,000 1,184,2102020 1,013,400 20,338 185,988 1,219,7262021 1,059,500 18,701 176,537 1,254,7382022 1,038,000 17,002 166,643 1,221,6452023 1,087,000 15,320 156,821 1,259,1412024 925,000 13,565 146,524 1,085,0892025 970,000 12,697 137,081 1,119,7782026 1,019,000 11,787 127,179 1,157,9662027 1,071,000 10,831 116,777 1,198,6082028 1,123,000 9,826 105,844 1,238,6702029 1,180,000 8,774 94,380 1,283,1542030 1,239,000 7,665 82,334 1,328,9992031 1,301,000 6,503 69,686 1,377,1892032 1,366,000 5,282 56,405 1,427,6872033 1,434,000 4,000 42,460 1,480,4602034 1,506,000 2,656 27,821 1,536,4772035 1,235,938 1,242 12,447 1,249,627
Total $ 22,995,538 $ 290,274 $ 2,762,167 $ 26,047,979
(Continued)
Notes
Other Loans
125
Exhibit K-2
Scott County, TennesseeSchedule of Long-term Debt Requirements by Year (Cont.)
GOVERNMENTAL ACTIVITIES (CONT.)
YearEndingJune 30 Principal Interest Total
2015 $ 665,000 $ 268,447 $ 933,4472016 630,000 273,526 903,5262017 640,000 259,826 899,8262018 595,000 245,826 840,8262019 595,000 232,726 827,7262020 580,000 219,201 799,2012021 605,000 205,726 810,7262022 580,000 191,201 771,2012023 615,000 176,314 791,3142024 850,000 159,820 1,009,8202025 885,000 136,870 1,021,8702026 920,000 110,583 1,030,5832027 970,000 82,226 1,052,2262028 700,000 51,439 751,4392029 625,000 28,133 653,1332030 55,000 7,820 62,8202031 30,000 5,950 35,9502032 35,000 4,930 39,9302033 35,000 3,740 38,7402034 35,000 2,550 37,5502035 40,000 1,360 41,360
Total $ 10,685,000 $ 2,668,214 $ 13,353,214
Bonds
126
Exh
ibit
K-3
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Not
es R
ecei
vabl
eJu
ne 3
0, 2
014
Ori
gina
lD
ate
Amou
ntof
In
tere
stBa
lanc
eD
escr
iptio
nD
ebto
rof
Not
esM
atur
ityRa
te6-
30-1
4
Gen
eral
Deb
t Ser
vice
Fun
dSa
le o
f Hos
pita
l Ass
ets
Pion
eer
Hea
lth S
ervi
ces
$10
6,67
612
-1-1
60%
$78
,076
Tota
l Not
es R
ecei
vabl
e$
78,0
76
127
Exh
ibit
K-4
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Tra
nsfe
rsPr
imar
y G
over
nmen
t and
Dis
cret
ely
Pres
ente
d Sc
ott C
ount
y Sc
hool
Dep
artm
ent
For t
he Y
ear E
nded
Jun
e 30
, 201
4
From
Fun
dTo
Fun
dPu
rpos
eA
mou
nt
PRIM
AR
Y G
OV
ER
NM
EN
T
Gen
eral
Publ
ic U
tility
Deb
t Ret
irem
ent
$5,
780
Am
bula
nce
Gen
eral
Ope
ratio
ns50
,000
Dru
g C
ontr
ol"
Veh
icle
Pur
chas
e27
,000
Hig
hway
/Pub
lic W
orks
Gen
eral
Deb
t Ser
vice
Deb
t Ret
irem
ent
48,4
24 G
ener
al D
ebt S
ervi
cePu
blic
Util
ity"
36,0
20 C
omm
unity
Dev
elop
men
t/Ind
ustr
ial P
ark
Gen
eral
Clo
se F
und
5,85
8 O
ther
Cap
ital P
roje
cts
""
2,41
3
Tota
l Tra
nsfe
rs P
rim
ary
Gov
ernm
ent
$17
5,49
5
DIS
CR
ETE
LY P
RE
SEN
TED
SC
OTT
C
OU
NTY
SC
HO
OL
DE
PAR
TME
NT
Sch
ool F
eder
al P
roje
cts
Gen
eral
Pur
pose
Sch
ool
Indi
rect
Cos
ts$
26,0
00
Tota
l Tra
nsfe
rs D
iscr
etel
y Pr
esen
ted
Scot
t C
ount
y Sc
hool
Dep
artm
ent
$26
,000
128
Exhi
bit K
-5
Scot
t Cou
nty,
Ten
ness
eeSc
hedu
le o
f Sal
arie
s an
d O
ffici
al B
onds
of P
rinc
ipal
Offi
cial
sPr
imar
y G
over
nmen
t and
Dis
cret
ely
Pres
ente
d Sc
ott C
ount
y Sc
hool
Dep
artm
ent
For
the
Year
End
ed J
une
30, 2
014
Offi
cial
Auth
oriz
atio
n of
Sal
ary
Sure
ty
Coun
ty M
ayor
Sect
ion
8-24
-102
, TC
A$
71,1
84
$50
,000
RLI I
nsur
ance
Com
pany
Supe
rint
ende
nt o
f Roa
dsSe
ctio
n 8-
24-1
02, T
CA
67,7
9510
0,00
0"
Dir
ecto
r of
Sch
ools
Stat
e Bo
ard
of E
duca
tion
and
83,5
17(1
)50
,000
" C
ount
y Bo
ard
of E
duca
tion
Trus
tee
Sect
ion
8-24
-102
, TC
A61
,632
909,
400
"As
sess
or o
f Pro
pert
ySe
ctio
n 8-
24-1
02, T
CA
61,6
3250
,000
"Co
unty
Cle
rkSe
ctio
n 8-
24-1
02, T
CA
61,6
3250
,000
"Ci
rcui
t and
Gen
eral
Ses
sion
s Co
urts
Cle
rkSe
ctio
n 8-
24-1
02, T
CA,
and
61,6
32(2
)50
,000
" C
ircu
it Ju
dge
Cler
k an
d M
aste
rSe
ctio
n 8-
24-1
02, T
CA,
and
61
,632
(3)
50,0
00"
Cha
ncer
y Co
urt J
udge
Regi
ster
of D
eeds
Sect
ion
8-24
-102
, TC
A61
,632
25,0
00"
Sher
iff:
Mic
hael
Cro
ss (7
-1-1
3 th
roug
h 12
-8-1
3)Se
ctio
n 8-
24-1
02, T
CA
31,2
9050
,000
" R
onni
e Ph
illip
s (1
-22-
14 th
roug
h 6-
30-1
4)Se
ctio
n 8-
24-1
02, T
CA
28,6
8250
,000
"D
irec
tor
of F
inan
ceBo
ard
of C
ount
y Co
mm
issi
oner
s61
,631
50,0
00"
Empl
oyee
Bla
nket
Bon
ds:
Tru
stee
25,0
00"
Fin
ance
Dep
artm
ent
50,0
00"
Cou
nty
Cler
k25
,000
" C
ircu
it an
d G
ener
al S
essi
ons
25,0
00"
Cle
rk a
nd M
aste
r25
,000
" R
egis
ter
of D
eeds
25,0
00"
She
riff
4,00
0"
(1)
Incl
udes
a c
hief
exe
cutiv
e of
ficer
trai
ning
sup
plem
ent o
f $1,
000
and
a co
achi
ng s
uppl
emen
t of $
2,51
7.(2
) D
oes
not i
nclu
de s
peci
al c
omm
issi
oner
fees
of $
900.
(3)
Doe
s no
t inc
lude
spe
cial
com
mis
sion
er fe
es o
f $25
0.
Bond
Sala
ryPa
idD
urin
gPe
riod
129
Exhi
bit K
-6
Scot
t Cou
nty,
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ness
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141
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Spec
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unds
142
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesFor the Year Ended June 30, 2014
General FundGeneral Government
County CommissionBoard and Committee Members Fees $ 88,497Social Security 5,487State Retirement 2,152Employer Medicare 1,283Audit Services 6,668Contributions 2,520Dues and Memberships 9,862Evaluation and Testing 2,509Legal Notices, Recording, and Court Costs 144Travel 54Other Contracted Services 23,332Other Supplies and Materials 1,835Other Charges 10,512
Total County Commission $ 154,855
County Mayor/ExecutiveCounty Official/Administrative Officer $ 71,184Secretary(ies) 31,483Clerical Personnel 10,975Social Security 7,012State Retirement 7,012Employer Medicare 1,640Communication 9,250Legal Notices, Recording, and Court Costs 1,407Travel 1,406Other Contracted Services 5,483Office Supplies 2,101Other Charges 1,409
Total County Mayor/Executive 150,362
County AttorneyCounty Official/Administrative Officer $ 46,000Social Security 2,852State Retirement 3,142Employer Medicare 667Communication 2,000Other Supplies and Materials 393
Total County Attorney 55,054
Election CommissionCounty Official/Administrative Officer $ 55,468Deputy(ies) 20,097Election Commission 18,000Social Security 5,212State Retirement 5,161Employer Medicare 1,219Communication 3,113
(Continued)
143
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)General Government (Cont.)
Election Commission (Cont.)Data Processing Services $ 11,757Dues and Memberships 225Legal Notices, Recording, and Court Costs 858Maintenance and Repair Services - Office Equipment 70Postal Charges 666Printing, Stationery, and Forms 94Travel 8,162Other Contracted Services 310Office Supplies 3,030Other Supplies and Materials 332Other Charges 50,125
Total Election Commission $ 183,899
Register of DeedsCounty Official/Administrative Officer $ 61,632Deputy(ies) 28,659Part-time Personnel 1,608Other Salaries and Wages 24,681Social Security 6,862State Retirement 7,855Employer Medicare 1,605Communication 3,082Dues and Memberships 407Maintenance and Repair Services - Buildings 4,721Maintenance and Repair Services - Office Equipment 6,946Printing, Stationery, and Forms 4,148Other Contracted Services 2,587Office Supplies 2,654Other Supplies and Materials 2,443
Total Register of Deeds 159,890
County BuildingsMechanic(s) $ 24,752Custodial Personnel 41,480Overtime Pay 74Other Salaries and Wages 18,007Social Security 4,906State Retirement 5,310Employer Medicare 1,147Maintenance and Repair Services - Buildings 42,492Maintenance and Repair Services - Equipment 5,179Maintenance and Repair Services - Office Equipment 1,674Maintenance and Repair Services - Vehicles 6,051Other Contracted Services 7,748Custodial Supplies 14,105Electricity 136,995Gasoline 7,156
(Continued)
144
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)General Government (Cont.)
County Buildings (Cont.)Natural Gas $ 55,271Office Supplies 1,000Road Signs 773Water and Sewer 69,687Other Supplies and Materials 931Other Charges 4,762
Total County Buildings $ 449,500
FinanceAccounting and Budgeting
Supervisor/Director $ 61,631Data Processing Personnel 154,120Social Security 13,117State Retirement 14,736Employer Medicare 3,068Communication 3,373Data Processing Services 11,193Travel 101Office Supplies 10,561Other Charges 195Office Equipment 196
Total Accounting and Budgeting 272,291
Property Assessor's OfficeCounty Official/Administrative Officer $ 61,632Assistant(s) 52,282Deputy(ies) 28,659Part-time Personnel 1,903Board and Committee Members Fees 3,700Social Security 8,601State Retirement 9,738Employer Medicare 2,012Communication 3,868Data Processing Services 13,511Dues and Memberships 1,470Maintenance and Repair Services - Buildings 1,512Maintenance and Repair Services - Vehicles 293Travel 2,985Other Contracted Services 6,625Office Supplies 2,286Other Supplies and Materials 726
Total Property Assessor's Office 201,803
County Trustee's OfficeCounty Official/Administrative Officer $ 61,632Deputy(ies) 28,659Other Salaries and Wages 22,908
(Continued)
145
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Finance (Cont.)
County Trustee's Office (Cont.)Social Security $ 6,453State Retirement 7,731Employer Medicare 1,509Communication 1,732Contracts with Other Public Agencies 7,958Data Processing Services 6,591Dues and Memberships 792Travel 1,325Office Supplies 2,469Data Processing Equipment 4,835Office Equipment 640
Total County Trustee's Office $ 155,234
County Clerk's OfficeCounty Official/Administrative Officer $ 61,632Assistant(s) 53,096Deputy(ies) 28,659Temporary Personnel 184Other Salaries and Wages 24,756Social Security 9,988State Retirement 11,484Employer Medicare 2,336Communication 4,471Dues and Memberships 507Maintenance and Repair Services - Buildings 4,990Printing, Stationery, and Forms 3,089Other Contracted Services 9,094Office Supplies 3,316Office Equipment 1,700
Total County Clerk's Office 219,302
Administration of JusticeCircuit Court
County Official/Administrative Officer $ 61,632Assistant(s) 28,645Deputy(ies) 96,377Part-time Personnel 10,579Jury and Witness Expense 2,518Social Security 11,958State Retirement 12,748Employer Medicare 2,797Communication 3,548Data Processing Services 7,162Dues and Memberships 407Printing, Stationery, and Forms 1,191Office Supplies 3,820Other Charges 1,551Data Processing Equipment 2,268
Total Circuit Court 247,201
(Continued)
146
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Administration of Justice (Cont.)
General Sessions CourtJudge(s) $ 112,103Assistant(s) 57,355Salary Supplements 9,512Secretary(ies) 22,331Clerical Personnel 18,238Part-time Personnel 15,903Board and Committee Members Fees 6,000Social Security 14,351State Retirement 14,470Employer Medicare 3,485Communication 5,745Data Processing Services 4,048Travel 2,072Other Contracted Services 4,400Office Supplies 717Other Supplies and Materials 24,482
Total General Sessions Court $ 315,212
Chancery CourtCounty Official/Administrative Officer $ 61,632Deputy(ies) 28,659Other Salaries and Wages 25,259Social Security 7,036State Retirement 7,892Employer Medicare 1,646Communication 2,797Data Processing Services 1,067Dues and Memberships 407Maintenance and Repair Services - Office Equipment 104Printing, Stationery, and Forms 422Office Supplies 1,280
Total Chancery Court 138,201
District Attorney GeneralOther Contracted Services $ 3,297Other Supplies and Materials 9,899Other Charges 32,270
Total District Attorney General 45,466
Office of Public DefenderContributions $ 581Other Contracted Services 9,576Other Supplies and Materials 12,157Other Charges 2,287
Total Office of Public Defender 24,601
(Continued)
147
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Public Safety
Sheriff's DepartmentCounty Official/Administrative Officer $ 59,972Deputy(ies) 821,543Secretary(ies) 42,812Overtime Pay 2,611Social Security 55,348State Retirement 61,624Employer Medicare 12,944Communication 40,633Dues and Memberships 1,500Licenses 600Maintenance and Repair Services - Buildings 491Maintenance and Repair Services - Equipment 1,020Maintenance and Repair Services - Vehicles 55,258Towing Services 1,610Travel 11,186Tuition 7,223Other Contracted Services 8,699Gasoline 140,463Law Enforcement Supplies 21,861Office Supplies 7,035Tires and Tubes 11,552Uniforms 6,961Other Supplies and Materials 6,676Liability Insurance 37,390Workers' Compensation Insurance 54,110Other Charges 16,465Motor Vehicles 21,587
Total Sheriff's Department $ 1,509,174
JailDeputy(ies) $ 585,810Dispatchers/Radio Operators 257,002Social Security 50,551State Retirement 57,295Employer Medicare 11,822Medical and Dental Services 554,490Travel 4,154Other Contracted Services 4,204Food Supplies 191,637Office Supplies 1,504Uniforms 1,402Other Supplies and Materials 67,210
Total Jail 1,787,081
Juvenile ServicesSupervisor/Director $ 29,414Deputy(ies) 83,347
(Continued)
148
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Public Safety (Cont.)
Juvenile Services (Cont.)Youth Service Officer(s) $ 5,528Part-time Personnel 41,340Social Security 9,691State Retirement 7,595Employer Medicare 2,266Communication 4,669Maintenance and Repair Services - Vehicles 436Travel 2,747Other Contracted Services 1,515Electricity 1,101Food Supplies 13,278Gasoline 572Natural Gas 2,017Office Supplies 461Other Supplies and Materials 6,543Workers' Compensation Insurance 4,457
Total Juvenile Services $ 216,977
Fire Prevention and ControlContributions $ 2,000
Total Fire Prevention and Control 2,000
Civil DefenseSupervisor/Director $ 24,747Social Security 1,512State Retirement 930Employer Medicare 354Communication 551Dues and Memberships 50Travel 1,093Office Supplies 305Utilities 11,854Other Charges 49
Total Civil Defense 41,445
Rescue SquadContributions $ 8,000
Total Rescue Squad 8,000
County Coroner/Medical ExaminerCounty Official/Administrative Officer $ 5,538Social Security 343Employer Medicare 80
Total County Coroner/Medical Examiner 5,961
(Continued)
149
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Public Health and Welfare
Local Health CenterSocial Security $ 1,647State Retirement 1,313Employer Medicare 385Contributions 49,095Other Charges 14,443Building Improvements 245
Total Local Health Center $ 67,128
Other Local Health ServicesMedical Personnel $ 157,365Social Security 9,559State Retirement 8,815Medical Insurance 5,701Employer Medicare 2,236Travel 2,811Liability Insurance 108Workers' Compensation Insurance 5,577
Total Other Local Health Services 192,172
General Welfare AssistanceMaintenance and Repair Services - Buildings $ 144
Total General Welfare Assistance 144
Other Local Welfare ServicesPauper Burials $ 61
Total Other Local Welfare Services 61
Social, Cultural, and Recreational ServicesSenior Citizens Assistance
Deputy(ies) $ 28,600Part-time Personnel 19,178Social Security 2,882State Retirement 1,953Employer Medicare 674Communication 2,750Contributions 1,350Dues and Memberships 6,000Maintenance and Repair Services - Vehicles 4,929Travel 5,929Utilities 6,464Other Supplies and Materials 18
Total Senior Citizens Assistance 80,727
LibrariesOther Salaries and Wages $ 26,487Social Security 1,643Employer Medicare 384
(Continued)
150
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Social, Cultural, and Recreational Services (Cont.)
Libraries (Cont.)Communication $ 3,205Postal Charges 90Library Books/Media 9,216Office Supplies 1,715Periodicals 492Utilities 4,941Other Charges 681
Total Libraries $ 48,854
Agriculture and Natural ResourcesAgricultural Extension Service
Assistant(s) $ 4,428Supervisor/Director 7,100Secretary(ies) 5,599Social Security 1,062State Retirement 2,351Employer Medicare 248Communication 2,543Travel 1,467Other Charges 1,200
Total Agricultural Extension Service 25,998
Other OperationsTourism
Supervisor/Director $ 25,418Clerical Personnel 10,970Social Security 2,256State Retirement 1,736Employer Medicare 528Contributions 11,176
Total Tourism 52,084
AirportSupervisor/Director $ 28,600Part-time Personnel 20,151Social Security 2,875State Retirement 1,953Employer Medicare 672Communication 3,621Maintenance and Repair Services - Equipment 6,061Maintenance and Repair Services - Vehicles 4,382Travel 5,844Other Contracted Services 3,928Diesel Fuel 149,491Electricity 17,429Gasoline 90,221Natural Gas 1,057
(Continued)
151
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Other Operations (Cont.)
Airport (Cont.)Office Supplies $ 123Water and Sewer 831Other Supplies and Materials 1,117Liability Insurance 3,250Workers' Compensation Insurance 2,163Other Charges 16,296
Total Airport $ 360,065
Veterans' ServicesSupervisor/Director $ 37,440Social Security 2,321State Retirement 2,557Employer Medicare 543Contracts with Other Public Agencies 399Travel 1,781Other Supplies and Materials 360
Total Veterans' Services 45,401
Contributions to Other AgenciesContributions $ 84,543
Total Contributions to Other Agencies 84,543
MiscellaneousLife Insurance $ 6,270Medical Insurance 188,468Unemployment Compensation 17,014Other Fringe Benefits 2,550Postal Charges 20,337Other Supplies and Materials 291Liability Insurance 97,070Trustee's Commission 77,726Workers' Compensation Insurance 13,473Other Charges 206,377
Total Miscellaneous 629,576
HighwaysHighway and Bridge Maintenance
Transfers to Other Funds $ 235Total Highway and Bridge Maintenance 235
Total General Fund $ 7,930,497
Solid Waste/Sanitation FundPublic Health and Welfare
Recycling CenterLaborers $ 49,437Social Security 2,840
(Continued)
152
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Solid Waste/Sanitation Fund (Cont.)Public Health and Welfare (Cont.)
Recycling Center (Cont.)State Retirement $ 3,377Life Insurance 680Medical Insurance 6,271Employer Medicare 664Communication 2,180Maintenance and Repair Services - Buildings 308Maintenance and Repair Services - Equipment 485Maintenance and Repair Services - Vehicles 30Travel 1,223Other Contracted Services 28,899Diesel Fuel 1,018Electricity 3,425Equipment and Machinery Parts 5,020Gasoline 4,059Natural Gas 3,347Propane Gas 20Tires and Tubes 1,013Uniforms 1,477Water and Sewer 509Other Supplies and Materials 2,207Trustee's Commission 1,843Vehicle and Equipment Insurance 237Workers' Compensation Insurance 3,825Other Charges 3,067
Total Recycling Center $ 127,461
Postclosure Care CostsOther Contracted Services $ 10,400
Total Postclosure Care Costs 10,400
HighwaysLitter and Trash Collection
Other Supplies and Materials $ 11,539Total Litter and Trash Collection 11,539
Total Solid Waste/Sanitation Fund $ 149,400
Ambulance Service FundPublic Health and Welfare
Ambulance/Emergency Medical ServicesSupervisor/Director $ 48,025Medical Personnel 797,457Part-time Personnel 6,231Overtime Pay 169,712Social Security 66,112State Retirement 59,549Life Insurance 1,023
(Continued)
153
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Ambulance Service Fund (Cont.)Public Health and Welfare (Cont.)
Ambulance/Emergency Medical Services (Cont.)Medical Insurance $ 50,830Unemployment Compensation 3,333Employer Medicare 15,461Communication 11,123Contracts with Other Public Agencies 164,088Dues and Memberships 510Licenses 3,000Maintenance and Repair Services - Buildings 575Maintenance and Repair Services - Equipment 1,179Maintenance and Repair Services - Vehicles 21,077Postal Charges 46Printing, Stationery, and Forms 265Towing Services 350Travel 645Tuition 10,013Other Contracted Services 8,607Custodial Supplies 2,337Diesel Fuel 92,632Drugs and Medical Supplies 43,681Electricity 4,785Equipment and Machinery Parts 37,302Gasoline 2,537Natural Gas 4,059Office Supplies 1,963Propane Gas 10,404Tires and Tubes 3,783Uniforms 2,235Water and Sewer 923Other Supplies and Materials 12,146Refunds 7,994Trustee's Commission 19,146Vehicle and Equipment Insurance 18,229Workers' Compensation Insurance 110,388Other Charges 15,035Motor Vehicles 280,992
Total Ambulance/Emergency Medical Services $ 2,109,782
Total Ambulance Service Fund $ 2,109,782
Drug Control FundOther Operations
MiscellaneousConfidential Drug Enforcement Payments $ 4,500Veterinary Services 411Animal Food and Supplies 403Other Supplies and Materials 2,870Trustee's Commission 465
(Continued)
154
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Drug Control Fund (Cont.)Other Operations (Cont.)
Miscellaneous (Cont.)Other Charges $ 6,016Motor Vehicles 1,028
Total Miscellaneous $ 15,693
Total Drug Control Fund $ 15,693
Constitutional Officers - Fees FundAdministration of Justice
General Sessions CourtSpecial Commissioner Fees/Special Master Fees $ 900
Total General Sessions Court $ 900
Chancery CourtSpecial Commissioner Fees/Special Master Fees $ 250
Total Chancery Court 250
Total Constitutional Officers - Fees Fund 1,150
Highway/Public Works FundHighways
AdministrationCounty Official/Administrative Officer $ 67,795Clerical Personnel 28,589Overtime Pay 261Social Security 6,009State Retirement 6,857Employer Medicare 1,405Dues and Memberships 2,759Postal Charges 91Custodial Supplies 50Office Supplies 402
Total Administration $ 114,218
Highway and Bridge MaintenanceSupervisor/Director $ 12,651Equipment Operators 20,098Truck Drivers 60,999Laborers 315,272Overtime Pay 50,982Social Security 27,693State Retirement 31,661Unemployment Compensation 4,308Employer Medicare 6,476Rentals 148Other Contracted Services 21,739Asphalt - Cold Mix 94,275Asphalt - Hot Mix 534,344
(Continued)
155
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Highway/Public Works Fund (Cont.)Highways (Cont.)
Highway and Bridge Maintenance (Cont.)Concrete $ 5,896Crushed Stone 263,860Other Road Materials 225,723Pipe - Metal 30,789
Total Highway and Bridge Maintenance $ 1,706,914
Operation and Maintenance of EquipmentForemen $ 53,497Mechanic(s) 35,848Social Security 5,051State Retirement 6,336Unemployment Compensation 518Employer Medicare 1,181Maintenance and Repair Services - Equipment 14,818Towing Services 450Other Contracted Services 3,175Diesel Fuel 116,546Equipment and Machinery Parts 91,250Garage Supplies 235Gasoline 28,999Lubricants 5,109Propane Gas 1,786Small Tools 696Tires and Tubes 19,442Other Supplies and Materials 7,513
Total Operation and Maintenance of Equipment 392,450
Other ChargesCommunication $ 5,875Electricity 8,311Natural Gas 1,973Water and Sewer 432Trustee's Commission 18,423Vehicle and Equipment Insurance 23,843Workers' Compensation Insurance 49,994Other Charges 14,582
Total Other Charges 123,433
Employee BenefitsEmployee and Dependent Insurance $ 48,437Life Insurance 11,674
Total Employee Benefits 60,111
Capital OutlayBridge Construction $ 543,826Highway Equipment 123,305Motor Vehicles 12,000
Total Capital Outlay 679,131
(Continued)
156
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Highway/Public Works Fund (Cont.)Principal on Debt
Highways and StreetsPrincipal on Notes $ 350,152
Total Highways and Streets $ 350,152
Interest on DebtHighways and Streets
Interest on Notes $ 59,909Total Highways and Streets 59,909
Total Highway/Public Works Fund $ 3,486,318
General Debt Service FundPrincipal on Debt
General GovernmentPrincipal on Bonds $ 234,000Principal on Notes 277,740Principal on Other Loans 615,000
Total General Government $ 1,126,740
Interest on DebtGeneral Government
Interest on Bonds $ 68,164Interest on Notes 13,875Interest on Other Loans 54,181
Total General Government 136,220
Other Debt ServiceGeneral Government
Trustee's Commission $ 16,768Underwriter's Discount 13,580Other Debt Issuance Charges 39,447Other Debt Service 232,012
Total General Government 301,807
Total General Debt Service Fund 1,564,767
Rural Debt Service FundPrincipal on Debt
EducationPrincipal on Bonds $ 620,000Principal on Notes 180,056Principal on Capital Leases 71,847Principal on Other Loans 156,000
Total Education $ 1,027,903
Interest on DebtEducation
Interest on Bonds $ 261,919
(Continued)
157
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Rural Debt Service Fund (Cont.)Interest on Debt (Cont.)
Education (Cont.)Interest on Notes $ 29,513Interest on Capital Leases 93,472Interest on Other Loans 4,403
Total Education $ 389,307
Other Debt ServiceEducation
Trustee's Commission $ 16,558Underwriter's Discount 66,052Other Debt Issuance Charges 105,869Other Debt Service 19,360
Total Education 207,839
Total Rural Debt Service Fund $ 1,625,049
General Capital Projects FundGeneral Government
County BuildingsMaintenance and Repair Services - Buildings $ 5,181Other Contracted Services 23,600Road Signs 738Other Supplies and Materials 14,084Maintenance Equipment 5,400
Total County Buildings $ 49,003
FinanceAccounting and Budgeting
Other Contracted Services $ 2,998General Construction Materials 9,859Other Charges 5,069Office Equipment 2,373
Total Accounting and Budgeting 20,299
Property Assessor's OfficeOffice Equipment $ 1,572
Total Property Assessor's Office 1,572
County Clerk's OfficeMaintenance and Repair Services - Buildings $ 260
Total County Clerk's Office 260
Administration of JusticeCircuit Court
Other Supplies and Materials $ 3,045Other Charges 8,978
Total Circuit Court 12,023
(Continued)
158
Exhibit K-8
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Capital Projects Fund (Cont.)Administration of Justice (Cont.)
General Sessions CourtOther Supplies and Materials $ 4,253
Total General Sessions Court $ 4,253
Chancery CourtOther Supplies and Materials $ 753Other Charges 12,299
Total Chancery Court 13,052
Public SafetySheriff's Department
Motor Vehicles $ 66,991Other Equipment 9,803
Total Sheriff's Department 76,794
Juvenile ServicesMaintenance and Repair Services - Buildings $ 5,595
Total Juvenile Services 5,595
Public Health and WelfareAmbulance/Emergency Medical Services
Maintenance and Repair Services - Buildings $ 2,787Total Ambulance/Emergency Medical Services 2,787
Other OperationsAirport
Airport Improvement $ 20,000Maintenance Equipment 72,458
Total Airport 92,458
HighwaysCapital Outlay
Other Contracted Services $ 22Trustee's Commission 4,893
Total Capital Outlay 4,915
Total General Capital Projects Fund $ 283,011
Total Governmental Funds - Primary Government $ 17,165,667
159
Exhibit K-9
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Scott County School DepartmentFor the Year Ended June 30, 2014
General Purpose School FundInstruction
Regular Instruction ProgramTeachers $ 6,435,291Career Ladder Program 53,296Career Ladder Extended Contracts 17,000Educational Assistants 385,475Other Salaries and Wages 228,009Certified Substitute Teachers 144,254Social Security 422,557State Retirement 618,572Life Insurance 9,401Medical Insurance 1,136,792Unemployment Compensation 16,238Employer Medicare 98,820Other Fringe Benefits 5,363Travel 564Instructional Supplies and Materials 164,185Textbooks 140,348Other Charges 5,712Regular Instruction Equipment 478,883
Total Regular Instruction Program $ 10,360,760
Alternative Instruction ProgramEducational Assistants $ 13,061Social Security 599State Retirement 893Medical Insurance 2,882Unemployment Compensation 64Employer Medicare 140
Total Alternative Instruction Program 17,639
Special Education ProgramTeachers $ 733,824Career Ladder Program 8,001Homebound Teachers 37,002Educational Assistants 132,038Certified Substitute Teachers 25,584Social Security 54,513State Retirement 79,850Medical Insurance 107,070Unemployment Compensation 1,981Employer Medicare 12,749Other Contracted Services 24,281Instructional Supplies and Materials 14,395Other Supplies and Materials 14,921Other Charges 180Special Education Equipment 994
Total Special Education Program 1,247,383
(Continued)
160
Exhibit K-9
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Scott County School Department (Cont.)
General Purpose School Fund (Cont.)Instruction (Cont.)
Vocational Education ProgramTeachers $ 367,600Career Ladder Program 3,000Educational Assistants 39,183Social Security 24,198State Retirement 35,685Medical Insurance 47,041Unemployment Compensation 880Employer Medicare 5,659Instructional Supplies and Materials 879Other Supplies and Materials 5,139
Total Vocational Education Program $ 529,264
Support ServicesAttendance
Supervisor/Director $ 56,502Career Ladder Program 3,000Social Security 3,480State Retirement 5,300Medical Insurance 10,339Unemployment Compensation 72Employer Medicare 814Travel 2,098Other Supplies and Materials 5,284
Total Attendance 86,889
Health ServicesMedical Personnel $ 91,828Other Salaries and Wages 93,556Social Security 11,037State Retirement 13,471Medical Insurance 9,715Unemployment Compensation 507Employer Medicare 2,581Travel 13,489Other Supplies and Materials 18,332Other Charges 3,456
Total Health Services 257,972
Other Student SupportCareer Ladder Program $ 3,000Guidance Personnel 198,531Secretary(ies) 19,544Social Security 12,831State Retirement 19,285Medical Insurance 30,314Unemployment Compensation 360
(Continued)
161
Exhibit K-9
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Scott County School Department (Cont.)
General Purpose School Fund (Cont.)Support Services (Cont.)
Other Student Support (Cont.)Employer Medicare $ 3,001Evaluation and Testing 9,796Travel 1,783
Total Other Student Support $ 298,445
Regular Instruction ProgramSupervisor/Director $ 63,468Career Ladder Program 9,000Librarians 321,430Secretary(ies) 13,298Social Security 23,297State Retirement 36,111Medical Insurance 53,013Unemployment Compensation 611Employer Medicare 5,449Travel 21,487Other Contracted Services 10,428Library Books/Media 26,203In Service/Staff Development 5,915Other Charges 27,209Other Equipment 2,950
Total Regular Instruction Program 619,869
Special Education ProgramSupervisor/Director $ 63,528Career Ladder Program 1,000Psychological Personnel 43,350Secretary(ies) 29,337Social Security 8,017State Retirement 11,613Medical Insurance 10,339Unemployment Compensation 216Employer Medicare 1,875Travel 16,147
Total Special Education Program 185,422
Other ProgramsOn-behalf Payments to OPEB $ 128,150
Total Other Programs 128,150
Board of EducationSecretary to Board $ 29,337Board and Committee Members Fees 39,900Social Security 4,266State Retirement 2,783Medical Insurance 1,960
(Continued)
162
Exhibit K-9
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Scott County School Department (Cont.)
General Purpose School Fund (Cont.)Support Services (Cont.)
Board of Education (Cont.)Unemployment Compensation $ 163Employer Medicare 998Audit Services 5,850Dues and Memberships 10,264Travel 23,659Other Contracted Services 44,796Other Supplies and Materials 6,331Liability Insurance 762Trustee's Commission 85,636Workers' Compensation Insurance 157,776Other Charges 21,324
Total Board of Education $ 435,805
Director of SchoolsCounty Official/Administrative Officer $ 82,517Assistant(s) 81,039Career Ladder Program 1,000Secretary(ies) 29,337Social Security 11,060State Retirement 14,008Medical Insurance 21,926Unemployment Compensation 215Employer Medicare 2,587Communication 43,980Postal Charges 701Travel 5,679Office Supplies 4,374Other Charges 904
Total Director of Schools 299,327
Office of the PrincipalPrincipals $ 470,879Career Ladder Program 7,000Assistant Principals 66,052Secretary(ies) 125,294Social Security 39,139State Retirement 57,066Medical Insurance 51,819Unemployment Compensation 1,061Employer Medicare 9,154Communication 21,225Travel 2,613
Total Office of the Principal 851,302
Operation of PlantSupervisor/Director $ 28,115
(Continued)
163
Exhibit K-9
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Scott County School Department (Cont.)
General Purpose School Fund (Cont.)Support Services (Cont.)
Operation of Plant (Cont.)Custodial Personnel $ 362,232Social Security 23,888State Retirement 26,168Medical Insurance 2,651Unemployment Compensation 1,733Employer Medicare 5,589Disposal Fees 20,896Other Contracted Services 3,346Electricity 543,890Natural Gas 119,288Water and Sewer 60,802Other Supplies and Materials 69,668Building and Contents Insurance 153,365Other Charges 18,798
Total Operation of Plant $ 1,440,429
Maintenance of PlantMaintenance Personnel $ 98,521Social Security 5,943State Retirement 6,732Medical Insurance 9,336Unemployment Compensation 277Employer Medicare 1,390Other Supplies and Materials 72,037Other Charges 2,616
Total Maintenance of Plant 196,852
TransportationSupervisor/Director $ 28,125Mechanic(s) 68,615Bus Drivers 519,865Social Security 38,053State Retirement 38,384Unemployment Compensation 3,031Employer Medicare 8,899Contracts with Vehicle Owners 1,275Travel 765Diesel Fuel 220,774Gasoline 2,422Tires and Tubes 21,280Vehicle Parts 80,999Other Supplies and Materials 13,074Other Charges 28,736Transportation Equipment 5,020
Total Transportation 1,079,317
(Continued)
164
Exhibit K-9
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Scott County School Department (Cont.)
General Purpose School Fund (Cont.)Support Services (Cont.)
Central and OtherSupervisor/Director $ 51,658Other Salaries and Wages 164,947Social Security 12,579State Retirement 18,514Medical Insurance 10,605Unemployment Compensation 431Employer Medicare 2,942
Total Central and Other $ 261,676
Operation of Non-instructional ServicesCommunity Services
Supervisor/Director $ 29,911Social Security 1,871State Retirement 2,729Medical Insurance 5,750Unemployment Compensation 35Employer Medicare 438Travel 3,272Instructional Supplies and Materials 4,700Other Charges 190
Total Community Services 48,896
Early Childhood EducationTeachers $ 452,450Bus Drivers 695Educational Assistants 127,374Other Salaries and Wages 18,520Certified Substitute Teachers 14,775Social Security 36,432State Retirement 50,338Medical Insurance 57,783Unemployment Compensation 1,442Employer Medicare 8,521Travel 16,630Instructional Supplies and Materials 179,031Other Charges 4,827
Total Early Childhood Education 968,818
Capital OutlayRegular Capital Outlay
Building Improvements $ 58,930Total Regular Capital Outlay 58,930
Other Debt ServiceEducation
Debt Service Contribution to Primary Government $ 366,323Total Education 366,323
Total General Purpose School Fund $ 19,739,468
(Continued)
165
Exhibit K-9
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Scott County School Department (Cont.)
School Federal Projects FundInstruction
Regular Instruction ProgramTeachers $ 739,467Educational Assistants 157,236Other Salaries and Wages 14,900Non-certified Substitute Teachers 35,448Social Security 53,973State Retirement 78,212Medical Insurance 136,398Unemployment Compensation 2,266Employer Medicare 12,623Instructional Supplies and Materials 61,389Other Charges 25,414Regular Instruction Equipment 126,005
Total Regular Instruction Program $ 1,443,331
Special Education ProgramTeachers $ 147,412Educational Assistants 281,558Social Security 25,712State Retirement 32,331Medical Insurance 30,130Unemployment Compensation 1,584Employer Medicare 6,013Other Contracted Services 87,682Instructional Supplies and Materials 383Other Supplies and Materials 2,311
Total Special Education Program 615,116
Vocational Education ProgramInstructional Supplies and Materials $ 49,854
Total Vocational Education Program 49,854
Support ServicesOther Student Support
Travel $ 5,891Other Charges 16,898
Total Other Student Support 22,789
Regular Instruction ProgramSupervisor/Director $ 57,030Secretary(ies) 13,298Other Salaries and Wages 95,400Social Security 9,857State Retirement 14,485Medical Insurance 14,723Unemployment Compensation 240Employer Medicare 2,305
(Continued)
166
Exhibit K-9
Scott County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Scott County School Department (Cont.)
School Federal Projects Fund (Cont.)Support Services (Cont.)
Regular Instruction Program (Cont.)Travel $ 41,364Other Supplies and Materials 4,277In Service/Staff Development 22,858
Total Regular Instruction Program $ 275,837
Special Education ProgramTravel $ 3,402Other Contracted Services 4,940In Service/Staff Development 4,255
Total Special Education Program 12,597
Vocational Education ProgramTravel $ 549
Total Vocational Education Program 549
TransportationBus Drivers $ 30,388Social Security 1,884State Retirement 2,077Unemployment Compensation 140Employer Medicare 441
Total Transportation 34,930
Total School Federal Projects Fund $ 2,455,003
Central Cafeteria FundOperation of Non-instructional Services
Food ServiceSupervisor/Director $ 57,442Cafeteria Personnel 540,652Other Salaries and Wages 22,628In-service Training 3,885Social Security 37,275State Retirement 40,189Medical Insurance 20,944Unemployment Compensation 3,130Employer Medicare 8,717Travel 9,006Food Preparation Supplies 26,847Food Supplies 710,964USDA - Commodities 116,633Other Supplies and Materials 100,409Food Service Equipment 350,619
Total Food Service $ 2,049,340
Total Central Cafeteria Fund 2,049,340
Total Governmental Funds - Scott County School Department $ 24,243,811
167
Exhibit K-10
Scott County, TennesseeSchedule of Detailed Receipts, Disbursements, and Changes in Cash Balances - City Agency FundsFor the Year Ended June 30, 2014
Cities - Special CitySales School SchoolTax District ADA - Oneida
Fund Fund Fund Total
Cash Receipts Current Property Taxes $ 0 $ 306,145 $ 778,789 $ 1,084,934 Discounts on Property Taxes 0 (10,872) (7,930) (18,802) Trustee's Collections - Prior Years 0 22,114 55,818 77,932 Circuit/Clerk and Master Collections - Prior Years 0 3,232 19,045 22,277 Interest and Penalty 0 2,867 9,801 12,668 Payments in-Lieu-of-Taxes - Local Utilities 0 0 517 517 Local Option Sales Tax 1,354,384 0 543,477 1,897,861 Coal Severance Tax 0 0 45 45 Interstate Telecommunications Tax 0 0 682 682 Marriage Licenses 0 0 276 276 Other Local Revenues 0 0 93 93 Mixed Drink Tax 0 0 153 153Total Cash Receipts $ 1,354,384 $ 323,486 $ 1,400,766 $ 3,078,636
Cash Disbursements Remittance of Revenue Collected $ 1,339,840 $ 313,448 $ 1,385,388 $ 3,038,676 Trustee's Commission 14,544 6,738 23,098 44,380Total Cash Disbursements $ 1,354,384 $ 320,186 $ 1,408,486 $ 3,083,056
Excess of Cash Receipts Over (Under) Cash Disbursements $ 0 $ 3,300 $ (7,720) $ (4,420)Cash Balance, July 1, 2013 0 1,297 57,439 58,736
Cash Balance, June 30, 2014 $ 0 $ 4,597 $ 49,719 $ 54,316
168
SINGLE AUDIT SECTION
169
STATE OF TENNESSEE COMPTROLLER OF THE TREASURY
DEPARTMENT OF AUDIT DIVISION OF LOCAL GOVERNMENT AUDIT
SUITE 1500 JAMES K. POLK STATE OFFICE BUILDING
NASHVILLE, TENNESSEE 37243-1402 PHONE (615) 401-7841
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance With Government Auditing Standards
Independent Auditor's Report Scott County Mayor and Board of County Commissioners Scott County, Tennessee To the County Mayor and Board of County Commissioners: We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Scott County, Tennessee, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise Scott County’s basic financial statements, and have issued our report thereon dated February 17, 2015. Our report includes a reference to other auditors who audited the financial statements of the Scott County Emergency Communications District, as described in our report on Scott County’s financial statements. This report does not include the results of the other auditors testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Scott County’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on
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the effectiveness of Scott County’s internal control. Accordingly, we do not express an opinion on the effectiveness of Scott County’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs that we consider to be significant deficiencies: 2014-001, 2014-002, 2014-005, 2014-007, and 2014-008. Compliance and Other Matters As part of obtaining reasonable assurance about whether Scott County’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and are described in the accompanying Schedule of Findings and Questioned Costs as items: 2014-003, 2014-004, and 2014-006. Scott County’s Responses to Findings Scott County’s responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. Scott County’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering
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Scott County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Very truly yours,
Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee February 17, 2015 JPW/yu
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STATE OF TENNESSEE COMPTROLLER OF THE TREASURY
DEPARTMENT OF AUDIT DIVISION OF LOCAL GOVERNMENT AUDIT
SUITE 1500 JAMES K. POLK STATE OFFICE BUILDING
NASHVILLE, TENNESSEE 37243-1402 PHONE (615) 401-7841
Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of
Federal Awards Required by OMB Circular A-133
Independent Auditor's Report Scott County Mayor and Board of County Commissioners Scott County, Tennessee To the County Mayor and Board of County Commissioners: Report on Compliance for Each Major Federal Program We have audited Scott County’s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Scott County’s major federal programs for the year ended June 30, 2014. Scott County’s major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of Scott County’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and
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Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Scott County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Scott County’s compliance. Opinion on Each Major Federal Program In our opinion, Scott County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. Report on Internal Control Over Compliance Management of Scott County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Scott County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Scott County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Scott County, Tennessee, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise Scott County’s basic financial statements. We issued our report thereon dated February 17, 2015, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Very truly yours,
Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee February 17, 2015 JPW/yu
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Scott County, TennesseeSchedule of Expenditures of Federal Awards and State Grants (1)For the Year Ended June 30, 2014
Federal Pass-throughFederal/Pass-through Agency/State CFDA Entity IdentifyingGrantor Program Title Number Number Expenditures
U.S. Department of Agriculture:Passed-through State Department of Agriculture:
National School Lunch Program (Commodities - Noncash Assistance) 10.555 N/A $ 116,633 (3)Passed-through State Department of Education:
Fresh Fruit and Vegetable Program 10.582 N/A 59,905Child Nutrition Cluster:
School Breakfast Program 10.553 N/A 381,110National School Lunch Program 10.555 N/A 1,024,073 (3)
Total U.S. Department of Agriculture $ 1,581,721
U.S. Department of Defense:Passed-through State Department of General Services: Section 1033 Excess Property Program 12.UNKNOWN N/A $ 222,000
Total U.S. Department of Defense $ 222,000
U.S. Department of Housing and Urban Development:Passed-through State Department of Economic and Community Development:
Community Development Block Grants/Entitlement Grants 14.218 N/A $ 235,000Total U.S. Department of Housing and Urban Development $ 235,000
Bureau of Land Management, Department of the Interior:Direct Program:
Payments in-Lieu-of Taxes 15.226 N/A $ 163,836Total Bureau of Land Management, Department of the Interior $ 163,836
U.S. Department of Justice:Direct Program:
Edward Byrne Memorial Justice Assistance Grant Program 16.738 N/A $ 11,143Total U.S. Department of Justice $ 11,143
U.S. Department of Education:Passed-through State Department of Education:
Title I Grants to Local Educational Agencies 84.010 N/A $ 1,274,805Special Education Cluster:
Special Education - Grants to States 84.027 N/A 647,475Special Education - Preschool Grants 84.173 N/A 15,168
Career and Technical Education - Basic Grants to States 84.048 N/A 53,913Rural Education 84.358 N/A 33,510Improving Teacher Quality State Grants 84.367 N/A 193,412State Fiscal Stabilization Fund (SFSF) - Race-to-the-Top Incentive Grants, Recovery Act 84.395 N/A 262,722
Total U.S. Department of Education $ 2,481,005
(Continued)
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Scott County, TennesseeSchedule of Expenditures of Federal Awards and State Grants (1) (Cont.)
Federal Pass-throughFederal/Pass-through Agency/State CFDA Entity IdentifyingGrantor Program Title Number Number Expenditures
U.S. Election Assistance Commission:Passed-through State Department of Elections:
Help America Vote Act Requirements Payments 90.401 (2) $ 46,114Total U.S. Election Assistance Commission $ 46,114
U.S. Department of Health and Human Services:Passed-through East Tennessee Human Resource Agency:
Special Programs for the Aging - Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 (2) $ 7,624
Total U.S. Department of Health and Human Services $ 7,624
U.S. Department of Homeland Security:Passed-through State Department of Military:
Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 (2) 476,992Emergency Management Performance Grants 97.042 (2) 13,983
Total U.S. Department of Homeland Security $ 490,975
Total Expenditures of Federal Awards $ 5,239,418
ContractState Grants Number
Litter Program - State Department of Transportation N/A (2) $ 37,518Airport Maintenance Program - State Department of Transportation N/A (2) 72,458Health Department Programs - State Department of Health N/A (2) 186,765Appalachian Life Quality Initiative Grant - State Department of Education N/A (2) 39,203Drug Court Grant - State Office of Criminal Justice Programs N/A (2) 64,783Technology Funding - State Department of Education N/A (2) 238,918Coordinated School Health - State Department of Education N/A (2) 98,864Family Resource Center - State Department of Education N/A (2) 29,611Save the Children - State Department of Education N/A (2) 45,123Early Childhood Education - State Department of Education N/A (2) 979,210Waste Tire Option Grant - State Department of Environment and Conservation N/A (2) 7,350
Total State Grants $ 1,799,803
CFDA = Catalog of Federal Domestic AssistanceN/A = Not Applicable
(1) Presented in conformity with generally accepted accounting principles using the modified accrual basis of accounting.(2) Information not available.(3) Total for CFDA No. 10.555 is $1,140,706.
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Scott County, Tennessee Schedule of Audit Findings Not Corrected June 30, 2014 Government Auditing Standards require auditors to report the status of uncorrected findings from prior audits. Presented below are the findings from the Annual Financial Report for Scott County, Tennessee, for the year ended June 30, 2013, which have not been corrected. OFFICES OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK, CLERK AND MASTER, AND REGISTER OF DEEDS Finding Page Number Number Subject_____________________________________________ 2013-002 173 Duties were not segregated adequately OFFICE OF REGISTER OF DEEDS Finding Page Number Number Subject_____________________________________________ 2013-003 174 Multiple employees operated from the same cash drawer
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SCOTT COUNTY, TENNESSEE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2014
PART I, SUMMARY OF AUDITOR’S RESULTS
1. Our report on the financial statements of Scott County is unmodified.
2. The audit of the financial statements of Scott County disclosed significant
deficiencies in internal control. None of these deficiencies was considered to be a material weakness.
3. The audit disclosed no instances of noncompliance that are material to the financial
statements of Scott County. 4. The audit disclosed no significant deficiencies in internal control over major
programs. 5. An unmodified opinion was issued on compliance for major programs. 6. The audit revealed no findings that are required to be reported under Section 510(a)
of OMB Circular A-133. 7. The Child Nutrition Cluster: School Breakfast Program and National School Lunch
Program (CFDA Nos. 10.553 and 10.555), Title I Grants to Local Educational Agencies (CFDA No. 84.010), and State Fiscal Stabilization Fund (SFSF) – Race-to-the-Top Incentive Grants, Recovery Act (CFDA No. 84.395) were determined to be major programs.
8. A $300,000 threshold was used to distinguish between Type A and Type B federal
programs. 9. Scott County did not qualify as a low-risk auditee.
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PART II, FINDINGS RELATING TO THE FINANCIAL STATEMENTS Findings and recommendations, as a result of our examination and an investigation by the Comptroller’s Division of Investigation - Financial and Compliance Unit on the Highway Department, are presented below. We and/or the investigators reviewed these findings and recommendations with management to provide an opportunity for their response. The director of finance and the superintendent of roads provided written responses on certain findings, which are paraphrased in this report. Other management officials did not provide responses for inclusion in this report. OFFICES OF DIRECTOR OF FINANCE AND DIRECTOR OF SCHOOLS FINDING 2014-001 THE SCHOOL FEDERAL PROJECTS FUND HAD A
DEFICIT IN UNASSIGNED FUND BALANCE AT JUNE 30, 2014
(Internal Control – Significant Deficiency Under Government Auditing Standards)
The School Federal Projects Fund had a deficit in unassigned fund balance of $54,799 at June 30, 2014. Sound business practices dictate that expenditures should be held within available funds, and requests for reimbursements from grant funds should be made on a current basis. This deficit occurred because School Department personnel had not requested reimbursements from grant funds on a timely basis. Grant funds were requested subsequent to June 30, 2014, and this deficit will be liquidated when the grant funds are received. RECOMMENDATION Officials should liquidate the deficit in unassigned fund balance and should request reimbursements from grant funds in a timely manner. Officials should ensure that adequate funding is provided to prevent the recurrence of a deficit. MANAGEMENT’S RESPONSE – DIRECTOR OF FINANCE This was a timing issue between the end of the county fiscal year and the federal fiscal year and the timely request of funds through E-Plan. Funds should have been requested sooner. Internal controls will assure funds are requested in a timely manner between central office staff and finance staff.
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OFFICES OF DIRECTOR OF FINANCE AND COUNTY MAYOR FINDING 2014-002 SOME PURCHASE ORDERS WERE ISSUED AFTER
PURCHASES WERE MADE (Internal Control – Significant Deficiency Under Government Auditing Standards)
As part of our audit procedures for determining whether the purchasing process was operating as designed, we selected a sample of 60 disbursements totaling $181,507 from a population of approximately 7,110 vendor checks totaling $15,904,186. Our sample revealed that in seven instances, purchase orders were issued after purchases were made. This practice defeats the purpose of the purchase order and makes it an approval of payment rather than an approval of the purchase. This deficiency is the result of a lack of management oversight. RECOMMENDATION To strengthen internal controls over purchasing procedures and to document purchasing commitments, the office should issue purchase orders for all applicable purchases before purchases are made. MANAGEMENT’S RESPONSE – DIRECTOR OF FINANCE The county Finance Department strives to work with all departments to follow the established financial management policies of the county, which also extend to the school system. One of the issues on schools was for maintenance materials and miscommunication on the required protocol. The food service deficiency was based upon commodity pricing and the difficulty in determining the pricing for the purchase. The property assessor was in the process of office remodeling and failed to acquire a purchase order number before receipt of the materials, and the Tourism Department routinely fails to follow established purchasing requirements. The Finance Department has discussed these findings with each department and will continue to strive to work with each department to follow established guidelines and procedures. Overall, given the diverse nature of county operations with emergency work, and some operations working 24/7, all departments strive to follow established guidelines and generally do a very good job.
__________________________ FINDING 2014-003 EXPENDITURES EXCEEDED APPROPRIATIONS
(Noncompliance Under Government Auditing Standards) Total expenditures exceeded appropriations in the General Capital Projects Fund by $11. Expenditures exceeded appropriations approved by the County Commission in the following funds’ major appropriation categories (the legal level of control):
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AmountFund/Major Appropriation Category Overspent
General: Finance: Property Assessor's Office $ 276 Other Operations: Airport 35,597
Highway/Public Works: Highways: Administration 771
Section 5-9-401, Tennessee Code Annotated, states that “All funds from whatever source derived, including, but not limited to taxes, county aid funds, federal funds, and fines, that are to be used in the operation and respective programs of the various departments, commissions, institutions, boards, offices and agencies of county governments shall be appropriated to such use by the county legislative bodies.” These deficiencies exist because management failed to stay within the spending limits authorized by the County Commission, which resulted in unauthorized expenditures, and management failed to correct the finding noted in the prior-year audit report. RECOMMENDATION Expenditures should be held within appropriations approved by the County Commission. MANAGEMENT’S RESPONSE – DIRECTOR OF FINANCE This finding is directly tied to finding 2014-002 and the failure to acquire a purchase order. The property assessor’s budget overage is tied to the explanation noted above involving office modifications. The airport purchased fuel to accommodate increased air traffic coming to Scott County to pay final respects to Senator Howard Baker. Unfortunately, this purchase occurred on June 30th, and the County Commission had approved all final budget amendments on June 16, 2014. The county buildings budget overage was due to invoices being submitted for payment for remodeling at the courthouse where a purchase order number had not been assigned. One corrective action intended for FY2014-15 is to move the June County Commission meeting to June 29th, which will allow final budget amendments to be approved at the end of the fiscal year. This will be done in conjunction with reminding departments to obtain a purchase order number prior to the purchase.
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OFFICE OF SUPERINTENDENT OF ROADS FINDING 2014-004 A HIGHWAY DEPARTMENT EMPLOYEE OBTAINED
COUNTY FUEL FOR PERSONAL USE (Noncompliance Under Government Auditing Standards)
Subsequent to June 30, 2014, a Highway Department employee admitted to improperly pumping approximately 20 gallons of diesel fuel worth $59.60 from a county-owned mobile storage fuel tank into his personal vehicle. Also, further examination of the Highway Department’s fuel records and the employee’s time sheets disclosed that this employee had obtained some fuel while being off work. However, we were unable to determine the amounts of additional fuel the employee obtained for personal use since management did not require the employee to log his vehicle’s odometer mileage during fueling at county pumps. Also, monthly reports for fuel usage were not reviewed by management to determine that the fuel card system was accounting for all fuel pumped properly.
RECOMMENDATION Management should seek restitution from the employee for the cost of the diesel fuel ($59.60) improperly obtained for personal use. County officials should perform an internal risk assessment to determine ways to strengthen internal controls over the use of the county’s fuel card system. Fuel purchased for county use should not be used in private vehicles. The Finance Department should review and reconcile monthly reports for fuel usage with amounts pumped for the various vehicles maintained by county departments. Any significant variances should be investigated for propriety. MANAGEMENT’S RESPONSE – SUPERINTENDENT OF ROADS The employee was cleaning out a fuel tank that is used to haul fuel to equipment at job sites, and the employee had asked the superintendent of roads what to do with the old fuel that was in the tank. The superintendent advised him to do anything with the fuel other than pour it on the ground or put it in any of the department’s equipment because the tank was dirty and very rusty. The employee has been required to write a check payable to the Highway Department for $59.60 to reimburse the department for the fuel. Fuel reports are maintained at the county’s Finance Office until the end of the month, and a printout for that particular month is given to the superintendent of roads to review. This report contains the last four digits of the employee’s social security number, the date, time, equipment number, and how many gallons of fuel pumped. It is required that each employee enter the last four digits of his/her social security number and the odometer reading of the vehicle for which fuel is being obtained. However, for the vehicle in question, the odometer does not work; therefore, the employee cannot enter an odometer reading. The odometer for this vehicle will be fixed. Cards that are used for large equipment such as the loader, track-hoe, backhoes, and graders do not require mileage to be recorded since they do not have odometers. They use hour meters. For this type of fuel purchase, the employee is only required to enter the last four digits of his/her social security number. Fuel may be purchased after hours or on the weekend when department employees are called out for snow, downed trees, dead animals, flooding, etc.
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INVESTIGATOR’S COMMENT When we initially spoke to the superintendent of roads about this matter, he did not mention anything regarding the cleaning out of an old fuel tank, but did say he was not aware of the employee taking fuel. When we met with the superintendent to review our findings and recommendations, the superintendent informed us about the cleaning of the old fuel tank, but indicated he wasn’t sure if this was the instance where fuel was offered to any employees. During our interview with the employee, he advised us that he knew it was wrong to remove fuel belonging to the county for his personal vehicle, no county official had approved it, and he would be willing to reimburse the county. The employee never stated he removed the fuel while cleaning out a county fuel tank. In addition, the employee stated the county fuel pumps do not require him to enter his mileage when receiving county fuel.
__________________________ FINDING 2014-005 THE HIGHWAY DEPARTMENT HAD PURCHASING
DEFICIENCIES (Internal Control – Significant Deficiency Under Government Auditing Standards)
The following deficiencies were noted in the department’s purchasing process:
A. In most instances, invoices for vehicle repair parts did not identify the
vehicles for which the parts were purchased. Therefore, we were unable to determine if all of these purchases were for Highway Department vehicles.
B. In October 2014, the Highway Department was billed for a set of brake pads
($54.87) that was purchased for an employee’s personal use. Purportedly, while purchasing parts for the Highway Department from a local vendor, an employee also purchased brake pads for his personal use that were mistakenly charged as a county purchase by the vendor. This mistake was not detected until the end of the month when the employee received his personal statement from the vendor and determined that he had not been billed for the part. Subsequently, the employee had the vendor credit the department’s account for the amount of the part, and charge his personal account.
C. In some instances, purchase orders were issued after the purchases were
made. We noted several instances where the Finance Department approved the purchase order after the purchase was made. This practice defeats the purpose of the purchase order and makes it an approval of payment rather than an approval of the purchase. In addition, the dollar amounts and description of purchases were not listed on some purchase orders.
RECOMMENDATION Highway Department personnel should ensure that a notation is included on charge tickets and/or invoices to identify the vehicle for which a part was purchased. The finance director, as purchasing agent for the county, should ensure purchasing procedures are effective and
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comply with the county’s purchasing system. To strengthen internal controls over purchasing procedures and to document purchasing commitments, the office should issue purchase orders for all applicable purchases before purchases are made and should include the dollar amounts and descriptions of items to be purchased.
MANAGEMENT’S RESPONSE – SUPERINTENDENT OF ROADS A. In the future, invoices will contain the vehicle description and/or the equipment
number for parts being purchased.
B. The employee caught the mistake when he went to pay his bill and had the vendor credit the amount of the brake pads back to the Highway Department. The employee paid for the brake pads out of his personal funds.
C. During the regular work week, purchasing parts may take place after hours, on Fridays when the Highway Department office is closed, or on the weekend when the office is closed; therefore, a purchase order number cannot be issued. This happens because employees may have to work on the equipment during these times. However, a purchase order is issued the following Monday morning.
INVESTIGATOR’S COMMENTS We noted purchase orders were approved after purchases were made in numerous instances during the Highway Department’s normal work hours. Purchase orders should be issued for all applicable purchases before purchases are made to strengthen internal controls over purchasing procedures and to document purchasing commitments.
__________________________ FINDING 2014-006 VEHICLES WERE NOT LABELED AS PROPERTY OF
THE HIGHWAY DEPARTMENT (Noncompliance Under Government Auditing Standards)
Highway Department-owned trucks assigned to the highway superintendent and other employees were not labeled as property of the Highway Department. The County Uniform Road Law, Section 54-7-112, Tennessee Code Annotated, requires that “all machinery, equipment, and tools shall be plainly marked as property of the county.” RECOMMENDATION Department-owned trucks assigned to county employees should be plainly labeled as property of the county as required by state statute. MANAGEMENT’S RESPONSE – SUPERINTENDENT OF ROADS The signs/stickers for these vehicles have been ordered, and we are waiting for them to arrive. These stickers will be placed on the superintendent of road’s truck, the supervisor's truck, and a pine green truck.
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OFFICES OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK, CLERK AND MASTER, AND REGISTER OF DEEDS FINDING 2014-007 DUTIES WERE NOT SEGREGATED ADEQUATELY
(Internal Control – Significant Deficiency Under Government Audit Standards)
Duties were not segregated adequately among the officials and employees in the Offices of Circuit and General Sessions Courts Clerk, Clerk and Master, and Register of Deeds. Employees responsible for maintaining accounting records were also involved in receipting, depositing, and/or disbursing funds. Accounting standards provide that internal controls be designed to provide reasonable assurance of the reliability in financial reporting and of the effectiveness and efficiency of operations. This lack of segregation of duties is the result of management’s decisions based on the availability of financial resources and is a significant deficiency in internal controls that increases the risk of unauthorized transactions. Also, this deficiency exists due to the failure of management to correct the finding noted in the prior-year audit report. RECOMMENDATION Officials should segregate duties to the extent possible using available resources.
____________________________ OFFICE OF REGISTER OF DEEDS FINDING 2014-008 MULTIPLE EMPLOYEES OPERATED FROM THE SAME
CASH DRAWER (Internal Control – Significant Deficiency Under Government Auditing Standards)
Multiple employees operated from the same cash drawer in the Office of Register of Deeds. Good internal controls dictate that each employee have their own cash drawer, start the day with a standard fixed amount of cash, and remove all but that beginning amount at the end of the day. This amount should be verified to the employee’s receipts at the end of each day. Failure to adhere to this control regimen greatly increases the risk that a cash shortage may not be detected in a timely manner. Furthermore, in the event of a cash shortage, the official would not be able to determine who was responsible for the shortage because multiple employees were working from one cash drawer. This deficiency has been a management decision by the official resulting in a loss of control over assets. RECOMMENDATION Officials should assign each employee their own cash drawer.
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PART III, FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS
There were no findings and questioned costs for federal awards.
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SCOTT COUNTY, TENNESSEE AUDITEE REPORTING RESPONSIBILITIES
For the Year Ended June 30, 2014 There were no audit findings relative to federal awards presented in the prior- or current-years’ Schedules of Findings and Questioned Costs.
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