2008 Humphreys County Comptroller Report

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    ANNUAL FINANCIAL REPORT

    HUMPHREYS COUNTY, TENNESSEE

    FOR THE YEAR ENDED JUNE 30, 2008

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    HUMPHREYS COUNTY, TENNESSEE

    TABLE OF CONTENTS

    Exhibit Page(s)

    Audit Highlights 9-10

    INTRODUCTORY SECTION 11

    Humphreys County Officials 13

    FINANCIAL SECTION 15

    Independent Auditors Report 17-19

    BASIC FINANCIAL STATEMENTS: 21

    Government-wide Financial Statements:

    Statement of Net Assets A 23

    Statement of Activities B 24-25

    Fund Financial Statements:

    Governmental Funds:

    Balance Sheet C-1 26-27

    Reconciliation of the Balance Sheet of Governmental Funds to

    the Statement of Net Assets C-2 28

    Statement of Revenues, Expenditures, and Changes inFund Balances C-3 29-30

    Reconciliation of the Statement of Revenues, Expenditures,

    and Changes in Fund Balances of Governmental Funds to

    the Statement of Activities C-4 31

    Proprietary Fund:

    Statement of Revenues, Expenses, and Changes in Net Assets D-1 32

    Statement of Cash Flows D-2 33

    Fiduciary Funds:

    Statement of Fiduciary Assets and Liabilities E 34

    Notes to the Financial Statements 35-66

    REQUIRED SUPPLEMENTARY INFORMATION: 67

    Schedules of Revenues, Expenditures, and Changes in Fund

    Balances Actual (Budgetary Basis) and Budget:

    General Fund F-1 69-70

    Solid Waste/Sanitation Fund F-2 71

    Highway/Public Works Fund F-3 72

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    Exhibit Page(s)

    Schedule of Funding Progress Pension Plan F-4 73

    Schedule of Funding Progress Other Postemployment

    Benefits Plans Primary Government and Discretely

    Presented Humphreys County School Department F-5 74

    Notes to the Required Supplementary Information 75

    COMBINING AND INDIVIDUAL FUND FINANCIAL

    STATEMENTS AND SCHEDULES: 77

    Nonmajor Governmental Funds: 79

    Combining Balance Sheet G-1 81

    Combining Statement of Revenues, Expenditures, and

    Changes in Fund Balances G-2 82

    Schedules of Revenues, Expenditures, and Changes in

    Fund Balances Actual and Budget:

    Local Purpose Tax Fund G-3 83

    Drug Control Fund G-4 84

    Major Governmental Funds: 85Schedules of Revenues, Expenditures, and Changes in

    Fund Balances Actual (Budgetary Basis) and Budget:

    General Debt Service Fund H-1 87

    General Capital Projects Fund H-2 88

    Fiduciary Funds: 89

    Combining Statement of Fiduciary Assets and Liabilities I-1 91

    Combining Statement of Changes in Assets and Liabilities

    All Agency Funds I-2 92

    Component Unit:

    Discretely Presented Humphreys County School Department: 93

    Statement of Activities J-1 95

    Balance Sheet Governmental Funds J-2 96

    Reconciliation of the Balance Sheet of Governmental Funds

    to the Statement of Net Assets J-3 97

    Statement of Revenues, Expenditures, and Changes in Fund

    Balances Governmental Funds J-4 98

    Reconciliation of the Statement of Revenues, Expenditures,

    and Changes in Fund Balances of Governmental Funds to

    the Statement of Activities J-5 99

    Combining Balance Sheet Nonmajor Governmental Funds J-6 100

    Combining Statement of Revenues, Expenditures, and

    Changes in Fund Balances Nonmajor Governmental

    Funds J-7 101Schedules of Revenues, Expenditures, and Changes in Fund

    Balances Actual (Budgetary Basis) and Budget:

    General Purpose School Fund J-8 102-103

    School Federal Projects Fund J-9 104

    Central Cafeteria Fund J-10 105

    Statement of Fiduciary Net Assets J-11 106

    Statement of Changes in Fiduciary Net Assets J-12 107

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    Exhibit Page(s)

    Miscellaneous Schedules: 109

    Schedule of Changes in Long-term Notes, Other Loans, and

    Bonds Primary Government and Discretely Presented

    Humphreys County School Department K-1 111

    Schedule of Long-term Debt Requirements by Year Primary

    Government and Discretely Presented Humphreys County

    School Department K-2 112-114

    Schedule of Notes Receivable K-3 115

    Schedule of Transfers Discretely Presented Humphreys

    County School Department K-4 116

    Schedule of Salaries and Official Bonds of Principal

    Officials Primary Government and Discretely

    Presented Humphreys County School Department K-5 117

    Schedule of Detailed Revenues All Governmental

    Fund Types K-6 118-122

    Schedule of Detailed Revenues All GovernmentalFund Types Discretely Presented Humphreys County

    School Department K-7 123-124

    Schedule of Detailed Expenditures All Governmental

    Fund Types K-8 125-140

    Schedule of Detailed Expenditures All Governmental

    Fund Types Discretely Presented Humphreys County

    School Department K-9 141-152

    Schedule of Detailed Receipts, Disbursements, and

    Changes in Cash Balance City Agency Fund K-10 153

    SINGLE AUDIT SECTION 155

    Auditors 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 157-159

    Auditors Report on Compliance With Requirements

    Applicable to Each Major Program and Internal

    Control Over Compliance in Accordance

    With OMB Circular A-133 161-163

    Schedule of Expenditures of Federal Awards and State Grants 165-166

    Schedule of Audit Findings Not Corrected 167

    Schedule of Findings and Questioned Costs 169-176Auditee Reporting Responsibilities 177

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    Audit HighlightsAnnual Financial Report

    Humphreys County, Tennessee

    For the Year Ended June 30, 2008

    Scope

    We have audited the basic financial statements of Humphreys County as of and for the

    year ended June 30, 2008.

    Results

    Our report on the aggregate discretely presented component units is qualified because the

    financial statements did not include one component unit whose financial statements were

    not available from other auditors at the date of this report. Our report on thegovernmental activities, the business-type activities, each major fund, and the aggregate

    remaining fund information is unqualified.

    Our audit resulted in nine findings and recommendations, which we have reviewed with

    Humphreys County management. Detailed findings, recommendations, and managements

    response are included in the Single Audit section of this report.

    Findings

    The following are summaries of the audit findings:

    HUMPHREYS COUNTY AND HUMPHREYS COUNTY SCHOOL DEPARTMENT

    Humphreys County and the Humphreys County School Department do not have theresources to produce financial statements and notes to the financial statements.

    OFFICES OF COUNTY EXECUTIVE AND ROAD SUPERVISOR

    The General, Highway/Public Works, General Debt Service, and General CapitalProjects funds required material audit adjustments for proper financial statement

    presentation.

    OFFICE OF COUNTY EXECUTIVE

    The office had not established a formal purchase order system. Amounts withheld from contractor payments were not deposited into an escrow

    account.

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    OFFICE OF DIRECTOR OF SCHOOLS

    Revenue anticipation notes were not issued and retired in compliance with statestatutes.

    OFFICES OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK AND

    CLERK AND MASTER

    The software applications used by these offices generated daily logs that displayedchanges made by users. Management did not begin reviewing these logs until several

    months into the fiscal year.

    OTHER FINDINGS

    County officials had not adopted a central system of accounting, budgeting, andpurchasing. The county used a questionable method of funding workers compensation expenses,

    general liability insurance, officials corporate surety bonds, and employees dishonesty

    bonds.

    Duties were not segregated adequately among the officials and employees in the Officesof County Executive, County Clerk, Circuit and General Sessions Courts Clerk, Clerk

    and Master, Register, and Sheriff.

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    INTRODUCTORY SECTION

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    FINANCIAL SECTION

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