DECATUR COUNTY TENNESSEE - TN Comptroller ... Scope We have audited the financial statements of basic

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  • ANNUAL FINANCIAL REPORT

    DECATUR COUNTY, TENNESSEE FOR THE YEAR ENDED JUNE 30, 2018

    DIVISION OF LOCAL GOVERNMENT AUDIT

  • ANNUAL FINANCIAL REPORT

    DECATUR COUNTY, TENNESSEE

    FOR THE YEAR ENDED JUNE 30, 2018

    COMPTROLLER OF THE TREASURY JUSTIN P. WILSON

    DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE

    Director

    LEE ANN WEST, CPA, CGFM Audit Manager JAKE McNATT, CFE AMANDA MARCH, CPA, CFE TWYLA PRATT Senior Auditor State Auditors

    This financial report is available at www.comptroller.tn.gov

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  • Exhibit Page(s)

    Summary of Audit Findings 6-7

    INTRODUCTORY SECTION 8

    Decatur County Officials 9

    FINANCIAL SECTION 10

    Independent Auditor's Report 11-15 BASIC FINANCIAL STATEMENTS: 16

    Government-wide Financial Statements: Statement of Net Position A 17-18 Statement of Activities B 19-20

    Fund Financial Statements: Governmental Funds:

    Balance Sheet C-1 21-22 Reconciliation of the Balance Sheet of Governmental Funds

    to the Statement of Net Position C-2 23 Statement of Revenues, Expenditures, and Changes in

    Fund Balances C-3 24-25 Reconciliation of the Statement of Revenues, Expenditures,

    and Changes in Fund Balances of Governmental Funds to the Statement of Activities C-4 26

    Statements of Revenues, Expenditures, and Changes in Fund Balances – Actual and Budget:

    General Fund C-5 27-28 Highway/Public Works Fund C-6 29

    Fiduciary Funds: Statement of Fiduciary Assets and Liabilities D 30

    Index and Notes to the Financial Statements 31-87 REQUIRED SUPPLEMENTARY INFORMATION: 88

    Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRS – Primary Government E-1 89

    Schedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRS – Primary Government E-2 90

    Schedule of Contributions Based on Participation in the Teacher Retirement Plan of TCRS – Discretely Presented Decatur County School Department E-3 91

    Schedule of Contributions Based on Participation in the Teacher Legacy Pension Plan of TCRS – Discretely Presented Decatur County School Department E-4 92

    DECATUR COUNTY, TENNESSEE TABLE OF CONTENTS

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  • Exhibit Page(s)

    Schedule of Proportionate Share of the Net Pension Asset in the Teacher Retirement Plan of TCRS – Discretely Presented Decatur County School Department E-5 93

    Schedule of Proportionate Share of the Net Pension Asset in the Teacher Legacy Pension Plan of TCRS – Discretely Presented Decatur County School Department E-6 94

    Schedule of Changes in the Total OPEB Liability and Related Ratios - Local Government Plans E-7 95

    Schedule of Changes in the Total OPEB Liability and Related Ratios - Local Education Plan - Discretely Presented Decatur County School Department E-8 96

    Notes to the Required Supplementary Information 97 COMBINING AND INDIVIDUAL FUND FINANCIAL

    STATEMENTS AND SCHEDULES: 98 Nonmajor Governmental Funds: 99

    Combining Balance Sheet F-1 100-103 Combining Statement of Revenues, Expenditures, and Changes

    in Fund Balances F-2 104-105 Schedules of Revenues, Expenditures, and Changes in Fund

    Balances – Actual and Budget: Solid Waste/Sanitation Fund F-3 106 Special Purpose Fund F-4 107 Drug Control Fund F-5 108

    Major Governmental Fund: 109 Schedule of Revenues, Expenditures, and Changes in Fund

    Balance – Actual and Budget: General Debt Service Fund G 110

    Fiduciary Funds: 111 Combining Statement of Fiduciary Assets and Liabilities H-1 112 Combining Statement of Changes in Assets and Liabilities –

    All Agency Funds H-2 113 Component Unit:

    Discretely Presented Decatur County School Department: 114 Statement of Activities I-1 115 Balance Sheet – Governmental Funds I-2 116-117 Reconciliation of the Balance Sheet of Governmental Funds

    to the Statement of Net Position I-3 118 Statement of Revenues, Expenditures, and Changes in Fund

    Balances – Governmental Funds I-4 119 Reconciliation of the Statement of Revenues, Expenditures,

    and Changes in Fund Balances of Governmental Funds to the Statement of Activities I-5 120

    Combining Balance Sheet – Nonmajor Governmental Funds I-6 121 Combining Statement of Revenues, Expenditures, and Changes

    in Fund Balances – Nonmajor Governmental Funds I-7 122 Schedules of Revenues, Expenditures, and Changes in Fund

    Balances – Actual (Budgetary Basis) and Budget: General Purpose School Fund I-8 123-124 School Federal Projects Fund I-9 125 Central Cafeteria Fund I-10 126

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  • Exhibit Page(s)

    Miscellaneous Schedules: 127 Schedule of Changes in Long-term Notes, Other Loan, Capital Lease,

    and Bonds J-1 128 Schedule of Long-term Debt Requirements by Year J-2 129-130 Schedule of Salaries and Official Bonds of Principal Officials –

    Primary Government and Discretely Presented Decatur County School Department J-3 131

    Schedule of Detailed Revenues – All Governmental Fund Types J-4 132-143 Schedule of Detailed Revenues – All Governmental Fund Types –

    Discretely Presented Decatur County School Department J-5 144-147 Schedule of Detailed Expenditures – All Governmental Fund Types J-6 148-165 Schedule of Detailed Expenditures – All Governmental Fund Types –

    Discretely Presented Decatur County School Department J-7 166-175 Schedule of Detailed Receipts, Disbursements, and Changes in

    Cash Balance – City Agency Fund J-8 176

    SINGLE AUDIT SECTION 177

    Auditor's 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 178-179

    Auditor's 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 the Uniform Guidance 180-182

    Schedule of Expenditures of Federal Awards and State Grants 183-184 Summary Schedule of Prior-year Findings 185 Schedule of Findings and Questioned Costs 186-197 Management's Corrective Action Plan 198-209 Best Practice 210

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  • Summary of Audit Findings

    Annual Financial Report Decatur County, Tennessee

    For the Year Ended June 30, 2018

    Scope We have audited the basic financial statements of Decatur County as of and for the year ended June 30, 2018.

    Results Our report on the aggregate discretely presented component units is adverse because the financial statements do not include the Decatur County General Hospital, a material component unit whose financial statements were not available from other auditors at the date of this report. Our report on the governmental activities, each major fund, and the aggregate remaining fund information is unmodified. Our audit resulted in 11 findings and recommendations, which we have reviewed with Decatur 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: OFFICE OF COUNTY MAYOR ♦ The General and General Debt Service funds required material audit adjustments for

    proper financial statement presentation. ♦ The office had deficiencies in budget operations. ♦ The office had accounting deficiencies. ♦ The General Fund’s minimum fund balance did not comply with county policy. ♦ Accrued leave records were not maintained adequately. ♦ Time records were not on file to support payroll disbursements. OFFICE OF ROAD SUPERVISOR ♦ Expenditures exceeded appropriations.

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  • OFFICE OF DIRECTOR OF SCHOOLS ♦ The School Federal Projects Fund had a cash overdraft of $12,509 at June 30, 2018. OFFICE OF ASSESSOR OF PROPERTY ♦ New owners of use value properties were not required to file a new application for

    agricultural property, forest property, or designated open space usage. DECATUR COUNTY ♦ Certain financial activity of the Decatur County Public Library was not audited and was

    not subject to the budgetary control of the County Commission. ♦ The county’s Audit Committee is not a functioning committee.

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  • INTRODUCTORY SECTION

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  • Decatur County Officials June 30, 2018

    Officials

    Mike Creasy, County Mayor Robert Montgomery, Road Supervisor Rhonda Mitchell, Director of Schools Janis Wright Boyd, Trustee Steve Glass, Assessor of Property Melinda Broadway, County Clerk Danny Tanner, Circuit and General Sessions Courts Clerk Elizabeth Carpenter, Clerk and Master Don Davis, Register of Deeds Keith Byrd, Sheriff

    Board of County Commissioners

    Mike Creasy, County Mayor, Chairman Mickey Mays David Boroughs Tim Middleton Mike Box Bryan Smith Gaylon Clifft Bobby Swindle Billy Wayne Goodman Mary Ella Teague Ruth Ann Hearington Teresa Tillman Jerry Hunter Eugene Tubbs Joe Keeton Edward White Shirley Kelley Jack Martin

    Board of Education

    Art Bawcum, Chairman Jeffrey Rhodes Robert Bibbs J. Wayne Stanfill Jennifer Black Rebecca Stanfill Steve Brown Athalia Taylor Tom Haggard

    Audit Committee

    Billy Wayne Goodman, Chairman Mickey Mays Don Moore

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