HICKMAN COUNTY TENNESSEE

ANNUAL FINANCIAL REPORT

HICKMAN COUNTY, TENNESSEE FOR THE YEAR ENDED JUNE 30, 2020

DIVISION OF LOCAL GOVERNMENT AUDIT

ANNUAL FINANCIAL REPORT

HICKMAN COUNTY, TENNESSEE

FOR THE YEAR ENDED JUNE 30, 2020

COMPTROLLER OF THE TREASURY JUSTIN P. WILSON

DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE

Director

JEFF BAILEY, CPA, CGFM, CFE Audit Manager TAYLOR ERSKIN, CPA

CARRIE SABIN KATIE ARMSTRONG, CPA, CGFM, CFE BETHANY GRAVES 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

INTRODUCTORY SECTION 7

Hickman County Officials 8-9

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 20-21Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position C-2 22Statement of Revenues, Expenditures, and Changes in

Fund Balances C-3 23-24Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities C-4 25

Statements of Revenues, Expenditures, and Changes in FundBalances – Actual (Budgetary Basis) and Budget:

General Fund C-5 26-29Highway/Public Works Fund C-6 30

Proprietary Fund:Statement of Net Position D-1 31-32Statement of Revenues, Expenses, and Changes in Net Position D-2 33Statement of Cash Flows D-3 34

Fiduciary Funds:Statement of Fiduciary Assets and Liabilities E 35

Index and Notes to the Financial Statements 36-107REQUIRED SUPPLEMENTARY INFORMATION: 108

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Planof TCRS – Primary Government F-1 109

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Primary Government F-2 110

Schedule of Contributions Based on Participation in the TeacherRetirement Plan of TCRS – Discretely Presented HickmanCounty School Department F-3 111

Schedule of Contributions Based on Participation in the TeacherLegacy Pension Plan of TCRS – Discretely Presented HickmanCounty School Department F-4 112

HICKMAN COUNTY, TENNESSEETABLE OF CONTENTS

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Exhibit Page(s)

Schedule of Proportionate Share of the Net Pension Liability (Asset) in theTeacher Retirement Plan of TCRS – Discretely PresentedHickman County School Department F-5 113

Schedule of Proportionate Share of the Net Pension Liability (Asset) in theTeacher Legacy Pension Plan of TCRS – Discretely PresentedHickman County School Department F-6 114

Schedule of Changes in the Total OPEB Liability and Related Ratios - Commercia Plan - Primary Government F-7 115

Schedule of Changes in the Total OPEB Liability and Related Ratios - Local Education Plan - Discretely Presented Hickman CountySchool Department F-8 116

Schedule of Changes in the Total OPEB Liability and Related Ratios - Tennessee Plan - Medicare - Discretely Presented Hickman County School Department F-9 117

Notes to the Required Supplementary Information 118COMBINING AND INDIVIDUAL FUND FINANCIAL

STATEMENTS AND SCHEDULES: 119Nonmajor Governmental Funds: 120-121

Combining Balance Sheet G-1 122-123Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances G-2 124-125Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual and Budget:Drug Control Fund G-3 126Adequate Facilities/Development Tax Fund G-4 127Education Debt Service Fund G-5 128

Major Governmental Fund: 129Schedule of Revenues, Expenditures, and Changes in Fund

Balance – Actual and Budget:General Debt Service Fund H 130

Fiduciary Funds: 131Combining Statement of Fiduciary Assets and Liabilities I-1 132Combining Statement of Changes in Assets and Liabilities –

All Agency Funds I-2 133Component Units:

Discretely Presented Hickman County School Department: 134Statement of Activities J-1 135Balance Sheet – Governmental Funds J-2 136Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position J-3 137Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds J-4 138Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities J-5 139

Combining Balance Sheet – Nonmajor Governmental Funds J-6 140Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances – Nonmajor Governmental Funds J-7 141Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual and Budget:General Purpose School Fund J-8 142-143School Federal Projects Fund J-9 144Central Cafeteria Fund J-10 145

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Exhibit Page(s)

Discretely Presented Hickman County Health Foundation: 146Statement of Net Position and Governmental Fund Balance Sheet K-1 147Statement of Activities and Governmental Fund Revenues,

Expenditures, and Changes in Fund Balance/Net Position K-2 148Miscellaneous Schedules: 149

Schedule of Changes in Long-term Notes and Other Loans L-1 150Schedule of Long-term Debt Requirements by Year L-2 151Schedule of Transfers – Primary Government and Discretely

Presented Hickman County School Department L-3 152Schedule of Salaries and Official Bonds of Principal Officials –

Primary Government and Discretely Presented HickmanCounty School Department L-4 153

Schedule of Detailed Revenues – All Governmental Fund Types L-5 154-165Schedule of Detailed Revenues – All Governmental Fund Types –

Discretely Presented Hickman County School Department L-6 166-169Schedule of Detailed Revenues – All Governmental Fund Types –

Discretely Presented Hickman County Health Foundation L-7 170Schedule of Detailed Expenditures – All Governmental Fund Types L-8 171-184Schedule of Detailed Expenditures – All Governmental Fund Types –

Discretely Presented Hickman County School Department L-9 185-193Schedule of Detailed Expenditures – All Governmental Fund Types –

Discretely Presented Hickman County Health Foundation L-10 194Schedule of Detailed Revenues and Expenses – Solid Waste

Disposal Fund (Enterprise Fund) L-11 195-197Schedule of Detailed Receipts, Disbursements, and Changes in

Cash Balance – City Agency Fund L-12 198

SINGLE AUDIT SECTION 199

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 200-202

Auditor's Report on Compliance for Each Major Federal Program; Report onInternal Control Over Compliance; and Report on the Schedule ofExpenditures of Federal Awards Required by Uniform Guidance 203-205

Schedule of Expenditures of Federal Awards and State Grants 206-207Summary Schedule of Prior-year Findings 208Schedule of Findings and Questioned Costs 209-213Management's Corrective Action Plan 214-217

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Summary of Audit FindingsAnnual Financial Report

Hickman County, Tennessee For the Year Ended June 30, 2020

Scope

We have audited the basic financial statements of Hickman County as of and for the year ended June 30, 2020.

Results

Our report on Hickman County’s financial statements is unmodified.

Our audit resulted in three findings and recommendations, which we have reviewed with Hickman County management. The 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 FINANCE DIRECTOR

♦ Material audit adjustments were required for proper financial statement presentation.

HICKMAN COUNTY HEALTH FOUNDATION

♦ The Hickman County Health Foundation did not require a depository to adequately collateralizefunds.

OFFICE OF SOLID WASTE

♦ The receipting software for the Landfill Office did not have adequate application controls.

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INTRODUCTORY SECTION

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Hickman County OfficialsJune 30, 2020

Officials

Mark Bentley, County MayorRonald Coates, Road SuperintendentMichelle Gilbert, Director of SchoolsLisa Hellmann, TrusteeDelton Mayberry, Assessor of PropertyCasey Dorton, County ClerkDana Nicholson, Circuit and General Sessions Courts ClerkElizabeth Harlow, Clerk and MasterAngie Luckett, Register of DeedsRandall Ward, SheriffAnnette Elliott, Finance Director

Board of County Commissioners

Wayne Thomasson, Chairman Pro Tem Steve PhillipsDanny Clark Kenneth BatesBilly Blackwell Ricky MurrayMatthew Barnhill Todd CollinsClaude Callicott Clay ChessorKate Baldridge Joey ChiltonJohn Deal Austin PageKeith Nash Ronnie GeorgeJames Hassell Lionel BarrettMark McFarlin Trina QuallsCorey King

Financial Management Committee

Steve Phillips, Chairman Keith NashMark Bentley, County Mayor Wayne ThomassonRonald Coates, Road Superintendent Joey ChiltonMichelle Gilbert, Director of Schools

Highway Commission

Carl Sullivan, Chairman David ReddenSammy Creech Danny MathisJohn Hinson Gayle PottsKenneth Underhill

(Continued)

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Hickman County Officials (Cont.)

Board of Education

Amy Bryant, Chairman Vance WillisRonald Gammons Jane HerronSteve Gianakos James HudginsTimothy Hobbs

Health Foundation Board of Directors

James Hassell, Chairman Steve HeathcoteLionel Barrett Billy BlackwellKenneth Bates Annette Elliott, Finance DirectorDanny Clark

Audit Committee

Robert Bowman, Chairman Trina QuallsCindy Ellis Steve PhillipsLionel Barrett Keith NashKorie Cochran

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FINANCIAL SECTION

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Independent Auditor's Report

Hickman County Mayor and Board of County Commissioners Hickman 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 Hickman County, Tennessee, as of and for the year ended June 30, 2020, 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 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

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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, 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 Hickman County, Tennessee, as of June 30, 2020, and the respective changes in financial position and the respective budgetary comparison for the General Fund and Highway/Public Works Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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 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 schedule of changes in the county’s net pension liability (asset) and related ratios, schedules of county and school contributions, and schedules of school’s proportionate share of the net pension liability (asset), and schedules of changes in the primary government’s and school’s total OPEB liabilities and related ratios as listed in the table of contents, 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.

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Supplementary and Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Hickman County’s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service Fund, combining and individual fund financial statements of the Hickman County School Department and the Hickman County Health Foundation (discretely presented component units), miscellaneous schedules and other information such as the introductory section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is also presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is 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 Fund, combining and individual fund financial statements of the Hickman County School Department and Hickman County Health Foundation (discretely presented component units), schedule of expenditures of federal awards, 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, the combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service Fund, combining and individual fund financial statements of the Hickman County School Department and Hickman County Health Foundation (discretely presented component units), schedule of expenditures of federal awards, and miscellaneous schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.

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.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 13, 2020, on our consideration of Hickman 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 solely 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 the effectiveness of Hickman County’s 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 Hickman County’s internal control over financial reporting and compliance. Very truly yours,

Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee November 13, 2020 JPW/tg

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BASIC FINANCIAL STATEMENTS

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Exhibit A

Hickman County, TennesseeStatement of Net PositionJune 30, 2020

Hickman HickmanCounty County

Governmental Business-type School HealthActivities Activities Total Department Foundation

ASSETS

Cash $ 17,759 $ 550 $ 18,309 $ 11,498 $ 2,281,417Equity in Pooled Cash and Investments 8,504,492 678,153 9,182,645 7,145,287 0Accounts Receivable 5,004,648 838,111 5,842,759 4,103 0Allowance for Uncollectibles (4,264,707) (567,601) (4,832,308) 0 0Due from Other Governments 1,433,004 12,357 1,445,361 1,311,688 0Internal Balances (2,029) 2,029 0 0 0Property Taxes Receivable 9,007,921 0 9,007,921 3,388,189 0Allowance for Uncollectible Property Taxes (722,740) 0 (722,740) (271,358) 0Restricted Assets: Amounts Accumulated for OPEB Benefits 0 0 0 2,252,152 0 Amounts Accumulated for Pension Benefits 0 0 0 152,546 0 Other Restricted Assets 165,000 0 165,000 0 0Net Pension Asset - Agent Plan 329,324 22,105 351,429 161,831 0Net Pension Asset - Teacher Legacy Pension Plan 0 0 0 3,612,752 0Net Pension Asset - Teacher Retirement Plan 0 0 0 178,402 0Capital Assets: Assets Not Depreciated: Land 348,695 145,004 493,699 1,018,261 0 Construction in Progress 1,185,536 0 1,185,536 0 0 Assets Net of Accumulated Depreciation: Buildings and Improvements 10,130,302 580,412 10,710,714 29,104,174 0 Other Capital Assets 2,962,678 307,097 3,269,775 4,654,495 0 Infrastructure 21,348,578 0 21,348,578 12,698 0Total Assets $ 55,448,461 $ 2,018,217 $ 57,466,678 $ 52,736,718 $ 2,281,417

DEFERRED OUTFLOWS OF RESOURCES

Pension Changes in Proportion $ 0 $ 0 $ 0 $ 46,035 $ 0Pension Changes in Experience 259,472 17,416 276,888 310,798 0Pension Changes in Assumptions 207,045 13,897 220,942 594,779 0Pension Contributions After Measurement Date 721,944 46,599 768,543 1,655,701 0OPEB Changes in Assumptions 487,937 29,329 517,266 70,745 0OPEB Changes in Experience 576,310 34,641 610,951 767,133 0OPEB Changes in Proportion 0 0 0 30,440 0OPEB Benefits Paid After Measurement Date 0 0 0 162,296 0Total Deferred Outflows of Resources $ 2,252,708 $ 141,882 $ 2,394,590 $ 3,637,927 $ 0

(Continued)

Primary Government

Component Units

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Exhibit A

Hickman County, TennesseeStatement of Net Position (Cont.)

Hickman HickmanCounty County

Governmental Business-type School HealthActivities Activities Total Department Foundation

LIABILITIES

Accounts Payable $ 446,036 $ 5,799 $ 451,835 $ 114 $ 0Accrued Payroll 0 0 0 2,484 0Payroll Deduction Payable 0 0 0 372,818 0Accrued Interest Payable 26,277 0 26,277 0 0Due to Litigant, Heirs, and Others 1,197 0 1,197 0 0Other Current Liabilities 681 0 681 0 0Noncurrent Liabilities: Due Within One Year - Debt 2,205,565 0 2,205,565 0 0 Due Within One Year - Other 81,303 20,356 101,659 0 0 Due in More Than One Year - Debt 19,468,691 0 19,468,691 0 0 Due in More Than One Year - Other 4,318,198 336,097 4,654,295 4,374,799 0Total Liabilities $ 26,547,948 $ 362,252 $ 26,910,200 $ 4,750,215 $ 0

DEFERRED INFLOWS OF RESOURCES

Deferred Current Property Taxes $ 8,083,914 $ 0 $ 8,083,914 $ 3,042,197 $ 0Pension Changes in Proportion 0 0 0 42,468 0Pension Changes in Experience 76,811 5,156 81,967 2,275,630 0Pension Changes in Investment Earnings 256,076 17,188 273,264 1,165,613 0OPEB Changes in Assumptions 0 0 0 445,028 0OPEB Changes in Experience 0 0 0 1,109,103 0OPEB Changes in Proportion 0 0 0 294,006 0Total Deferred Inflows of Resources $ 8,416,801 $ 22,344 $ 8,439,145 $ 8,374,045 $ 0

NET POSITION

Net Investment in Capital Assets $ 29,473,107 $ 1,032,513 $ 30,505,620 $ 34,789,628 $ 0Restricted for: General Government 876,435 0 876,435 0 0 Administration of Justice 215,240 0 215,240 0 0 Public Safety 308,128 0 308,128 0 0 Public Health and Welfare 83,790 0 83,790 0 2,281,417 Social, Cultural, and Recreational Services 162,869 0 162,869 0 0 Highway 1,756,504 0 1,756,504 0 0 Debt Service 2,131,554 0 2,131,554 0 0 Capital Projects 78,924 0 78,924 0 0 Education 0 0 0 2,255,791 0 Pension 329,324 0 329,324 4,105,531 0Unrestricted (12,679,455) 742,990 (11,936,465) 2,099,435 0

Total Net Position $ 22,736,420 $ 1,775,503 $ 24,511,923 $ 43,250,385 $ 2,281,417

The notes to the financial statements are an integral part of this statement.

Component Units

Primary Government

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Exhibit B

Hickman County, TennesseeStatement of ActivitiesFor the Year Ended June 30, 2020

Operating Capital Hickman HickmanCharges Grants Grants County County

for and and Governmental Business-type School HealthFunctions/Programs Expenses Services Contributions Contributions Activities Activities Total Department Foundation

Primary Government: Governmental Activities: General Government $ 2,929,030 $ 349,000 $ 257,890 $ 0 $ (2,322,140) $ 0 $ (2,322,140) $ 0 $ 0 Finance 1,368,095 656,706 0 0 (711,389) 0 (711,389) 0 0 Administration of Justice 1,096,077 384,347 9,000 1,384 (701,346) 0 (701,346) 0 0 Public Safety 4,934,379 326,431 65,085 256,912 (4,285,951) 0 (4,285,951) 0 0 Public Health and Welfare 2,596,613 1,121,104 349,884 0 (1,125,625) 0 (1,125,625) 0 0 Social, Cultural, and Recreational Services 324,381 816 10,501 74,980 (238,084) 0 (238,084) 0 0 Agriculture and Natural Resources 171,743 0 0 0 (171,743) 0 (171,743) 0 0 Highways 3,893,739 5,690 2,614,000 1,833,292 559,243 0 559,243 0 0 Education 74,514 0 0 0 (74,514) 0 (74,514) 0 0 Interest on Long-term Debt 425,518 0 0 0 (425,518) 0 (425,518) 0 0Total Governmental Activities $ 17,814,089 $ 2,844,094 $ 3,306,360 $ 2,166,568 $ (9,497,067) $ 0 $ (9,497,067) $ 0 $ 0

Business-type Activities: Solid Waste Disposal $ 1,394,758 $ 1,325,332 $ 52,132 $ 0 $ 0 $ (17,294) $ (17,294) $ 0 $ 0 Total Business-type Activities $ 1,394,758 $ 1,325,332 $ 52,132 $ 0 $ 0 $ (17,294) $ (17,294) $ 0 $ 0

Total Primary Government $ 19,208,847 $ 4,169,426 $ 3,358,492 $ 2,166,568 $ (9,497,067) $ (17,294) $ (9,514,361) $ 0 $ 0

Component Units: Hickman County School Department $ 33,847,765 $ 394,248 $ 4,946,894 $ 401,689 $ 0 $ 0 $ 0 $ (28,104,934) $ 0 Hickman County Health Foundation 21,256 0 0 0 0 0 0 0 (21,256)

Total Component Units $ 33,869,021 $ 394,248 $ 4,946,894 $ 401,689 $ 0 $ 0 $ 0 $ (28,104,934) $ (21,256)

(Continued)

Net (Expense) Revenue and Changes in Net Position

Primary Government

Program Revenues Component Units

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Exhibit B

Hickman County, TennesseeStatement of Activities (Cont.)

Operating Capital Hickman HickmanCharges Grants Grants County County

for and and Governmental Business-type School HealthFunctions/Programs Expenses Services Contributions Contributions Activities Activities Total Department Foundation

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 8,428,395 $ 0 $ 8,428,395 $ 3,176,079 $ 0 Property Taxes Levied for Debt Service 135,641 0 135,641 0 0 Local Option Sales Tax 1,122,859 0 1,122,859 1,856,891 0 Wheel Tax 1,115,426 0 1,115,426 0 0 Wholesale Beer Tax 237,730 0 237,730 0 0 Adequate Facilities/Development Tax 193,231 0 193,231 0 0 Litigation Tax - General 86,491 0 86,491 0 0 Mineral Severance Tax 58,158 0 58,158 0 0 Litigation Tax - Jail, Workhouse, or Courthouse 76,885 0 76,885 0 0 Business Tax 92,808 0 92,808 0 0 Other Local Taxes 30,831 0 30,831 34,466 0 Grants and Contributions Not Restricted to Specific Programs 889,034 0 889,034 23,087,104 0 Unrestricted Investment Income 139,028 7,883 146,911 4,934 47,765 Gain on Investments 0 0 0 126,049 0 Miscellaneous 572,457 72,435 644,892 85,232 0Total General Revenues $ 13,178,974 $ 80,318 $ 13,259,292 $ 28,370,755 $ 47,765

Change in Net Position $ 3,681,907 $ 63,024 $ 3,744,931 $ 265,821 $ 26,509Net Position, July 1, 2019 19,054,513 1,712,479 20,766,992 42,984,564 2,254,908

Net Position, June 30, 2020 $ 22,736,420 $ 1,775,503 $ 24,511,923 $ 43,250,385 $ 2,281,417


Component Units

Primary Government

Net (Expense) Revenue and Changes in Net PositionProgram Revenues

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Exhibit C-1

Hickman County, TennesseeBalance SheetGovernmental FundsJune 30, 2020

OtherHighway / General Govern- Total

Public Debt mental GovernmentalGeneral Works Service Funds Funds

ASSETS

Cash $ 16,682 $ 0 $ 0 $ 1,077 $ 17,759Equity in Pooled Cash and Investments 4,707,120 1,170,679 1,717,003 909,690 8,504,492Accounts Receivable 4,852,678 342 97,095 54,533 5,004,648Allowance for Uncollectibles (4,264,707) 0 0 0 (4,264,707)Due from Other Governments 243,878 975,018 214,108 0 1,433,004Property Taxes Receivable 8,569,793 293,413 144,715 0 9,007,921Allowance for Uncollectible Property Taxes (687,651) (23,499) (11,590) 0 (722,740)Restricted Assets 165,000 0 0 0 165,000

Total Assets $ 13,602,793 $ 2,415,953 $ 2,161,331 $ 965,300 $ 19,145,377

LIABILITIES

Accounts Payable $ 54,490 $ 391,546 $ 0 $ 0 $ 446,036Due to Other Funds 2,029 0 0 0 2,029Due to Litigants, Heirs, and Others 0 0 0 1,197 1,197Other Current Liabilities 0 0 0 681 681Total Liabilities $ 56,519 $ 391,546 $ 0 $ 1,878 $ 449,943


Deferred Current Property Taxes $ 7,690,527 $ 263,450 $ 129,937 $ 0 $ 8,083,914Deferred Delinquent Property Taxes 178,754 6,029 2,974 0 187,757Other Deferred/Unavailable Revenue 439,295 204,301 107,054 0 750,650Total Deferred Inflows of Resources $ 8,308,576 $ 473,780 $ 239,965 $ 0 $ 9,022,321

(Continued)

Major FundsNonmajor

Funds

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Exhibit C-1

Hickman County, TennesseeBalance SheetGovernmental Funds (Cont.)



FUND BALANCES

Nonspendable:Endowments $ 165,000 $ 0 $ 0 $ 0 $ 165,000

Restricted:Restricted for General Government 53,147 0 0 658,288 711,435Restricted for Administration of Justice 215,240 0 0 0 215,240Restricted for Public Safety 208,355 0 0 99,773 308,128Restricted for Public Health and Welfare 83,790 0 0 0 83,790Restricted for Social, Cultural, and Recreational Services 162,869 0 0 0 162,869Restricted for Highways/Public Works 0 1,550,627 0 0 1,550,627Restricted for Debt Service 0 0 1,921,366 126,437 2,047,803Restricted for Capital Projects 0 0 0 78,924 78,924

Committed:Committed for General Government 847,356 0 0 0 847,356Committed for Social, Cultural, and Recreational Services 67,720 0 0 0 67,720

Assigned:Assigned for Finance 8,000 0 0 0 8,000Assigned for Public Health and Welfare 3,261 0 0 0 3,261Assigned for Social, Cultural, and Recreational Services 23,866 0 0 0 23,866

Unassigned 3,399,094 0 0 0 3,399,094Total Fund Balances $ 5,237,698 $ 1,550,627 $ 1,921,366 $ 963,422 $ 9,673,113

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 13,602,793 $ 2,415,953 $ 2,161,331 $ 965,300 $ 19,145,377


Major FundsNonmajor

Funds

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Exhibit C-2

Hickman County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionJune 30, 2020

Amounts reported for governmental activities in the statementof net position (Exhibit A) are different because:

Total fund balances - balance sheet - governmental funds (Exhibit C-1) $ 9,673,113

(1) Capital assets used in governmental activities are not financialresources and therefore are not reported in the governmental funds. Add: land $ 348,695 Add: construction in progress 1,185,536 Add: buildings and improvements net of accumulated depreciation 10,130,302 Add: other capital assets net of accumulated depreciation 2,962,678 Add: infrastructure net of accumulated depreciation 21,348,578 35,975,789

(2) Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds. Less: notes payable $ (2,322,032) Less: other loans payable (19,352,224) Less: net OPEB liability (4,074,290) Less: compensated absences payable (325,211) Less: accrued interest on notes and other loans (26,277) (26,100,034)

(3) Amounts reported as deferred outflows of resources and deferred inflowsof resources related to pensions and OPEB will be amortized andrecognized as components of pension and OPEB expense in future years. Add: deferred outflows of resources related to pensions $ 1,188,461 Less: deferred inflows of resources related to pensions (332,887) Add: deferred outflows of resources related to OPEB 1,064,247 1,919,821

(4) Net pension assets of the agent plan are not current financialresources and therefore are not reported in the governmental funds. 329,324

(5) Other long-term assets are not available to pay for current periodexpenditures and therefore are deferred in the governmental funds. 938,407

Net position of governmental activities (Exhibit A) $ 22,736,420


22

Exhibit C-3

Hickman County, TennesseeStatement of Revenues, Expenditures,

and Changes in Fund BalancesGovernmental FundsFor the Year Ended June 30, 2020



RevenuesLocal Taxes $ 8,850,609 $ 340,003 $ 2,015,128 $ 527,859 $ 11,733,599Licenses and Permits 128,036 0 0 0 128,036Fines, Forfeitures, and Penalties 90,411 0 0 7,195 97,606Charges for Current Services 1,374,213 5,896 0 0 1,380,109Other Local Revenues 425,624 71,492 131,254 0 628,370Fees Received From County Officials 1,102,402 0 0 0 1,102,402State of Tennessee 1,475,904 4,102,767 10,010 0 5,588,681Federal Government 78,179 383,444 0 0 461,623Other Governments and Citizens Groups 43,500 32,323 163,284 0 239,107

Total Revenues $ 13,568,878 $ 4,935,925 $ 2,319,676 $ 535,054 $ 21,359,533

ExpendituresCurrent:

General Government $ 1,524,357 $ 0 $ 0 $ 1,962 $ 1,526,319Finance 1,002,125 0 0 0 1,002,125Administration of Justice 732,611 0 0 0 732,611Public Safety 3,572,978 0 0 59,041 3,632,019Public Health and Welfare 2,023,272 0 0 0 2,023,272Social, Cultural, and Recreational Services 225,663 0 0 0 225,663Agriculture and Natural Resources 89,262 0 0 0 89,262Other Operations 3,492,672 0 0 0 3,492,672Highways 0 4,404,723 0 0 4,404,723

Debt Service:Principal on Debt 0 0 2,147,793 0 2,147,793Interest on Debt 0 0 426,107 0 426,107Other Debt Service 0 0 125,650 3,204 128,854

(Continued)

Major FundsNonmajor

Funds

23

Exhibit C-3


and Changes in Fund BalancesGovernmental Funds (Cont.)



Expenditures (Cont.)Capital Projects $ 107,480 $ 0 $ 0 $ 244,426 $ 351,906

Total Expenditures $ 12,770,420 $ 4,404,723 $ 2,699,550 $ 308,633 $ 20,183,326

Excess (Deficiency) of RevenuesOver Expenditures $ 798,458 $ 531,202 $ (379,874) $ 226,421 $ 1,176,207

Other Financing Sources (Uses)Other Loans Issued $ 0 $ 0 $ 0 $ 66,926 $ 66,926Insurance Recovery 42,017 81,760 0 5,554 129,331Transfers In 33,870 0 472,405 0 506,275Transfers Out (100,000) (128,428) 0 (277,847) (506,275)

Total Other Financing Sources (Uses) $ (24,113) $ (46,668) $ 472,405 $ (205,367) $ 196,257

Net Change in Fund Balances $ 774,345 $ 484,534 $ 92,531 $ 21,054 $ 1,372,464Fund Balance, July 1, 2019 4,463,353 1,066,093 1,828,835 942,368 8,300,649

Fund Balance, June 30, 2020 $ 5,237,698 $ 1,550,627 $ 1,921,366 $ 963,422 $ 9,673,113


Major FundsNonmajor

Funds

24

Exhibit C-4

Hickman 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, 2020

Amounts reported for governmental activities in the statementof activities (Exhibit B) are different because:

Net change in fund balances - total governmental funds (Exhibit C-3) $ 1,372,464

(1) Governmental funds report capital outlays as expenditures. However, inthe statement of activities, the cost of these assets is allocated over theiruseful lives and reported as depreciation expense. The difference betweencapital outlays and depreciation is itemized as follows: Add: capital assets purchased in the current period $ 2,473,878 Less: current-year depreciation expense (1,964,293) 509,585

(2) The net effect of various miscellaneous transactions involving capitalassets (sales, trade-ins, and donations) is to increase net position. Add: assets donated and capitalized $ 255,787 Less: book value of capital assets disposed (23,257) 232,530

(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Less: deferred delinquent property taxes and other deferred June 30, 2019 $ (1,163,805) Add: deferred delinquent property taxes and other deferred June 30, 2020 938,407 (225,398)

(4) The issuance of long-term debt (e.g., notes, other loans) provides current financial resources to governmental funds, while the repaymentof the principal of long-term debt consumes the current financialresources of governmental funds. Neither transaction, however,has any effect on net position. This amount is the net effect of thesedifferences in the treatment of long-term debt and related items. Add: principal payments on notes $ 173,981 Add: principal payments on other loans 1,973,812 Less: other loan proceeds (66,926) 2,080,867

(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 $ 589 Change in OPEB liability (1,094,055) Change in compensated absences payable (17,907) Change in net pension liability/asset 75,504 Change in deferred outflows related to pensions 100,510 Change in deferred inflows related to pensions (95,132) Change in deferred outflows related to OPEB 742,350 (288,141)

Change in net position of governmental activities (Exhibit B) $ 3,681,907


25

Exhibit C-5

Hickman County, TennesseeStatement of Revenues, Expenditures, and Changes

in Fund Balance - Actual (Budgetary Basis) and BudgetGeneral FundFor the Year Ended June 30, 2020

Actual VarianceRevenues/ with Final

Actual Less: Expenditures Budget -(GAAP Encumbrances (Budgetary PositiveBasis) 7/1/2019 Basis) Original Final (Negative)

RevenuesLocal Taxes $ 8,850,609 $ 0 $ 8,850,609 $ 8,577,547 $ 8,577,547 $ 273,062Licenses and Permits 128,036 0 128,036 118,000 118,000 10,036Fines, Forfeitures, and Penalties 90,411 0 90,411 139,248 139,248 (48,837)Charges for Current Services 1,374,213 0 1,374,213 1,613,875 1,613,875 (239,662)Other Local Revenues 425,624 0 425,624 34,702 34,702 390,922Fees Received From County Officials 1,102,402 0 1,102,402 1,136,000 1,136,000 (33,598)State of Tennessee 1,475,904 0 1,475,904 1,364,467 1,385,542 90,362Federal Government 78,179 0 78,179 41,935 50,074 28,105Other Governments and Citizens Groups 43,500 0 43,500 42,000 42,000 1,500

Total Revenues $ 13,568,878 $ 0 $ 13,568,878 $ 13,067,774 $ 13,096,988 $ 471,890

ExpendituresGeneral Government

County Commission $ 64,028 $ 0 $ 64,028 $ 68,900 $ 68,900 $ 4,872Board of Equalization 2,550 0 2,550 3,500 3,500 950Beer Board 70 0 70 1,000 1,000 930County Mayor/Executive 180,136 0 180,136 186,255 186,255 6,119County Attorney 10,621 0 10,621 15,000 15,000 4,379Election Commission 166,313 0 166,313 223,563 223,563 57,250Register of Deeds 149,434 0 149,434 160,508 160,508 11,074Planning 145,423 0 145,423 178,652 178,652 33,229County Buildings 268,535 0 268,535 308,014 316,114 47,579Other Facilities 378,010 0 378,010 478,950 478,950 100,940Other General Administration 120,803 0 120,803 122,681 122,681 1,878Preservation of Records 38,434 0 38,434 38,350 42,050 3,616

(Continued)

Budgeted Amounts

26

Exhibit C-5


in Fund Balance - Actual (Budgetary Basis) and BudgetGeneral Fund (Cont.)



Expenditures (Cont.)Finance

Accounting and Budgeting $ 280,840 $ 0 $ 280,840 $ 285,371 $ 286,447 $ 5,607Property Assessor's Office 231,246 0 231,246 270,689 270,689 39,443County Trustee's Office 202,604 0 202,604 209,507 209,507 6,903County Clerk's Office 287,435 0 287,435 282,077 291,911 4,476

Administration of JusticeCircuit Court 333,151 0 333,151 323,524 343,190 10,039General Sessions Court 206,301 0 206,301 212,644 217,644 11,343General Sessions Judge 3,566 0 3,566 4,000 4,000 434Chancery Court 138,143 0 138,143 157,993 162,993 24,850Judicial Commissioners 51,450 0 51,450 54,734 54,734 3,284

Public SafetySheriff's Department 2,044,547 0 2,044,547 2,132,719 2,200,523 155,976Administration of the Sexual Offender Registry 450 0 450 12,500 12,500 12,050Jail 1,306,762 0 1,306,762 1,395,848 1,371,548 64,786Fire Prevention and Control 8,286 0 8,286 15,550 15,550 7,264Civil Defense 142,538 0 142,538 163,516 163,516 20,978Rescue Squad 35,920 0 35,920 20,000 35,920 0County Coroner/Medical Examiner 34,475 0 34,475 36,000 36,000 1,525

Public Health and WelfareLocal Health Center 20,999 0 20,999 50,601 50,601 29,602Ambulance/Emergency Medical Services 1,774,098 (28,258) 1,745,840 1,941,431 1,961,999 216,159Alcohol and Drug Programs 18,080 0 18,080 23,324 23,324 5,244Other Local Health Services 210,095 0 210,095 245,700 247,900 37,805Other Public Health and Welfare 0 0 0 25,703 25,703 25,703

(Continued)

Budgeted Amounts

27

Exhibit C-5





Expenditures (Cont.)Social, Cultural, and Recreational Services

Senior Citizens Assistance $ 10,000 $ 0 $ 10,000 $ 10,000 $ 10,000 $ 0Libraries 215,663 0 215,663 228,714 228,714 13,051

Agriculture and Natural ResourcesAgricultural Extension Service 56,678 0 56,678 65,430 65,474 8,796Soil Conservation 32,584 0 32,584 34,628 34,628 2,044

Other OperationsTourism 83,478 0 83,478 76,200 83,700 222Industrial Development 71,371 0 71,371 71,371 71,371 0Veterans' Services 33,326 0 33,326 37,950 38,537 5,211Other Charges 613,254 0 613,254 660,000 660,000 46,746Employee Benefits 2,545,418 0 2,545,418 2,775,000 2,775,000 229,582Miscellaneous 145,825 0 145,825 187,920 190,876 45,051

Capital ProjectsGeneral Administration Projects 39,481 0 39,481 0 40,295 814Highway and Street Capital Projects 67,999 0 67,999 0 100,000 32,001

Total Expenditures $ 12,770,420 $ (28,258) $ 12,742,162 $ 13,796,017 $ 14,081,967 $ 1,339,805

Excess (Deficiency) of RevenuesOver Expenditures $ 798,458 $ 28,258 $ 826,716 $ (728,243) $ (984,979) $ 1,811,695

Other Financing Sources (Uses)Insurance Recovery $ 42,017 $ 0 $ 42,017 $ 40,000 $ 77,365 $ (35,348)Transfers In 33,870 0 33,870 33,870 33,870 0Transfers Out (100,000) 0 (100,000) (100,000) (100,000) 0

Total Other Financing Sources $ (24,113) $ 0 $ (24,113) $ (26,130) $ 11,235 $ (35,348)

(Continued)

Budgeted Amounts

28

Exhibit C-5





Net Change in Fund Balance $ 774,345 $ 28,258 $ 802,603 $ (754,373) $ (973,744) $ 1,776,347Fund Balance, July 1, 2019 4,463,353 (28,258) 4,435,095 4,000,000 4,463,353 (28,258)

Fund Balance, June 30, 2020 $ 5,237,698 $ 0 $ 5,237,698 $ 3,245,627 $ 3,489,609 $ 1,748,089


Budgeted Amounts

29

Exhibit C-6


in Fund Balance - Actual and BudgetHighway/Public Works FundFor the Year Ended June 30, 2020

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesLocal Taxes $ 340,003 $ 367,846 $ 367,846 $ (27,843)Charges for Current Services 5,896 6,200 6,200 (304)Other Local Revenues 71,492 104,500 104,500 (33,008)State of Tennessee 4,102,767 3,423,976 4,495,111 (392,344)Federal Government 383,444 525,000 525,000 (141,556)Other Governments and Citizens Groups 32,323 0 0 32,323

Total Revenues $ 4,935,925 $ 4,427,522 $ 5,498,657 $ (562,732)

ExpendituresHighways

Administration $ 172,738 $ 189,261 $ 189,261 $ 16,523Highway and Bridge Maintenance 1,395,101 1,967,159 1,967,159 572,058Operation and Maintenance of Equipment 379,097 549,091 630,851 251,754Other Charges 96,749 103,000 103,000 6,251Employee Benefits 681,025 906,231 906,231 225,206Capital Outlay 1,680,013 879,000 1,950,135 270,122

Total Expenditures $ 4,404,723 $ 4,593,742 $ 5,746,637 $ 1,341,914

Excess (Deficiency) of RevenuesOver Expenditures $ 531,202 $ (166,220) $ (247,980) $ 779,182

Other Financing Sources (Uses)Insurance Recovery $ 81,760 $ 0 $ 81,760 $ 0Transfers Out (128,428) (128,428) (128,428) 0

Total Other Financing Sources $ (46,668) $ (128,428) $ (46,668) $ 0

Net Change in Fund Balance $ 484,534 $ (294,648) $ (294,648) $ 779,182Fund Balance, July 1, 2019 1,066,093 700,000 1,066,093 0

Fund Balance, June 30, 2020 $ 1,550,627 $ 405,352 $ 771,445 $ 779,182


Budgeted Amounts

30

Exhibit D-1

Hickman County, TennesseeStatement of Net PositionProprietary FundJune 30, 2020

SolidWaste

DisposalFund

ASSETS

Current Assets:Cash $ 550Equity in Pooled Cash and Investments 678,153Accounts Receivable 838,111Allowance for Uncollectibles (567,601)Due from Other Governments 12,357Due from Other Funds 2,029

Total Current Assets $ 963,599

Noncurrent Assets:Net Pension Asset $ 22,105Capital Assets:

Assets Not Depreciated:Land 145,004

Assets Net of Accumulated Depreciation:Buildings and Improvements 580,412Machinery and Equipment 307,097

Total Noncurrent Assets $ 1,054,618Total Assets $ 2,018,217

DEFERRED OUTFLOWS OF RESOURCES

Deferred Outflows of Resources:Pension Changes in Experience $ 17,416Pension Changes in Assumptions 13,897Pension Contributions After Measurement Date 46,599OPEB Changes in Experience 34,641OPEB Changes in Assumptions 29,329

Total Deferred Outflows of Resources $ 141,882

Total Assets and Deferred Outflows of Resources $ 2,160,099

(Continued)

Business-type Activities - Major Enterprise Fund

31

Exhibit D-1

Hickman County, TennesseeStatement of Net PositionProprietary Fund (Cont.)

SolidWaste

DisposalFund

LIABILITIES

Current Liabilities:Accounts Payable $ 5,799Accrued Leave - Current 9,635Accrued Liability for Landfill Closure/Postclosure Care Costs 10,721

Total Current Liabilities $ 26,155

Noncurrent Liabilities:Accrued Liability for Landfill Closure/Postclosure Care Costs $ 62,295Net OPEB Liability 244,898Accrued Leave - Long-term 28,904

Total Noncurrent Liabilities $ 336,097Total Liabilities $ 362,252


Deferred Inflows of Resources:Pension Changes in Experience $ 5,156Pension Changes in Investment Earnings 17,188

Total Deferred Inflows of Resources $ 22,344

NET POSITION

Committed for Public Health and Welfare $ 114,959Unrestricted 628,031Net Investment in Capital Assets 1,032,513

Total Net Position $ 1,775,503


Business-type Activities - Major Enterprise Fund

32

Exhibit D-2

Hickman County, TennesseeStatement of Revenues, Expenses, and Changes in Net PositionProprietary FundFor the Year Ended June 30, 2020

Operating Revenues Charges for Current Services $ 1,241,357 Other Local Revenues 154,033Total Operating Revenues $ 1,395,390

Operating Expenses Sanitation Management $ 1,241,121 Litter and Trash Collection 46,155 Depreciation 107,482Total Operating Expenses $ 1,394,758Operating Income (Loss) $ 632

Nonoperating Revenues (Expenses) Investment Income $ 7,883 Insurance Recovery 2,377 Solid Waste Grants 52,132Total Nonoperating Revenues (Expenses) $ 62,392

Change in Net Position $ 63,024Net Position, July 1, 2019 1,712,479

Net Position, June 30, 2020 $ 1,775,503


Business-type

FundDisposal

Activities -Major

Enterprise FundSolid Waste

33

Exhibit D-3

Hickman County, TennesseeStatement of Cash FlowsProprietary FundFor the Year Ended June 30, 2020

Cash Flows from Operating Activities Receipts from Customers and Users $ 1,221,849 Other Cash Receipts (Payments) 154,033 Payments to Employees (682,101) Payments for Waste Collection and Disposal Activity (647,796)Net Cash Provided By (Used In) Operating Activities $ 45,985

Cash Flows from Capital and Related Financing Activities Acquisition of Capital Assets $ (54,903)Net Cash Provided By (Used In) Capital and Related Financing Activities $ (54,903)

Cash Flows from Noncapital Financing Activities Grants Received $ 52,132 Insurance Recovery 2,377Net Cash Provided By (Used In) Noncapital Financing Activities $ 54,509

Cash Flows from Investing Activities Investment Income $ 7,883Net Cash Provided By (Used In) Investing Activities $ 7,883

Increase (Decrease) in Cash $ 53,474Cash, July 1, 2019 625,229

Cash, June 30, 2020 $ 678,703

Reconciliation of Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ 632 Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Depreciation 107,482 Changes in Pension Related Inflows and Outflows of Resources 1,630 Changes in OPEB Related to Inflows and Outflows of Resources (41,519) Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (78,209) (Increase) Decrease in Allowance for Uncollectibles 54,601 (Increase) Decrease in Due from other Governments 6,129 (Increase) Decrease in Due from other Funds (2,029) (Increase) Decrease in Net Pension Asset (4,692) Increase (Decrease) in Accounts Payable (24,857) Increase (Decrease) in Accrued Leave 2,535 Increase (Decrease) in Accrued Liability for Landfill Closure/Postclosure (12,752) Increase (Decrease) in Net OPEB Liability 37,034

Net Cash Provided By (Used In) Operating Activities $ 45,985

Reconciliation of Cash with the Statement of Net Position Cash Per Net Position $ 550 Equity in Pooled Cash and Investments Per Net Position 678,153

Cash, June 30, 2020 $ 678,703


Solid WasteDisposal

Fund

Business-typeActivities -

MajorEnterprise Fund

34

Exhibit E

Hickman County, TennesseeStatement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2020

ASSETS

Cash $ 693,933Accounts Receivable 406Due from Other Governments 135,655

Total Assets $ 829,994

LIABILITIES

Due to Other Taxing Units $ 135,655Due to Litigants, Heirs, and Others 694,339

Total Liabilities $ 829,994


AgencyFunds

35

Note Page(s)

I. Summary of Significant Accounting PoliciesA. Reporting Entity 37B. Government-wide and Fund Financial Statements 38C. Measurement Focus, Basis of Accounting, and Financial

Statement Presentation 39D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and

Net Position/Fund Balance1. Deposits and Investments 422. Receivables and Payables 433. Restricted Assets 444. Capital Assets 455. Deferred Outflows/Inflows of Resources 466. Compensated Absences 467. Long-term Debt and Long-term Obligations 478. Net Position and Fund Balance 48

E. Pension Plans 49F. Other Postemployment Benefits (OPEB) 50

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 50B. Explanation of Certain Differences Between the Governmental Fund

Statement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 51

III. Stewardship, Compliance, and AccountabilityA. Budgetary Information 51B. Health Foundation Accountability 52C. Cash Shortage - Prior Year 52D. The County Had Deposits Exposed to Custodial Credit Risk 52

IV. Detailed Notes on All FundsA. Deposits and Investments 53B. Capital Assets 61C. Construction Commitments 65D. Interfund Receivables, Payables, and Transfers 65E. Long-term Debt 66F. Long-term Obligations 69G. On-Behalf Payments 72

V. Other InformationA. Risk Management 72B. Contingent Liabilities 73C. Landfill Closure/Postclosure Care Costs 73D. Joint Ventures 74E. Jointly Governed Organization 75F. Retirement Commitments 76G. Other Postemployment Benefits (OPEB) 94H. Office of Central Accounting, Budgeting, and Purchasing 107I. Purchasing Law 107J. Financial Policy − Health Foundation 107K. Subsequent Event 107

HICKMAN COUNTY, TENNESSEEIndex of Notes to the Financial Statements

36

HICKMAN COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended June 30, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Hickman 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 Hickman County:

A. Reporting Entity

Hickman County is a public municipal corporation governed by an elected 21-member board. As required by GAAP, these financial statements present Hickman County (the primary government) and its component units. Although required by GAAP, the financial statements of the Hickman County Emergency Communications District and the Industrial Development Board of Hickman County, component units requiring discrete presentation, were excluded from this report due to materiality calculations; therefore, the effect of this omission did not affect the independent auditor’s opinion thereon. 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.

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 Hickman County School Department operates the public school system in the county, and the voters of Hickman 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 Hickman County Health Foundation was created as a result of litigation involving the Hickman County Hospital, and the Hickman County Commission appoints its governing body. The purpose of the health foundation is to promote and advance the health, medical care, general well-being, and quality of life of the residents of Hickman County. The health foundation is funded primarily by contributions from Saint Thomas/Baptist Hospital and interest earnings.

37

The Hickman County Emergency Communications District provides a simplified means of securing emergency services through a uniform emergency number for the residents of Hickman County, and the Hickman County Commission appoints its governing body. The district is funded primarily through a service charge levied on telephone services. Before the issuance of most debt instruments, the district must obtain the county commission’s approval. The financial statements of the Hickman County Emergency Communications District were not material to the component units’ opinion unit and therefore have been omitted from this report. The Industrial Development Board of Hickman County promotes industrial development to provide additional job opportunities within Hickman County. The county mayor nominates, and the Hickman County Commission confirms the board members. The financial statements of the Industrial Development Board of Hickman County were not material to the component units’ opinion unit and therefore have been omitted from this report. The Hickman County School Department and the Hickman County Health Foundation do not issue separate financial statements from those of the county. Therefore, basic financial statements of the school department and the health foundation are included in this report as listed in the table of contents. Complete financial statements of the Hickman County Emergency Communications District and the Industrial Development Board of Hickman County can be obtained from their administrative offices at the following addresses:

Administrative Offices:

Hickman County Emergency Communications District

102 East Swan Street Centerville, TN 37033

Industrial Development Board of Hickman County Hickman County Mayor 5640 Hwy 100 Centerville, TN 37033

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

38

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 Hickman 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. Hickman County issues all debt for the discretely presented Hickman County School Department. There were no debt issues contributed by the county to the school department during the year ended June 30, 2020. 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 the 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 Hickman 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

39

proprietary categories. Hickman 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, the proprietary fund, 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 all eligibility requirements imposed by the provider have been met and the revenues are available. Hickman 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 fund 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. Hickman 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.

40

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.

Hickman County reports the following major proprietary fund:

Solid Waste Disposal Fund – This fund accounts for the county’s solid waste landfill operations.

Additionally, Hickman County reports the following fund types:

General Capital Projects Fund – The General Capital Projects Fund accounts for capital projects of the general government. Agency Funds – These funds account for amounts collected in an agency capacity by the constitutional officers and local sales taxes received by the state to be forwarded to the various cities in Hickman County. 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 Hickman County School Department reports the following major governmental fund:

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.

Additionally, the Hickman County School Department reports the following fund type:

Special Revenue Funds – These funds account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.

The discretely presented Hickman County Health Foundation reports the following major governmental fund:

Health Foundation Fund – This is the foundation’s only operating fund. It accounts for all financial resources of the foundation.

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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 solid waste activities. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations.

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 hand and 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; the State Treasurer’s Intermediate Term Investment Fund; 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 Hickman 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. Most income from these pooled investments is assigned to the General Debt Service Fund. Hickman 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 amortized cost using a stable net asset value. The primary oversight responsibility for the investments and operations of the State Treasurer’s Investment Pool rests with the Funding Board of the State of Tennessee (Funding Board). The Funding Board has established an investment policy that is administered by the state treasurer. These

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policies were designed to comply with generally accepted accounting principles. In addition, 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. Compliance with Funding Board policies is audited by the Tennessee Comptroller of the Treasury, Division of State Audit. The latest audit opinion issued by the Division of State Audit concluded that the State Treasurer’s Investment Pool complied with accounting principles generally accepted in the United States of America. Investments in the State Treasurer’s Intermediate Term Investment Fund are reported at amortized cost using a floating net asset value. The primary oversight responsibility for the investments and operations of the State Treasurer’s Intermediate Term Investment Fund rests with the Funding Board of the State of Tennessee (Funding Board). The Funding Board has established an investment policy that is administered by the state treasurer. These policies were designed to comply with generally accepted accounting principles. In addition, state statutes require the state treasurer to administer the pool under the same terms and conditions as prescribed for other funds invested by the state treasurer. Compliance with Funding Board policies is audited by the Tennessee Comptroller of the Treasury, Division of State Audit. The latest audit opinion issued by the Division of State Audit concluded that the State Treasurer’s Intermediate Term Investment Fund complied with accounting principles generally accepted in the United States of America. Hickman County had no investments in the State Treasurer’s Intermediate Term Investment Fund during the year All other investments are reported at fair value. No investments required to be reported at fair value were held at the balance sheet date.

2. Receivables and Payables Activity between funds for unremitted current collections outstanding at the end of the fiscal year is referred to as due to/from other funds. All ambulance, property taxes, and solid waste receivables are shown with an allowance for uncollectibles. Ambulance and solid waste receivables allowance for uncollectibles is based on historical collection data. The allowance for uncollectible property taxes is equal to seven percent of current property taxes. 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

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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.

3. Restricted Assets

Certain resources set aside for library operations are classified as restricted assets on the governmental funds balance sheet because the principal is required to be invested, and only the income from investments is available for expenditures. Restricted assets also consist of amounts held in trust by the Tennessee School Board Association (TSBA) OPEB Trust for the benefit of the discretely presented Hickman County School Department. These funds are held and invested by the trust pursuant to an irrevocable agreement and may only be used to reimburse the Hickman County School Department for postemployment benefits paid from school department funds. For the year ended June 30, 2020, the Hickman County School Department requested $57,412 to be reimbursed by the trust. Trust documents provide that the funds are not subject to the claims of general creditors of the school department. Since the payment of postemployment benefits has not been administered through this trust, the trust is not considered to be in compliance with paragraph 4 of Governmental Accounting Standards Board Statement No. 75. OPEB liabilities of the school department are therefore reported gross and have not been reduced by balances of the trust. The trust is reported as an asset and restricted fund balance of the school department’s General Purpose School Fund.

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In addition, restricted assets also consist of amounts held in a pension stabilization trust by the Tennessee Consolidated Retirement System (TCRS) for the benefit of the discretely presented Hickman County School Department’s Teacher Retirement Plan. The purpose of this trust is to accumulate funds to provide stabilization (smoothing) of retirement costs to the school system in times of fluctuating investment returns and market downturns. These funds are held and invested by TCRS pursuant to an irrevocable agreement and may only be used for the benefit of the Hickman County School Department to fund retirement benefits upon approval of the TCRS Board of Directors. To date, the Hickman County School Department has not withdrawn any funds from the trust to pay pension cost. Trust documents provide that the funds are not subject to the claims of general creditors of the school department.

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 $15,000 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 acquisition 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:

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Assets Years

Buildings and Improvements 15 - 40Other Capital Assets 3 - 25Infrastructure: Roads 50 Bridges 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 has items that qualify for reporting in this category. Accordingly, the items are reported in the government-wide Statement of Net Position. These items are for pension changes in the proportion, experience, and assumptions; employer contributions made to the pension and OPEB plans after the measurement date; and OPEB changes in assumptions, experience, and proportions. 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 items are from the following sources: current and delinquent property taxes; pension changes in proportion, experience, and investment earnings; OPEB changes in assumptions, experience, and proportions; 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

Primary Government It is the county’s general policy to permit employees to accumulate earned but unused vacation sick pay benefits. There is no liability for unpaid accumulated sick leave since Hickman County does not have a policy to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the

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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. Discretely Presented Hickman County School Department The school department permits professional personnel (teachers) to accumulate an unlimited amount of unused sick leave days. There is no liability for unpaid accumulated sick leave since the school department does not have a policy to pay any amounts when employees separate from service.

7. Long-term Debt and Long-term Obligations

In the government-wide financial statements and the proprietary fund type 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 are 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. 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, other postemployment benefits, and landfill closure/postclosure care costs, are recognized to the extent that the liabilities have matured (come due for payment) each period.

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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, 2020, Hickman County had $15,171,574 in outstanding debt for capital purposes for the discretely presented Hickman County School Department. This debt is a liability of Hickman County, but the capital assets acquired are reported in the financial statements of the school department. Therefore, Hickman County has incurred a liability significantly decreasing its unrestricted net position with no corresponding increase in the county’s capital assets. 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.

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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 Budget/Finance 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.

E. Pension Plans

Primary Government For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of Hickman County’s participation in the Public Employee Retirement Plan of the Tennessee Consolidated Retirement System (TCRS), and additions to/deductions from Hickman County’s fiduciary net position have been determined on the same basis as they are reported by the TCRS for the Public Employee Retirement Plan. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms of the Public Employee Retirement Plan of TCRS. Investments are reported at fair value.

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Discretely Presented Hickman County School Department

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teacher Retirement Plan and the Teacher Legacy Pension Plan in the Tennessee Consolidated Retirement System, and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the TCRS. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms of the Teacher Retirement Plan and the Teacher Legacy Pension Plan. Investments are reported at fair value.

F. Other Postemployment Benefit (OPEB) Plans

Primary Government For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, have been determined on the same basis as they are reported by Hickman County. For this purpose, Hickman County recognizes benefit payments when due and payable in accordance with benefit terms. Hickman County’s OPEB plan is not administered through a trust. Discretely Presented Hickman County School Department

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, have been determined on the same basis as they are reported by the discretely presented Hickman County School Department. For this purpose, the school department recognizes benefit payments when due and payable in accordance with benefit terms. The school department’s OPEB plan is not administered through a trust.

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.

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Discretely Presented Hickman 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. Discretely Presented Hickman County Health Foundation The Hickman County Health Foundation did not have capital assets, debt, and accruals or deferrals to report; therefore, the only reconciling items from the governmental fund financial statements to the government-wide financial statements were reclassifications and are noted on Exhibits K-1 and K-2.

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 change 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 Hickman 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 General Capital Projects Fund, which adopts project length budgets. All annual appropriations lapse at fiscal year end. 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.

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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, Beer Board, County Mayor/Executive, 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. Health Foundation Accountability As previously noted, the Hickman County Health Foundation was created pursuant to a lawsuit settlement agreement related to the sale of the Hickman County Hospital. During the year ended June 30, 1999, the foundation received net funds related to the sale of the Hickman County Hospital to Baptist Hospital. The settlement agreement required these funds to be used for health-related projects in Hickman County and administered by a board of directors. The Hickman County Finance Office maintains the books and records of the foundation in a separate governmental fund at no cost to the foundation.

C. Cash Shortage – Prior Year The audit of Hickman County for the 2014-15 year reported a cash shortage of $1,106 in the Office of Circuit and General Sessions Courts Clerk. During the 2015-16 fiscal year, the office discovered funds of $620 in the safe and deposited them into the office bank account. On August 26, 2019, the county commission approved to write off the remaining outstanding cash shortage balance of $486.

D. The County Had Deposits Exposed to Custodial Credit Risk The Hickman County Health Foundation did not require one depository holding county funds to pledge adequate securities to protect funds that exceeded Federal Deposit Insurance Corporation (FDIC) coverage. At June 30, 2020, deposits at this depository exceeded FDIC coverage and collateral securities pledged by $471,681. Section 5-8-201, Tennessee Code Annotated, requires any bank that is a depository of county funds to deposit in an escrow account in a second bank collateral security equal to 105 percent of such county funds.

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IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments Hickman County and the Hickman 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 and investments reflected on the balance sheets or statements of net position represent 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 that 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 credit risk disclosure.

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.

Custodial Credit Risk. Custodial credit risk is the risk that in the event of a bank failure, Hickman County’s deposits may not be returned to it. Hickman County does not have a formal policy that limits custodial credit risk for deposits. Separate disclosures concerning bank balances of pooled deposits cannot be made for Hickman County and the discretely presented Hickman County School Department since both pool their deposits and investments through the county trustee. As of June 30, 2020, bank balances of $471,681 were exposed to custodial credit risk. This amount of a nonpooled bank balance was exposed to custodial credit risk as uninsured and uncollateralized. This $471,681 consisted of a certificate of deposit reported in the discretely presented Hickman County Health Foundation Fund. Uninsured and uncollateralized deposits are a violation of state statutes.

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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, the State Treasurer’s Intermediate Term Investment Fund, and in repurchase agreements. The primary oversight responsibility for the investments and operations of the State Treasurer’s Investment Pool rests with the Funding Board of the State of Tennessee (Funding Board). The Funding Board has established an investment policy that is administered by the state treasurer. Investments in the State Treasurer’s Investment Pool are reported both by the pool and the county at amortized cost using a stable net asset value. The primary oversight responsibility for the investments and operations of the Intermediate Term Investment Fund rests with the Funding Board of the State of Tennessee (Funding Board). The Funding Board has established an investment policy that is administered by the state treasurer. Investments in the Intermediate Term Investment Fund are reported both by the pool and the county at amortized cost using a floating net asset value. 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.

Investment Balances. As of June 30, 2020, Hickman County had the following investments carried at amortized cost using a Stable Net Asset Value, amortized cost using a floating Net Asset Value, or fair value within the fair value hierarchy established by generally accepted accounting principles. All investments are in the county trustee’s investment pool. Separate disclosures concerning pooled investments cannot be made for Hickman County and the discretely presented Hickman County School Department since both pool their deposits and investments through the county trustee.

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WeightedAverageMaturity Amortized

Investment (days) Maturities Cost

State Treasurer's Investment Pool 1 to 105 N/A $ 8,698,235

Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. State statutes limit the maturities of certain investments as previously disclosed. Hickman County does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State statutes limit the ratings of certain investments as previously explained. Hickman County has no investment policy that would further limit its investment choices. As of June 30, 2020, Hickman County’s investment in the State Treasurer’s Investment Pool was unrated. Further information concerning the legal provisions, investment policies, investment types, and credit risks for the State Treasurer’s Investment Pool can be obtained by reviewing the State of Tennessee Consolidated Annual Financial Report at https://www.tn.gov/finance/rd-doa/fa-accfin-cafr.html. TCRS Stabilization Trust

Legal Provisions. The Hickman County School Department is a member of the Tennessee Consolidated Retirement System (TCRS) Stabilization Reserve Trust. The school department has placed funds into the irrevocable trust as authorized by statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the trust. Funds of trust members are held and invested in the name of the trust for the benefit of each member. Each member’s funds are restricted for the payment of retirement benefits of that member’s employees. Trust funds are not subject to the claims of general creditors of the school department. The trust is authorized to make investments as directed by the TCRS Board of Trustees. The Hickman County School Department may not impose any restrictions on investments placed by the trust on their behalf. Investment Balances. Assets of the TCRS, including the Stabilization Reserve Trust, are invested in the Tennessee Retiree Group Trust (TRGT). The TRGT is not registered with the Securities and Exchange Commission (SEC) as an investment company. The State of Tennessee has not obtained a credit quality rating for the TRGT from a nationally recognized credit ratings

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https://www.tn.gov/finance/rd-doa/fa-accfin-cafr.html

agency. The fair value of investment positions in the TRGT is determined daily based on the fair value of the pool’s underlying portfolio. Furthermore, TCRS had not obtained or provided any legally binding guarantees to support the value of participant shares during the fiscal year. There are no restrictions on the sale or redemption of shares. Investments are reported at fair value. Securities traded on a national exchange are valued at the last reported sales price. Investment income consists of realized and unrealized appreciation (depreciation) in the fair value of investments and interest and dividend income. Interest income is recognized when earned. Securities and securities transactions are recorded in the financial statements on a trade-date basis. The fair value of assets of the TRGT held at June 30, 2020, represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets held are categorized for fair value measurement within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset and give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

• Level 1 - Unadjusted quoted prices for identical assets or liabilities in active markets that can be accessed at the measurement date. • Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; assets or liabilities that have a bid-ask spread price in an inactive dealer market, brokered market and principal-to-principal market; and Level 1 assets or liabilities that are adjusted. • Level 3 - Valuations derived from valuation techniques in which significant inputs are unobservable.

Investments where fair value is measured using the Net Asset Value (“NAV”) per share have no readily determinable fair value and have been determined to be calculated consistent with FASB principles for investment companies. Where inputs used in the measurement of fair value fall into different levels of the hierarchy, fair value of the instrument in its entirety is categorized based on the lowest level input that is significant to the valuation. This assessment requires professional judgement and as such management of the TRGT developed a fair value committee that worked in conjunction with the plan’s custodian and investment professionals to make these valuations. All assets held were valued individually and aggregated into classes to be represented in the table below. Short-term securities generally include investments in money market-type securities reported at cost plus accrued interest.

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Equity and equity derivative securities classified in Level 1 are valued using last reported sales prices quoted in active markets that can be accessed at the measurement date. Equity and equity derivative securities classified in Level 2 are securities whose values are derived daily from associated traded securities. Equity securities classified in Level 3 are valued with last trade data having limited trading volume. U.S. Treasury Bills, Bonds, Notes and Futures classified in Level 1 are valued using last reported sales prices quoted in active markets that can be accessed at the measurement date. Debt and debt derivative securities classified in Level 2 are valued using a bid-ask spread price from multiple independent brokers, dealers, or market principals, which are known to be actively involved in the market. Level 3 debt securities are valued using proprietary information, a single pricing source, or other unobservable inputs related to similar assets or liabilities. Real estate investments classified in Level 3 are valued using the last valuations provided by external investment advisors or independent external appraisers. Generally, all direct real estate investments are appraised by a qualified independent appraiser(s) with the professional designation of Member of the Appraisal Institute (“MAI”), or its equivalent, every three (3) years beginning from the acquisition date of the property. The appraisals are performed using generally accepted valuation approaches applicable to the property type. Investments in private mutual funds, traditional private equity funds, strategic lending funds and real estate funds that report using GAAP, the fair value, as well as the unfunded commitments, were determined using the prior quarter’s NAV, as reported by the fund managers, plus the current cash flows. These assets were then categorized by investment strategy. In instances where the fund investment reported using non-GAAP standards, the investment was valued using the same method, but was classified in Level 3. At June 30, 2020, the Hickman County School Department had the following investments held by the trust on its behalf.

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WeightedAverageMaturity Fair

Investment (days) Maturities ValueInvestments at Fair Value: U.S. Equity N/A N/A $ 47,289 Developed Market International Equity N/A N/A 21,356 Emerging Market International Equity N/A N/A 6,102 U.S. Fixed Income N/A N/A 30,509 Real Estate N/A N/A 15,255 Short-term Securities N/A N/A 1,526 NAV - Private Equity and Strategic Lending N/A N/A 30,509

Total $ 152,546

QuotedPrices in

Active SignificantMarkets for Other Significant

Identical Observable UnobservableFair Value Assets Inputs Inputs

Investment by Fair Value Level 6-30-20 (Level 1) (Level 2) (Level 3) NAV

U.S. Equity $ 47,289 $ 47,289 $ 0 $ 0 $ 0Developed Market International Equity 21,356 21,356 0 0 0Emerging Market International Equity 6,102 6,102 0 0 0U.S. Fixed Income 30,509 0 30,509 0 0Real Estate 15,255 0 0 15,255 0Short-term Securities 1,526 0 1,526 0 0Private Equity and Strategic Lending 30,509 0 0 0 30,509

Total $ 152,546 $ 74,747 $ 32,035 $ 15,255 $ 30,509

Fair Value Measurements Using

Risks and Uncertainties. The trust’s investments include various types of investment funds, which in turn invest in any combination of stock, bonds and other investments exposed to various risks, such as interest rate, credit, and market risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported for trust investments. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Hickman County School Department does not have the ability to limit trust investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

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Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Hickman County School Department does not have the ability to limit the credit ratings of individual investments made by the trust. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of the county’s investment in a single issuer. Hickman County School Department places no limit on the amount the county may invest in one issuer. Custodial Credit Risk. Custodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the county will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Pursuant to the trust agreement, investments are held in the name of the trust for the benefit of the Hickman County School Department to pay retirement benefits of the school department employees. For further information concerning the school department’s investments with the TCRS Stabilization Reserve Trust, audited financial statements of the Tennessee Consolidated Retirement System may be obtained at https://comptroller.tn.gov/content/dam/cot/sa/advanced-search/disclaimer/2020/ag19091.pdf.

OPEB Trust

Legal Provisions. The Hickman County School Department is a member of the Tennessee School Board OPEB Trust. The school department has placed funds into the irrevocable trust as authorized by the Other Postemployment Benefit Trust Act of 2006, section 8-50-1201, et. seq., Tennessee Code Annotated. Funds of trust members are held and invested in the name of the trust for the benefit of each member. Each member’s funds are restricted for the payment of postemployment benefits of that member’s employees. Trust documents provide that the funds are not subject to the claims of general creditors of the school department. The trust is authorized to make investments in securities as authorized by each member’s investment committee. The Hickman County School Department has not imposed any restrictions on investments placed by the trust on their behalf. Investment Balances. At June 30, 2020, the Hickman County School Department had the following investments held by the trust on its behalf.

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https://comptroller.tn.gov/content/dam/cot/sa/advanced-search/disclaimer/2020/ag19091.pdf

https://comptroller.tn.gov/content/dam/cot/sa/advanced-search/disclaimer/2020/ag19091.pdf

WeightedAverageMaturity Fair

Investment (days) Maturities ValueInvestments at Fair Value:Cash N/A N/A $ 107,499 Equities N/A N/A 1,392,880 Fixed Income & Preferreds N/A N/A 614,966 Structured Investments N/A N/A 136,807

Total $ 2,252,152

QuotedPrices in

Active SignificantMarkets for Other Significant

Identical Observable UnobservableFair Value Assets Inputs Inputs

Investment by fair value level 6/30/2020 (Level 1) (Level 2) (Level 3)

Cash $ 107,499 $ 107,499 $ 0 $ 0Equities 1,392,880 1,392,880 0 0Fixed Income & Preferreds 614,966 614,966 0 0Structured Investments 136,807 136,807 0 0

Total $ 2,252,152 $ 2,252,152 $ 0 $ 0

Fair Value Measurements Using

Fair value investments classified at Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Fair value investments classified as Level 2 of the fair value hierarchy are valued using the active market rates for the underlying securities. Fair value investments classified as Level 3 of the fair value hierarchy are valued using non-observable inputs. Risks and Uncertainties. The trust’s investments include various types of investment funds, which in turn invest in any combination of stock, bonds and other investments exposed to various risks, such as interest rate, credit, and market risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported for trust investments. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Hickman County School Department does not have the ability to limit trust investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

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Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Hickman County School Department does not have a formal investment policy that limits the credit ratings of individual investments made by the trust. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of the county’s investment in a single issuer. Hickman County School Department places no limit on the amount the county may invest in one issuer. Custodial Credit Risk. Custodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the county will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Pursuant to the trust agreement, investments are held in the name of the trust for the benefit of the Hickman County School Department to pay postemployment benefits of the school department employees. For further information concerning the school department’s investments with the TSBA, audited financial statements of the TSBA OPEB Trust may be obtained from the TSBA administrative office at 525 Brick Church Park Drive, Nashville, TN 37207.

B. Capital Assets Capital assets activity for the year ended June 30, 2020, was as follows:

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Primary Government Governmental Activities:

Balance Balance7-1-19 Increases Decreases 6-30-20

Capital Assets Not Depreciated:Land $ 309,214 $ 39,481 $ 0 $ 348,695Construction in Progress 0 1,185,536 0 1,185,536Total Capital Assets Not Depreciated $ 309,214 $ 1,225,017 $ 0 $ 1,534,231

Capital Assets Depreciated:Buildings and Improvements $ 14,674,948 $ 245,023 $ 0 $ 14,919,971Other Capital Assets 6,974,096 556,298 (1,216,418) 6,313,976Infrastructure 52,859,846 703,327 (356,108) 53,207,065Total Capital Assets Depreciated $ 74,508,890 $ 1,504,648 $ (1,572,526) $ 74,441,012

Less Accumulated Depreciation For:Buildings and Improvements $ 4,400,745 $ 388,924 $ 0 $ 4,789,669Other Capital Assets 3,936,077 608,382 (1,193,161) 3,351,298Infrastructure 31,247,608 966,987 (356,108) 31,858,487Total Accumulated Depreciation $ 39,584,430 $ 1,964,293 $ (1,549,269) $ 39,999,454

Total Capital Assets Depreciated, Net $ 34,924,460 $ (459,645) $ (23,257) $ 34,441,558

Governmental Activities Capital Assets, Net $ 35,233,674 $ 765,372 $ (23,257) $ 35,975,789

Depreciation expense was charged to functions of the primary government as follows:

Governmental Activities:

General Government $ 44,912 Finance 198 Administration of Justice 52,272 Public Safety 413,292 Public Health and Welfare 192,853 Social, Cultural, and Recreational Services 9,376 Highway/Public Works 1,251,390

Total Depreciation Expense - Governmental Activities $ 1,964,293

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Business-type Activities:

Balance Balance7-1-19 Increases 6-30-20

Capital Assets Not Depreciated:Land $ 145,004 $ 0 $ 145,004Total Capital Assets Not Depreciated $ 145,004 $ 0 $ 145,004

Capital Assets Depreciated:Buildings and Improvements $ 1,077,579 $ 0 $ 1,077,579Other Capital Assets 1,426,185 54,903 1,481,088Total Capital Assets Depreciated $ 2,503,764 $ 54,903 $ 2,558,667

Less Accumulated Depreciation For:Buildings and Improvements $ 470,227 $ 26,940 $ 497,167Other Capital Assets 1,093,449 80,542 1,173,991Total Accumulated Depreciation $ 1,563,676 $ 107,482 $ 1,671,158

Total Capital Assets Depreciated, Net $ 940,088 $ (52,579) $ 887,509

Business-type Activities Capital Assets, Net $ 1,085,092 $ (52,579) $ 1,032,513

There were no decreases in capital assets to report during the year ended June 30, 2020. Depreciation expense totaling $107,482 was charged to the Sanitation Management function of the Solid Waste Disposal Fund (enterprise fund).

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Discretely Presented Hickman County School Department Governmental Activities:

Balance Balance7-1-19 Increases 6-30-20

Capital Assets Not Depreciated:Land $ 1,018,261 $ 0 $ 1,018,261Total Capital Assets Not Depreciated $ 1,018,261 $ 0 $ 1,018,261

Capital Assets Depreciated:Buildings and Improvements $ 61,680,100 $ 211,154 $ 61,891,254Other Capital Assets 10,902,090 785,614 11,687,704Infrastructure 27,206 0 27,206Total Capital Assets Depreciated $ 72,609,396 $ 996,768 $ 73,606,164

Less Accumulated Depreciation For: Buildings and Improvements $ 31,082,495 $ 1,704,585 $ 32,787,080Other Capital Assets 6,554,593 478,616 7,033,209Infrastructure 13,148 1,360 14,508Total Accumulated Depreciation $ 37,650,236 $ 2,184,561 $ 39,834,797

Total Capital Assets Depreciated, Net $ 34,959,160 $ (1,187,793) $ 33,771,367

Governmental Activities Capital Assets, Net $ 35,977,421 $ (1,187,793) $ 34,789,628

There were no decreases in capital assets to report during the year ended June 30, 2020. Depreciation expense was charged to functions of the discretely presented Hickman County School Department as follows:

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Instruction $ 1,658Support Services 2,174,314Operation of Non-instructional Services 8,589

Total Depreciation Expense - Governmental Activities $ 2,184,561

C. Construction Commitments

At June 30, 2020, the highway department had an uncompleted construction contract of approximately $1,365,516 for the construction of one bridge. Funding for this future expenditure is expected to be received from state aid programs.

D. Interfund Receivables, Payables, and Transfers The composition of interfund balances as of June 30, 2020, was as follows: Due to/from Other Funds:

Receivable Fund Payable Fund Amount

Primary Government: Solid Waste Disposal General $ 2,029

Discretely Presented School Department: General Purpose School Nonmajor governmental $ 15,325 Nonmajor governmental General Purpose School 3,293

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. Interfund Transfers: Interfund transfers for the year ended June 30, 2020, consisted of the following amounts:

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Primary Government

GeneralDebt

General ServiceTransfers Out Fund Fund

General Fund $ 0 $ 100,000Highway/Public Works Fund 33,870 94,558Nonmajor governmental fund 0 277,847

Total $ 33,870 $ 472,405

Transfers In


GeneralPurpose NonmajorSchool Governmental

Transfers Out Fund

General Pupose School Fund $ 0 $ 2,318 Nonmajor governmental fund 22,096 0

Total $ 22,096 $ 2,318

Fund

Transfers 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 other funds in accordance with budgetary authorizations.

E. Long-term Debt

Primary Government Notes and Other Loans Direct Borrowing and Direct Placements - Hickman County issues other loans to provide funds for the acquisition and construction of major capital facilities for the primary government and the discretely presented school department. Capital outlay notes are also issued to fund capital facilities and other capital outlay purchases, such as equipment. Capital outlay notes and other loans are direct obligations and pledge the full faith, credit, and taxing authority of the government. Capital outlay notes and other loans outstanding were issued for original terms of up to 13 years for notes and up

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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. All notes and other loans included in long-term debt as of June 30, 2020, will be retired from the General Debt Service fund. Capital outlay notes and other loans outstanding as of June 30, 2020, for governmental activities are as follows:

OriginalInterest Final Amount Balance

Type Rate Maturity of Issue 6-30-20

Capital Outlay Notes 3.99 to 4.59 % 5-22-31 $ 2,496,013 $ 2,322,032Other Loans variable 5-25-33 38,543,067 19,352,224

In prior years, Hickman County entered into loan agreements with the Montgomery County Public Building Authority. These loan agreements provided for the authority to loan $6,140,000, and $2,000,000 to Hickman County on an as-needed basis for various renovation and construction projects. These loans are repayable at interest rates that are tax-exempt variable rates determined by the remarketing agent daily or weekly, depending on the particular program. In addition, the county pays various other fees (trustee, letter of credit, and debt remarketing) in connection with these loans. At June 30, 2020, the variable interest rate was 0.27 percent, and other fees totaled $60 per month per loan (trustee), .57 percent (letter of credit), and 0.8 percent (remarketing) of the outstanding loan principal. Also, in a prior year, Hickman County entered into a loan agreement with the Public Building Authority of the City of Clarksville. This loan agreement provided for the authority to loan $22,000,000 to Hickman County on an as-needed basis for a school construction project. This loan is repayable at interest rates that are tax-exempt variable rates determined by the remarketing agent daily or weekly, depending on the particular program. In addition, the county pays various other fees (trustee, letter of credit, and debt remarketing) in connection with these loans. At June 30, 2020, the variable interest rate was .27 percent, and other fees totaled $60 per month (trustee), .57 percent (letter of credit), and .08 percent (remarketing) of the outstanding loan principal.

Additionally, in a prior year, Hickman County entered into a loan agreement with the Public Building Authority of the City of Clarksville. This loan agreement provided for the authority to loan $5,250,000 to Hickman County on an as-needed basis for various renovation and construction projects. This loan is repayable at a fixed interest rate of 2.71 percent. Also, in prior year, Hickman County entered into loan agreement with the Public Building Authority of the City of Clarksville. This loan agreement provided for the authority to make $1,346,000 available for loan to Hickman

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County on an as-needed basis for a sewer system construction project. Hickman County has borrowed $197,588 of the authorized amount. This loan is repayable at a fixed interest rate of 3.945 percent. Furthermore, in a prior year, Hickman County entered into a loan agreement with the Energy Efficient Schools Council. This loan agreement provided for the authority to loan $2,000,000 to Hickman County for a school energy efficiency HVAC project. This loan is repayable for principal only, with no interest requirements. Also, in a prior year, Hickman County entered into a loan agreement with the Energy Efficient Schools Council. This loan agreement provided for the authority to loan $955,479 to Hickman County for a school energy efficiency HVAC project. This loan is repayable at a fixed interest rate of .75 percent. The annual requirements to amortize all notes and other loans outstanding as of June 30, 2020, including interest payments and other loan fees, are presented in the following tables: Year EndingJune 30 Principal Total

2021 $ 184,553 $ 94,248 $ 278,801 2022 192,395 86,470 278,865 2023 200,453 78,362 278,815 2024 208,808 70,045 278,853 2025 217,753 61,113 278,866 2026-2030 1,138,663 160,875 1,299,538 2031 179,407 4,773 184,180

Total $ 2,322,032 $ 555,886 $ 2,877,918

InterestNotes - Direct Placement

Year EndingJune 30 Principal Interest Other Fees Total

2021 $ 2,021,012 $ 153,104 $ 95,221 $ 2,269,337 2022 2,073,212 139,003 86,335 2,298,550 2023 2,114,012 124,508 77,177 2,315,697 2024 1,832,926 112,644 67,745 2,013,315 2025 1,811,000 98,557 58,028 1,967,585 2026-2030 8,233,062 303,323 133,080 8,669,465 2031-2033 1,267,000 44,943 5,932 1,317,875

Total $ 19,352,224 $ 976,082 $ 523,518 $ 20,851,824

Other Loans - Direct Placement

There is $1,921,366 available in the General Debt Service Fund and $126,437 available in the Education Debt Service Fund to service long-term debt. Total

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debt per capita, including notes and other loans totaled $878, based on the 2010 federal census.

Changes in Long-term Debt Long-term debt activity for the year ended June 30, 2020, was as follows: Governmental Activities:

OtherNotes - Loans -Direct Direct

Placement Placement

Balance, July 1, 2019 $ 2,496,013 $ 21,259,110Additions 0 66,926Reductions (173,981) (1,973,812)

Balance, June 30, 2020 $ 2,322,032 $ 19,352,224

Balance Due Within One Year $ 184,553 $ 2,021,012

Analysis of Noncurrent Liabilities for Debt Presented on Exhibit A:

Total Noncurrent Liabilities - Debt, June 30, 2020 $ 21,674,256Less: Balance Due Within One Year - Debt (2,205,565)

Noncurrent Liabilities - Due in More Than One Year - Debt - Exhibit A $ 19,468,691

F. Long-term Obligations

Changes in Long-term Obligations Long-term obligations activity for the year ended June 30, 2020, was as follows:

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OtherPostemployment

Benefits

Balance, July 1, 2019 $ 2,980,235 $ 307,304Additions 1,157,956 444,751Reductions (63,901) (426,844)

Balance, June 30, 2020 $ 4,074,290 $ 325,211

Balance Due Within One Year $ 0 $ 81,303

CompensatedAbsences

Analysis of Other Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2020 $ 4,399,501Less: Balance Due Within One Year - Other (81,303)

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 4,318,198

Compensated absences and other postemployment benefits will be paid from the employing funds, primarily the General and Highway/Public Works funds.

Solid Waste Disposal (Enterprise) Fund

Changes in Long-term Obligations Long-term obligations activity for the Solid Waste Disposal Fund (enterprise fund) for the year ended June 30, 2020, was as follows:

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Business-type Activities:Closure/

PostclosureCompensated Care

Absences Costs

Balance, July 1, 2019 $ 36,004 $ 85,768Additions 39,301 1,291Reductions (36,766) (14,043)

Balance, June 30, 2020 $ 38,539 $ 73,016 Balance Due Within One Year $ 9,635 $ 10,721

OtherPost-

employmentBenefits

Balance, July 1, 2019 $ 207,864Additions 69,603Reductions (32,569)

Balance, June 30, 2020 $ 244,898

Balance Due Within One Year $ 0


Total Noncurrent Liabilities, June 30, 2020 $ 356,453Less: Balance Due Within One Year - Other (20,356)

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 336,097

Discretely Presented Hickman County School Department Changes in Long-term Obligations Long-term obligations activity for the discretely presented Hickman County School Department for the year ended June 30, 2020, was as follows:

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Other OtherPostemployment PostemploymentBenefits - Local Benefits - MedicareEducation Plan Supplement Plan

Balance, July 1, 2019 $ 2,343,156 $ 1,190,865Additions 1,184,836 273,796Reductions (505,497) (112,357)

Balance, June 30, 2020 $ 3,022,495 $ 1,352,304

Balance Due Within One Year $ 0 $ 0


Total Noncurrent Liabilities, June 30, 2020 $ 4,374,799Less: Balance Due Within One Year - Other 0

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 4,374,799

Other postemployment benefits and net pension liabilities will be paid from the employing funds, primarily the General Purpose School and School Federal Projects funds.

G. On-Behalf Payments – Discretely Presented Hickman County School Department The State of Tennessee pays health insurance premiums for retired teachers on-behalf of the Hickman County School Department. These payments are made by the state to the Local Education Group Insurance Plan and the Medicare Supplement Plan. Both 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, 2020, were $32,241 and $30,628, respectively. The school department has recognized these on-behalf payments as revenues and expenditures in the General Purpose School Fund.

V. OTHER INFORMATION A. Risk Management

It is the policy of the county to purchase commercial insurance for the risks of losses to which it is exposed for employee health. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years.

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Hickman County and the 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. Hickman County and the 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 discretely presented Hickman 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.

B. Contingent Liabilities The county is involved in several pending lawsuits. The county attorney estimates that the potential claims against the county not covered by insurance resulting from such litigation would not materially affect the county’s financial statements.

C. Landfill Closure/Postclosure Care Costs

Hickman County has active permits on file with the state Department of Environment and Conservation for a sanitary landfill and a demolition 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 Department of Environment and Conservation. State and federal laws and regulations require the county to place a final cover on its sanitary 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 or 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. Hickman County closed its sanitary landfill in 1997. The $73,016 reported as postclosure care liability at June 30, 2020, represents amounts based on what it would cost to perform all postclosure care in 2020. Actual costs may be higher due to inflation, changes in technology, or changes in regulations.

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D. Joint Ventures Hickman County and the Town of Centerville entered into a joint venture to foster communication and facilitate economic and community development between and among governmental entities, industry, and private citizens. This joint venture is administered by the Hickman County Economic and Community Development Association Board (Vision 21). Hickman County made a contribution of $14,721 and paid $72,194 in salaries and benefits for the Hickman County Joint Economic and Community Development Association Board for the year ended June 30, 2020. The Twenty-first Judicial District Drug Task Force (DTF) is a joint venture formed by an interlocal agreement between the district attorney general of the Twenty-first Judicial District, Williamson, Lewis, Hickman, and Perry 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 operations 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. Hickman County purchased $18,285 in equipment for the DTF during the year ended June 30, 2020. Hickman County does not have an equity interest in any of the above-noted joint ventures. Complete financial statements for the Hickman County Joint Economic Development Board and the DTF can be obtained from their respective administrative offices at the following addresses:

Administrative Offices:

Hickman County Joint Economic Development Board (Vision 21) P.O. Box 204

Centerville, TN 37033

Office of District Attorney General Twenty-first Judicial District Drug Task Force P.O. Box 937 Franklin, TN 37065

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The discretely presented school department participates in the Volunteer State Cooperative (VOLCO), which represents a cost-sharing arrangement. The cooperative was established through a contractual agreement between participating county school systems, city school systems, and certain special school districts. The cooperative was authorized through Chapter 49 of Tennessee Code Annotated. The cooperative was established to obtain lower prices for food supplies, materials, equipment, and services by combining the purchasing requirements of each member’s school food service systems. The cooperative has contracted with a coordinating district (Dickson County School Department) and a service provider to provide these services. The cooperative is governed by a Representative Committee, comprising one representative from each of the member districts, and an Executive Council, consisting of the chair, vice chair, secretary, treasurer, and a member-at-large from the Representative Committee. Complete financial statements for the Volunteer State Cooperative can be obtained from its administrative office at the following address:

Administrative Office:

Volunteer State Cooperative 220 McLemore Street Dickson, TN 37055

E. Jointly Governed Organization

The South Central Tennessee Railroad Authority (SCTRA) was created by the county in conjunction with Lewis, Perry, and Wayne counties and the cities of Centerville, Linden, Hohenwald, and Waynesboro. The SCTRA’s board includes 16 members who are the elected county mayor/executive or city mayor and an appointed member of the county commission or City Council from each of the respective counties or cities. Hickman County did not appropriate any funds for this operation during the year, and the county does not have any ongoing financial interest or responsibility for the entity. Funding sources for SCTRA are lease payments, switching fees, interest income, and grants.

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F. Retirement Commitments

1. Tennessee Consolidated Retirement System (TCRS)

Primary Government General Information About the Pension Plan Plan Description. Employees of Hickman County and non-certified employees of the discretely presented Hickman County School Department are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The primary government employees comprise 68.47 percent, the non-certified employees of the discretely presented school department comprise 31.53 percent of the plan based on contribution data. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with five years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. Reduced benefits for early retirement are available to vested members at age 55. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in

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http://www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies


the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions plus any accumulated interest. Employees Covered by Benefit Terms. At the measurement date of June 30, 2019, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 251Inactive Employees Entitled to But Not Yet Receiving Benefits 289Active Employees 348

Total 888

Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees are noncontributory. Hickman County makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2020, the employer contribution for Hickman County was $1,128,273 based on a rate of 11.03 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept Hickman County’s state shared taxes if required employer contributions are not remitted. The employer’s actuarially determined contributions (ADC) and member contributions are expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Net Pension Liability (Asset) Hickman County’s net pension liability (asset) was measured as of June 30, 2019, and the total pension liability (asset) used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability as of the June 30, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

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Inflation 2.5%Salary Increases Graded Salary Ranges from 8.72%

to 3.44% Based on Age, Including Inflation, Averaging 4%

Investment Rate of Return 7.25%, Net of Pension Plan Investment Expenses, Including Inflation

Cost of Living Adjustment 2.25%

Mortality rates were based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2019, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historic market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investments expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major asset class are summarized in the following table:

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PercentageLong-termExpected PercentageReal Rate Target

Asset Class of Return Allocations

U.S. Equity 5.69 % 31 %Developed Market International Equity 5.29 14Emerging Market International Equity 6.36 4Private Equity and Strategic Lending 5.79 20U.S. Fixed Income 2.01 20Real Estate 4.32 10Short-term Securities 0.00 1

Total 100 %

The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from Hickman County will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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Changes in the Net Pension Liability (Asset)

Total Plan NetPension Fiduciary PensionLiability Net Position Liability

(a) (b) (a)-(b)

Balance, July 1, 2018 $ 31,871,412 $ 32,272,348 $ (400,936)

Changes for the Year: Service Cost $ 750,556 $ 0 $ 750,556 Interest 2,314,951 0 2,314,951 Differences Between Expected and Actual Experience 505,491 0 505,491 Contributions-Employer 0 1,312,979 (1,312,979) Net Investment Income 0 2,399,295 (2,399,295) Benefit Payments, Including Refunds of Employee Contributions (1,383,215) (1,383,215) 0 Administrative Expense 0 (28,952) 28,952Net Changes $ 2,187,783 $ 2,300,107 $ (112,324)

Balance, June 30, 2019 $ 34,059,195 $ 34,572,455 $ (513,260)

Increase (Decrease)

Allocation of Agent Plan Changes in the Net Pension Liability (Asset)

Plan NetTotal Fiduciary Pension

Pension Net LiabilityLiability Position (Asset)

Primary Government 68.47% $ 23,320,331 $ 23,671,760 $ (351,429)

School Department 31.53% 10,738,864 10,900,695 (161,831)

Total $ 34,059,195 $ 34,572,455 $ (513,260)

Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the net pension liability (asset) of Hickman County calculated using the discount rate of 7.25 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is one percentage point lower (6.25%) or one percentage point higher (8.25%) than the current rate:

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Current1% Discount 1%

Decrease Rate Increase6.25% 7.25% 8.25%

Net Pension Liability (Asset) $ 3,876,929 $ (513,260) $ (4,177,970)

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Expense. For the year ended June 30, 2020, Hickman County recognized pension expense of $1,121,729. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2020, Hickman County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred DeferredOutflows Inflows

of of Resources Resources

Difference Between Expected and Actual Experience $ 404,393 $ 119,712Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 399,101Changes in Assumptions 322,685 0Contributions Subsequent to the Measurement Date of June 30, 2019 (1) 1,128,273 N/A

Total $ 1,855,351 $ 518,813

(1) The amount shown above for “Contributions Subsequent to the

Measurement Date of June 30, 2019,” will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period.

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Allocation of Agent Plan Deferred Outflows of Resources and Deferred Inflows of Resources

Deferred DeferredOutflows of Inflows ofResources Resources

Primary Government $ 1,188,461 $ 332,887

Business-type Activities 77,912 22,344

School Department 588,978 163,582

Total $ 1,855,351 $ 518,813

Amounts reported as deferred outflows of resources, with the exception of contributions subsequent to the measurement date, and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year EndingJune 30 Amount

2021 $ 172,5092022 (68,819)2023 16,1042024 88,4712025 0Thereafter 0

In the table shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense.

Discretely Presented Hickman County School Department Non-certified Employees General Information About the Pension Plan Plan Description. As noted above under the primary government, employees of Hickman County and non-certified employees of the discretely presented Hickman County School Department are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The primary government employees comprise 68.47 percent and the non-certified employees of the

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discretely presented school department comprise 31.53 percent of the plan based on contribution data. Certified Employees Teacher Retirement Plan General Information About the Pension Plan Plan Description. Teachers of the Hickman County School Department with membership in the TCRS before July 1, 2014, are provided with pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan is closed to new membership. Teachers with membership in the TCRS after June 30, 2014, are provided with pensions through a legally separate plan referred to as the Teacher Retirement Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members are eligible to retire with an unreduced benefit at age 65 with five years of service credit or pursuant to the rule of 90 in which the member’s age and service credit total 90. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 60 or pursuant to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the

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current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. Members who leave employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Retirement Plan, benefit terms and conditions, including COLA, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly or by automatic cost controls set out in law. Teachers are required to contribute five percent of their salary to the plan. The Local Education Agencies (LEAs) make employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. Per the statutory provisions governing TCRS, the employer contribution rate cannot be less than four percent, except in years when the maximum funded level, approved by the TCRS Board of Trustees, is reached. By law, employer contributions for the Teacher Retirement Plan are required to be paid. The TCRS may intercept the state shared taxes of the sponsoring governmental entity of the LEA if the required employer contributions are not remitted. Employer contributions for the year ended June 30, 2020, to the Teacher Retirement Plan were $83,379, which is 2.03 percent of covered payroll. In addition, employer contributions of $76,730, which is 1.97 percent of covered payroll were made to the Pension Stabilization Reserve Trust Fund to fund future pension costs. The employer rate, when combined with member contributions and the stabilization reserve trust funds, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Liabilities (Assets). At June 30, 2020, the school department reported a liability (asset) of ($178,402) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2019, and the total pension liability (asset) used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. The school department’s proportion of the net pension liability (asset) was based on the school department’s share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of

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June 30, 2019, the school department’s proportion was .316044 percent. The proportion as of June 30, 2018, was .293539 percent. Pension Expense. For the year ended June 30, 2020, the school department recognized pension expense of $56,129. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2020, the school department reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



Difference Between Expected and Actual Experience $ 7,397 $ 31,144Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 7,543Changes in Assumptions 6,199 0Changes in Proportion of Net Pension Liability (Asset) 12,707 11,423LEA's Contributions Subsequent to the Measurement Date of June 30, 2019 83,379 N/A

Total $ 109,682 $ 50,110

The school department’s employer contributions of $83,379, reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as an increase of net pension asset in the year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:


2021 $ (3,642)2022 (4,796)2023 (2,680)2024 (1,602)2025 (1,295)Thereafter (9,792)

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In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. Actuarial Assumptions. The total pension liability in the June 30, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:





Mortality rates are based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2019, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historic market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investments expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major asset class are summarized in the following table:

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Total 100 %

The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employee contributions will be made at the current rate and that contributions from all the LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Proportionate Share of Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the school department’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.25 percent, as well as what the school department’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is one percentage point lower (6.25%) or one percentage point higher (8.25%) than the current rate:

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School Department's Current Proportionate Share of 1% Discount 1% the Net Pension Decrease Rate Increase Liability (Asset) 6.25% 7.25% 8.25%

Net Pension Liability (Asset) $ 56,525 $ (178,402) $ (352,057)

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Teacher Legacy Pension Plan General Information About the Pension Plan Plan Description. Teachers of the Hickman County School Department with membership in the TCRS before July 1, 2014, are provided with pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30, 2014, but will continue providing benefits to existing members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by LEAs after June 30, 2014. The Teacher Retirement Plan is a separate cost-sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible to retire with an unreduced benefit at age 60 with five years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 55. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various

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eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Legacy Pension Plan, benefit terms and conditions, including COLAs can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Teachers are required to contribute five percent of their salaries. The Local Education Agencies (LEAs) make employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. By law, employer contributions for the Teacher Legacy Pension Plan are required to be paid. The TCRS may intercept the state shared taxes of the sponsoring governmental entity of the LEA if the required employer contributions are not remitted. Employer contributions by the Hickman County School Department for the year ended June 30, 2020, to the Teacher Legacy Pension Plan were $1,212,592, which is 10.63 percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Liability (Assets). At June 30, 2020, the school department reported a liability (asset) of ($3,612,752) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. The school department’s proportion of the net pension liability (asset) was based on the school department’s long-term share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2019, the school department’s proportion was .351374 percent. The proportion measured at June 30, 2018, was .350732 percent.

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Pension Expense. For the year ended June 30, 2020, the school department recognized pension expense of $469,108. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2020, the school department reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



Difference Between Expected and Actual Experience $ 175,896 $ 2,206,741Changes in Assumptions 486,837 0Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 1,032,233Changes in Proportion of Net Pension Liability (Asset) 33,328 31,045LEA's Contributions Subsequent to the Measurement Date of June 30, 2019 1,212,592 N/A

Total $ 1,908,653 $ 3,270,019

The school department’s employer contributions of $1,212,592 reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as a decrease in net pension liability in the year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:


2021 $ (750,175)2022 (1,025,173)2023 (455,823)2024 (342,787)2025 0Thereafter 0

In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense.

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Actuarial Assumptions. The total pension liability in the June 30, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:





Mortality rates are based actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2019, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historic market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investments expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major asset class are summarized in the following table:

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Total 100 %

The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employee contributions will be made at the current rate and that contributions from all the LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Proportionate Share of Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the school department’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.25 percent, as well as what the school department’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is one percentage point lower (6.25%) or one percentage point higher (8.25%) than the current rate:

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School Department's Current Proportionate Share of 1% Discount 1% the Net Pension Decrease Rate Increase Liability (Asset) 6.25% 7.25% 8.25%

Net Pension Liability (Asset) $ 7,387,035 $ (3,612,752) $ (12,362,778)

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report.

2. Deferred Compensation – Primary Government

Hickman County offers its employees a deferred compensation plan established pursuant to IRC Section 457. All costs of administering and funding this program are the responsibility of plan participants. The Section 457 plan assets remain the property of the contributing employees and are not presented in the accompanying financial statements. IRC Section 457 establishes participation, contribution, and withdrawal provisions for the plan. Deferred Compensation – Discretely Presented Hickman County School Department The discretely presented Hickman County School Department offers its employees two deferred compensation plans, one established pursuant to IRC Section 457 and the other pursuant to IRC Section 403(b). All costs of administering and funding these programs are the responsibility of plan participants. The Section 457 and the Section 403(b) plan assets remain the property of the contributing employees and are not presented in the accompanying financial statements. IRC Sections 457 and 403(b) establish participation, contribution, and withdrawal provisions for the plans. Teachers hired after July 1, 2014, by the school department are required to participate in a hybrid pension plan consisting of a defined benefit portion, which is detailed in the pensions footnote above and is managed by the Tennessee Consolidated Retirement System, and a defined contribution portion, which is placed into the state’s 401(k) plan and is managed by the employee. The defined contribution portion of the plan requires that the school department contribute five percent of each teacher’s salary into their deferred compensation plan. In addition, teachers are required to contribute two percent of their salaries into this deferred compensation plan, unless they opt out of the employee portion. During the year, the school department contributed $192,023 to this deferred compensation pension plan.

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G. Other Postemployment Benefits (OPEB) Hickman County and the discretely presented Hickman County School Department provide OPEB benefits to its retirees under various OPEB plans. These include OPEB provided through state administered public entity risk pools and commercial health insurance plans. For reporting purposes, the plans are considered single employer defined benefit OPEB plans based on criteria in Statement No. 75 of the Governmental Accounting Standards Board (GASB). The plans are funded on a pay-as-you-go basis and there are no assets accumulating in a trust that meets the criteria of paragraph 4 of GASB Statement No. 75. Primary Government - Commercial Plan Hickman County provides OPEB benefits to its employees through a commercial insurance plan.

Plan Description. The primary government participates in a commercial postemployment benefits plan for its retirees and their covered dependents. County employees, other than highway, are eligible for OPEB benefits if they retire with at least 25 years of service. Highway employees are eligible for OPEB benefits if they retire at age 55 with at least 20 years of accumulated service from the state, city, and/or county government, is a vested member of the Tennessee Consolidated Retirement System and has been employed with the Hickman County Highway Department for at least the last 10 years. For accounting purposes, the plan is a single-employer defined benefit OPEB plan. Benefits are established and amended by recommendation of a salaries and benefits committee and approved by the county commission. No assets are accumulated in a trust that meets the criteria of paragraph 4 of GASB Statement 75. Benefits Provided. The plan provides healthcare insurance benefits to retirees and their dependents, as well as dental benefits to highway retirees and their dependents. The benefit terms provide for the primary government to pay the same benefit as an active employee which is payable until age 65 for all non-highway employees. At age 65 for non-highway employees, the county will pay $40 toward a supplemental Medicare policy with the State of Tennessee. Eligible highway employees are entitled to the same benefit that they received as an active employee which is payable for life. In addition, Hickman County contributes up to $4,400 (single coverage) and up to $8,800 (family coverage) to a Health Reimbursement Account administered by the insurance carrier to cover employees’ health insurance deductibles.

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Employees Covered by Benefit Terms At the measurement date of June 30, 2020, the following employees were covered by the benefit terms:

Inactive Employees or Beneficiaries Currently Receiving Benefits 12Inactive Employees Entitled to But Not Yet Receiving Benefits 0Active Employees 182

Total 194

Total OPEB Liability The primary government’s total OPEB liability of $4,319,188 was measured as of June 30, 2020, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and other inputs. The total OPEB liability in the June 30, 2020, actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50%Discount Rate 2.75%Salary Scale 3.00%Healthcare Cost Trend Rate 4.50%Retirees share of Benefit-related Cost Same rate as active employees Mortality rates (pre-retirement) were based on the RP-2014 mortality table for blue collar employees projected generationally with scale MP-2016 for males and females. Mortality rates (post-retirement) were based on the RP-2014 mortality table for blue collar healthy annuitants projected generationally with scale MP-2016 for males and females. The actuarial assumptions used in the June 30, 2020, valuation were based on plan data and costs presented by the primary government with concurrence by the actuary.

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Changes in the Total OPEB Liability Balance July 1, 2019 $ 3,188,099Changes for the Year: Service Cost $ 184,927 Interest 99,754 Change in assumptions 475,796 Difference between actual and expected experience 467,082

Benefit Payments (96,470)Net Changes $ 1,131,089

Balance June 30, 2020 $ 4,319,188

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2020, the primary government recognized OPEB expense of $443,753. At June 30, 2020, the primary government reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:



Difference Between Expected and Actual Experience $ 610,951 $ 0Changes of Assumptions 517,266

Total $ 1,128,217 $ 0

Amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:


2021 $ 159,0722022 159,0722023 159,0722024 159,0722025 159,072Thereafter 332,857

In the table shown above, positive amounts will increase OPEB expense while negative amounts will decrease OPEB expense.

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Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following presents the total OPEB liability of the primary government calculated using the discount rate of 2.75 percent, as well as what the OPEB liability would be if it was calculated using a discount rate that is one percentage point lower (1.75%) or one percentage point higher (3.75%) than the current rate: Discount Rate Current

1% Discount 1%Decrease Rate Increase

1.75% 2.75% 3.75%

Total OPEB Liability $ 5,145,440 $ 4,319,188 $ 3,703,197

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rate. The following presents the total OPEB liability of the primary government calculated using the healthcare cost trend rate of 4.50 percent, as well as what the OPEB liability would be if it was calculated using a trend rate that is one percentage point lower (3.50%) or one percentage point higher (5.50%) than the current rate: Healthcare Cost Trend Rate Current

1% Trend 1%Decrease Rate Increase

3.50% 4.50% 5.50%

Total OPEB Liability $ 3,661,586 $ 4,319,188 $ 5,195,654

Discretely Presented Hickman County School Department Hickman County School Department provides OPEB benefits to its certified retirees through a state administered public entity risk pool. For reporting purposes, the plan is considered a single employer defined benefit OPEB plan based on criteria in Statement No. 75 of the Governmental Accounting Standards Board (GASB). The plan is funded on a pay-as-you-go basis and there are no assets accumulating in a trust that meet the criteria of paragraph 4 of GASB Statement No. 75.

OPEB Provided Through State Administered Public Entity Risk Pools

The Hickman County School Department provides healthcare benefits to its certified retirees under the Local Education Plan (LEP) until they reach Medicare eligibility. The certified retirees of Hickman County School Department may then join the Tennessee Plan – Medicare (TNM), which provides supplemental medical insurance for retirees with Medicare. Hickman County provides a direct subsidy of 55 percent of the premium cost

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for eligible retirees with 30 or more years of service in Hickman County schools, 35 percent for eligible retirees with 20-29 years of service in Hickman County Schools, and 25 percent for eligible retirees with 10-19 years of service in Hickman County Schools.

The school department’s total OPEB liability for the plan was measured as of June 30, 2019, and was determined by an actuarial valuation as of that date.

Actuarial Assumptions and Other Inputs. The total OPEB liability in the June 30, 2019, actuarial valuation of the plan was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Actuarial Cost Method Entry Age NormalInflation 2.20%Salary Increases Salary increases used in the July 1, 2018,

TCRS actuarial valuation; 3.44% to 8.72%, including inflation

Discount Rate 3.51%Healthcare Cost Trend Rates Based on the Getzen Model, with trend

starting at 6.03 for for pre-65 retirees in the 2019 calendar year, and gradually decreasing over a 10 year period to an ultimate trend rate of 4.5 percent.

Retirees Share of Benefit Related Cost Discussed under each plan

The discount rate was 3.51 percent, based on an average rating of AA/Aa as shown in the Bond Buyer 20-Year Municipal GO AA index closest to but not later than the measurement date. Mortality rates were based on the results of a statewide experience study undertaken on behalf of the Tennessee Consolidated Retirement System (TCRS). These mortality rates were used in the July 1, 2019, actuarial valuation of the TCRS.

Unless noted otherwise, the actuarial demographic assumptions used in the June 30, 2018, valuations were the same as those employed in the July 1, 2017, Pension Actuarial Valuation of the Tennessee Consolidated Retirement System (TCRS). These assumptions were developed by TCRS based on the results of an actuarial experience study for the period July 1, 2012 - June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. Mortality tables are used to measure the probabilities of participants dying before and after retirement. The mortality rates employed in this valuation are taken from the RP-2014 Healthy Participant Mortality Table for Annuitants for non-disabled post-

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retirement mortality, with mortality improvement projected to all future years using Scale MP-2016. Post-retirement tables are Blue Collar and adjusted with a 2.0 percent load for males and a -3.0 percent load for females. Mortality rates for impaired lives are the same as those used by TCRS and are taken from a gender distinct table published in the IRS Ruling 96-7 for disabled lives with a 10.0percent load.

Changes in Assumptions. The discount rate changed from 3.62 percent as of the beginning of the measurement period to 3.51 percent as of the measurement date of June 30, 2019. This change in assumption increased the total OPEB liability. Other changes in assumptions include adjustments to initial per capita costs and health trend rates. The trend rate applicable to the 2020 plan year was revised from 6.75 percent to 6.03 percent. Closed Local Education (LEP) OPEB Plan (Discretely Presented School Department)

Plan description. Employees of the Hickman County School Department who were hired prior to July 1, 2015, are provided with pre-65 retiree health insurance benefits through the closed Local Education Plan (LEP) administered by the Tennessee Department of Finance and Administration. All eligible pre-65 retired teachers, support staff, and disability participants of local education agencies, who choose coverage, participate in the LEP. This plan is closed to the employees of all participating employers that were hired on or after July 1, 2015.

Benefits provided. The Hickman County School Department offers the LEP to provide health insurance coverage to eligible pre-65 retirees, support staff, and disabled participants of local education agencies. Retirees are required to discontinue coverage under the LEP upon obtaining Medicare eligibility. Insurance coverage is the only postemployment benefit provided to retirees. An insurance committee created in accordance with TCA 8-27-301 establishes and amends the benefit terms of the LEP. All members have the option of choosing between the premier preferred provider organization (PPO), standard PPO, limited PPO, or the wellness health savings consumer-driven health plan (CDHP) for healthcare benefits. Retired plan members of the LEP receive the same plan benefits as active employees at a blended premium rate that considers the cost of all participants. This creates an implicit subsidy for retirees. Participating employers determine their own policy related to direct subsidies provided for retiree premiums. During the year, the school department provided a direct subsidy for eligible retiree’s premiums based on years of service. Retirees with 30 or more years of service receive 55% of a single policy premium or 30% of a family policy premium; 20-29 years of service, 45% of a single family policy premium or 25% of a family policy premium; and 10-19 years of service receive 35% of a single policy premium or 15% of a family policy premium. Also, the state, as a governmental non-employer contributing entity, provides a direct subsidy for eligible retiree’s premiums based on years of service. Retirees with 30 or

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more years of service will receive 45%; 20 but less than 30 years, 35%; and less than 20 years, 25% of the scheduled premium. No subsidy is provided for enrollees of the health savings CDHP.

Employees Covered by Benefit Terms

At the measurement date of June 30, 2019, the following employees were covered by the benefit terms:


Total 366

A state insurance committee, created in accordance with TCA 8-27-301, establishes the required payments to the LEP by member employers and employees through the blended premiums established for active and retired employees. Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premium rates. Administrative costs are allocated to plan participants. Employers contribute towards employee costs based on their own developed policies. During the current reporting period, the school department paid $115,607 to the LEP for OPEB benefits as they came due.

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Changes in the Collective Total OPEB Liability

Hickman County State ofSchool Department TN Total OPEB

71.99% 28.01% Liability

Balance July 1, 2018 $ 2,343,156 $ 829,329 $ 3,172,485Changes for the Year: Service Cost $ 177,532 $ 69,074 $ 246,606 Interest 87,564 34,069 121,633 Changes in Benefit Terms 20,714 8,059 28,773 Difference between Expected and Actual Experience 764,244 297,354 1,061,598 Changes in Proportion (59,175) 59,175 0

Changes in Assumptions (225,751) (87,836) (313,587) Benefit Payments (85,788) (33,378) (119,166)Net Changes $ 679,339 $ 346,518 $ 1,025,857

Balance June 30, 2019 $ 3,022,495 $ 1,175,847 $ 4,198,342

Share of Collective Liability

The Hickman County School Department has a special funding situation related to benefits paid by the State of Tennessee for its eligible retired employees participating in the LEP. The Hickman County School Department 's proportionate share of the collective total OPEB Liability was based on a projection of the employers long-term share of benefit payments to the OPEB plan relative to the projected share of benefit payments of all participating employers and nonemployer contributing entities, actuarially determined. The school department recognized $104,237 in revenue for subsidies provided by nonemployer contributing entities for benefits paid by the LEP for school department retirees.

During the year, the Hickman County School Department’s proportionate share of the collective OPEB liability was 71.99% and the State of Tennessee’s share was 28.01%.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2020, the school department recognized OPEB expense of $309.555, including the state’s share of the expense. At June 30, 2020, the school department reported deferred outflows of resources and deferred inflows of resources related to its proportionate share of OPEB from the following sources:

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Difference Between Expected and Actual Experience $ 684,494 $ 993,168Changes of Assumptions/Inputs 70,745 337,537Changes in Proportion and Differences Between Amounts Paid as Benefits Came Due and Proportionate Share Amounts Paid by the Employer and Nonemployer Contributors As Benefits Came Due 0 154,793Benefits Paid After the Measurement Date of June 30, 2019 115,607 0

Total $ 870,846 $ 1,485,498

Amounts reported as deferred inflows and deferred outflows of resources (excluding benefits paid after the measurement date) related to OPEB will be recognized in OPEB expense as follows:

Year Ending SchoolJune 30 Department

2021 $ (80,501)2022 (80,501)2023 (80,501)2024 (80,501)2025 (80,501)Thereafter (327,754)


Sensitivity of proportionate share of the collective total OPEB liability to changes in the discount rate. The following presents the school department’s proportionate share of the collective total OPEB liability related to the LEP, as well as what the proportionate share of the collective total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current discount rate.

102

Discount Rate Current1% Discount 1%


Proportionate Share of the Collective Total OPEB Liability $ 3,274,569 $ 3,022,495 $ 2,784,630

Sensitivity of proportionate share of the collective total OPEB liability to changes in the healthcare cost trend rate. The following presents the school department’s proportionate share of the collective total OPEB liability related to the LEP, as well as what the proportionate share of the collective total OPEB liability would be if it were calculated using a healthcare cost trend rate that is one percentage point lower or one percentage point higher than the current healthcare cost trend rate.

Healthcare Cost Trend Rate

1% Current 1%Decrease Rate Increase

5.03 to 3.5% 6.03 to 4.5% 7.03 to 5.5%

Proportionate Share of the Collective Total OPEB Liability $ 2,652,759 $ 3,022,495 $ 3,463,950

Closed Tennessee Plan – Medicare (Discretely Presented School Department)

Plan description. Employees of the Hickman County School Department, who were hired prior to July 1, 2015, are provided with post-65 retiree health insurance benefits through the closed Tennessee Plan - Medicare (TNM) administered by the Tennessee Department of Finance and Administration. All eligible post-65 retired teachers and disability participants of local education agencies, who choose coverage, participate in the TNM. The TNM also includes eligible retirees of the state, certain component units of the state, and certain local governmental entities. This plan is closed to the employees of all participating employers that were hired on or after July 1, 2015. The school department’s total OPEB liability for the TNM Plan was measured as of June 30, 2019, and was determined by an actuarial valuation as of that date

Benefits provided. The state offers the TNM to help fill most of the coverage gaps created by Medicare for eligible post-65 retired teachers and disabled participants of local education agencies. Insurance coverage is the only postemployment benefit provided to retirees. The TNM does not include

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pharmacy. In accordance with TCA 8-27-209, benefits of the TNM are established and amended by cooperation of insurance committees created by TCA 8-27-201, 8-27-301 and 8-27-701. Retirees and disabled employees of the state, component units, local education agencies, and certain local governments who have reached the age of 65, are Medicare eligible and also receive a benefit from the Tennessee Consolidated Retirement System may participate in this plan. All plan members receive the same plan benefits at the same premium rates. Participating employers determine their own policy related to subsidizing the retiree premiums. The Hickman County School Department provides a subsidy of 55% of the monthly premium for retirees with 30 or more years of service in Hickman County Schools, retirees with 20-29 years of service in Hickman County Schools receive 35% of the monthly premium, and retirees with 10-19 years of service in Hickman County Schools receive 25% of the monthly premium. The state, as a governmental nonemployer contributing entity, contributes to the premiums of eligible retirees of local education agencies based on years of service. The State of Tennessee provides a subsidy of $50 per month for retirees with 30 or more years of service, retirees with 20-29 years of service receive $37.50, and retirees with 15-19 years of service receive $25.

Employees Covered by Benefit Terms

At the measurement date of June 30, 2019, the following employees were covered by the benefit terms:


Total 346

In accordance with TCA 8-27-209, the state insurance committees established by TCA Nos. 8-27-201, 8-27-301 and 8-27-701 determine the required payments to the plan by member employers and employees. Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premium rates. Administrative costs are allocated to plan participants. Employers contribute towards employee costs based on their own developed policies. For the fiscal year ended June 30, 2020, the school department paid $46,689 to the TNM for OPEB benefits as they came due.

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Changes in the Collective Total OPEB Liability

Hickman County State ofSchool Department TN Total OPEB

59.45% 40.55% Liability

Balance July 1, 2018 $ 1,190,865 $ 861,515 $ 2,052,380Changes for the Year: Service Cost $ 41,649 $ 28,408 $ 70,057 Interest 44,887 30,616 75,503 Difference between Expected and Actual Experience 93,113 63,511 156,624 Changes in Proportion 29,280 (29,280) 0 Changes in Assumptions (3,423) (2,335) (5,758)

Benefit Payments (44,066) (30,057) (74,123)Net Changes $ 161,439 $ 60,864 $ 222,303

Balance June 30, 2019 $ 1,352,304 $ 922,379 $ 2,274,683

Share of Collective Liability

The Hickman County School Department has a special funding situation related to benefits paid by the State of Tennessee for its eligible retirees participating in the TNM. The Hickman County School Department's proportionate share of the collective total OPEB Liability was based on a projection of the employers long-term share of benefit payments to the OPEB plan relative to the projected share of benefit payments of all participating employers and nonemployer contributing entities, actuarially determined. The school department recognized $59,849 in revenue for subsidies provided by nonemployer contributing entities for benefits paid by the TNM for school department retirees.

During the year, the Hickman County School Department’s proportionate share of the collective OPEB liability was 59.45 percent and the State of Tennessee’s Share was 40.55 percent.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2020, the school department recognized OPEB expense of $107,355 including the state’s share of the OPEB expense.

At June 30, 2020, the school department reported deferred outflows of resources and deferred inflows of resources related to its proportionate share of OPEB from the following sources:

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Difference Between Expected and Actual Experience $ 82,639 $ 115,935Changes of Assumptions/Inputs 0 107,491Changes in Proportion and Differences Between Amounts Paid as Benefits Came Due and Proportionate Share Amounts Paid by the Employer and Nonemployer Contributors As Benefits Came Due 30,440 139,213Benefits Paid After the Measurement Date of June 30, 2019 46,689 0

Total $ 159,768 $ 362,639

Amounts reported as deferred inflows and deferred outflows of resources (excluding benefits paid after the measurement date) related to OPEB will be recognized in OPEB expense as follows:

Year Ending SchoolJune 30 Department

2021 $ (39,030)2022 (39,030)2023 (39,030)2024 (39,030)2025 (39,030)Thereafter (54,410)


Sensitivity of proportionate share of the collective total OPEB liability to changes in the discount rate. The following presents the school department’s proportionate share of the collective total OPEB liability related to the TNM, as well as what the proportionate share of the collective total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate.

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Discount Rate Current1% Discount 1%


Proportionate Share of the Collective Total OPEBLiability $ 1,567,217 $ 1,352,304 $ 1,176,896

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rate. The premium subsidies provided to retirees in the TNM plan are assumed to remain unchanged for the entire projection period, therefore trend rates are not applicable to the plan calculations.

H. Office of Central Accounting, Budgeting, and Purchasing

Hickman 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. This act also provides for the creation of a finance department operated under the direction of the finance director.

I. Purchasing Law Office of Director of Finance The County Financial Management System of 1981 provides for the finance director or a deputy appointed by her to serve as the county purchasing agent. The finance director serves as the purchasing agent for Hickman County. All purchase orders are issued by the finance department. All purchases exceeding $10,000 for the Office of County Mayor, the highway department, and the discretely presented school department are required to be competitively bid.

J. Financial Policy – Health Foundation The discretely presented Hickman County Health Foundation’s general policy requires all bank account decisions and all disbursements to be individually approved at meetings of the board of directors.

K. Subsequent Event On July 11, 2020, the Hickman County Landfill discovered a theft of funds from the office safe totaling $351.88. The theft was reported to the Hickman County Sheriff’s Department and a fraud reporting form was filed with the Comptroller’s Office.

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REQUIRED SUPPLEMENTARY INFORMATION

108

Exhibit F-1

Hickman County, TennesseeSchedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRSPrimary GovernmentFor the Fiscal Year Ended June 30

2014 2015 2016 2017 2018 2019

Total Pension Liability Service Cost $ 654,690 $ 696,494 $ 673,495 $ 666,353 $ 705,759 $ 750,556Interest 1,787,192 1,909,251 2,001,964 2,110,306 2,199,470 2,314,951Differences Between Actual and Expected Experience 125,227 (264,612) (56,802) (197,920) (48,638) 505,491Changes in Assumptions 0 0 0 806,711 0 0Benefit Payments, Including Refunds of Employee Contributions (917,225) (1,045,668) (1,118,252) (1,215,663) (1,233,861) (1,383,215)Net Change in Total Pension Liability $ 1,649,884 $ 1,295,465 $ 1,500,405 $ 2,169,787 $ 1,622,730 $ 2,187,783Total Pension Liability, Beginning 23,633,141 25,283,025 26,578,490 28,078,895 30,248,682 31,871,412

Total Pension Liability, Ending (a) $ 25,283,025 $ 26,578,490 $ 28,078,895 $ 30,248,682 $ 31,871,412 $ 34,059,195

Plan Fiduciary Net PositionContributions - Employer $ 1,103,787 $ 1,173,742 $ 1,170,034 $ 1,176,267 $ 1,245,970 $ 1,312,979Contributions - Employee 300 0 25,928 0 0 0Net Investment Income 3,586,524 779,537 695,653 3,044,261 2,474,426 2,399,295Benefit Payments, Including Refunds of Employee Contributions (917,225) (1,045,668) (1,118,252) (1,215,663) (1,233,861) (1,383,215)Administrative Expense (12,757) (16,152) (22,486) (26,820) (29,853) (28,952)Other 0 0 0 0 (6,881) 0Net Change in Plan Fiduciary Net Position $ 3,760,629 $ 891,459 $ 750,877 $ 2,978,045 $ 2,449,801 $ 2,300,107Plan Fiduciary Net Position, Beginning 21,441,537 25,202,166 26,093,625 26,844,502 29,822,547 32,272,348

Plan Fiduciary Net Position, Ending (b) $ 25,202,166 $ 26,093,625 $ 26,844,502 $ 29,822,547 $ 32,272,348 $ 34,572,455

Net Pension Liability (Asset), Ending (a - b) $ 80,859 $ 484,865 $ 1,234,393 $ 426,135 $ (400,936) $ (513,260)

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 99.68% 98.18% 95.60% 98.59% 101.26% 101.51%Covered Payroll $ 8,336,761 $ 8,643,168 $ 8,617,705 $ 8,661,755 $ 9,041,871 $ 9,528,150Net Pension Liability (Asset) as a Percentage of Covered Payroll 0.97% 5.61% 14.32% 4.92% (4.43%) (5.39%)

Note: Ten years of data will be presented when available.

Note: The agent plan is a single plan reported under one account with the Tennessee Consolidated Retirement System.This plan covers employees of the primary government and non-certified employees of the discretely presented schooldepartment.

109

Exhibit F-2

Hickman County, TennesseeSchedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRSPrimary GovernmentFor the Fiscal Year Ended June 30

2014 2015 2016 2017 2018 2019 2020

Actuarially Determined Contribution $ 1,103,787 $ 1,173,742 $ 1,170,034 $ 1,176,301 $ 1,245,970 $ 1,312,979 $ 1,128,273Less Contributions in Relation to the Actuarially Determined Contribution (1,103,787) (1,173,742) (1,170,034) (1,176,301) (1,245,970) (1,312,979) (1,128,273)

Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Covered Payroll $ 8,336,761 $ 8,643,168 $ 8,617,705 $ 8,661,755 $ 9,041,871 $ 9,528,150 $ 10,229,128

Contributions as a Percentage of Covered Payroll 13.24% 13.58% 13.58% 13.58% 13.78% 13.78% 11.03%


Note: The agent plan is a single plan reported under one account with the Tennessee ConsolidatedRetirement System. This plan covers employees of the primary government and non-certifiedemployees of the discretely presented school department.

110

Exhibit F-3

Hickman County, TennesseeSchedule of Contributions Based on Participation in the Teacher Retirement Plan of TCRSDiscretely Presented Hickman County School DepartmentFor the Fiscal Year Ended June 30

2015 2016 2017 2018 2019 2020

Contractually Required Contribution $ 23,634 $ 65,173 $ 88,360 $ 102,607 $ 64,881 $ 83,379Less Contributions in Relation to the Contractually Required Contribution (23,634) (65,173) (88,360) (102,607) (64,881) (83,379)

Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Covered Payroll $ 590,846 $ 1,629,333 $ 2,208,998 $ 2,565,170 $ 3,344,373 $ 4,107,364

Contributions as a Percentage of Covered Payroll 4.00% 4.00% 4.00% 4.00% 1.94% 2.03%


111

Exhibit F-4

Hickman County, TennesseeSchedule of Contributions Based on Participation in the Teacher Legacy Pension Plan of TCRSDiscretely Presented Hickman County School DepartmentFor the Fiscal Year Ended June 30

2014 2015 2016 2017 2018 2019 2020

Contractually Required Contribution $ 1,222,030 $ 1,169,474 $ 1,159,435 $ 1,114,818 $ 1,115,160 $ 1,232,403 $ 1,212,592Less Contributions in Relation to the Contractually Required Contribution (1,222,030) (1,169,474) (1,159,435) (1,114,818) (1,115,160) (1,232,403) (1,212,592)

Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Covered Payroll $ 13,761,597 $ 12,936,665 $ 12,825,612 $ 12,332,055 $ 12,281,495 $ 11,782,041 $ 11,407,250

Contributions as a Percentage of Covered Payroll 8.88% 9.04% 9.04% 9.04% 9.08% 10.46% 10.63%


112

Exhibit F-5

Hickman County, TennesseeSchedule of Proportionate Share of the Net Pension Liability (Asset) in the Teacher Retirement Plan of TCRSDiscretely Presented Hickman County School DepartmentFor the Fiscal Year Ended June 30

2015 2016 2017 2018 2019

School Department's Proportion of the Net Pension Liability (Asset) 0.278503% 0.370298% 0.336564% 0.293539% 0.316044%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (11,440) $ (38,549) $ (88,798) $ (133,128) $ (178,402)

Covered Payroll $ 590,846 $ 1,629,333 $ 2,208,998 $ 2,565,170 $ 3,344,373

School Department's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (1.94)% (2.37)% (4.02)% (5.19)% (5.33%)

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 127.46% 121.88% 126.81% 126.97% 123.07%


113

Exhibit F-6

Hickman County, TennesseeSchedule of Proportionate Share of the Net Pension Liability (Asset) in the Teacher Legacy Pension Plan of TCRSDiscretely Presented Hickman County School DepartmentFor the Fiscal Year Ended June 30

2014 2015 2016 2017 2018 2019

School Department's Proportion of the Net Pension Liability (Asset) 0.350615% 0.345576% 0.355300% 0.348861% 0.350732% 0.351374%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (56,973) $ 141,560 $ 2,220,427 $ (114,143) $ (1,234,197) $ (3,612,752)

Covered Payroll $ 13,761,597 $ 12,936,665 $ 12,825,612 $ 12,332,055 $ 12,281,495 $ 11,782,041

School Department's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (0.41)% 1.09% 17.31% (0.93)% (10.05)% (30.66%)

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 100.08% 99.81% 97.14% 100.14% 101.49% 104.28%


114

Exhibit F-7

Hickman County, TennesseeSchedule of Changes in the Total OPEB Liability and Related Ratios - Commercial PlanPrimary GovernmentFor the Fiscal Year Ended June 30

2018 2019 2020

Total OPEB LiabilityService Cost $ 67,542 $ 69,568 $ 184,927 Interest 80,406 93,849 99,754 Plan Change 134,452 0 0Differences Between Actual and Expected Experience 258,709 0 467,082Changes in Assumptions or Other Inputs 0 0 475,796Benefit Payments (61,509) (67,576) (96,470) Net Change in Total OPEB Liability $ 479,600 $ 95,841 $ 1,131,089 Total OPEB Liability, Beginning 2,612,658 3,092,258 3,188,099

Total OPEB Liability, Ending $ 3,092,258 $ 3,188,099 $ 4,319,188

Covered Employee Payroll $ 8,994,458 $ 9,174,347 $ 6,095,571 Net OPEB Liability as a Percentage of Covered Employee Payroll 34.38% 34.75% 70.86%

Note 1: Ten years of data will be presented when available.

115

Exhibit F-8

Hickman County, TennesseeSchedule of Changes in the Total OPEB Liability and Related Ratios - Local Education PlanDiscretely Presented Hickman County School DepartmentFor the Fiscal Year Ended June 30

2017 2018 2019Total OPEB LiabilityService Cost $ 382,666 $ 354,716 $ 246,606 Interest 151,959 188,358 121,633 Changes in Benefit Terms 0 (657,264) 28,773Differences Between Actual and Expected Experience 0 (1,682,737) 1,061,598Changes in Assumptions or Other Inputs (262,208) 119,863 (313,587)Benefit Payments (141,848) (173,362) (119,166) Net Change in Total OPEB Liability $ 130,569 $ (1,850,426) $ 1,025,857 Total OPEB Liability, Beginning 4,892,342 5,022,911 3,172,485


Nonemployer Contributing Entity Proportionate Share of the Total OPEB Liability $ 1,222,988 $ 829,329 $ 1,175,847 Employer Proportionate Share of the Total OPEB Liability 3,799,923 2,343,156 3,022,495



Note 2: Changes in assumptions. (a) The following are the discount rates used in each period:

2016 2.92%2017 3.56%2018 3.62%2019 3.51%

(b) The assumed initial trend rate applicable to plan years was revised as follows:For the 2019 plan year - from 5.4% to 6.75%For the 2020 plan year - from 6.75% to 6.03%

Note 3: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

116

Exhibit F-9

Hickman County, TennesseeSchedule of Changes in the Total OPEB Liability and Related Ratios - Tennessee Plan - MedicareDiscretely Presented Hickman County School DepartmentFor the Fiscal Year Ended June 30

2017 2018 2019

Total OPEB LiabilityService Cost $ 125,681 $ 103,896 $ 70,057 Interest 78,298 90,960 75,503 Changes in Benefit Terms 0 (288,570) 0Differences Between Actual and Expected Experience 0 (251,537) 156,624Changes in Assumptions or Other Inputs (237,480) (17,039) (5,758)Benefit Payments (69,226) (72,987) (74,123) Net Change in Total OPEB Liability $ (102,727) $ (435,277) $ 222,303 Total OPEB Liability, Beginning 2,590,384 2,487,657 2,052,380


Nonemployer Contributing Entity Proportionate Share of the Total OPEB Liability $ 877,777 $ 861,515 $ 922,379 Employer Proportionate Share of the Total OPEB Liability 1,609,880 1,190,865 1,352,304



Note 2: Changes in assumptions. (a) The following are the discount rates used in each period:

2016 2.92%2017 3.56%2018 3.62%2019 3.51%

(b) The assumed initial trend rate applicable to plan years was revised as follows:For the 2019 plan year - from 5.4% to 6.75%For the 2020 plan year - from 6.75% to 6.03%

Note 3: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

117

HICKMAN COUNTY, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION


TENNESSEE CONSOLIDATED RETIREMENT SYSTEM Valuation Date: Actuarially determined contribution rates for fiscal year 2020 were calculated based on the June 30, 2018, actuarial valuation.

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age NormalAmortization Method Level Dollar, closed (not to exceed 20 years)Remaining Amortization Period VariousAsset Valuation 10-year smoothed within a 20 percent corrider

to market valueInflation 2.5%Salary Increases Graded Salary Ranges from 8.72% to

3.44% Based on Age, Including Inflation, Averaging 4%

Investment Rate of Return 7.25%, Net of Investment Expense, Including Inflation

Retirement Age Pattern of Retirement Determined by Experience Study

Mortality Customized Table Based on Actual Experience Including Projection of Mortality Improvement Using Scale MP-2017


Changes of assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3 percent to 2.5 percent; decreased the investment rate of return from 7.5 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.5 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4 percent; and modified mortality assumptions.

118

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

119

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.

____________________________

Drug Control Fund – The Drug Control Fund is used to account for revenues received from drug-related fines, forfeitures, and seizures. Adequate Facilities/Development Tax Fund – The Adequate Facilities/Development Tax Fund is used to account for the fee assessed on square footage on all new residential, industrial, and commercial buildings. 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.

Debt Service Fund

____________________________

Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.

____________________________ Education Debt Service Fund – The Education Debt Service Fund is used to account for the accumulation of resources for, and the payment of, education long-term debt principal, interest, and related costs.

120

Capital Projects Fund ____________________________

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 general capital expenditures of the county.

121

Exhibit G-1

Hickman County, TennesseeCombining Balance SheetNonmajor Governmental FundsJune 30, 2020

Adequate Constitu -Facilities/ tional Education

Drug Development Officers - DebtControl Tax Fees Total Service

ASSETS

Cash $ 0 $ 0 $ 1,077 $ 1,077 $ 0Equity in Pooled Cash and Investments 100,454 658,288 0 758,742 86,281Accounts Receivable 0 0 120 120 40,156

Total Assets $ 100,454 $ 658,288 $ 1,197 $ 759,939 $ 126,437

LIABILITIES

Due to Litigants, Heirs, and Others $ 0 $ 0 $ 1,197 $ 1,197 $ 0Other Current Liabilities 681 0 0 681 0Total Liabilities $ 681 $ 0 $ 1,197 $ 1,878 $ 0

FUND BALANCES

Restricted:Restricted for General Government $ 0 $ 658,288 $ 0 $ 658,288 $ 0Restricted for Public Safety 99,773 0 0 99,773 0Restricted for Debt Service 0 0 0 0 126,437Restricted for Capital Projects 0 0 0 0 0

Total Fund Balances $ 99,773 $ 658,288 $ 0 $ 758,061 $ 126,437

Total Liabilities and Fund Balances $ 100,454 $ 658,288 $ 1,197 $ 759,939 $ 126,437

(Continued)

Special Revenue FundsDebt Service

Fund

122

Exhibit G-1

Hickman County, TennesseeCombining Balance SheetNonmajor Governmental Funds (Cont.)

TotalGeneral NonmajorCapital GovernmentalProjects Funds

ASSETS

Cash $ 0 $ 1,077Equity in Pooled Cash and Investments 64,667 909,690Accounts Receivable 14,257 54,533

Total Assets $ 78,924 $ 965,300

LIABILITIES

Due to Litigants, Heirs, and Others $ 0 $ 1,197Other Current Liabilities 0 681Total Liabilities $ 0 $ 1,878

FUND BALANCES

Restricted:Restricted for General Government $ 0 $ 658,288Restricted for Public Safety 0 99,773Restricted for Debt Service 0 126,437Restricted for Capital Projects 78,924 78,924

Total Fund Balances $ 78,924 $ 963,422

Total Liabilities and Fund Balances $ 78,924 $ 965,300

Capital Projects Fund

123

Exhibit G-2

Hickman County, TennesseeCombining Statement of Revenues, Expenditures,

and Changes in Fund BalancesNonmajor Governmental FundsFor the Year Ended June 30, 2020

Adequate TotalFacilities/ Education General Nonmajor

Drug Development Debt Capital GovernmentalControl Tax Total Service Projects Funds

RevenuesLocal Taxes $ 0 $ 193,231 $ 193,231 $ 334,628 $ 0 $ 527,859Fines, Forfeitures, and Penalties 7,195 0 7,195 0 0 7,195

Total Revenues $ 7,195 $ 193,231 $ 200,426 $ 334,628 $ 0 $ 535,054


General Government $ 0 $ 1,962 $ 1,962 $ 0 $ 0 $ 1,962Public Safety 59,041 0 59,041 0 0 59,041

Debt Service:Other Debt Service 0 0 0 3,204 0 3,204

Capital Projects 0 177,500 177,500 0 66,926 244,426Total Expenditures $ 59,041 $ 179,462 $ 238,503 $ 3,204 $ 66,926 $ 308,633

Excess (Deficiency) of RevenuesOver Expenditures $ (51,846) $ 13,769 $ (38,077) $ 331,424 $ (66,926) $ 226,421

Other Financing Sources (Uses)Other Loans Issued $ 0 $ 0 $ 0 $ 0 $ 66,926 $ 66,926Insurance Recovery 5,554 0 5,554 0 0 5,554Transfers Out 0 0 0 (277,847) 0 (277,847)

Total Other Financing Sources (Uses) $ 5,554 $ 0 $ 5,554 $ (277,847) $ 66,926 $ (205,367)

(Continued)


FundCapital

Projects Fund

124

Exhibit G-2


and Changes in Fund BalancesNonmajor Governmental Funds (Cont.)

Adequate TotalFacilities/ Education General Nonmajor

Drug Development Debt Capital GovernmentalControl Tax Total Service Projects Funds

Net Change in Fund Balances $ (46,292) $ 13,769 $ (32,523) $ 53,577 $ 0 $ 21,054Fund Balance, July 1, 2019 146,065 644,519 790,584 72,860 78,924 942,368

Fund Balance, June 30, 2020 $ 99,773 $ 658,288 $ 758,061 $ 126,437 $ 78,924 $ 963,422


FundCapital

Projects Fund

125

Exhibit G-3Hickman County, TennesseeSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Actual and BudgetDrug Control FundFor the Year Ended June 30, 2020



RevenuesFines, Forfeitures, and Penalties $ 7,195 $ 63,500 $ 63,500 $ (56,305)

Total Revenues $ 7,195 $ 63,500 $ 63,500 $ (56,305)

ExpendituresPublic Safety

Sheriff's Department $ 59,041 $ 50,000 $ 65,045 $ 6,004Total Expenditures $ 59,041 $ 50,000 $ 65,045 $ 6,004

Excess (Deficiency) of RevenuesOver Expenditures $ (51,846) $ 13,500 $ (1,545) $ (50,301)

Other Financing Sources (Uses)Insurance Recovery $ 5,554 $ 0 $ 5,554 $ 0

Total Other Financing Sources $ 5,554 $ 0 $ 5,554 $ 0

Net Change in Fund Balance $ (46,292) $ 13,500 $ 4,009 $ (50,301)Fund Balance, July 1, 2019 146,065 13,000 146,065 0

Fund Balance, June 30, 2020 $ 99,773 $ 26,500 $ 150,074 $ (50,301)

Budgeted Amounts

126

Exhibit G-4Hickman County, TennesseeSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Actual and BudgetAdequate Facilities/ Development Tax FundFor the Year Ended June 30, 2020



RevenuesLocal Taxes $ 193,231 $ 160,000 $ 160,000 $ 33,231

Total Revenues $ 193,231 $ 160,000 $ 160,000 $ 33,231

ExpendituresGeneral Government

Building $ 1,962 $ 2,500 $ 2,500 $ 538Capital Projects

Public Safety Projects 177,500 200,000 200,000 22,500Total Expenditures $ 179,462 $ 202,500 $ 202,500 $ 23,038

Excess (Deficiency) of RevenuesOver Expenditures $ 13,769 $ (42,500) $ (42,500) $ 56,269

Net Change in Fund Balance $ 13,769 $ (42,500) $ (42,500) $ 56,269Fund Balance, July 1, 2019 644,519 600,000 644,519 0

Fund Balance, June 30, 2020 $ 658,288 $ 557,500 $ 602,019 $ 56,269

Budgeted Amounts

127

Exhibit G-5

Hickman County, TennesseeSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Actual and BudgetEducation Debt Service FundFor the Year Ended June 30, 2020



RevenuesLocal Taxes $ 334,628 $ 342,000 $ 342,000 $ (7,372)

Total Revenues $ 334,628 $ 342,000 $ 342,000 $ (7,372)

ExpendituresOther Debt Service

General Government $ 3,204 $ 4,000 $ 4,000 $ 796Total Expenditures $ 3,204 $ 4,000 $ 4,000 $ 796

Excess (Deficiency) of RevenuesOver Expenditures $ 331,424 $ 338,000 $ 338,000 $ (6,576)

Other Financing Sources (Uses)Transfers Out $ (277,847) $ (277,847) $ (277,847) $ 0

Total Other Financing Sources $ (277,847) $ (277,847) $ (277,847) $ 0

Net Change in Fund Balance $ 53,577 $ 60,153 $ 60,153 $ (6,576)Fund Balance, July 1, 2019 72,860 92,000 72,860 0


Budgeted Amounts

128

Major Governmental Fund

General Debt Service Fund ________________________________________

The General Debt Service Fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.

________________________________________

129

Exhibit H


in Fund Balance - Actual and BudgetGeneral Debt Service FundFor the Year Ended June 30, 2020



RevenuesLocal Taxes $ 2,015,128 $ 1,885,060 $ 1,885,060 $ 130,068Other Local Revenues 131,254 90,000 90,000 41,254State of Tennessee 10,010 9,747 9,747 263Other Governments and Citizens Groups 163,284 163,284 163,284 0

Total Revenues $ 2,319,676 $ 2,148,091 $ 2,148,091 $ 171,585

ExpendituresPrincipal on Debt

General Government $ 497,037 $ 499,665 $ 499,666 $ 2,629Highways and Streets 60,944 60,944 60,944 0Education 1,589,812 1,589,812 1,589,812 0

Interest on DebtGeneral Government 132,495 256,831 256,831 124,336Highways and Streets 33,613 33,614 33,613 0Education 259,999 455,164 455,164 195,165

Other Debt ServiceGeneral Government 51,136 75,786 75,786 24,650Education 74,514 74,514 74,514 0

Total Expenditures $ 2,699,550 $ 3,046,330 $ 3,046,330 $ 346,780

Excess (Deficiency) of RevenuesOver Expenditures $ (379,874) $ (898,239) $ (898,239) $ 518,365

Other Financing Sources (Uses)Transfers In $ 472,405 $ 472,558 $ 472,558 $ (153)

Total Other Financing Sources $ 472,405 $ 472,558 $ 472,558 $ (153)

Net Change in Fund Balance $ 92,531 $ (425,681) $ (425,681) $ 518,212Fund Balance, July 1, 2019 1,828,835 1,800,000 1,828,835 0

Fund Balance, June 30, 2020 $ 1,921,366 $ 1,374,319 $ 1,403,154 $ 518,212

Budgeted Amounts

130

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 cities 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. 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.

131

Exhibit I-1

Hickman County, TennesseeCombining Statement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2020

Constitu -Cities - tionalSales Officers -Tax Agency Total

ASSETS

Cash $ 0 $ 693,933 $ 693,933Accounts Receivable 0 406 406Due from Other Governments 135,655 0 135,655

Total Assets $ 135,655 $ 694,339 $ 829,994

LIABILITIES

Due to Other Taxing Units $ 135,655 $ 0 $ 135,655Due to Litigants, Heirs, and Others 0 694,339 694,339

Total Liabilities $ 135,655 $ 694,339 $ 829,994

Agency Funds

132

Exhibit I-2

Hickman County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency FundsFor the Year Ended June 30, 2020

Beginning EndingBalance Additions Deductions Balance

Cities - Sales Tax Fund Assets Equity in Pooled Cash and Investments $ 0 $ 721,290 $ 721,290 $ 0 Due from Other Governments 115,436 135,655 115,436 135,655

Total Assets $ 115,436 $ 856,945 $ 836,726 $ 135,655

Liabilities Due to Other Taxing Units $ 115,436 $ 856,945 $ 836,726 $ 135,655

Total Liabilities $ 115,436 $ 856,945 $ 836,726 $ 135,655

Constitutional Officers - Agency Fund Assets Cash $ 1,030,728 $ 5,136,130 $ 5,472,925 $ 693,933 Accounts Receivable 341 406 341 406 Cash Shortage 486 0 486 0

Total Assets $ 1,031,555 $ 5,136,536 $ 5,473,752 $ 694,339

Liabilities Due to Litigants, Heirs, and Others $ 1,031,555 $ 5,136,536 $ 5,473,752 $ 694,339

Total Liabilities $ 1,031,555 $ 5,136,536 $ 5,473,752 $ 694,339

Totals - All Agency Funds Assets Cash $ 1,030,728 $ 5,136,130 $ 5,472,925 $ 693,933 Equity in Pooled Cash and Investments 0 721,290 721,290 0 Accounts Receivable 341 406 341 406 Due from Other Governments 115,436 135,655 115,436 135,655 Cash Shortage 486 0 486 0

Total Assets $ 1,146,991 $ 5,993,481 $ 6,310,478 $ 829,994

Liabilities Due to Other Taxing Units $ 115,436 $ 856,945 $ 836,726 $ 135,655 Due to Litigants, Heirs, and Others 1,031,555 5,136,536 5,473,752 694,339

Total Liabilities $ 1,146,991 $ 5,993,481 $ 6,310,478 $ 829,994

133

Hickman County School Department __________________________

This section presents combining and individual fund financial statements for the Hickman 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 the cafeteria operations in each of the schools.

134

Exhibit J-1

Hickman County, TennesseeStatement of ActivitiesDiscretely Presented Hickman County School DepartmentFor the Year Ended June 30, 2020

Net (Expense)Revenue andChanges in

Operating Capital Net PositionCharges Grants Grants Total

for and and GovernmentalFunctions/Programs Expenses Services Contributions Contributions Activities

Governmental Activities: Instruction $ 18,666,432 $ 2,500 $ 3,079,436 $ 0 $ (15,584,496) Support Services 12,568,195 680 99,215 401,689 (12,066,611) Operation of Non-instructional Services 2,613,138 391,068 1,768,243 0 (453,827)

Total Governmental Activities $ 33,847,765 $ 394,248 $ 4,946,894 $ 401,689 $ (28,104,934)

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 3,176,079 Local Option Sales Tax 1,856,891 Other Local Taxes 34,466 Grants and Contributions Not Restricted to Specific Programs 23,087,104 Unrestricted Investment Income 4,934 Gain on Investments 126,049 Miscellaneous 85,232Total General Revenues $ 28,370,755

Change in Net Position $ 265,821Net Position, July 1, 2019 42,984,564

Net Position, June 30, 2020 $ 43,250,385

Program Revenues

135

Exhibit J-2

Hickman County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Hickman County School DepartmentJune 30, 2020

OtherGeneral Govern- TotalPurpose mental GovernmentalSchool Funds Funds

ASSETS

Cash $ 0 $ 11,498 $ 11,498Equity in Pooled Cash and Investments 6,626,137 519,150 7,145,287Accounts Receivable 4,103 0 4,103Due from Other Governments 870,762 440,926 1,311,688Due from Other Funds 15,325 3,293 18,618Property Taxes Receivable 3,388,189 0 3,388,189Allowance for Uncollectible Property Taxes (271,358) 0 (271,358)Restricted Assets 2,404,698 0 2,404,698

Total Assets $ 13,037,856 $ 974,867 $ 14,012,723

LIABILITIES

Accounts Payable $ 114 $ 0 $ 114Accrued Payroll 2,484 0 2,484Payroll Deductions Payable 372,818 0 372,818Due to Other Funds 3,293 15,325 18,618Total Liabilities $ 378,709 $ 15,325 $ 394,034


Deferred Current Property Taxes $ 3,042,197 $ 0 $ 3,042,197Deferred Delinquent Property Taxes 69,624 0 69,624Other Deferred/Unavailable Revenue 174,881 0 174,881Total Deferred Inflows of Resources $ 3,286,702 $ 0 $ 3,286,702

FUND BALANCES

Restricted:Restricted for Education $ 2,253,966 $ 1,825 $ 2,255,791Restricted for Hybrid Retirement Stabilization Funds 152,546 0 152,546

Committed:Committed for Education 2,307,487 957,717 3,265,204

Unassigned 4,658,446 0 4,658,446Total Fund Balances $ 9,372,445 $ 959,542 $ 10,331,987

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 13,037,856 $ 974,867 $ 14,012,723

Major Fund

Nonmajor Funds

136

Exhibit J-3

Hickman County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionDiscretely Presented Hickman County School DepartmentJune 30, 2020

Amounts reported for governmental activities in the statementof net position (Exhibit A) are different because:

Total fund balances - balance sheet - governmental funds (Exhibit J-2) $ 10,331,987

(1) Capital assets used in governmental activities are not financialresources and therefore are not reported in the governmental funds. Add: land $ 1,018,261 Add: buildings and improvements net of accumulated depreciation 29,104,174 Add: other capital assets net of accumulated depreciation 4,654,495 Add: infrastructure net of accumulated depreciation 12,698 34,789,628

(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 - Local Education Plan $ (3,022,495) Less: other postemployment benefits liability - Medicare Supplement Plan (1,352,304) (4,374,799)

(3) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions and OPEB will be amortized andrecognized as components of pension and OPEB expense in future years. Add: deferred outflows of resources related to pensions $ 2,607,313 Less: deferred inflows of resources related to pensions (3,483,711) Add: deferred outflows of resources related to OPEB 1,030,614 Less: deferred inflows of resources related to OPEB (1,848,137) (1,693,921)

(4) Net pension assets are not current financial resources and therefore are not reported in the governmental funds. Add: net pension asset - agent plan $ 161,831 Add: net pension asset - teacher legacy pension plan 3,612,752 Add: net pension asset - teacher retirement plan 178,402 3,952,985

(5) Other long-term assets are not available to pay for current periodexpenditures and therefore are deferred in the governmental funds. 244,505

Net position of governmental activities (Exhibit A) $ 43,250,385

137

Exhibit J-4


and Changes in Fund Balances - Governmental Funds

Discretely Presented Hickman County School DepartmentFor the Year Ended June 30, 2020

OtherGeneral Govern- TotalPurpose mental GovernmentalSchool Funds Funds

RevenuesLocal Taxes $ 5,086,579 $ 0 $ 5,086,579Licenses and Permits 1,235 0 1,235Charges for Current Services 30,653 362,915 393,568Other Local Revenues 167,351 301 167,652State of Tennessee 23,984,937 7,943 23,992,880Federal Government 70,443 4,352,087 4,422,530Other Governments and Citizens Groups 48,800 10,000 58,800

Total Revenues $ 29,389,998 $ 4,733,246 $ 34,123,244


Instruction $ 17,265,487 $ 1,695,696 $ 18,961,183Support Services 10,514,339 892,844 11,407,183Operation of Non-Instructional Services 580,839 2,131,971 2,712,810Capital Outlay 314,245 0 314,245

Debt Service:Other Debt Service 163,284 0 163,284

Total Expenditures $ 28,838,194 $ 4,720,511 $ 33,558,705

Excess (Deficiency) of RevenuesOver Expenditures $ 551,804 $ 12,735 $ 564,539

Other Financing Sources (Uses)Transfers In $ 22,096 $ 2,318 $ 24,414Transfers Out (2,318) (22,096) (24,414)

Total Other Financing Sources (Uses) $ 19,778 $ (19,778) $ 0

Net Change in Fund Balances $ 571,582 $ (7,043) $ 564,539Fund Balance, July 1, 2019 8,800,863 966,585 9,767,448

Fund Balance, June 30, 2020 $ 9,372,445 $ 959,542 $ 10,331,987

Major Fund

Nonmajor Funds

138

Exhibit J-5

Hickman County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesDiscretely Presented Hickman County School DepartmentFor the Year Ended June 30, 2020

Amounts reported for governmental activities in the statementof activities (Exhibit B) are different because:

Net change in fund balances - total governmental funds (Exhibit J-4) $ 564,539

(1) Governmental funds report capital outlays as expenditures. However, inthe statement of activities, the cost of these assets is allocated over theiruseful lives and reported as depreciation expense. The difference betweencapital outlays and depreciation is itemized as follows: Add: capital assets purchased in the current period $ 996,768 Less: current-year depreciation expense (2,184,561) (1,187,793)

(2) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Less: deferred delinquent property taxes and other deferred June 30, 2019 $ (254,163) Add: deferred delinquent property taxes and other deferred June 30, 2020 244,505 (9,658)

(3) Some expenses reported in the statement of activities do not require the useof current financial resources and therefore are not reported as expendituresin the governmental funds. Change in OPEB liability - Local Education Plan $ (679,339) Change in OPEB liability - Medicare Supplement Plan (161,439) Change in deferred outflows related to pensions (105,409) Change in deferred inflows related to pensions (1,360,800) Change in deferred outflows related to OPEB 819,640 Change in deferred inflows related to OPEB (69,877) Change in net pension asset - agent plan 32,128 Change in net pension asset - teacher legacy pension plan 2,378,555 Change in net pension asset - teacher retirement plan 45,274 898,733

Change in net position of governmental activities (Exhibit B) $ 265,821

139

Exhibit J-6

Hickman County, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Hickman County School DepartmentJune 30, 2020

TotalSchool Nonmajor

Federal Central GovernmentalProjects Cafeteria Funds

ASSETS

Cash $ 0 $ 11,498 $ 11,498Equity in Pooled Cash and Investments 158,060 361,090 519,150Due from Other Governments 355,797 85,129 440,926Due from Other Funds 3,293 0 3,293

Total Assets $ 517,150 $ 457,717 $ 974,867

LIABILITIES

Due to Other Funds $ 15,325 $ 0 $ 15,325Total Liabilities $ 15,325 $ 0 $ 15,325

FUND BALANCES

Restricted:Restricted for Education $ 1,825 $ 0 $ 1,825

Committed:Committed for Education 500,000 457,717 957,717

Total Fund Balances $ 501,825 $ 457,717 $ 959,542

Total Liabilities and Fund Balances $ 517,150 $ 457,717 $ 974,867

Special Revenue Funds

140

Exhibit J-7


and Changes in Fund Balances - Nonmajor Governmental Funds

Discretely Presented Hickman County School DepartmentFor the Year Ended June 30, 2020

TotalSchool NonmajorFederal Central GovernmentalProjects Cafeteria Funds

RevenuesCharges for Current Services $ 0 $ 362,915 $ 362,915Other Local Revenues 0 301 301State of Tennessee 0 7,943 7,943Federal Government 2,611,066 1,741,021 4,352,087Other Governments and Citizens Groups 0 10,000 10,000

Total Revenues $ 2,611,066 $ 2,122,180 $ 4,733,246


Instruction $ 1,695,696 $ 0 $ 1,695,696Support Services 892,844 0 892,844Operation of Non-Instructional Services 0 2,131,971 2,131,971

Total Expenditures $ 2,588,540 $ 2,131,971 $ 4,720,511

Excess (Deficiency) of RevenuesOver Expenditures $ 22,526 $ (9,791) $ 12,735

Other Financing Sources (Uses)Transfers In $ 2,318 $ 0 $ 2,318Transfers Out (22,096) 0 (22,096)

Total Other Financing Sources (Uses) $ (19,778) $ 0 $ (19,778)

Net Change in Fund Balances $ 2,748 $ (9,791) $ (7,043)Fund Balance, July 1, 2019 499,077 467,508 966,585

Fund Balance, June 30, 2020 $ 501,825 $ 457,717 $ 959,542


141

Exhibit J-8


in Fund Balance - Actual and BudgetDiscretely Presented Hickman County School DepartmentGeneral Purpose School FundFor the Year Ended June 30, 2020



RevenuesLocal Taxes $ 5,086,579 $ 4,812,972 $ 4,812,972 $ 273,607Licenses and Permits 1,235 1,300 1,300 (65)Charges for Current Services 30,653 62,200 62,200 (31,547)Other Local Revenues 167,351 64,000 197,896 (30,545)State of Tennessee 23,984,937 23,634,585 24,159,067 (174,130)Federal Government 70,443 65,000 65,000 5,443Other Governments and Citizens Groups 48,800 30,000 13,996 34,804

Total Revenues $ 29,389,998 $ 28,670,057 $ 29,312,431 $ 77,567

ExpendituresInstruction

Regular Instruction Program $ 13,257,872 $ 14,018,299 $ 13,946,708 $ 688,836Alternative Instruction Program 164,806 170,436 170,436 5,630Special Education Program 2,856,440 3,074,402 3,074,402 217,962Career and Technical Education Program 986,369 1,104,795 1,150,695 164,326

Support ServicesAttendance 139,921 157,047 157,047 17,126Health Services 331,563 362,746 362,746 31,183Other Student Support 864,326 944,221 944,221 79,895Regular Instruction Program 1,151,500 1,308,716 1,354,356 202,856Special Education Program 112,741 115,363 115,363 2,622Career and Technical Education Program 98,706 114,933 114,933 16,227Technology 248,776 275,049 275,049 26,273Other Programs 62,869 0 62,869 0Board of Education 452,705 670,000 670,000 217,295Director of Schools 271,434 282,179 303,179 31,745Office of the Principal 1,517,238 1,706,843 1,711,905 194,667Fiscal Services 42,235 45,000 45,000 2,765Operation of Plant 1,871,390 2,313,000 2,312,926 441,536Maintenance of Plant 972,961 1,097,310 1,114,193 141,232Transportation 2,189,180 2,112,078 2,461,764 272,584Central and Other 186,794 249,500 259,500 72,706

Operation of Non-Instructional ServicesFood Service 27,504 28,110 34,960 7,456Community Services 125,256 130,305 130,305 5,049Early Childhood Education 428,079 448,354 448,354 20,275

Capital OutlayRegular Capital Outlay 314,245 331,000 331,000 16,755

Other Debt ServiceEducation 163,284 0 163,284 0

Total Expenditures $ 28,838,194 $ 31,059,686 $ 31,715,195 $ 2,877,001

Excess (Deficiency) of RevenuesOver Expenditures $ 551,804 $ (2,389,629) $ (2,402,764) $ 2,954,568

Other Financing Sources (Uses)Insurance Recovery $ 0 $ 10,000 $ 10,000 $ (10,000)

(Continued)

Budgeted Amounts

142

Exhibit J-8


in Fund Balance - Actual and BudgetDiscretely Presented Hickman County School DepartmentGeneral Purpose School Fund (Cont.)



Other Financing Sources (Uses) (Cont.)Transfers In $ 22,096 $ 25,000 $ 25,000 $ (2,904)Transfers Out (2,318) (165,000) (2,318) 0

Total Other Financing Sources $ 19,778 $ (130,000) $ 32,682 $ (12,904)

Net Change in Fund Balance $ 571,582 $ (2,519,629) $ (2,370,082) $ 2,941,664Fund Balance, July 1, 2019 8,800,863 8,040,971 8,800,863 0

Fund Balance, June 30, 2020 $ 9,372,445 $ 5,521,342 $ 6,430,781 $ 2,941,664

Budgeted Amounts

143

Exhibit J-9


in Fund Balance - Actual and BudgetDiscretely Presented Hickman County School DepartmentSchool Federal Projects FundFor the Year Ended June 30, 2020



RevenuesFederal Government $ 2,611,066 $ 2,231,305 $ 3,251,538 $ (640,472)

Total Revenues $ 2,611,066 $ 2,231,305 $ 3,251,538 $ (640,472)

ExpendituresInstruction

Regular Instruction Program $ 1,017,786 $ 912,328 $ 1,189,907 $ 172,121Special Education Program 583,654 562,933 622,589 38,935Career and Technical Education Program 94,256 54,000 94,544 288

Support ServicesOther Student Support 237,393 52,767 335,222 97,829Regular Instruction Program 353,887 340,190 553,558 199,671Special Education Program 301,297 278,751 425,879 124,582Transportation 267 8,000 7,500 7,233

Total Expenditures $ 2,588,540 $ 2,208,969 $ 3,229,199 $ 640,659

Excess (Deficiency) of RevenuesOver Expenditures $ 22,526 $ 22,336 $ 22,339 $ 187

Other Financing Sources (Uses)Transfers In $ 2,318 $ 0 $ 0 $ 2,318Transfers Out (22,096) (22,336) (22,336) 240

Total Other Financing Sources $ (19,778) $ (22,336) $ (22,336) $ 2,558

Net Change in Fund Balance $ 2,748 $ 0 $ 3 $ 2,745Fund Balance, July 1, 2019 499,077 500,000 500,000 (923)

Fund Balance, June 30, 2020 $ 501,825 $ 500,000 $ 500,003 $ 1,822

Budgeted Amounts

144

Exhibit J-10


in Fund Balance - Actual and BudgetDiscretely Presented Hickman County School DepartmentCentral Cafeteria FundFor the Year Ended June 30, 2020



RevenuesCharges for Current Services $ 362,915 $ 214,500 $ 214,500 $ 148,415Other Local Revenues 301 200 200 101State of Tennessee 7,943 0 0 7,943Federal Government 1,741,021 1,900,000 2,040,000 (298,979)Other Governments and Citizens Groups 10,000 0 0 10,000

Total Revenues $ 2,122,180 $ 2,114,700 $ 2,254,700 $ (132,520)

ExpendituresOperation of Non-Instructional Services

Food Service $ 2,131,971 $ 2,114,699 $ 2,254,699 $ 122,728Total Expenditures $ 2,131,971 $ 2,114,699 $ 2,254,699 $ 122,728

Excess (Deficiency) of RevenuesOver Expenditures $ (9,791) $ 1 $ 1 $ (9,792)

Net Change in Fund Balance $ (9,791) $ 1 $ 1 $ (9,792)Fund Balance, July 1, 2019 467,508 500,000 500,000 (32,492)


Budgeted Amounts

145

Hickman County Health Foundation __________________________

This section presents fund financial statements for the Hickman County Health Foundation, a discretely presented component unit. The Health Foundation uses a General Fund.

__________________________ Health Foundation Fund – The Health Foundation Fund was created as a result of litigation involving the Hickman County Hospital. The fund is used to promote and advance the health, medical care, general well-being, and quality of life for residents of Hickman County.

146

Exhibit K-1

Hickman County, TennesseeStatement of Net Position and Governmental Fund Balance SheetDiscretely Presented Hickman County Health FoundationJune 30, 2020

Health StatementFoundation of Net

Fund Adjustments Position

Cash $ 2,281,417 $ 0 $ 2,281,417

Total Assets $ 2,281,417 $ 0 $ 2,281,417

Fund Balance: Restricted for Public Health and Welfare $ 2,281,417 $ (2,281,417) $ 0Total Fund Balance $ 2,281,417 $ (2,281,417) $ 0

Total Fund Balance $ 2,281,417

Net Position: Restricted for Public Health and Welfare $ 2,281,417 $ 2,281,417

Total Net Position $ 2,281,417 $ 2,281,417

ASSETS

FUND BALANCE/NET POSITION

147

Exhibit K-2

Hickman County, TennesseeStatement of Activities and Governmental Fund Revenues, Expenditures, and Changes in Fund Balance/Net PositionDiscretely Presented Hickman County Health FoundationFor the Year Ended June 30, 2020

Health StatementFoundation of

Fund Adjustments Activities

Expenditures/Expenses: General Government: County Commission $ 281 $ 0 $ 281 Public Health and Welfare: Ambulance/Emergency Medical Services 20,975 0 20,975Total Expenditures/Expenses $ 21,256 $ 0 $ 21,256

General Revenues: Investment Income $ 47,765 $ 0 $ 47,765Total General Revenues $ 47,765 $ 0 $ 47,765

Excess of Revenues Over Expenditures $ 26,509 $ (26,509) $ 0Change in Net Position 0 26,509 26,509Fund Balance/Net Position:July 1, 2019 2,254,908 0 2,254,908

June 30, 2020 $ 2,281,417 $ 0 $ 2,281,417

148

MISCELLANEOUS SCHEDULES

149

Exhibit L-1

Hickman County, TennesseeSchedule of Changes in Long-term Notes and Other LoansFor the Year Ended June 30, 2020

Paid and/orOriginal Date Last Issued MaturedAmount Interest of Maturity Outstanding During During Outstanding

Description of Indebtedness of Issue Rate Issue Date 7-1-19 Period Period 6-30-20

NOTES PAYABLE Payable through General Debt Service Fund Energy Upgrades $ 1,266,045 3.99 % 5-22-18 5-22-31 $ 1,266,045 $ 0 $ 83,633 $ 1,182,412 Solar panel/Energy Upgrades 461,624 4.59 5-22-18 5-22-22 461,624 0 29,404 432,220 Highway Equipment 768,344 4.07 12-27-18 2-1-29 768,344 0 60,944 707,400

Total Notes Payable $ 2,496,013 $ 0 $ 173,981 $ 2,322,032

OTHER LOANS PAYABLE Payable through General Debt Service Fund School Construction 22,000,000 Variable 6-28-04 5-25-29 $ 11,279,000 $ 0 $ 994,000 $ 10,285,000 Jail Construction 6,140,000 Variable 10-27-05 5-25-30 3,176,062 0 262,000 2,914,062 Sewer Line 2,000,000 Variable 3-30-06 5-25-33 1,191,000 0 73,000 1,118,000 School Roofing and HVAC 5,250,000 2.71 12-17-12 12-1-32 3,965,000 0 237,000 3,728,000 Energy Efficient School Initiative 2,000,000 0 9-25-13 9-1-23 849,977 0 200,004 649,973 Energy Efficient School Initiative 955,479 0.75 1-17-17 6-30-23 667,409 0 158,808 508,601 Land and Sewer System (1) 3.945 10-26-18 5-1-23 130,662 66,926 49,000 148,588

Total Other Loans Payable $ 21,259,110 $ 66,926 $ 1,973,812 $ 19,352,224

(1) Total amount approved was $1,346,000, of which $1,148,412 remains available for draws as of June 30, 2020.

150

Exhibit L-2

Hickman County, TennesseeSchedule of Long-term Debt Requirements by Year

GOVERNMENTAL ACTIVITIES

YearEndingJune 30 Principal Interest Total

2021 $ 184,553 $ 94,248 $ 278,8012022 192,395 86,470 278,8652023 200,453 78,362 278,8152024 208,808 70,045 278,8532025 217,753 61,113 278,8662026 226,920 51,931 278,8512027 236,438 42,367 278,8052028 246,363 32,458 278,8212029 256,892 21,988 278,8802030 172,050 12,131 184,1812031 179,407 4,773 184,180

Total $ 2,322,032 $ 555,886 $ 2,877,918

Year EndingJune 30 Principal Interest Other Fees Total

2021 $ 2,021,012 $ 153,104 $ 95,221 $ 2,269,3372022 2,073,212 139,003 86,335 2,298,5502023 2,114,012 124,508 77,177 2,315,6972024 1,832,926 112,644 67,745 2,013,3152025 1,811,000 98,557 58,028 1,967,5852026 1,865,000 86,384 48,018 1,999,4022027 1,919,000 73,879 37,702 2,030,5812028 1,977,000 61,029 27,081 2,065,1102029 2,035,000 47,809 16,135 2,098,9442030 437,062 34,222 4,144 475,4282031 412,000 24,722 2,592 439,3142032 422,000 15,065 1,981 439,0462033 433,000 5,156 1,359 439,515

Total $ 19,352,224 $ 976,082 $ 523,518 $ 20,851,824

Notes

Other Loans

151

Exhibit L-3

Hickman County, TennesseeSchedule of TransfersPrimary Government and Discretely Presented Hickman County School DepartmentFor the Year Ended June 30, 2020

From Fund To Fund Purpose Amount

PRIMARY GOVERNMENT

General General Debt Service Debt retirement $ 100,000Highway/Public Works " " 94,558" General Administrative costs 33,870Education Debt Service General Debt Service Debt retirement 277,847

Total Transfers Primary Government $ 506,275

DISCRETELY PRESENTED HICKMAN COUNTY SCHOOL DEPARTMENT

General Purpose School School Federal Projects Operations $ 2,318School Federal Projects General Purpose School Indirect costs 22,096

Total Transfers Discretely Presented Hickman County School Department $ 24,414

152

Exhibit L-4

Hickman County, TennesseeSchedule of Salaries and Official Bonds of Principal OfficialsPrimary Government and Discretely Presented Hickman County School DepartmentFor the Year Ended June 30, 2020

SalaryPaid

DuringOfficial Authorization for Salary Period Bond Surety

County Mayor Section 8-24-102, TCA $ 90,055 $ (5)Road Superintendent Section 8-24-102, TCA 85,768 (1) (5)Director of Schools State Board of Education and

Local Board of Education 109,000 100,000 (5) State Farm Fire and Casualty CompanyTrustee Section 8-24-102, TCA 77,971 (1) 1,247,998 (5) "Assessor of Property Section 8-24-102, TCA 77,971 (2) 50,000 (5) "County Clerk Section 8-24-102, TCA 77,971 (1) (5)Circuit and General Sessions Courts Clerk Section 8-24-102, TCA 77,971 (5)Clerk and Master Section 8-24-102, TCA, and Chancery Judge 77,971 100,000 (5) State Farm Fire and Casualty CompanyRegister of Deeds Section 8-24-102, TCA 77,971 (1) (5)Sheriff Section 8-24-102, TCA 85,768 (3) 25,000 (5) State Farm Fire and Casualty CompanyFinance Director County Commission 77,971 (4) (5)

Employee Blanket Bonds: Employee Fidelity - County Departments 400,000 Tennessee Risk Management Trust Employee Fidelity - School Department 400,000 "

(1) Does not include a certified public administrator supplement of $299.(2) Does not include a certified public administrator supplement of $1,299. (3) Does not include a law enforcement training supplement of $800.(4) Does not include a certified public administrator supplement of $1,500.(5) Officials are covered by employee insurance policy pursuant to Section 8-19-101, TCA .

153

Exhibit L-5

Hickman County, TennesseeSchedule of Detailed Revenues -

All Governmental Fund TypesFor the Year Ended June 30, 2020

AdequateFacilities/ Highway / General

Drug Development Public DebtGeneral Control Tax Works Service

Local TaxesCounty Property Taxes

Current Property Tax $ 7,942,460 $ 0 $ 0 $ 267,896 $ 132,141Trustee's Collections - Prior Year 196,297 0 0 6,783 3,333Trustee's Collections - Bankruptcy 1,822 0 0 63 31Circuit Clerk/Clerk and Master Collections - Prior Years 68,622 0 0 2,368 1,168Interest and Penalty 41,369 0 0 1,452 701Payments in-Lieu-of Taxes - T.V.A. 8,871 0 0 301 148Payments in-Lieu-of Taxes - Local Utilities 28,658 0 0 0 0Payments in-Lieu-of Taxes - Other 18,474 0 0 0 0

County Local Option TaxesLocal Option Sales Tax 0 0 0 0 1,095,337Hotel/Motel Tax 14,061 0 0 0 0Wheel Tax 0 0 0 0 780,798Litigation Tax - General 86,491 0 0 0 0Litigation Tax - Special Purpose 11,589 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 76,885 0 0 0 0Litigation Tax - Victim-Offender Mediation Center 5,181 0 0 0 0Business Tax 88,355 0 0 2,982 1,471Mineral Severance Tax 0 0 0 58,158 0Adequate Facilities/Development Tax 0 0 193,231 0 0

Statutory Local TaxesBank Excise Tax 23,744 0 0 0 0Wholesale Beer Tax 237,730 0 0 0 0

Total Local Taxes $ 8,850,609 $ 0 $ 193,231 $ 340,003 $ 2,015,128

(Continued)


Funds

154

Exhibit L-5


All Governmental Fund Types (Cont.)



Licenses and PermitsLicenses

Cable TV Franchise $ 49,272 $ 0 $ 0 $ 0 $ 0Permits

Beer Permits 3,918 0 0 0 0Building Permits 74,846 0 0 0 0

Total Licenses and Permits $ 128,036 $ 0 $ 0 $ 0 $ 0

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 5,369 $ 0 $ 0 $ 0 $ 0Officers Costs 3,415 0 0 0 0Drug Control Fines 0 1,762 0 0 0Drug Court Fees 750 0 0 0 0Jail Fees 929 0 0 0 0DUI Treatment Fines 760 0 0 0 0Data Entry Fee - Circuit Court 533 0 0 0 0

Criminal CourtDUI Treatment Fines 613 0 0 0 0

General Sessions CourtFines 5,381 0 0 0 0Officers Costs 27,550 0 0 0 0Game and Fish Fines 1,487 0 0 0 0Drug Control Fines 0 5,433 0 0 0Drug Court Fees 1,779 0 0 0 0Jail Fees 7,632 0 0 0 0DUI Treatment Fines 1,882 0 0 0 0Data Entry Fee - General Sessions Court 11,942 0 0 0 0

(Continued)


Funds

155

Exhibit L-5





Fines, Forfeitures, and Penalties (Cont.)Chancery Court

Officers Costs $ 1,879 $ 0 $ 0 $ 0 $ 0Data Entry Fee - Chancery Court 2,412 0 0 0 0

Judicial District Drug ProgramCourtroom Security Fee 6,272 0 0 0 0

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 2,226 0 0 0 0Other Fines, Forfeitures, and Penalties 7,600 0 0 0 0

Total Fines, Forfeitures, and Penalties $ 90,411 $ 7,195 $ 0 $ 0 $ 0

Charges for Current ServicesGeneral Service Charges

Other Employee Benefit Charges/Contributions $ 34,087 $ 0 $ 0 $ 4,824 $ 0Patient Charges 1,247,192 0 0 0 0Other General Service Charges 170 0 0 0 0

FeesCopy Fees 8,541 0 0 0 0Library Fees 816 0 0 0 0Archives and Records Management Fee 15,589 0 0 0 0Telephone Commissions 44,577 0 0 0 0Vending Machine Collections 0 0 0 1,072 0Data Processing Fee - Register 12,554 0 0 0 0Probation Fees 1,520 0 0 0 0Data Processing Fee - Sheriff 169 0 0 0 0Sexual Offender Registration Fee - Sheriff 7,548 0 0 0 0Data Processing Fee - County Clerk 540 0 0 0 0

(Continued)


Funds

156

Exhibit L-5





Charges for Current Services (Cont.)Fees (Cont.)

Vehicle Insurance Coverage and Reinstatement Fees $ 910 $ 0 $ 0 $ 0 $ 0Total Charges for Current Services $ 1,374,213 $ 0 $ 0 $ 5,896 $ 0

Other Local RevenuesRecurring Items

Investment Income $ 7,774 $ 0 $ 0 $ 0 $ 131,254Lease/Rentals 6,302 0 0 0 0Commissary Sales 13,058 0 0 0 0Sale of Recycled Materials 0 0 0 866 0Miscellaneous Refunds 29,378 0 0 6,544 0

Nonrecurring ItemsSale of Equipment 3,595 0 0 64,082 0Sale of Property 361,284 0 0 0 0Contributions and Gifts 2,233 0 0 0 0

Other Local RevenuesOther Local Revenues 2,000 0 0 0 0

Total Other Local Revenues $ 425,624 $ 0 $ 0 $ 71,492 $ 131,254

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 252,293 $ 0 $ 0 $ 0 $ 0Circuit Court Clerk 32,397 0 0 0 0General Sessions Court Clerk 166,165 0 0 0 0Clerk and Master 82,181 0 0 0 0Juvenile Court Clerk 6,704 0 0 0 0

(Continued)


Funds

157

Exhibit L-5





Fees Received From County Officials (Cont.)Fees In-Lieu-of Salary (Cont.)

Register $ 140,649 $ 0 $ 0 $ 0 $ 0Sheriff 19,050 0 0 0 0Trustee 402,963 0 0 0 0

Total Fees Received From County Officials $ 1,102,402 $ 0 $ 0 $ 0 $ 0

State of TennesseeGeneral Government Grants

Juvenile Services Program $ 9,000 $ 0 $ 0 $ 0 $ 0Public Safety Grants

Law Enforcement Training Programs 23,200 0 0 0 0Other Public Safety Grants 1,384 0 0 0 0

Health and Welfare GrantsHealth Department Programs 302,854 0 0 0 0Other Health and Welfare Grants 20,000 0 0 0 0

Public Works GrantsBridge Program 0 0 0 1,141,451 0State Aid Program 0 0 0 302,659 0

Other State RevenuesIncome Tax 10,389 0 0 0 0Beer Tax 18,175 0 0 0 0Vehicle Certificate of Title Fees 7,208 0 0 0 0Alcoholic Beverage Tax 83,105 0 0 0 0State Revenue Sharing - T.V.A. 601,688 0 0 20,295 10,010State Revenue Sharing - Telecommunications 55,735 0 0 0 0Contracted Prisoner Boarding 207,480 0 0 0 0

(Continued)


Funds

158

Exhibit L-5





State of Tennessee (Cont.)Other State Revenues (Cont.)

Gasoline and Motor Fuel Tax $ 0 $ 0 $ 0 $ 2,595,719 $ 0Petroleum Special Tax 0 0 0 17,815 0Registrar's Salary Supplement 15,164 0 0 0 0Other State Grants 86,723 0 0 24,828 0Other State Revenues 33,799 0 0 0 0

Total State of Tennessee $ 1,475,904 $ 0 $ 0 $ 4,102,767 $ 10,010

Federal GovernmentFederal Through State

Disaster Relief $ 5,738 $ 0 $ 0 $ 148,970 $ 0Homeland Security Grants 41,885 0 0 0 0Other Federal through State 2,401 0 0 0 0

Direct Federal RevenueCOVID-19 Grant #6 27,030 0 0 0 0Other Direct Federal Revenue 1,125 0 0 234,474 0

Total Federal Government $ 78,179 $ 0 $ 0 $ 383,444 $ 0

Other Governments and Citizens GroupsOther Governments

Paving and Maintenance $ 0 $ 0 $ 0 $ 32,323 $ 0Contributions 42,000 0 0 0 163,284

OtherOther 1,500 0 0 0 0

Total Other Governments and Citizens Groups $ 43,500 $ 0 $ 0 $ 32,323 $ 163,284

Total $ 13,568,878 $ 7,195 $ 193,231 $ 4,935,925 $ 2,319,676

(Continued)


Funds

159

Exhibit L-5



EducationDebt

Service Total


Current Property Tax $ 0 $ 8,342,497Trustee's Collections - Prior Year 0 206,413Trustee's Collections - Bankruptcy 0 1,916Circuit Clerk/Clerk and Master Collections - Prior Years 0 72,158Interest and Penalty 0 43,522Payments in-Lieu-of Taxes - T.V.A. 0 9,320Payments in-Lieu-of Taxes - Local Utilities 0 28,658Payments in-Lieu-of Taxes - Other 0 18,474

County Local Option TaxesLocal Option Sales Tax 0 1,095,337Hotel/Motel Tax 0 14,061Wheel Tax 334,628 1,115,426Litigation Tax - General 0 86,491Litigation Tax - Special Purpose 0 11,589Litigation Tax - Jail, Workhouse, or Courthouse 0 76,885Litigation Tax - Victim-Offender Mediation Center 0 5,181Business Tax 0 92,808Mineral Severance Tax 0 58,158Adequate Facilities/Development Tax 0 193,231

Statutory Local TaxesBank Excise Tax 0 23,744Wholesale Beer Tax 0 237,730

Total Local Taxes $ 334,628 $ 11,733,599

(Continued)

Debt Service Fund

160

Exhibit L-5



EducationDebt

Service Total


Cable TV Franchise $ 0 $ 49,272Permits

Beer Permits 0 3,918Building Permits 0 74,846

Total Licenses and Permits $ 0 $ 128,036

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 0 $ 5,369Officers Costs 0 3,415Drug Control Fines 0 1,762Drug Court Fees 0 750Jail Fees 0 929DUI Treatment Fines 0 760Data Entry Fee - Circuit Court 0 533

Criminal CourtDUI Treatment Fines 0 613

General Sessions CourtFines 0 5,381Officers Costs 0 27,550Game and Fish Fines 0 1,487Drug Control Fines 0 5,433Drug Court Fees 0 1,779Jail Fees 0 7,632DUI Treatment Fines 0 1,882Data Entry Fee - General Sessions Court 0 11,942

(Continued)

Debt Service Fund

161

Exhibit L-5



EducationDebt

Service Total

Fines, Forfeitures, and Penalties (Cont.)Chancery Court

Officers Costs $ 0 $ 1,879Data Entry Fee - Chancery Court 0 2,412

Judicial District Drug ProgramCourtroom Security Fee 0 6,272

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 2,226Other Fines, Forfeitures, and Penalties 0 7,600

Total Fines, Forfeitures, and Penalties $ 0 $ 97,606

Charges for Current ServicesGeneral Service Charges

Other Employee Benefit Charges/Contributions $ 0 $ 38,911Patient Charges 0 1,247,192Other General Service Charges 0 170

FeesCopy Fees 0 8,541Library Fees 0 816Archives and Records Management Fee 0 15,589Telephone Commissions 0 44,577Vending Machine Collections 0 1,072Data Processing Fee - Register 0 12,554Probation Fees 0 1,520Data Processing Fee - Sheriff 0 169Sexual Offender Registration Fee - Sheriff 0 7,548Data Processing Fee - County Clerk 0 540

(Continued)

Debt Service Fund

162

Exhibit L-5



EducationDebt

Service Total

Charges for Current Services (Cont.)Fees (Cont.)

Vehicle Insurance Coverage and Reinstatement Fees $ 0 $ 910Total Charges for Current Services $ 0 $ 1,380,109


Investment Income $ 0 $ 139,028Lease/Rentals 0 6,302Commissary Sales 0 13,058Sale of Recycled Materials 0 866Miscellaneous Refunds 0 35,922

Nonrecurring ItemsSale of Equipment 0 67,677Sale of Property 0 361,284Contributions and Gifts 0 2,233

Other Local RevenuesOther Local Revenues 0 2,000

Total Other Local Revenues $ 0 $ 628,370

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 0 $ 252,293Circuit Court Clerk 0 32,397General Sessions Court Clerk 0 166,165Clerk and Master 0 82,181Juvenile Court Clerk 0 6,704

(Continued)

Debt Service Fund

163

Exhibit L-5



EducationDebt

Service Total

Fees Received From County Officials (Cont.)Fees In-Lieu-of Salary (Cont.)

Register $ 0 $ 140,649Sheriff 0 19,050Trustee 0 402,963

Total Fees Received From County Officials $ 0 $ 1,102,402


Juvenile Services Program $ 0 $ 9,000Public Safety Grants

Law Enforcement Training Programs 0 23,200Other Public Safety Grants 0 1,384

Health and Welfare GrantsHealth Department Programs 0 302,854Other Health and Welfare Grants 0 20,000

Public Works GrantsBridge Program 0 1,141,451State Aid Program 0 302,659

Other State RevenuesIncome Tax 0 10,389Beer Tax 0 18,175Vehicle Certificate of Title Fees 0 7,208Alcoholic Beverage Tax 0 83,105State Revenue Sharing - T.V.A. 0 631,993State Revenue Sharing - Telecommunications 0 55,735Contracted Prisoner Boarding 0 207,480

(Continued)

Debt Service Fund

164

Exhibit L-5



EducationDebt

Service Total

State of Tennessee (Cont.)Other State Revenues (Cont.)

Gasoline and Motor Fuel Tax $ 0 $ 2,595,719Petroleum Special Tax 0 17,815Registrar's Salary Supplement 0 15,164Other State Grants 0 111,551Other State Revenues 0 33,799

Total State of Tennessee $ 0 $ 5,588,681


Disaster Relief $ 0 $ 154,708Homeland Security Grants 0 41,885Other Federal through State 0 2,401

Direct Federal RevenueCOVID-19 Grant #6 0 27,030Other Direct Federal Revenue 0 235,599

Total Federal Government $ 0 $ 461,623

Other Governments and Citizens GroupsOther Governments

Paving and Maintenance $ 0 $ 32,323Contributions 0 205,284

OtherOther 0 1,500

Total Other Governments and Citizens Groups $ 0 $ 239,107

Total $ 334,628 $ 21,359,533

Debt Service Fund

165

Exhibit L-6


All Governmental Fund TypesDiscretely Presented Hickman County School DepartmentFor the Year Ended June 30, 2020

General SchoolPurpose Federal CentralSchool Projects Cafeteria Total


Current Property Tax $ 3,093,596 $ 0 $ 0 $ 3,093,596Trustee's Collections - Prior Year 80,232 0 0 80,232Trustee's Collections - Bankruptcy 747 0 0 747Circuit Clerk/Clerk and Master Collections - Prior Years 27,980 0 0 27,980Interest and Penalty 17,075 0 0 17,075Payments in-Lieu-of Taxes - T.V.A. 3,485 0 0 3,485Payments in-Lieu-of Taxes - Local Utilities 6,000 0 0 6,000

County Local Option TaxesLocal Option Sales Tax 1,822,998 0 0 1,822,998Business Tax 34,466 0 0 34,466

Total Local Taxes $ 5,086,579 $ 0 $ 0 $ 5,086,579


Marriage Licenses $ 1,235 $ 0 $ 0 $ 1,235Total Licenses and Permits $ 1,235 $ 0 $ 0 $ 1,235

Charges for Current ServicesEducation Charges

Tuition - Other $ 2,500 $ 0 $ 0 $ 2,500Lunch Payments - Children 0 0 114,181 114,181Lunch Payments - Adults 0 0 34,598 34,598Income from Breakfast 0 0 37,168 37,168A la Carte Sales 0 0 176,968 176,968

(Continued)


166

Exhibit L-6


All Governmental Fund TypesDiscretely Presented Hickman County School Department (Cont.)


Charges for Current Services (Cont.)Education Charges (Cont.)

Receipts from Individual Schools $ 27,964 $ 0 $ 0 $ 27,964Community Service Fees - Adults 189 0 0 189

Total Charges for Current Services $ 30,653 $ 0 $ 362,915 $ 393,568


Investment Income $ 4,747 $ 0 $ 187 $ 4,934Lease/Rentals 680 0 0 680Miscellaneous Refunds 12,237 0 0 12,237

Nonrecurring ItemsGain on Retirement of Debt 126,049 0 0 126,049Sale of Equipment 11,401 0 114 11,515Damages Recovered from Individuals 2,680 0 0 2,680Contributions and Gifts 9,557 0 0 9,557

Total Other Local Revenues $ 167,351 $ 0 $ 301 $ 167,652


On-behalf Contributions for OPEB $ 62,869 $ 0 $ 0 $ 62,869State Education Funds

Basic Education Program 22,353,819 0 0 22,353,819Early Childhood Education 415,782 0 0 415,782School Food Service 20,372 0 0 20,372Driver Education 4,914 0 0 4,914

(Continued)


167

Exhibit L-6




State of Tennessee (Cont.)State Education Funds (Cont.)

Other State Education Funds $ 240,878 $ 0 $ 0 $ 240,878Coordinated School Health 90,000 0 0 90,000Family Resource Centers 59,223 0 0 59,223Career Ladder Program 52,685 0 0 52,685

Other State RevenuesState Revenue Sharing - T.V.A. 234,357 0 0 234,357Other State Grants 339,828 0 6,850 346,678Safe Schools 104,803 0 0 104,803Other State Revenues 5,407 0 1,093 6,500

Total State of Tennessee $ 23,984,937 $ 0 $ 7,943 $ 23,992,880


USDA School Lunch Program $ 0 $ 0 $ 783,920 $ 783,920USDA - Commodities 0 0 69,622 69,622Breakfast 0 0 326,017 326,017USDA - Other 0 0 12,306 12,306USDA Food Service Equipment Grant 0 0 9,679 9,679Vocational Education - Basic Grants to States 0 103,404 0 103,404Title I Grants to Local Education Agencies 0 1,198,971 0 1,198,971Special Education - Grants to States 0 871,779 0 871,779Special Education Preschool Grants 0 20,903 0 20,903English Language Acquisition Grants 0 40,465 0 40,465Rural Education 0 58,885 0 58,885

(Continued)


168

Exhibit L-6




Federal Government (Cont.)Federal Through State (Cont.)

Eisenhower Professional Development State Grants $ 0 $ 106,812 $ 0 $ 106,812COVID-19 Grant #1 0 0 539,477 539,477Other Federal through State 0 209,847 0 209,847

Direct Federal RevenueROTC Reimbursement 70,443 0 0 70,443

Total Federal Government $ 70,443 $ 2,611,066 $ 1,741,021 $ 4,422,530

Other Governments and Citizens GroupsOther

Other $ 48,800 $ 0 $ 10,000 $ 58,800Total Other Governments and Citizens Groups $ 48,800 $ 0 $ 10,000 $ 58,800

Total $ 29,389,998 $ 2,611,066 $ 2,122,180 $ 34,123,244


169

Exhibit L-7


All Governmental Fund TypesDiscretely Presented Hickman County Health FoundationFor the Year Ended June 30, 2020

OtherSpecial

Revenue Total


Investment Income $ 47,765 $ 47,765Total Other Local Revenues $ 47,765 $ 47,765

Total $ 47,765 $ 47,765

Special Revenue

Fund

170

Exhibit L-8

Hickman County, TennesseeSchedule of Detailed Expenditures -

All Governmental Fund TypesFor the Year Ended June 30, 2020

General FundGeneral Government

County CommissionBoard and Committee Members Fees $ 50,200Audit Services 9,382Legal Notices, Recording, and Court Costs 4,446

Total County Commission $ 64,028

Board of EqualizationBoard and Committee Members Fees $ 2,550

Total Board of Equalization 2,550

Beer BoardCriminal Investigation of Applicants - TBI $ 70

Total Beer Board 70

County Mayor/ExecutiveCounty Official/Administrative Officer $ 90,055Secretary(ies) 30,000Legal Notices, Recording, and Court Costs 505Travel 2,320Other Contracted Services 54,582Office Supplies 879In Service/Staff Development 910Office Equipment 885

Total County Mayor/Executive 180,136

County AttorneyLegal Services $ 9,821Other Charges 800

Total County Attorney 10,621

Election CommissionCounty Official/Administrative Officer $ 70,174Deputy(ies) 29,789Part-time Personnel 13,948Election Commission 2,240Election Workers 23,767Data Processing Services 3,045Legal Notices, Recording, and Court Costs 1,261Printing, Stationery, and Forms 1,923Rentals 550Travel 1,353Other Contracted Services 15,823Office Supplies 2,440

Total Election Commission 166,313

Register of DeedsCounty Official/Administrative Officer $ 77,971Deputy(ies) 27,514

(Continued)

171

Exhibit L-8



General Fund (Cont.)General Government (Cont.)

Register of Deeds (Cont.)Salary Supplements $ 1,799Clerical Personnel 24,518Longevity Pay 1,200Data Processing Services 12,367Maintenance and Repair Services - Office Equipment 974Travel 1,009Office Supplies 976In Service/Staff Development 200Office Equipment 906

Total Register of Deeds $ 149,434

PlanningSupervisor/Director $ 54,207Deputy(ies) 30,908Clerical Personnel 21,003Longevity Pay 600Board and Committee Members Fees 1,375Contracts with Private Agencies 13,500Data Processing Services 1,872Legal Services 4,926Legal Notices, Recording, and Court Costs 1,270Maintenance and Repair Services - Vehicles 1,706Printing, Stationery, and Forms 1,112Other Contracted Services 5,992Gasoline 1,709Office Supplies 890Other Supplies and Materials 1,238In Service/Staff Development 836Office Equipment 2,279

Total Planning 145,423

County BuildingsSupervisor/Director $ 49,968Custodial Personnel 20,450Part-time Personnel 10,910Maintenance and Repair Services - Buildings 169,721Maintenance and Repair Services - Equipment 300Maintenance and Repair Services - Vehicles 1,182Travel 341Custodial Supplies 10,325Gasoline 2,242Uniforms 2,914Other Charges 182

Total County Buildings 268,535

Other FacilitiesCommunication $ 152,020

(Continued)

172

Exhibit L-8



General Fund (Cont.)General Government (Cont.)

Other Facilities (Cont.)Pest Control $ 6,500Electricity 140,941Utilities 78,549

Total Other Facilities $ 378,010

Other General AdministrationOther Salaries and Wages $ 79,181Maintenance Agreements 13,940Travel 20Other Contracted Services 15,112Office Supplies 284Other Supplies and Materials 131Office Equipment 12,135

Total Other General Administration 120,803

Preservation of RecordsSalary Supplements $ 1,500Clerical Personnel 28,370Longevity Pay 2,200Travel 197Other Contracted Services 1,869Office Supplies 290Other Supplies and Materials 3,823In Service/Staff Development 185

Total Preservation of Records 38,434

FinanceAccounting and Budgeting

County Official/Administrative Officer $ 77,971Assistant(s) 43,000Accountants/Bookkeepers 112,470Salary Supplements 8,576Longevity Pay 4,200Data Processing Services 17,245Legal Notices, Recording, and Court Costs 5,494Printing, Stationery, and Forms 3,939Travel 1,057Other Contracted Services 1,375Office Supplies 2,748Premiums on Corporate Surety Bonds 150In Service/Staff Development 650Office Equipment 1,965

Total Accounting and Budgeting 280,840

Property Assessor's OfficeCounty Official/Administrative Officer $ 77,971Deputy(ies) 39,000

(Continued)

173

Exhibit L-8



General Fund (Cont.)Finance (Cont.)

Property Assessor's Office (Cont.)Assessment Personnel $ 28,571Salary Supplements 2,799Clerical Personnel 30,575Longevity Pay 2,200Contracts with Private Agencies 5,403Data Processing Services 29,306Legal Notices, Recording, and Court Costs 38Maintenance and Repair Services - Office Equipment 964Maintenance and Repair Services - Vehicles 1,558Printing, Stationery, and Forms 1,059Travel 866Other Contracted Services 2,636Gasoline 966Office Supplies 2,061In Service/Staff Development 335Office Equipment 4,938

Total Property Assessor's Office $ 231,246

County Trustee's OfficeCounty Official/Administrative Officer $ 77,971Deputy(ies) 31,701Data Processing Personnel 25,309Salary Supplements 2,549Clerical Personnel 28,591Part-time Personnel 6,043Longevity Pay 1,500Data Processing Services 10,910Legal Notices, Recording, and Court Costs 111Printing, Stationery, and Forms 4,283Travel 1,737Other Contracted Services 1,453Office Supplies 2,526In Service/Staff Development 1,180Office Equipment 6,740

Total County Trustee's Office 202,604

County Clerk's OfficeCounty Official/Administrative Officer $ 77,971Deputy(ies) 30,309Salary Supplements 7,049Secretary(ies) 28,891Clerical Personnel 81,541Part-time Personnel 15,058Longevity Pay 6,100Data Processing Services 24,705Travel 2,351Office Supplies 2,417

(Continued)

174

Exhibit L-8



General Fund (Cont.)Finance (Cont.)

County Clerk's Office (Cont.)In Service/Staff Development $ 890Office Equipment 10,153

Total County Clerk's Office $ 287,435

Administration of JusticeCircuit Court

County Official/Administrative Officer $ 77,971Deputy(ies) 164,962Part-time Personnel 4,986Longevity Pay 6,800Bonus Payments 3,500Other Salaries and Wages 25,931Jury and Witness Expense 2,606Data Processing Services 19,538Legal Notices, Recording, and Court Costs 767Office Supplies 5,938Office Equipment 20,152

Total Circuit Court 333,151

General Sessions CourtJudge(s) $ 115,592Guidance Personnel 53,224Secretary(ies) 21,878Part-time Personnel 2,703Longevity Pay 2,600Travel 2,554Other Contracted Services 754Library Books/Media 1,210Office Supplies 1,640In Service/Staff Development 832Office Equipment 3,314

Total General Sessions Court 206,301

General Sessions JudgeJudge(s) $ 2,020Travel 1,089In Service/Staff Development 457

Total General Sessions Judge 3,566

Chancery CourtCounty Official/Administrative Officer $ 77,971Assistant(s) 29,500Deputy(ies) 3,994Longevity Pay 2,400Data Processing Services 12,813Office Supplies 5,542Office Equipment 5,923

Total Chancery Court 138,143

(Continued)

175

Exhibit L-8



General Fund (Cont.)Administration of Justice (Cont.)

Judicial CommissionersPart-time Personnel $ 14,708Longevity Pay 800Other Salaries and Wages 32,828In-service Training 371Travel 2,143Office Supplies 240Other Charges 360

Total Judicial Commissioners $ 51,450

Public SafetySheriff's Department

County Official/Administrative Officer $ 85,768Assistant(s) 36,892Deputy(ies) 918,937Accountants/Bookkeepers 35,049Salary Supplements 24,700Dispatchers/Radio Operators 252,569Part-time Personnel 22,350Longevity Pay 16,600Overtime Pay 44,990Other Salaries and Wages 196,041Advertising 131Communication 19,005Contracts with Private Agencies 1,415Data Processing Services 19,417Maintenance and Repair Services - Equipment 2,021Maintenance and Repair Services - Vehicles 61,508Postal Charges 297Travel 4,337Other Contracted Services 1,410Gasoline 69,597Law Enforcement Supplies 48,044Office Supplies 7,727Tires and Tubes 15,005Uniforms 16,109In Service/Staff Development 10,033Motor Vehicles 130,056Office Equipment 4,539

Total Sheriff's Department 2,044,547

Administration of the Sexual Offender RegistryOther Charges $ 450

Total Administration of the Sexual Offender Registry 450

JailGuards $ 595,602Longevity Pay 5,600

(Continued)

176

Exhibit L-8



General Fund (Cont.)Public Safety (Cont.)

Jail (Cont.)Overtime Pay $ 21,782Other Salaries and Wages 9,813Medical and Dental Services 297,760Other Contracted Services 103,660Custodial Supplies 24,836Drugs and Medical Supplies 19,355Food Supplies 191,220Law Enforcement Supplies 4,777Office Supplies 2,039Prisoners Clothing 2,959Uniforms 6,445Other Supplies and Materials 3,514In Service/Staff Development 200Data Processing Equipment 9,743Office Equipment 7,457

Total Jail $ 1,306,762

Fire Prevention and ControlContracts with Government Agencies $ 2,000In Service/Staff Development 6,286

Total Fire Prevention and Control 8,286

Civil DefenseSupervisor/Director $ 59,246Other Salaries and Wages 35,961Dues and Memberships 375Operating Lease Payments 3,400Maintenance and Repair Services - Equipment 2,630Maintenance and Repair Services - Vehicles 4,719Travel 285Other Contracted Services 1,311Diesel Fuel 1,456Gasoline 3,501Office Supplies 1,573Propane Gas 1,479Uniforms 828Other Supplies and Materials 12,035In Service/Staff Development 680Other Charges 2,291Communication Equipment 4,023Other Equipment 6,745

Total Civil Defense 142,538

Rescue SquadContributions $ 20,000Liability Claims 15,920

Total Rescue Squad 35,920

(Continued)

177

Exhibit L-8



General Fund (Cont.)Public Safety (Cont.)

County Coroner/Medical ExaminerMedical Personnel $ 3,750Pauper Burials 500Other Contracted Services 30,225

Total County Coroner/Medical Examiner $ 34,475

Public Health and WelfareLocal Health Center

Contributions $ 19,056Other Contracted Services 1,665Office Supplies 78Other Charges 200

Total Local Health Center 20,999

Ambulance/Emergency Medical ServicesSupervisor/Director $ 62,428Medical Personnel 796,970Part-time Personnel 99,708Longevity Pay 12,400Overtime Pay 313,935Other Per Diem and Fees 2,586Dues and Memberships 400Maintenance and Repair Services - Buildings 603Maintenance and Repair Services - Equipment 2,165Maintenance and Repair Services - Vehicles 30,439Travel 2,275Other Contracted Services 172,414Custodial Supplies 1,232Diesel Fuel 7,047Drugs and Medical Supplies 71,851Gasoline 30,592Office Supplies 1,942Tires and Tubes 5,873Uniforms 6,359Other Supplies and Materials 2,724In Service/Staff Development 14,285Motor Vehicles 133,246Office Equipment 2,624

Total Ambulance/Emergency Medical Services 1,774,098

Alcohol and Drug ProgramsProbation Officer(s) $ 10,907Travel 238Office Supplies 650Other Charges 6,285

Total Alcohol and Drug Programs 18,080

(Continued)

178

Exhibit L-8



General Fund (Cont.)Public Health and Welfare (Cont.)

Other Local Health ServicesMedical Personnel $ 140,621Educational Assistants 54,559Bonus Payments 1,447Travel 12,083Other Supplies and Materials 1,191Liability Insurance 194

Total Other Local Health Services $ 210,095

Social, Cultural, and Recreational ServicesSenior Citizens Assistance

Contributions $ 10,000Total Senior Citizens Assistance 10,000

LibrariesAssistant(s) $ 104,002Librarians 36,793Longevity Pay 4,000Other Salaries and Wages 13,309Data Processing Services 3,185Dues and Memberships 75Maintenance and Repair Services - Buildings 1,975Postal Charges 705Travel 510Other Contracted Services 14,563Library Books/Media 3,647Office Supplies 5,628Utilities 7,232Other Supplies and Materials 91In Service/Staff Development 896Other Charges 14,548Other Equipment 3,043Other Capital Outlay 1,461

Total Libraries 215,663

Agriculture and Natural ResourcesAgricultural Extension Service

Contributions $ 54,466Dues and Memberships 320Travel 974Custodial Supplies 122Office Supplies 796

Total Agricultural Extension Service 56,678

Soil ConservationSecretary(ies) $ 24,534Longevity Pay 500Other Contracted Services 5,000Other Charges 2,550

Total Soil Conservation 32,584

(Continued)

179

Exhibit L-8



General Fund (Cont.)Other Operations

TourismContributions $ 1,000Building Improvements 82,478

Total Tourism $ 83,478

Industrial DevelopmentSupervisor/Director $ 56,650Contributions 14,721

Total Industrial Development 71,371

Veterans' ServicesSupervisor/Director $ 26,814Maintenance and Repair Services - Vehicles 189Rentals 3,100Travel 256Other Contracted Services 449Gasoline 867Office Supplies 106Other Charges 1,245Office Equipment 300

Total Veterans' Services 33,326

Other ChargesLiability Insurance $ 284,404Trustee's Commission 203,569Workers' Compensation Insurance 125,281

Total Other Charges 613,254

Employee BenefitsSocial Security $ 434,918Pensions 613,248Life Insurance 44,235Medical Insurance 1,439,202Unemployment Compensation 8,315Other Contracted Services 5,500

Total Employee Benefits 2,545,418

MiscellaneousContracts with Government Agencies $ 12,920Contributions 83,000Dues and Memberships 13,211Postal Charges 32,960Rentals 2,500Other Charges 1,234

Total Miscellaneous 145,825

(Continued)

180

Exhibit L-8



General Fund (Cont.)Capital Projects

General Administration ProjectsLand $ 39,481

Total General Administration Projects $ 39,481

Highway and Street Capital ProjectsHighway Construction $ 67,999

Total Highway and Street Capital Projects 67,999

Total General Fund $ 12,770,420

Drug Control FundPublic Safety

Sheriff's DepartmentOther Charges $ 9,491Motor Vehicles 49,550

Total Sheriff's Department $ 59,041

Total Drug Control Fund 59,041

Adequate Facilities/ Development Tax FundGeneral Government

BuildingTrustee's Commission $ 1,962

Total Building $ 1,962

Capital ProjectsPublic Safety Projects

Building Improvements $ 177,500Total Public Safety Projects 177,500

Total Adequate Facilities/ Development Tax Fund 179,462

Highway/Public Works FundHighways

AdministrationCounty Official/Administrative Officer $ 85,768Salary Supplements 2,099Secretary(ies) 36,672Part-time Personnel 13,243Overtime Pay 1,589Board and Committee Members Fees 16,800Contributions 500Dues and Memberships 3,700Legal Notices, Recording, and Court Costs 357Travel 1,210Other Contracted Services 7,075Office Supplies 344Premiums on Corporate Surety Bonds 100

(Continued)

181

Exhibit L-8



Highway/Public Works Fund (Cont.)Highways (Cont.)

Administration (Cont.)In Service/Staff Development $ 315Office Equipment 2,966

Total Administration $ 172,738

Highway and Bridge MaintenanceSalary Supplements $ 1,500Foremen 232,136Equipment Operators 318,826Laborers 236,310Overtime Pay 17,948Asphalt - Cold Mix 42,437Asphalt - Liquid 266,219Crushed Stone 213,503General Construction Materials 14,840Other Road Materials 16,480Pipe 14,387Road Signs 14,583Small Tools 1,132Chemicals 4,800

Total Highway and Bridge Maintenance 1,395,101

Operation and Maintenance of EquipmentForemen $ 36,821Mechanic(s) 37,453Overtime Pay 2,035Laundry Service 9,462Diesel Fuel 75,501Equipment and Machinery Parts 148,559Garage Supplies 17,297Gasoline 18,987Lubricants 11,035Tires and Tubes 21,106Other Charges 841

Total Operation and Maintenance of Equipment 379,097

Other ChargesCommunication $ 1,836Legal Services 75Electricity 4,626Water and Sewer 3,903Liability Insurance 53,494Trustee's Commission 32,815

Total Other Charges 96,749

Employee BenefitsSocial Security $ 75,764Pensions 108,695

(Continued)

182

Exhibit L-8



Highway/Public Works Fund (Cont.)Highways (Cont.)

Employee Benefits (Cont.)Employee and Dependent Insurance $ 371,784Unemployment Compensation 6,939Workers' Compensation Insurance 116,971Other Charges 872

Total Employee Benefits $ 681,025

Capital OutlayBridge Construction $ 1,096,751Communication Equipment 3,559Highway Construction 535,323Highway Equipment 36,880Motor Vehicles 7,500

Total Capital Outlay 1,680,013

Total Highway/Public Works Fund $ 4,404,723

General Debt Service FundPrincipal on Debt

General GovernmentPrincipal on Notes $ 113,037Principal on Other Loans 384,000

Total General Government $ 497,037

Highways and StreetsPrincipal on Notes $ 60,944

Total Highways and Streets 60,944

EducationPrincipal on Other Loans $ 1,589,812

Total Education 1,589,812

Interest on DebtGeneral Government

Interest on Notes $ 71,143Interest on Other Loans 61,352

Total General Government 132,495

Highways and StreetsInterest on Notes $ 33,613

Total Highways and Streets 33,613

EducationInterest on Other Loans $ 259,999

Total Education 259,999

(Continued)

183

Exhibit L-8



General Debt Service Fund (Cont.)Other Debt Service

General GovernmentTrustee's Commission $ 21,024Other Debt Service 30,112


EducationOther Debt Service $ 74,514

Total Education 74,514

Total General Debt Service Fund $ 2,699,550

Education Debt Service FundOther Debt Service

General GovernmentTrustee's Commission $ 3,204


Total Education Debt Service Fund 3,204

General Capital Projects FundCapital Projects

Other General Government ProjectsOther Capital Outlay $ 66,926

Total Other General Government Projects $ 66,926

Total General Capital Projects Fund 66,926

Total Governmental Funds - Primary Government $ 20,183,326

184

Exhibit L-9


All Governmental Fund TypesDiscretely Presented Hickman County School DepartmentFor the Year Ended June 30, 2020

General Purpose School FundInstruction

Regular Instruction ProgramTeachers $ 8,250,561Career Ladder Program 48,000Salary Supplements 282,065Educational Assistants 352,425Bonus Payments 368,202Other Salaries and Wages 349,053Non-certified Substitute Teachers 134,992Social Security 719,730Pensions 860,065Medical Insurance 1,377,832Maintenance and Repair Services - Equipment 4,000Other Contracted Services 32,500Instructional Supplies and Materials 101,103Textbooks - Bound 277,932Other Supplies and Materials 9,086Regular Instruction Equipment 90,326

Total Regular Instruction Program $ 13,257,872

Alternative Instruction ProgramTeachers $ 98,200Educational Assistants 17,830Bonus Payments 9,100Social Security 9,159Pensions 13,014Medical Insurance 16,944Instructional Supplies and Materials 206Other Supplies and Materials 353

Total Alternative Instruction Program 164,806

Special Education ProgramTeachers $ 1,427,939Psychological Personnel 59,478Homebound Teachers 28,031Educational Assistants 212,304Speech Pathologist 187,456Bonus Payments 78,800Social Security 142,325Pensions 217,004Medical Insurance 307,866Other Contracted Services 195,237

Total Special Education Program 2,856,440

Career and Technical Education ProgramTeachers $ 636,053Salary Supplements 12,000Bonus Payments 33,600

(Continued)

185

Exhibit L-9



General Purpose School Fund (Cont.)Instruction (Cont.)

Career and Technical Education Program (Cont.)Non-certified Substitute Teachers $ 13,342Social Security 51,309Pensions 76,556Medical Insurance 83,620Other Contracted Services 7,111Instructional Supplies and Materials 2,992Other Supplies and Materials 13,071Vocational Instruction Equipment 56,715

Total Career and Technical Education Program $ 986,369

Support ServicesAttendance

Supervisor/Director $ 67,480Other Salaries and Wages 31,500Social Security 7,550Pensions 10,294Medical Insurance 3,900Travel 2,833Other Contracted Services 12,000Other Supplies and Materials 4,024In Service/Staff Development 340

Total Attendance 139,921

Health ServicesMedical Personnel $ 135,951Other Salaries and Wages 101,050Social Security 17,658Pensions 24,648Medical Insurance 31,024Travel 2,980Other Contracted Services 2,702Drugs and Medical Supplies 3,135Other Supplies and Materials 3,016In Service/Staff Development 1,240Health Equipment 8,159

Total Health Services 331,563

Other Student SupportGuidance Personnel $ 511,807Bonus Payments 16,250Other Salaries and Wages 74,520Social Security 43,608Pensions 62,668Medical Insurance 63,050Evaluation and Testing 2,925Payments to Schools - Other 66,440

(Continued)

186

Exhibit L-9



General Purpose School Fund (Cont.)Support Services (Cont.)

Other Student Support (Cont.)Travel $ 2,740Other Contracted Services 17,464Other Supplies and Materials 2,854

Total Other Student Support $ 864,326

Regular Instruction ProgramSupervisor/Director $ 72,450Librarians 339,180Secretary(ies) 185,931Clerical Personnel 181,739Bonus Payments 24,000Social Security 56,188Pensions 97,330Medical Insurance 144,332Travel 950Other Contracted Services 7,827Library Books/Media 4,000Other Supplies and Materials 225In Service/Staff Development 385Regular Instruction Equipment 6,855Other Equipment 30,108

Total Regular Instruction Program 1,151,500

Special Education ProgramSupervisor/Director $ 72,294Other Salaries and Wages 4,594In-service Training 2,822Social Security 5,650Pensions 8,450Medical Insurance 7,524Maintenance and Repair Services - Equipment 4,450Travel 6,957

Total Special Education Program 112,741

Career and Technical Education ProgramSupervisor/Director $ 76,280Social Security 5,537Pensions 7,621Medical Insurance 7,524Maintenance and Repair Services - Equipment 1,000Travel 322Other Supplies and Materials 422

Total Career and Technical Education Program 98,706

TechnologySupervisor/Director $ 60,000

(Continued)

187

Exhibit L-9




Technology (Cont.)Other Salaries and Wages $ 4,421Social Security 4,703Pensions 7,065Medical Insurance 7,900Maintenance and Repair Services - Equipment 1,622Travel 150Other Contracted Services 138,378Other Supplies and Materials 435Regular Instruction Equipment 24,102

Total Technology $ 248,776

Other ProgramsOn-behalf Payments to OPEB $ 62,869

Total Other Programs 62,869

Board of EducationBoard and Committee Members Fees $ 6,519In-service Training 6,567Social Security 475Audit Services 27,500Dues and Memberships 32,779Legal Services 27,635Liability Insurance 57,982Trustee's Commission 121,008Workers' Compensation Insurance 167,678Other Charges 4,562

Total Board of Education 452,705

Director of SchoolsCounty Official/Administrative Officer $ 109,000Career Ladder Program 1,000Secretary(ies) 86,616Social Security 14,810Pensions 23,735Medical Insurance 11,900Communication 499Maintenance and Repair Services - Equipment 14,552Travel 2,330Other Contracted Services 3,075Office Supplies 714Other Supplies and Materials 1,352Other Charges 1,851

Total Director of Schools 271,434

Office of the PrincipalPrincipals $ 634,897

(Continued)

188

Exhibit L-9




Office of the Principal (Cont.)Assistant Principals $ 446,652Social Security 79,752Pensions 116,952Medical Insurance 110,478Other Contracted Services 128,507

Total Office of the Principal $ 1,517,238

Fiscal ServicesOther Contracted Services $ 42,235

Total Fiscal Services 42,235

Operation of PlantCommunication $ 41,730Other Contracted Services 553,231Custodial Supplies 23,269Electricity 754,531Natural Gas 77,626Water and Sewer 191,968Other Supplies and Materials 2,429Boiler Insurance 7,025Building and Contents Insurance 143,521Plant Operation Equipment 76,060

Total Operation of Plant 1,871,390

Maintenance of PlantSupervisor/Director $ 63,000Secretary(ies) 10,392Other Salaries and Wages 163,757Social Security 16,286Pensions 26,005Medical Insurance 32,848Maintenance and Repair Services - Buildings 128,957Maintenance and Repair Services - Equipment 192,192Travel 4,181Other Contracted Services 183,005Other Supplies and Materials 472Administration Equipment 13,383Building Improvements 111,702Maintenance Equipment 26,781

Total Maintenance of Plant 972,961

TransportationSupervisor/Director $ 56,000Mechanic(s) 79,109Bus Drivers 655,016Secretary(ies) 10,392

(Continued)

189

Exhibit L-9




Transportation (Cont.)Social Security $ 61,265Pensions 89,931Medical Insurance 107,424Other Fringe Benefits 16,280Maintenance and Repair Services - Vehicles 23,720Other Contracted Services 55,802Diesel Fuel 116,331Garage Supplies 2,679Gasoline 21,434Lubricants 3,195Tires and Tubes 17,733Vehicle Parts 73,879Vehicle and Equipment Insurance 40,157Transportation Equipment 758,833

Total Transportation $ 2,189,180

Central and OtherUnemployment Compensation $ 6,020Contributions 133,500Other Contracted Services 24,984Other Supplies and Materials 17,290Other Charges 5,000

Total Central and Other 186,794

Operation of Non-Instructional ServicesFood Service

Supervisor/Director $ 23,333Social Security 1,744Pensions 2,427

Total Food Service 27,504

Community ServicesSupervisor/Director $ 31,500Other Salaries and Wages 56,178Social Security 6,253Pensions 9,381Medical Insurance 16,944Other Supplies and Materials 5,000

Total Community Services 125,256

Early Childhood EducationSupervisor/Director $ 36,700Teachers 176,562Educational Assistants 63,676Bonus Payments 9,250Other Salaries and Wages 8,841

(Continued)

190

Exhibit L-9



General Purpose School Fund (Cont.)Operation of Non-Instructional Services (Cont.)

Early Childhood Education (Cont.)Non-certified Substitute Teachers $ 2,432Social Security 21,965Pensions 32,805Medical Insurance 48,000Travel 320Other Contracted Services 400Instructional Supplies and Materials 11,718Other Supplies and Materials 9,823In Service/Staff Development 1,136Other Equipment 4,451

Total Early Childhood Education $ 428,079

Capital OutlayRegular Capital Outlay

Other Capital Outlay $ 314,245Total Regular Capital Outlay 314,245

Other Debt ServiceEducation

Debt Service Contribution to Primary Government $ 163,284Total Education 163,284

Total General Purpose School Fund $ 28,838,194

School Federal Projects FundInstruction

Regular Instruction ProgramOther Salaries and Wages $ 663,536Non-certified Substitute Teachers 6,890Social Security 50,623Pensions 70,877Medical Insurance 86,632Instructional Supplies and Materials 126,616Other Charges 431Regular Instruction Equipment 12,181

Total Regular Instruction Program $ 1,017,786

Special Education ProgramEducational Assistants $ 383,832Non-certified Substitute Teachers 23,000Social Security 31,123Pensions 41,571Medical Insurance 93,622Instructional Supplies and Materials 3,135Special Education Equipment 7,371

Total Special Education Program 583,654

(Continued)

191

Exhibit L-9



School Federal Projects Fund (Cont.)Instruction (Cont.)

Career and Technical Education ProgramEducational Assistants $ 18,342Social Security 1,810Pensions 2,301Medical Insurance 2,000Unemployment Compensation 100Other Contracted Services 5,325Other Supplies and Materials 8,916Vocational Instruction Equipment 55,462

Total Career and Technical Education Program $ 94,256

Support ServicesOther Student Support

Supervisor/Director $ 56,700Other Salaries and Wages 32,331Social Security 6,286Pensions 4,500Medical Insurance 10,825Communication 9,517Travel 5,068Office Supplies 2,918Other Supplies and Materials 43,916In Service/Staff Development 9,478Other Charges 55,854

Total Other Student Support 237,393

Regular Instruction ProgramSupervisor/Director $ 68,628Secretary(ies) 30,945Other Salaries and Wages 85,150In-service Training 415Non-certified Substitute Teachers 5,168Social Security 14,461Pensions 19,075Medical Insurance 19,324Maintenance and Repair Services - Equipment 5,383Travel 3,020Other Contracted Services 45,558Other Supplies and Materials 3,096In Service/Staff Development 34,487Other Charges 17,517Other Equipment 1,660

Total Regular Instruction Program 353,887

Special Education ProgramSupervisor/Director $ 6,026Psychological Personnel 126,753

(Continued)

192

Exhibit L-9



School Federal Projects Fund (Cont.)Support Services (Cont.)

Special Education Program (Cont.)Medical Personnel $ 54,694Secretary(ies) 42,707Social Security 17,262Pensions 15,698Medical Insurance 19,700Unemployment Compensation 300Postal Charges 399Other Contracted Services 4,030Other Supplies and Materials 10,445Other Equipment 3,283

Total Special Education Program $ 301,297

TransportationOther Charges $ 267

Total Transportation 267

Total School Federal Projects Fund $ 2,588,540

Central Cafeteria FundOperation of Non-Instructional Services

Food ServiceSupervisor/Director $ 32,667Accountants/Bookkeepers 118,503Cafeteria Personnel 556,998Social Security 53,232Pensions 66,920Medical Insurance 30,000Communication 2,722Maintenance and Repair Services - Equipment 46,092Transportation - Other than Students 2,319Travel 3,931Other Contracted Services 47,378Food Supplies 993,095Utilities 1,653USDA - Commodities 69,622Other Supplies and Materials 76,924Other Charges 19,916Food Service Equipment 9,999

Total Food Service $ 2,131,971

Total Central Cafeteria Fund 2,131,971

Total Governmental Funds - Hickman County School Department $ 33,558,705

193

Exhibit L-10


All Governmental Fund TypesDiscretely Presented Hickman County Health FoundationFor the Year Ended June 30, 2020

Other Special Revenue FundGeneral Government

County CommissionAudit Services $ 261Legal Notices, Recording, and Court Costs 20

Total County Commission $ 281

Public Health and WelfareAmbulance/Emergency Medical Services

Other Contracted Services $ 2,500In Service/Staff Development 9,555Other Equipment 8,920

Total Ambulance/Emergency Medical Services 20,975

Total Other Special Revenue Fund $ 21,256

Total Governmental Funds - Hickman County Health Foundation $ 21,256

194

Exhibit L-11

Hickman County, TennesseeSchedule of Detailed Revenues and ExpensesSolid Waste Disposal FundFor the Year Ended June 30, 2020

Revenues Operating Revenues Charges for Current Services Commercial and Industrial Waste Collections $ 171,367 Residential Waste Collection Charge 103,941 Tipping Fees 60,343 Solid Waste Disposal Fee 827,812 Contracted Services 77,894 Total Charges for Current Services $ 1,241,357

Other Local Revenues Recurring Items Lease/Rentals $ 83,975 Sale of Recycled Materials 70,058 Total Other Local Revenues $ 154,033 Total Operating Revenues $ 1,395,390

Nonoperating Revenues Investment Income $ 7,883 Insurance Recovery 2,377 Litter Program Grant 44,023 Solid Waste Grants 8,109 Total Nonoperating Revenues $ 62,392

Total Revenues $ 1,457,782

Expenses Operating Expenses Sanitation Management Supervisor/Director $ 56,491 Deputies 33,460 Data Processing Personnel 28,117

(Continued)

Solid WasteDisposal

Fund



195

Exhibit L-11

Hickman County, TennesseeSchedule of Detailed Revenues and ExpensesSolid Waste Disposal Fund (Cont.)

Expenses (Cont.) Operating Expenses (Cont.) Sanitation Management (Cont.) Equipment Operators $ 37,267 Equipment Operators - Heavy 38,198 Laborers 157,961 Clerical Personnel 30,477 Part-time Personnel 73,369 Longevity 15,700 Overtime Pay 12,861 Social Security 34,963 Pension 43,537 Medical Insurance 91,031 Advertising 2,299 Communication 6,387 Contracts with Government Agencies 3,668 Data Processing Services 5,295 Debt Collection Services 14,031 Legal Notices, Recording, and Court Cost 322 Maintenance and Repair Services - Buildings 1,606 Maintenance and Repair Services - Equipment 25,369 Maintenance and Repair Services - Vehicles 12,105 Pest Control 1,485 Postal Charges 3,950 Printing, Stationery, and Forms 660 Travel 1,262 Disposal Fees 392,614 Other Contracted Services 916 Custodial Supplies 356 Diesel Fuel 30,513 Electricity 15,709 Gasoline 1,872

(Continued)

Enterprise FundSolid Waste

Major

DisposalFund


196

Exhibit L-11

Hickman County, TennesseeSchedule of Detailed Revenues and ExpensesSolid Waste Disposal Fund (Cont.)

Expenses (Cont.) Operating Expenses (Cont.) Sanitation Management (Cont.) Lubricants $ 2,936 Office Supplies 2,223 Other Road Supplies 120 Small Tools 511 Tires and Tubes 6,661 Uniforms 4,815 Utilities 6,740 Wire 3,975 Testing 1,291 Other Supplies and Materials 2,593 Trustee's Commission 12,187 Depreciation 107,482 Surcharge 5,750 In Service/ Staff Development 610 Office Equipment 5,231 Other Construction 5,627 Other Capital Outlay 6,000 Total Sanitation Management $ 1,348,603

Litter and Trash Collection Supervisor/Director $ 23,657 Instructional Supplies and Material 12,347 Other Charges 10,151 Total Other Charges $ 46,155

Total Expenses $ 1,394,758

Solid WasteDisposal

Fund


Activities -Business-type

197

Exhibit L-12

Hickman County, TennesseeSchedule of Detailed Receipts, Disbursements, and Changes in Cash Balance - City Agency FundFor the Year Ended June 30, 2020

Cities - Sales Tax Fund

Cash Receipts Local Option Sales Tax $ 721,290Total Cash Receipts $ 721,290

Cash Disbursements Remittance of Revenues Collected $ 714,077 Trustee's Commission 7,213Total Cash Disbursements $ 721,290

Excess of Cash Receipts Over (Under) Cash Disbursements $ 0Cash Balance, July 1, 2019 0

Cash Balance, June 30, 2020 $ 0

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SINGLE AUDIT SECTION

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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



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 Hickman County, Tennessee as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise Hickman County’s basic financial statements as listed in the table of contents, and have issued our report thereon dated November 13, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Hickman County’s internal control over financial reporting (internal control) as a basis for designing 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 the effectiveness of Hickman County’s internal control. Accordingly, we do not express an opinion on the effectiveness of Hickman County’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph 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 have not been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we did identify certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

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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. We consider the following deficiency, described in the accompanying Schedule of Findings and Questioned Costs, to be a material weakness: 2020-001.

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. We consider the following deficiency, described in the accompanying Schedule of Findings and Questioned Costs, to be a significant deficiency: 2020-003.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Hickman 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 financial statements. 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 an instance of noncompliance or other matter that is required to be reported under Government Auditing Standards and is described in the accompanying Schedule of Findings and Questioned Costs as items 2020-002.

Hickman County’s Responses to Findings

Hickman County’s responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. Hickman 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.

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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 Hickman 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

November 13, 2020

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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

Independent Auditor’s Report



Report on Compliance for Each Major Federal Program

We have audited Hickman County’s compliance with the types of compliance requirementsdescribed in the OMB Compliance Supplement that could have a direct and material effect on each of Hickman County’s major federal programs for the year ended June 30, 2020. Hickman 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 federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor's Responsibility

Our responsibility is to express an opinion on compliance for each of Hickman 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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 Hickman County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

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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 Hickman County’s compliance.

Opinion on Each Major Federal Program

In our opinion, Hickman 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, 2020.

Report on Internal Control Over Compliance

Management of Hickman 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 Hickman 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 the Uniform Guidance, 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 Hickman 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

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 Hickman County, Tennessee, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise Hickman County’s basic financial statements. We issued our report thereon dated November 13, 2020, 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 the Uniform Guidance 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 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, 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

November 13, 2020

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Hickman County, Tennessee, and the Hickman County School DepartmentSchedule of Expenditures of Federal Awards and State Grants (1) (2) (3)For the Year-Ended June 30, 2020

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: Child Nutrition Cluster: (5) National School Lunch Program (Commodities - Noncash Assistance) 10.555 (4) $ 69,622 (6)

Child Nutrition Discretionary Grant Limited Availability 10.579 (4) 9,679 Passed-through State Department of Education: Child Nutrition Cluster: (5) School Breakfast Program 10.553 (4) 326,017 (6) COVID 19 - School Breakfast Program 10.553 (4) 208,219 (6)National School Lunch Program 10.555 (4) 796,226 (6)COVID 19 - National School Lunch Program 10.555 (4) 331,258 (6)

Direct Program: Emergency Watershed Protection Program 10.923 N/A 234,474Total U.S. Department of Agriculture $ 1,975,495

U.S. Department of Defense: Passed-through State Department of General Services: Section 1033 Excess Property Program (Noncash Assistance) 12.U01 (4) $ 365,994Total U.S. Department of Defense $ 365,994

U.S. Department of Justice: Direct Program: Bulletproof Vest Partnership Program 16.607 N/A $ 1,125Total U.S. Department of Justice $ 1,125

U.S. Institute of Museum and Library Services: Passed-through State Library and Archives: Grants to States 45.310 (4) $ 2,401Total U.S. Institute of Museum and Library Services $ 2,401

(Continued)U.S. Department of Education: Passed-through State Department of Education: Title I Grants to Local Educational Agencies 84.010 (4) $ 1,198,971 Special Education Cluster: (5) Special Education - Grants to States 84.027 (4) 871,779

Special Education - Preschool Grants 84.173 (4) 20,903 Career and Technical Education - Basic Grants to States 84.048 (4) 103,735 Rural Education 84.358 (4) 58,885 Supporting Effective Instruction State Grants 84.367 (4) 106,812 (6) Student Support and Academic Enrichment Program 84.424 (4) 40,465

Passed-through Warren County: Supporting Effective Instruction State Grants 84.367 (4) 5,373 (6)Total U.S. Department of Education $ 2,406,923

U.S. Department of Health and Human Services: Passed-through State Department of Education:

Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 (4) $ 203,713

(Continued)

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Hickman County, Tennessee, and the Hickman County School DepartmentSchedule of Expenditures of Federal Awards and State Grants (1) (2) (3) (Cont.)

FederalFederal/Pass-through Agency/State CFDA ContractGrantor Program Title Number Number Expenditures

U.S. Department of Health and Human Services (Cont.): Direct Program: COVID 19 - Provider Relief Fund 93.498 N/A $ 27,030Total U.S. Department of Health and Human Services $ 230,743

U.S. Department of Homeland Security: Passed-through State Department of Military: Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 (4) $ 148,970 Emergency Management Performance Grants 97.042 (4) 29,850 Homeland Security Grant Program 97.067 (4) 12,035Total U.S. Department of Homeland Security $ 190,855

Total Expenditures of Federal Grants $ 5,173,536

State Grants: Early Childhood Education - State Department of Education N/A (4) $ 415,782 Family Resource - State Department of Education N/A (4) 59,223 Public Assistance Grant Award - State Department of Military N/A (4) 24,828 Coordinated School Health - State Department of Education N/A (4) 90,000 Breakfast After the Bell - State Department of Education N/A (4) 6,850 School Bus Replacement Grant - State Department of Environment and Conservation N/A (4) 296,886 Safe Schools Act - State Department of Education N/A (4) 104,803 Local Archives Development Grant - Tennessee Secretary of State N/A (4) 3,643 Access to Health and Healthy Built Environments - State Department of Health N/A (4) 20,000 Court Security Grant Program - Administrative Office of the Courts N/A (4) 1,384 Local Health Services - State Department of Health N/A (4) 302,854 Tourism Enhancement Grant - State Department of Tourist Development N/A (4) 74,980 Arts Program Categorical Grants - Tennessee Arts Commission N/A (4) 5,950 Litter Grant - State Department of Transportation N/A (4) 44,023 Arts Build Communities Grant - Tennessee Arts Commission N/A (4) 2,150 Arts Student Ticket Subsidy - State Department of Education N/A (4) 2,950 Optional Waste Tire Grant - State Department of Environment and Conservation N/A (4) 8,109 State Supplement Juvenile Court Improvement - State Commission on Children and Youth N/A (4) 9,000

Total State Grants $ 1,473,415

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) Hickman County elected not to use the 10% de minimis cost rate permitted in the Uniform Guidance.(3) No amounts ($0) were passed-through to subrecipients.(4) Information not available.(5) Child Nutrition Cluster total $1,731,342; Special Education Cluster total $892,682.(6) Total for CFDA No. 10.555 is $1,197,106; Total for CFDA No. 10.553 is $534,236; Total for CFDA No. 84.367 is $112,185.

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Hickman County, TennesseeSummary Schedule of Prior-year FindingsFor the Year Ended June 30, 2020

Fiscal Page Finding CFDAYear Number Number Number

OFFICES OF FINANCE DIRECTOR AND DIRECTOR OF SCHOOLS

2019 207 2019-001 N/A


2019 208 2019-002 N/A

OFFICE OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK

2019 209 2019-003 N/A


2019 210 2019-004 N/A

There were no prior-year federal award findings to report.

Title of Finding Current Status

Government Auditing Standards require auditors to report the status of uncorrected findings from prior audits.In addition, OMB's Uniform Guidance requires auditees to report the status of all prior-year findings whethercorrected or not. Presented below are financial statement findings along with their current status from the Annual Financial Report for Hickman County, Tennessee, for the year ended June 30, 2020.

Prior-year Financial Statement Findings

Prior-year Federal Awards Findings

Not Corrected - See Explanation on

Corrective Action Plan

The Hickman County Health Foundation did not require a depository to adequately collateralize funds

The office had accounting deficiencies

Some eligible employees were not enrolled in the Tennessee Consolidated Retirement System timely

Not Corrected - See Explanation on


The receipting software for the Landfill Office did not have adequate application controls

Corrected

Corrected

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Financial Statements:

1. Our report on the financial statements of Hickman County is unmodified.

2. Internal Control Over Financial Reporting:

* Material weakness identified? YES

* Significant deficiency identified? YES

3. Noncompliance material to the financial statements noted? YES

Federal Awards:

4. Internal Control Over Major Federal Programs:

* Material weakness identified? NO

* Significant deficiency identified? NONE REPORTED

5. Type of report auditor issued on compliance for major programs. UNMODIFIED

6. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? NO

7. Identification of Major Federal Programs:

* CFDA Numbers: 10.553 and 10.555 Nutrition Cluster: School Breakfast Program and National School Lunch Program

* CFDA Numbers: 84.027 and 84.173 Special Education Cluster: Special Education Grants to States and Special Education Preschool Grants

8. Dollar threshold used to distinguish between Type A and Type B Programs. $750,000

9. Auditee qualified as low-risk auditee? NO

HICKMAN COUNTY, TENNESSEE

SCHEDULE OF FINDINGS AND QUESTIONED COSTS


PART I, SUMMARY OF AUDITOR'S RESULTS

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PART II, FINDINGS RELATING TO THE FINANCIAL STATEMENTS Findings and recommendations, as a result of our audit, are presented below. We reviewed these findings and recommendations with management to provide an opportunity for their response. Written responses for all findings are paraphrased and presented following each finding and recommendation. Management’s corrective action plans, whether related to the financial statements or federal awards, are presented separately in the Management’s Corrective Action Plan in the Single Audit Section of this report. Findings relating specifically to the audit of federal awards, if any, are separately presented under Part III, Findings and Questioned Costs for Federal Awards.

OFFICE OF FINANCE DIRECTOR FINDING 2020-001 MATERIAL AUDIT ADJUSTMENTS WERE REQUIRED

FOR PROPER FINANCIAL STATEMENT PRESENTATION (Internal Control – Material Weakness Under Government Auditing Standards)

At June 30, 2020, certain general ledger account balances in the Highway/Public Works Fund were not materially correct, and audit adjustments totaling $377,360 were required for the financial statements to be materially correct at year-end. Generally accepted accounting principles require Hickman County to have adequate internal controls over the maintenance of its accounting records. Material audit adjustments were required because the department’s financial reporting system did not prevent, detect, or correct potential misstatements in the accounting records. It is a strong indicator of a material weakness in internal controls if the county has ineffective controls over the maintenance of its accounting records, which are used to prepare the financial statements, including the related notes to the financial statements. This deficiency is the result of a lack of management oversight. We presented audit adjustments to management that they approved and posted to properly present the financial statements in this report. RECOMMENDATION Hickman County should have appropriate processes in place to ensure its general ledgers are materially correct. MANAGEMENT’S RESPONSE – FINANCE DIRECTOR We concur with the finding. The finance office was not aware the engineer for the project requested funds in June. The invoice and funds received were dated in July, therefore, revenue and expenditure were booked in current fiscal year. This did not change the fund balance.

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HICKMAN COUNTY HEALTH FOUNDATION FINDING 2020-002 THE HICKMAN COUNTY HEALTH FOUNDATION DID

NOT REQUIRE A DEPOSITORY TO ADEQUATELY COLLATERALIZE FUNDS (Material Noncompliance Under Government Auditing Standards)

The Hickman County Health Foundation, a discretely presented component unit of Hickman County, did not require one depository holding county funds to pledge sufficient securities to protect funds that exceeded Federal Deposit Insurance Corporation (FDIC) coverage. At June 30, 2020, deposits exceeded FDIC coverage by $471,681. Section 5-8-201, Tennessee Code Annotated, provides for county officials to require any bank that is a depository of county funds to deposit in an escrow account in a second bank collateral security equal to 105 percent of such county funds. This deficiency is the result of a lack of management oversight, management’s failure to correct the deficiency noted in the prior-year audit report, and the failure to implement their corrective action plan. The failure to adequately collateralize funds could result in a loss for the county.

RECOMMENDATION The Hickman County Health Foundation should require all depositories to pledge sufficient securities to protect county funds exceeding FDIC coverage as required by state statute. MANAGEMENT’S RESPONSE – FINANCE DIRECTOR We concur with the finding. The Hickman County Health Foundation is a committee which controls the decision on investing funds. The committee was made aware of a 1999 finding by state audit for the same procedure, but still chose to invest the money after reviewing the county attorney’s opinion. The certificate of deposit was invested for five years, if withdrawn before maturity it would be subject to large penalties that would result in possible loss of principal.

________________________________________ OFFICE OF SOLID WASTE FINDING 2020-003 THE RECEIPTING SOFTWARE FOR THE LANDFILL

OFFICE DID NOT HAVE ADEQUATE APPLICATION CONTROLS (Internal Control – Significant Deficiency Under Government Auditing Standards)

The software application created a charge ticket each time a customer disposed of material at the landfill. When payment was later received for the ticket, the application did not properly reflect the payment on the current day’s daily checkout report. Sound business practices dictate that proper application controls be implemented. Since the vendor did not design the system with these controls, inappropriate system activity could occur. This

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deficiency also exists because management failed to correct the finding noted in the prior-year audit report and failed to implement its corrective action plan.

RECOMMENDATION

Management should ensure proper controls are in place to account for all payments.

MANAGEMENT’S RESPONSE – SOLID WASTE DIRECTOR

Hickman County Solid Waste Department agrees and acknowledges the finding and recommendation concerning the software not having adequate application controls. We will purchase the proper software application or update the software to meet the recommendations.

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PART III, FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS

There were no findings and questioned costs related to federal awards for the year ended June 30, 2020.

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FindingNumber

OFFICES OF FINANCE DIRECTOR

2020-001


2020-002


2020-003

Hickman County, TennesseeManagement's Corrective Action Plan


Title of Finding

Material audit adjustments were required for proper financial statement presentation

Corrective ActionPlan Page Number

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The receipting software for the Landfill Office did not have adequate application controls

The Hickman County Health Foundation did not require a depository to adequately collateralize funds

We reviewed the financial statement and federal award findings and recommendations withmanagement to provide an opportunity for their response as required by the auditee requirementswithin Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Management’s correctiveaction plans for all financial statement findings and federal award findings are presented in this sectionand have been indexed below. The corrective action plans were prepared by management and have beenpresented as they were submitted.

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Hickman County Finance Office

114 N. Central Ave., Suite 203

Centerville, Tennessee 37033

August 31, 2020


Finding 2020-001: Material audit adjustments were required for proper

financial statement presentation.

Response and corrective Action Plan Prepared by:

Annette Elliott, Finance Director

Person Responsible for Implementing the Corrective Action:

Annette Elliott, Finance Director

Repeat Finding:

No

Planned Corrective Action: The Finance Dept. and the Hwy. Dept. will better communicate

on future projects.

Signature:

Annette Elliott

Finance Director

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FINDING:

HICKMAN CO. SOLD WASTE 2220 SKYVIEW DRIVE

CENERVILLE, TN 37033


THE RECEIPTING SOF1WARE FOR THE LANDFILL OFFICE DID NOT HAVE ADEQUATE APPLICATION CONTROLS

Response and Corrective Action Plan Prepared by: MARTY TURBEVILLE, SOLID WASTE DIRECTOR

Person Responsible for Implementing the Corrective Action: MARTY TURBEVILLE, SOLID WASTE DIRECTOR

Anticipated Completion Date of Corrective Action: OCTOBER 2020

Repeat Finding: Yes

Reason Corrective Action was Not Taken in the Prior Year: THE BUDGET FOR 2019-2020 WASN'T BUDGET FOR A NEW DATABASE.

Planned Corrective Action: HICKMAN CO. SOLID WASTE DEPARTMENT AGREES AND ACKNOWLEDGE THE FINDINGS AND RECOMMENDATIONS CONCERNING THE SOFTWARE THAT DOESN'T HA VE ADEQUATE APPLICATION CONTROLS.

I, MARTY TURBEVILLE WILL UPDATE THE PROPER SOFTWARE, SCALE IT (Scaleit USA) FOR THE SOLID WASTE DEPARTMENT.

Signature:

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Documents

HICKMAN COUNTY TENNESSEE