JACKSON COUNTY TENNESSEE - TN Comptroller fund information of Jackson County, Tennessee, as of and for

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  • ANNUAL FINANCIAL REPORT

    JACKSON COUNTY, TENNESSEE FOR THE YEAR ENDED JUNE 30, 2019

    DIVISION OF LOCAL GOVERNMENT AUDIT

  • ANNUAL FINANCIAL REPORT

    JACKSON COUNTY, TENNESSEE

    FOR THE YEAR ENDED JUNE 30, 2019

    COMPTROLLER OF THE TREASURY JUSTIN P. WILSON

    DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE

    Director

    TYLER MUSIC TIM BRASHEARS, CGFM STEVE REEDER, CPA, CGFM, CFE AUSTIN LANNOM Audit Manager RODNEY MALIN, CGFM TREVOR GLOVER ANITA SCARLETT, CPA BARBARA SHULTS Senior Auditor State Auditors

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

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    http://www.comptroller.state.tn.us/

  • Exhibit Page(s)

    Summary of Audit Findings 6-7

    INTRODUCTORY SECTION 8

    Jackson County Officials 9

    FINANCIAL SECTION 10

    Independent Auditor's Report 11-13 BASIC FINANCIAL STATEMENTS: 14

    Government-wide Financial Statements: Statement of Net Position A 15-16 Statement of Activities B 17-18

    Fund Financial Statements: Governmental Funds:

    Balance Sheet C-1 19-20 Reconciliation of the Balance Sheet of Governmental Funds

    to the Statement of Net Position C-2 21 Statement of Revenues, Expenditures, and Changes in

    Fund Balances C-3 22-23 Reconciliation of the Statement of Revenues, Expenditures,

    and Changes in Fund Balances of Governmental Funds to the Statement of Activities C-4 24

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

    General Fund C-5 25-26 Solid Waste/Sanitation Fund C-6 27 Highway/Public Works Fund C-7 28

    Fiduciary Funds: Statement of Fiduciary Assets and Liabilities D 29

    Index and Notes to the Financial Statements 30-89 REQUIRED SUPPLEMENTARY INFORMATION: 90

    Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRS – Primary Government E-1 91

    Schedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRS – Primary Government E-2 92

    Schedule of Contributions Based on Participation in the Teacher Retirement Plan of TCRS – Discretely Presented Jackson County School Department E-3 93

    JACKSON COUNTY, TENNESSEE TABLE OF CONTENTS

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  • Exhibit Page(s)

    Schedule of Contributions Based on Participation in the Teacher Legacy Pension Plan of TCRS – Discretely Presented Jackson County School Department E-4 94

    Schedule of Proportionate Share of the Net Pension Asset in the Teacher Pension Plan of TCRS – Discretely Presented Jackson County School Department E-5 95

    Schedule of Proportionate Share of the Net Pension Asset in the Teacher Legacy Pension Plan of TCRS – Discretely Presented Jackson County School Department E-6 96

    Schedule of Changes in the Total OPEB Liability and Related Ratios - – Discretely Presented Jackson County School Department E-7 97

    Notes to the Required Supplementary Information 98 COMBINING AND INDIVIDUAL FUND FINANCIAL

    STATEMENTS AND SCHEDULES: 99 Nonmajor Governmental Funds: 100

    Combining Balance Sheet F-1 101-102 Combining Statement of Revenues, Expenditures, and Changes

    in Fund Balances F-2 103 Schedule of Revenues, Expenditures, and Changes in Fund

    Balance – Actual and Budget: Drug Control Fund F-3 104

    Major Governmental Fund: 105 Schedule of Revenues, Expenditures, and Changes in Fund

    Balance – Actual and Budget: General Debt Service Fund G 106

    Fiduciary Funds: 107 Combining Statement of Fiduciary Assets and Liabilities H-1 108 Combining Statement of Changes in Assets and Liabilities –

    All Agency Funds H-2 109 Component Unit:

    Discretely Presented Jackson County School Department: 110 Statement of Activities I-1 111 Balance Sheet – Governmental Funds I-2 112 Reconciliation of the Balance Sheet of Governmental Funds

    to the Statement of Net Position I-3 113 Statement of Revenues, Expenditures, and Changes in Fund

    Balances – Governmental Funds I-4 114 Reconciliation of the Statement of Revenues, Expenditures,

    and Changes in Fund Balances of Governmental Funds to the Statement of Activities I-5 115

    Combining Balance Sheet – Nonmajor Governmental Funds I-6 116 Combining Statement of Revenues, Expenditures, and Changes

    in Fund Balance – Nonmajor Governmental Funds I-7 117 Schedules of Revenues, Expenditures, and Changes in Fund

    Balances – Actual (Budgetary Basis) and Budget: General Purpose School Fund I-8 118-119 School Federal Projects Fund I-9 120 Central Cafeteria Fund I-10 121

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  • Exhibit Page(s)

    Miscellaneous Schedules: 122 Schedule of Changes in Long-term Bonds, Notes, Other Loans, and

    Capital Leases J-1 123 Schedule of Long-term Debt Requirements by Year J-2 124-125 Schedule of Transfers – Primary Government and Discretely

    Presented Jackson County School Department J-3 126 Schedule of Salaries and Official Bonds of Principal Officials –

    Primary Government and Discretely Presented Jackson County School Department J-4 127

    Schedule of Detailed Revenues – All Governmental Fund Types J-5 128-139 Schedule of Detailed Revenues – All Governmental Fund Types –

    Discretely Presented Jackson County School Department J-6 140-142 Schedule of Detailed Expenditures – All Governmental Fund Types J-7 143-155 Schedule of Detailed Expenditures – All Governmental Fund Types –

    Discretely Presented Jackson County School Department J-8 156-166 Schedule of Detailed Receipts, Disbursements, and Changes in

    Cash Balance – City Agency Fund J-9 167

    SINGLE AUDIT SECTION 168

    Report on Internal Control Over Financial Reporting and on Complaince and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 169-170

    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 171-173

    Schedule of Expenditures of Federal Awards and State Grants 174-176 Summary Schedule of Prior-year Findings 177 Schedule of Findings and Questioned Costs 178-186 Management's Corrective Action Plan 187-196 Best Practice 197

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  • Summary of Audit Findings Annual Financial Report

    Jackson County, Tennessee For the Year Ended June 30, 2019

    Scope

    We have audited the basic financial statements of Jackson County as of and for the year ended June 30, 2019.

    Results

    Our report on Jackson County was unmodified. Our audit resulted in 11 findings and recommendations, which we have reviewed with Jackson County management. Detailed findings, recommendations, and management’s responses are included in the Single Audit section of this report.

    Findings

    The following are summaries of the audit findings: OFFICE OF COUNTY MAYOR ♦ General ledger payroll liability accounts were not reconciled with subsidiary payroll

    records and payments. ♦ The office had deficiencies in purchasing procedures. OFFICE OF DIRECTOR OF SCHOOLS ♦ The School Federal Projects Fund has a cash overdraft of $110,024 at June 30, 2019. OFFICE OF TRUSTEE ♦ The trustee paid checks issued on the School Federal Projects Fund that exceeded

    available funds.

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  • OFFICE OF COUNTY CLERK ♦ A cash shortage of $36,086.24 existed in the County Clerk’s Office subsequent to June

    30, 2019. ♦ The clerk failed to properly document changes and deletions to receipts. ♦ The office did not deposit some funds within three days of collection. ♦ Duties were not segregated adequately. ♦ The office did not review its software audit logs.

    OFFICE OF SHERIFF ♦ A list of usernames and passwords was maintained.

    JACKSON COUNTY ♦ The county’s Audit Committee is not a functioning committee.

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  • INTRODUCTORY SECTION

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  • Jackson County Officials June 30, 2019 Officials Randy Heady, County Mayor Edward Anderson, Road Superintendent Kristy Brown, Director of Schools Anthony Flatt, Trustee Timmy Bowman, Assessor of Property Amanda Ward Stafford, County Clerk Jeff Hardy, Circuit and General Sessions Courts Clerk Sherrie Pippin-Loftis, Clerk and Master Kim Barham, Register of Deeds Marty Hinson, Sheriff Board of County Commissioners Randy Heady, Chairman Tim Agee Gary Garrison Paul Ballard Richard Head Anthony Buck Brian Lee Chris Carter Josh Locke Don Chinoy Glenda Mayberry Darrell Church Jim Morgan Joey Denson Douglas Stafford Josh Denson Thomas Wilmoth Shelby Fox Troy York Board of Education Mark Brown, Chairman Mark Allen James Robert Childress Michelle Hix Amanda Taylor Marty Woolbright Audit Committee Troy York, Chairman William Draper Donna Elrod Jeanette Hansel

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  • FINANCIAL SECTION

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  • Independent Auditor’s Report

    Jackson County Mayor and Board of County Commissioners Jackson 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 activitie