JACKSON COUNTY TENNESSEE - TN Comptroller Jackson County, Tennessee For the Year Ended June 30, 2020

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Text of JACKSON COUNTY TENNESSEE - TN Comptroller Jackson County, Tennessee For the Year Ended June 30, 2020

  • ANNUAL FINANCIAL REPORT

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

    DIVISION OF LOCAL GOVERNMENT AUDIT

  • ANNUAL FINANCIAL REPORT

    JACKSON 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

    STEVE REEDER, CPA, CGFM, CFE 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

    INTRODUCTORY SECTION 7

    Jackson County Officials 8

    FINANCIAL SECTION 9

    Independent Auditor's Report 10-12 BASIC FINANCIAL STATEMENTS: 13

    Government-wide Financial Statements: Statement of Net Position A 14-15 Statement of Activities B 16-17

    Fund Financial Statements: Governmental Funds:

    Balance Sheet C-1 18-19 Reconciliation of the Balance Sheet of Governmental Funds

    to the Statement of Net Position C-2 20 Statement of Revenues, Expenditures, and Changes in

    Fund Balances C-3 21-22 Reconciliation of the Statement of Revenues, Expenditures,

    and Changes in Fund Balances of Governmental Funds to the Statement of Activities C-4 23

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

    General Fund C-5 24-25 Solid Waste/Sanitation Fund C-6 26 Highway/Public Works Fund C-7 27

    Fiduciary Funds: Statement of Fiduciary Assets and Liabilities D 28

    Index and Notes to the Financial Statements 29-86 REQUIRED SUPPLEMENTARY INFORMATION: 87

    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 88

    Schedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRS – Primary Government E-2 89

    Schedule of Contributions Based on Participation in the Teacher Retirement Plan of TCRS – Discretely Presented Jackson County School Department E-3 90

    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 91

    Schedule of Proportionate Share of the Net Pension Asset in the Teacher Retirement Plan of TCRS – Discretely Presented Jackson County School Department E-5 92

    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 93

    Schedule of Changes in the Total OPEB Liability and Related Ratios - – Discretely Presented Jackson County School Department E-7 94

    Notes to the Required Supplementary Information 95 COMBINING AND INDIVIDUAL FUND FINANCIAL

    STATEMENTS AND SCHEDULES: 96 Nonmajor Governmental Funds: 97

    Combining Balance Sheet F-1 98-99 Combining Statement of Revenues, Expenditures, and Changes

    in Fund Balances F-2 100 Schedule of Revenues, Expenditures, and Changes in Fund

    Balance – Actual and Budget: Drug Control Fund F-3 101

    Major Governmental Fund: 102 Schedule of Revenues, Expenditures, and Changes in Fund

    Balance – Actual and Budget: General Debt Service Fund G 103

    Fiduciary Funds: 104 Combining Statement of Fiduciary Assets and Liabilities H-1 105 Combining Statement of Changes in Assets and Liabilities –

    All Agency Funds H-2 106 Component Unit:

    Discretely Presented Jackson County School Department: 107 Statement of Activities I-1 108 Balance Sheet – Governmental Funds I-2 109 Reconciliation of the Balance Sheet of Governmental Funds

    to the Statement of Net Position I-3 110 Statement of Revenues, Expenditures, and Changes in Fund

    Balances – Governmental Funds I-4 111 Reconciliation of the Statement of Revenues, Expenditures,

    and Changes in Fund Balances of Governmental Funds to the Statement of Activities I-5 112

    Combining Balance Sheet – Nonmajor Governmental Funds I-6 113 Combining Statement of Revenues, Expenditures, and Changes

    in Fund Balance – Nonmajor Governmental Funds I-7 114 Schedules of Revenues, Expenditures, and Changes in Fund

    Balances – Actual (Budgetary Basis) and Budget: General Purpose School Fund I-8 115-116 School Federal Projects Fund I-9 117-118 Central Cafeteria Fund I-10 119

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  • Exhibit Page(s)

    Miscellaneous Schedules: 120 Schedule of Changes in Long-term Bonds, Notes, Other Loans, and

    Capital Leases J-1 121 Schedule of Long-term Debt Requirements by Year J-2 122-123 Schedule of Transfers – Primary Government and Discretely

    Presented Jackson County School Department J-3 124 Schedule of Salaries and Official Bonds of Principal Officials –

    Primary Government and Discretely Presented Jackson County School Department J-4 125

    Schedule of Detailed Revenues – All Governmental Fund Types J-5 126-137 Schedule of Detailed Revenues – All Governmental Fund Types –

    Discretely Presented Jackson County School Department J-6 138-140 Schedule of Detailed Expenditures – All Governmental Fund Types J-7 141-153 Schedule of Detailed Expenditures – All Governmental Fund Types –

    Discretely Presented Jackson County School Department J-8 154-164 Schedule of Detailed Receipts, Disbursements, and Changes in

    Cash Balance – City Agency Fund J-9 165

    SINGLE AUDIT SECTION 166

    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 167-168

    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 169-171

    Schedule of Expenditures of Federal Awards and State Grants 172-174 Summary Schedule of Prior-year Findings 175-176 Schedule of Findings and Questioned Costs 177-184 Management's Corrective Action Plan 185-192 Best Practice 193

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  • Summary of Audit Findings Annual Financial Report

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

    Scope

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

    Results

    Our report on Jackson County was unmodified.

    Our audit resulted in ten 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

    ♦ The General Fund required material audit adjustments for proper financial statement presentation.

    ♦ General ledger payroll liability accounts were not reconciled with subsidiary payroll records and payments.

    ♦ The office had deficiencies in purchasing procedures.

    OFFICE OF COUNTY CLERK

    ♦ The former county clerk misappropriated county funds. ♦ A cash shortage of $40,514.33 existed in the County Clerk’s Office at June 30, 2020. ♦ 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. ♦ Access to accounting software was not properly restricted.

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  • INTRODUCTORY SECTION

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  • Jackson County Officials June 30, 2020

    Officials

    Randy Heady, County Mayor Edward Anderson, Road Superintendent Kristy Brown, Director of Schools Anthony Flatt, Trustee Timmy Bowman, Assessor of Property Vacant - 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, County Mayor, 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

    Jim Morgan, Chairman Donna Elrod Jeanette Hansel Tony Hunter

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  • FINANCIAL SECTION

    9

  • 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 activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Jackson 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 i