MARSHALL COUNTY TENNESSEE - TN Comptroller · annual financial report marshall county, tennessee for the year ended june 30, 2019 comptroller of the treasury justin p. wilson division

ANNUAL FINANCIAL REPORT

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

DIVISION OF LOCAL GOVERNMENT AUDIT

ANNUAL FINANCIAL REPORT

MARSHALL 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

JEFF BAILEY, CPA, CGFM, CFE Audit Manager KINSLEY HAYES

MARK HARVILL, CFERHONDA DAVIS, CFE CHRISVONTA SMITH 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 7

INTRODUCTORY SECTION 8

Marshall County Officials 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 and Budget:

General Fund C-5 26-27Highway/Public Works Fund C-6 28

Fiduciary Funds:Statement of Fiduciary Assets and Liabilities D 29

Index and Notes to the Financial Statements 30-94REQUIRED SUPPLEMENTARY INFORMATION: 95

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Planof TCRS – Primary Government E-1 96

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Primary Government E-2 97

Schedule of Contributions Based on Participation in the TeacherRetirement Plan of TCRS – Discretely Presented MarshallCounty School Department E-3 98

MARSHALL COUNTY, TENNESSEETABLE OF CONTENTS

3

Exhibit Page(s)

Schedule of Contributions Based on Participation in the TeacherLegacy Pension Plan of TCRS – Discretely Presented MarshallCounty School Department E-4 99

Schedule of Proportionate Share of the Net Pension Liability (Asset) inthe Teacher Retirement Plan of TCRS – Discretely PresentedMarshall County School Department E-5 100

Schedule of Proportionate Share of the Net Pension Liability (Asset) inthe Teacher Legacy Pension Plan of TCRS – Discretely PresentedMarshall County School Department E-6 101

Schedule of Changes in the Total OPEB Liability and Related Ratios -Local Government OPEB Plan – Primary Government E-7 102

Schedule of Changes in the Total OPEB Liability and Related Ratios -Local Education OPEB Plan – Discretely Presented Marshall County School Department E-8 103

Notes to the Required Supplementary Information 104COMBINING AND INDIVIDUAL FUND FINANCIAL

STATEMENTS AND SCHEDULES: 105Nonmajor Governmental Funds: 106-107

Combining Balance Sheet F-1 108-109Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances F-2 110-113Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual and Budget:Juvenile Services Fund F-3 114Solid Waste/Sanitation Fund F-4 115Drug Control Fund F-5 116General Capital Projects Fund F-6 117Highway Capital Projects Fund F-7 118School Bus Acquisition Fund F-8 119

Major Governmental Funds: 120Schedule of Revenues, Expenditures, and Changes in Fund

Balances – Actual and Budget:General Debt Service Fund G-1 121Other Capital Projects Fund G-2 122

Fiduciary Funds: 123Combining Statement of Fiduciary Assets and Liabilities H-1 124Combining Statement of Changes in Assets and Liabilities –

All Agency Funds H-2 125-126Component Units:

Discretely Presented Marshall County School Department: 127Statement of Activities I-1 128Balance Sheet – Governmental Funds I-2 129Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position I-3 130Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds I-4 131

4

Exhibit Page(s)

Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balances of Governmental Fundsto the Statement of Activities I-5 132

Combining Balance Sheet – Nonmajor Governmental Funds I-6 133Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances – Nonmajor Governmental Funds I-7 134Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual (Budgetary Basis) and Budget:General Purpose School Fund I-8 135-136School Federal Projects Fund I-9 137Central Cafeteria Fund I-10 138

Discretely Presented Marshall County Board of Public Utilities: 139Statement of Net Position J-1 140-141Statement of Revenues, Expenses, and Changes in Net Position J-2 142Statement of Cash Flows J-3 143-144

Miscellaneous Schedules: 145Schedule of Changes in Long-term Capital Leases, Notes, and

Bonds – Primary Government and Discretely PresentedMarshall County Board of Public Utilities K-1 146-147

Schedule of Long-term Debt Requirements by Year – PrimaryGovernment and Discretely Presented Marshall CountyBoard of Public Utilities K-2 148-150

Schedule of Transfers K-3 151Schedule of Salaries and Official Bonds of Principal Officials –

Primary Government, Discretely Presented Marshall CountySchool Department, and Discretely Presented MarshallCounty Board of Public Utilities K-4 152

Schedule of Detailed Revenues – All Governmental Fund Types K-5 153-166Schedule of Detailed Revenues – All Governmental Fund Types –

Discretely Presented Marshall County School Department K-6 167-169Schedule of Detailed Expenditures – All Governmental Fund Types K-7 170-192Schedule of Detailed Expenditures – All Governmental Fund Types –

Discretely Presented Marshall County School Department K-8 193-204Schedule of Detailed Revenues and Expenses – Discretely Presented

Marshall County Board of Public Utilities K-9 205-206Schedule of Detailed Receipts, Disbursements, and Changes in

Cash Balance – City Agency Fund K-10 207

5

Table Page(s)

STATUTORY SECTION 208

Demographic and Economic Information:Schedule of Utility Rates 1 209Schedule of Unaccounted for Water 2 210-211

SINGLE AUDIT SECTION 212

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 213-214

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 215-217

Schedule of Expenditures of Federal Awards and State Grants 218-219Summary Schedule of Prior-year Findings 220Schedule of Findings and Questioned Costs 221-223Management's Corrective Action Plan 224Best Practice 225

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Summary of Audit Findings Annual Financial Report

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

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

Results Our report on Marshall County’s financial statements is unmodified. Our audit resulted in no findings.

7

INTRODUCTORY SECTION

8

Marshall County OfficialsJune 30, 2019

Officials

Mike Keny, County Mayor Jerry Williams, Highway Superintendent Jacob Sorrells, Director of SchoolsScotty Poarch, Trustee Michelle Clark, Assessor of Property Daphne Girts, County Clerk Mike Wiles, Circuit, General Sessions, and Juvenile Courts ClerkKimberlee Alsup, Clerk and Master Dorris Wayne Weaver, Register of Deeds Billy Lamb, Sheriff Malinda White, Director of Accounts and BudgetsJessie Whaley, Jr., Board of Public Utilities Manager

Board of County Commissioners

Mike Keny, County Mayor, Chairman Tony BeyerCraig Blackwell Wesley NeeceDean Delk Keith HollingsworthJoseph Warner Seth WarfAnna Childress Sheldon DavisE.W. Hill, Jr. Jeff PoarchTony Nichols Vincent CuevasMickey King Glen WhiteRoger Murphree Bob Hopkins IIICannon Allen

Board of Education

Julie Cathey, Chairman John AllenSusan Hunter Harvey Jones, Jr.Kristen Gold Andy WoodardRobert Warf Heidi McElhaneyVacant

Board of Public Utilities

Mickey King, Chairman Joseph WarnerTony Beyer Donnie MosesRay Wakefield

Audit Committee

Bill Garvin, Chairman Lisa KellyMickey King Michael SullivanLee Morrison

9

FINANCIAL SECTION

10

Independent Auditor’s Report

Marshall County Mayor and Board of County Commissioners Marshall, 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 Marshall County, Tennessee, as of and for the year ended June 30, 2019, 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

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circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Marshall County, Tennessee, as of June 30, 2019, and the respective changes in financial position and the respective budgetary comparisons for the General and Highway/Public Works funds 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, schedule of school’s proportionate share of the net pension liability (asset), and schedule of changes in the county’s and school’s total OPEB liability 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 Marshall 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 and Other Capital Projects funds, combining and individual fund financial statements of the Marshall County School Department (a discretely presented component unit), individual fund financial statements of the Marshall County Board of Public Utilities (a discretely presented component unit), miscellaneous schedules and the other information such as the introductory section and statutory 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 and Other Capital Projects funds, combining and individual fund financial statements of the Marshall County School Department (a discretely presented component unit), individual fund financial statements of the Marshall County Board of Public Utilities (a discretely presented component unit), 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 and Other Capital Projects funds, combining and individual fund financial statements of the Marshall County School Department (a discretely presented component unit), individual fund financial statements of the Marshall County Board of Public Utilities (a discretely presented component unit), 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 and statutory sections have 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 them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 23, 2019, on our consideration of Marshall 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

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and the results of that testing, and not to provide an opinion on the effectiveness of Marshall 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 Marshall County’s internal control over financial reporting and compliance. Very truly yours,

Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee October 23, 2019 JPW/kp

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BASIC FINANCIAL STATEMENTS

15

Exhibit A

Marshall County, TennesseeStatement of Net PositionJune 30, 2019

Marshall MarshallCounty County School Board of

Department Public Utilities

Cash $ 450 $ 4,392 $ 1,803Equity in Pooled Cash and Investments 22,997,442 8,351,561 4,208,821Inventories 0 0 62,649Accounts Receivable 3,461,449 9,129 266,026Allowance for Uncollectibles (1,514,794) 0 0Due from Component Units 134,456 0 0Due from Other Governments 1,388,492 733,210 0Property Taxes Receivable 9,754,416 9,402,175 0Allowance for Uncollectible Property Taxes (107,204) (103,332) 0Restricted Assets: Customer Deposits 0 0 243,953 Amounts Accumulated for Pension Benefits 0 87,766 0Net Pension Asset - Agent Plan 1,088,958 774,955 69,607Net Pension Asset - Teacher Retirement Plan 0 164,331 0Net Pension Asset - Teacher Legacy Plan 0 1,836,492 0Capital Assets: Assets Not Depreciated: Land 13,370,636 2,391,826 355,901 Construction in Progress 289,194 749,593 48,068 Assets Net of Accumulated Depreciation: Buildings and Improvements 12,218,118 45,555,606 705,876 Infrastructure 14,365,843 123,562 18,388,290 Other Capital Assets 3,931,952 3,692,304 124,105Total Assets $ 81,379,408 $ 73,773,570 $ 24,475,099

Deferred Charge on Refunding $ 226,505 $ 0 $ 103,028Pension Changes in Assumptions 316,196 1,317,414 20,211Pension Changes in Experience 80,789 438,019 5,164Pension Changes in Proportionate Share of NPL 0 137,364 0Pension Contributions after Measurement Date 625,318 2,375,793 41,372OPEB Benefits Paid after Measurement Date 36,790 279,606 2,792OPEB Changes in Proportion 0 746,215 0OPEB Changes in Experience 0 819,933 0OPEB Changes in Assumptions 0 313,383 0Total Deferred Outflows of Resources $ 1,285,598 $ 6,427,727 $ 172,567

Accounts Payable $ 139,098 $ 0 $ 13,732Accrued Interest Payable 199,516 0 10,959Payroll Deductions Payable 222,214 810,033 17,624Due to Primary Government 0 134,456 0Due to State of Tennessee 0 0 18,314Current Liabilities Payable from Restricted Assets: Customer Deposits Payable 0 0 243,953Noncurrent Liabilities: Due Within One Year - Debt 2,849,018 0 312,599 Due Within One Year - Other 260,332 163,457 23,375 Due in More Than One Year - Debt 27,272,135 0 6,342,913 Due in More Than One Year - Other 528,948 8,110,386 40,141Total Liabilities $ 31,471,261 $ 9,218,332 $ 7,023,610

(Continued)

LIABILITIES

DEFERRED OUTFLOWS OF RESOURCES

ASSETS

Component UnitsPrimary

GovernmentGovernmental

Activities

16

Exhibit A

Marshall County, TennesseeStatement of Net Position (Cont.)

Marshall MarshallCounty County School Board of

Department Public Utilities

Deferred Current Property Taxes $ 9,438,263 $ 9,097,439 $ 0Pension Changes in Experience 346,976 2,731,043 22,179Pension Changes in Investment Earnings 98,678 479,204 6,308Pension Changes in Proportionate Share of NPL 0 24,756 0OPEB Changes in Assumptions 68,572 260,022 5,204OPEB Changes in Experience 465,337 0 35,314Total Deferred Inflows of Resources $ 10,417,826 $ 12,592,464 $ 69,005

Net Investment in Capital Assets $ 40,388,819 $ 52,512,891 $ 12,966,728Restricted for: Finance 13,714 0 0 Administration of Justice 459,429 0 0 Public Safety 122,383 0 0 Public Health and Welfare 92,989 0 0 Highway/Public Works 1,371,624 0 0 Education 0 354,708 0 Capital Projects 4,381,809 0 0 Pensions 1,088,958 2,863,544 69,607Unrestricted (7,143,806) 2,659,358 4,518,716

Total Net Position $ 40,775,919 $ 58,390,501 $ 17,555,051

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

Activities

DEFERRED INFLOWS OF RESOURCES

NET POSITION

PrimaryGovernment

Governmental

Component Units

17

Exhibit B

Marshall County, TennesseeStatement of ActivitiesFor the Year Ended June 30, 2019

Operating Capital Marshall Marshall Charges Grants Grants County County

for and and School Board of Functions/Programs Expenses Services Contributions Contributions Department Public Utilities

Primary Government: General Government $ 3,590,928 $ 654,210 $ 99,541 $ 0 $ (2,837,177) $ 0 $ 0 Finance 1,494,549 1,097,268 0 0 (397,281) 0 0 Administration of Justice 1,464,390 698,512 4,500 0 (761,378) 0 0 Public Safety 4,768,189 1,191,635 125,970 0 (3,450,584) 0 0 Public Health and Welfare 5,238,396 3,159,430 902,469 0 (1,176,497) 0 0 Social, Cultural, and Recreational Services 576,122 414 0 0 (575,708) 0 0 Agriculture and Natural Resources 140,738 0 0 0 (140,738) 0 0 Highways 3,251,124 3,453 2,313,087 463,864 (470,720) 0 0 Education 664,574 0 516,050 0 (148,524) 0 0 Interest on Long-term Debt 925,445 0 0 0 (925,445) 0 0Total Governmental Activities $ 22,114,455 $ 6,804,922 $ 3,961,617 $ 463,864 $ (10,884,052) $ 0 $ 0

Total Primary Government $ 22,114,455 $ 6,804,922 $ 3,961,617 $ 463,864 $ (10,884,052) $ 0 $ 0

Component Units: Marshall County School Department $ 49,289,976 $ 1,295,259 $ 5,681,973 $ 673,830 $ 0 $ (41,638,914) $ 0 Marshall County Board of Public Utilities 2,816,988 2,749,789 0 490,268 0 0 423,069

Total Component Units $ 52,106,964 $ 4,045,048 $ 5,681,973 $ 1,164,098 $ 0 $ (41,638,914) $ 423,069

(Continued)

Component UnitsNet (Expense) Revenue and Changes in Net Position

Program RevenuesPrimary

GovernmentGovernmental

Activities

18

Exhibit B

Marshall County, TennesseeStatement of Activities (Cont.)

Operating Capital Marshall Marshall Charges Grants Grants County County

for and and School Board of Functions/Programs Expenses Services Contributions Contributions Department Public Utilities

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 8,195,935 $ 9,648,050 $ 0 Property Taxes Levied for Debt Service 1,505,607 0 0 Local Option Sales Tax 3,270,320 3,109,336 0 Wheel Tax 1,517,369 0 0 Mineral Severance Tax 384,855 0 0 Business Tax 325,588 0 0 Hotel/Motel Tax 197,572 0 0 Litigation Tax 379,192 0 0 Adequate Facilities/Development Tax 494,643 0 0 Wholesale Beer Tax 112,535 0 0 Other Local Taxes 586 10,880 0 Grants and Contributions Not Restricted for Specific Programs 1,423,901 29,801,457 0 Unrestricted Investment Income 244,258 4,838 21,307 Miscellaneous 60,291 88,750 2,847Total General Revenues $ 18,112,652 $ 42,663,311 $ 24,154

Change in Net Position $ 7,228,600 $ 1,024,397 $ 447,223Net Position, July 1, 2018 33,547,319 57,366,104 17,107,828

Net Position, June 30, 2019 $ 40,775,919 $ 58,390,501 $ 17,555,051


Component UnitsNet (Expense) Revenue and Changes in Net Position

Activities

Primary Government

Program Revenues

Governmental

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Exhibit C-1

Marshall County, TennesseeBalance SheetGovernmental FundsJune 30, 2019

OtherHighway / General Other Govern- Total

Public Debt Capital mental GovernmentalGeneral Works Service Projects Funds Funds

ASSETS

Cash $ 450 $ 0 $ 0 $ 0 $ 0 $ 450Equity in Pooled Cash and Investments 10,635,263 656,553 5,850,836 3,512,574 2,342,216 22,997,442Accounts Receivable 3,397,707 99 0 0 63,643 3,461,449Allowance for Uncollectibles (1,514,794) 0 0 0 0 (1,514,794)Due from Other Governments 351,153 531,849 489,560 0 15,930 1,388,492Due from Other Funds 0 0 0 0 194,643 194,643Property Taxes Receivable 6,813,170 476,922 0 2,464,324 0 9,754,416Allowance for Uncollectible Property Taxes (74,878) (5,242) 0 (27,084) 0 (107,204)

Total Assets $ 19,608,071 $ 1,660,181 $ 6,340,396 $ 5,949,814 $ 2,616,432 $ 36,174,894

LIABILITIES

Accounts Payable $ 127,427 $ 0 $ 0 $ 0 $ 11,671 $ 139,098Payroll Deductions Payable 176,616 35,551 0 0 10,047 222,214Due to Other Funds 194,643 0 0 0 0 194,643Total Liabilities $ 498,686 $ 35,551 $ 0 $ 0 $ 21,718 $ 555,955


Deferred Current Property Taxes $ 6,592,347 $ 461,464 $ 0 $ 2,384,452 $ 0 $ 9,438,263Deferred Delinquent Property Taxes 127,945 9,016 0 43,788 0 180,749Other Deferred/Unavailable Revenue 1,810,038 201,403 244,780 0 0 2,256,221Total Deferred Inflows of Resources $ 8,530,330 $ 671,883 $ 244,780 $ 2,428,240 $ 0 $ 11,875,233

(Continued)

Nonmajor Funds

Major Funds

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Exhibit C-1

Marshall County, TennesseeBalance SheetGovernmental Funds (Cont.)



FUND BALANCES

Restricted:Restricted for Finance $ 13,714 $ 0 $ 0 $ 0 $ 0 $ 13,714Restricted for Administration of Justice 459,429 0 0 0 0 459,429Restricted for Public Safety 16,294 0 0 0 106,089 122,383Restricted for Public Health and Welfare 8,604 0 0 84,385 0 92,989Restricted for Highways/Public Works 0 952,747 0 0 232,702 1,185,449Restricted for Capital Outlay 0 0 0 3,437,189 944,620 4,381,809

Committed:Committed for Administration of Justice 0 0 0 0 87,458 87,458Committed for Public Safety 7,611 0 0 0 0 7,611Committed for Public Health and Welfare 0 0 0 0 1,223,845 1,223,845Committed for Social, Cultural, and Recreational Services 29,617 0 0 0 0 29,617Committed for Debt Service 0 0 6,095,616 0 0 6,095,616Committed for Other Purposes 173,706 0 0 0 0 173,706

Assigned:Assigned for General Government 606,992 0 0 0 0 606,992

Unassigned 9,263,088 0 0 0 0 9,263,088Total Fund Balances $ 10,579,055 $ 952,747 $ 6,095,616 $ 3,521,574 $ 2,594,714 $ 23,743,706

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 19,608,071 $ 1,660,181 $ 6,340,396 $ 5,949,814 $ 2,616,432 $ 36,174,894


Nonmajor Funds

Major Funds

21

Exhibit C-2

Marshall County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionJune 30, 2019

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) $ 23,743,706

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 13,370,636 Add: construction in progress 289,194 Add: buildings and improvements net of accumulated depreciation 12,218,118 Add: infrastructure net of accumulated depreciation 14,365,843 Add: other capital assets net of accumulated depreciation 3,931,952 44,175,743

(2) Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds. Less: capital leases payable $ (310,568) Less: notes payable (1,149,877) Less: bonds payable (27,910,000) Add: debt to be contributed by the School Department 134,456 Add: deferred amount on refunding 226,505 Less: other postemployment benefits liability (528,948) Less: compensated absences payable (260,332) Less: unamortized premium on debt (750,708) Less: accrued interest on notes and bonds (199,516) (30,748,988)

(3) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions and OPEB will be amortizedand recognized as components of pension and OPEB expense in future years. Add: deferred outflows of resources related to pensions $ 1,022,303 Less: deferred inflows of resources related to pensions (445,654) Add: deferred outflows of resources related to OPEB 36,790 Less: deferred inflows of resources related to OPEB (533,909) 79,530

(4) Net pension assets of the agent plan are not current financialresources and therefore are not reported in the governmental funds. 1,088,958

(5) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferred 2,436,970in the governmental funds.

Net position of governmental activities (Exhibit A) $ 40,775,919


22

Exhibit C-3

Marshall County, TennesseeStatement of Revenues, Expenditures,

and Changes in Fund BalancesGovernmental FundsFor the Year Ended June 30, 2019



RevenuesLocal Taxes $ 8,756,503 $ 1,100,956 $ 5,714,831 $ 1,342,510 $ 158,659 $ 17,073,459Licenses and Permits 357,561 0 0 0 0 357,561Fines, Forfeitures, and Penalties 179,357 0 0 0 68,524 247,881Charges for Current Services 1,939,708 0 0 0 515,573 2,455,281Other Local Revenues 296,463 21,396 0 0 1,019,655 1,337,514Fees Received From County Officials 1,741,973 0 0 0 0 1,741,973State of Tennessee 1,864,013 2,771,359 49,352 47,814 522,651 5,255,189Federal Government 60,428 0 0 0 0 60,428Other Governments and Citizens Groups 190,781 0 516,050 0 0 706,831

Total Revenues $ 15,386,787 $ 3,893,711 $ 6,280,233 $ 1,390,324 $ 2,285,062 $ 29,236,117

ExpendituresCurrent:

General Government $ 1,849,396 $ 0 $ 0 $ 0 $ 0 $ 1,849,396Finance 1,565,725 0 0 0 56 1,565,781Administration of Justice 1,564,600 0 0 0 10,652 1,575,252Public Safety 4,714,821 0 0 0 6,604 4,721,425Public Health and Welfare 3,066,921 0 0 0 2,146,540 5,213,461Social, Cultural, and Recreational Services 477,237 0 0 0 0 477,237Agriculture and Natural Resources 147,106 0 0 0 0 147,106Other Operations 1,569,206 0 0 0 0 1,569,206Highways 0 3,830,966 0 0 0 3,830,966

Debt Service:Principal on Debt 0 0 2,830,305 0 0 2,830,305Interest on Debt 0 0 945,166 0 0 945,166Other Debt Service 0 0 78,246 0 0 78,246

(Continued)

Major FundsNonmajor

Funds

23

Exhibit C-3


and Changes in Fund BalancesGovernmental Funds (Cont.)



Expenditures (Cont.)Capital Projects $ 0 $ 0 $ 0 $ 938,943 $ 616,482 $ 1,555,425Capital Projects - Donated 0 0 0 0 396,564 396,564

Total Expenditures $ 14,955,012 $ 3,830,966 $ 3,853,717 $ 938,943 $ 3,176,898 $ 26,755,536

Excess (Deficiency) of RevenuesOver Expenditures $ 431,775 $ 62,745 $ 2,426,516 $ 451,381 $ (891,836) $ 2,480,581

Other Financing Sources (Uses)Capital Leases Issued $ 0 $ 0 $ 0 $ 0 $ 266,485 $ 266,485Insurance Recovery 272 18,915 0 0 0 19,187Transfers In 45,000 0 6,434 84,225 194,643 330,302Transfers Out (278,868) 0 0 0 (51,434) (330,302)

Total Other Financing Sources (Uses) $ (233,596) $ 18,915 $ 6,434 $ 84,225 $ 409,694 $ 285,672

Net Change in Fund Balances $ 198,179 $ 81,660 $ 2,432,950 $ 535,606 $ (482,142) $ 2,766,253Fund Balance, July 1, 2018 10,380,876 871,087 3,662,666 2,985,968 3,076,856 20,977,453

Fund Balance, June 30, 2019 $ 10,579,055 $ 952,747 $ 6,095,616 $ 3,521,574 $ 2,594,714 $ 23,743,706


Major FundsNonmajor

Funds

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Exhibit C-4

Marshall 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, 2019

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) $ 2,766,253

(1) Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of these assets is allocated over their useful lives and reported as depreciation expense. The difference between capital outlays and depreciation is itemized as follows: Add: capital assets purchased in the current period $ 3,271,611 Less: current-year depreciation expense (1,858,519) 1,413,092

(2) The net effect of various miscellaneous transactions involving capitalassets (sales, trade-ins, and donations) is to decrease net position. (9,864)

(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2019 $ 2,436,970 Less: deferred delinquent property taxes and other deferred June 30, 2018 (2,165,397) 271,573

(4) The issuance of long-term debt (e.g., bonds, notes, leases) 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. Also, governmental funds report the effectof premiums, discounts, and similar items when debt is first issued,whereas these amounts are deferred and amortized in the statementof activities. This amount is the effect of these differences in thetreatment of long-term debt and related items: Add: principal payments on bonds $ 2,325,000 Add: principal payments on notes 250,297 Add: principal payments on capital leases 255,008 Less: capital lease proceeds (266,485) Less: contributions from the School Department for capital leases (164,635) Add: change in premium on debt issuances 45,210 Less: change in deferred amount on refunding debt (56,603) 2,387,792

(5) Some expenses reported in the statement of activities do not require

the use of current financial resources and therefore are not reportedas expenditures in the governmental funds. Change in net pension asset $ 554,179 Change in deferred outflows of resources related to pensions (135,838) Change in deferred inflows of resources related to pensions (56,771) Change in other postemployment benefits liability 515,899 Change in deferred outflows of resources related to OPEB (19,366) Change in deferred inflows of resources related to OPEB (495,514) Change in accrued interest payable 19,721 Change in compensated absences payable 17,444 399,754

Change in net position of governmental activities (Exhibit B) $ 7,228,600


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Exhibit C-5

Marshall County, TennesseeStatement of Revenues, Expenditures, and Changes

in Fund Balance - Actual and BudgetGeneral FundFor the Year Ended June 30, 2019

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesLocal Taxes $ 8,756,503 $ 8,652,020 $ 8,652,020 $ 104,483Licenses and Permits 357,561 405,500 405,500 (47,939)Fines, Forfeitures, and Penalties 179,357 148,280 148,280 31,077Charges for Current Services 1,939,708 2,092,800 2,130,889 (191,181)Other Local Revenues 296,463 236,196 243,541 52,922Fees Received From County Officials 1,741,973 1,765,000 1,765,000 (23,027)State of Tennessee 1,864,013 1,976,464 2,111,026 (247,013)Federal Government 60,428 65,457 71,098 (10,670)Other Governments and Citizens Groups 190,781 131,350 133,813 56,968

Total Revenues $ 15,386,787 $ 15,473,067 $ 15,661,167 $ (274,380)

ExpendituresGeneral Government

County Commission $ 166,501 $ 187,323 $ 178,323 $ 11,822Board of Equalization 1,517 1,820 1,820 303Other Boards and Committees 4,091 11,681 11,681 7,590County Mayor/Executive 161,588 173,435 170,935 9,347County Attorney 58,695 40,632 66,879 8,184Election Commission 204,025 226,795 226,795 22,770Register of Deeds 230,982 233,997 233,997 3,015Building 219,967 249,505 294,789 74,822County Buildings 802,030 755,975 940,375 138,345

FinanceAccounting and Budgeting 480,437 591,689 580,260 99,823Property Assessor's Office 265,619 275,997 276,997 11,378Reappraisal Program 148,800 162,271 161,271 12,471County Trustee's Office 221,235 230,331 230,331 9,096County Clerk's Office 449,634 463,573 469,573 19,939

Administration of JusticeCircuit Court 474,504 487,720 497,271 22,767General Sessions Judge 268,279 268,180 276,180 7,901Chancery Court 239,537 260,361 260,361 20,824Juvenile Court 268,551 310,126 317,210 48,659Courtroom Security 313,729 254,730 335,022 21,293

Public SafetySheriff's Department 2,173,772 2,312,407 2,304,766 130,994Administration of the Sexual Offender Registry 127 2,500 2,500 2,373Jail 2,028,025 2,101,773 2,118,118 90,093Rural Fire Protection 113,941 159,300 160,582 46,641Civil Defense 302,085 322,379 323,129 21,044Other Emergency Management 38,094 1,000 39,089 995County Coroner/Medical Examiner 58,232 67,737 80,737 22,505Other Public Safety 545 750 750 205

Public Health and WelfareLocal Health Center 63,163 102,200 104,794 41,631Rabies and Animal Control 64,930 78,046 79,657 14,727Ambulance/Emergency Medical Services 2,606,290 2,771,599 2,771,599 165,309Maternal and Child Health Services 5,000 5,000 5,000 0

(Continued)

Budgeted Amounts

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Exhibit C-5


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



Expenditures (Cont.)Public Health and Welfare (Cont.)

Other Local Health Services $ 211,854 $ 301,500 $ 346,700 $ 134,846Regional Mental Health Center 24,100 24,100 24,100 0Other Public Health and Welfare 91,584 91,584 94,084 2,500

Social, Cultural, and Recreational ServicesSenior Citizens Assistance 79,500 79,500 79,500 0Libraries 397,737 423,934 423,934 26,197

Agriculture and Natural ResourcesAgricultural Extension Service 96,986 107,587 107,587 10,601Forest Service 2,000 2,000 2,000 0Soil Conservation 48,120 48,529 48,529 409

Other OperationsTourism 48,675 50,000 50,000 1,325Other Economic and Community Development 361,409 356,490 366,643 5,234Veterans' Services 60,958 58,568 79,492 18,534Other Charges 667,664 877,575 846,413 178,749Contributions to Other Agencies 430,500 325,000 430,500 0

Total Expenditures $ 14,955,012 $ 15,857,199 $ 16,420,273 $ 1,465,261

Excess (Deficiency) of RevenuesOver Expenditures $ 431,775 $ (384,132) $ (759,106) $ 1,190,881

Other Financing Sources (Uses)Insurance Recovery $ 272 $ 10,000 $ 10,000 $ (9,728)Transfers In 45,000 45,000 45,000 0Transfers Out (278,868) (284,225) (284,225) 5,357

Total Other Financing Sources $ (233,596) $ (229,225) $ (229,225) $ (4,371)

Net Change in Fund Balance $ 198,179 $ (613,357) $ (988,331) $ 1,186,510Fund Balance, July 1, 2018 10,380,876 10,000,000 10,380,876 0

Fund Balance, June 30, 2019 $ 10,579,055 $ 9,386,643 $ 9,392,545 $ 1,186,510


Budgeted Amounts

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Exhibit C-6


in Fund Balance - Actual and BudgetHighway/Public Works FundFor the Year Ended June 30, 2019



RevenuesLocal Taxes $ 1,100,956 $ 967,817 $ 967,817 $ 133,139Other Local Revenues 21,396 6,000 6,000 15,396State of Tennessee 2,771,359 3,039,538 3,039,538 (268,179)

Total Revenues $ 3,893,711 $ 4,013,355 $ 4,013,355 $ (119,644)

ExpendituresHighways

Administration $ 234,603 $ 241,464 $ 241,464 $ 6,861Highway and Bridge Maintenance 2,003,852 2,107,861 2,107,861 104,009Operation and Maintenance of Equipment 689,456 843,890 843,890 154,434Other Charges 91,628 107,853 107,853 16,225Employee Benefits 58,235 59,500 69,500 11,265Capital Outlay 753,192 975,067 975,067 221,875

Total Expenditures $ 3,830,966 $ 4,335,635 $ 4,345,635 $ 514,669

Excess (Deficiency) of RevenuesOver Expenditures $ 62,745 $ (322,280) $ (332,280) $ 395,025

Other Financing Sources (Uses)Insurance Recovery $ 18,915 $ 1,500 $ 1,500 $ 17,415

Total Other Financing Sources $ 18,915 $ 1,500 $ 1,500 $ 17,415

Net Change in Fund Balance $ 81,660 $ (320,780) $ (330,780) $ 412,440Fund Balance, July 1, 2018 871,087 855,449 871,087 0

Fund Balance, June 30, 2019 $ 952,747 $ 534,669 $ 540,307 $ 412,440


Budgeted Amounts

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Exhibit D

Marshall County, TennesseeStatement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2019

ASSETS

Cash $ 788,130Equity in Pooled Cash and Investments 101,411Accounts Receivable 1,896Due from Other Governments 385,916

Total Assets $ 1,277,353

LIABILITIES

Accounts Payable $ 9Payroll Deductions Payable 16,748Due to Other Taxing Units 385,916Due to Litigants, Heirs, and Others 839,680Other Current Liabilities 35,000

Total Liabilities $ 1,277,353


AgencyFunds

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Note Page(s)

I. Summary of Significant Accounting PoliciesA. Reporting Entity 31B. Government-wide and Fund Financial Statements 32C. Measurement Focus, Basis of Accounting, and Financial

Statement Presentation 33D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and

Net Position/Fund Balance1. Deposits and Investments 362. Receivables and Payables 363. Inventories 374. Restricted Assets 385. Capital Assets 386. Deferred Outflows/Inflows of Resources 397. Compensated Absences 408. Long-term Debt and Long-term Obligations 409. Net Position and Fund Balance 4110. Minimum Fund Balance Policy 42

E. Pension Plans 43F. Other Postemployment Benefits (OPEB) Plans 43

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 44B. Explanation of Certain Differences Between the Governmental Fund

Statement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 44

III. Stewardship, Compliance, and AccountabilityBudgetary Information 44

IV. Detailed Notes on All FundsA. Deposits and Investments 45B. Capital Assets 50C. Interfund Receivables, Payables, and Transfers 53D. Capital Leases 54E. Long-term Debt 55F. Long-term Obligations 60G. On-Behalf Payments 62

V. Other InformationA. Risk Management 62B. Accounting Changes 64C. Contingent Liabilities 64D. Financial Guarantee 64E. Changes in Administration 65F. Joint Ventures 65G. Retirement Commitments 66H. Other Postemployment Benefits (OPEB) 83I. Office of Central Accounting and Budgeting 93J. Purchasing Laws 93K. Subsequent Events 94

MARSHALL COUNTY, TENNESSEEIndex of Notes to the Financial Statements

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MARSHALL COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended June 30, 2019

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Marshall 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 Marshall County: A. Reporting Entity

Marshall County is a public municipal corporation governed by an elected 18-member board. As required by GAAP, these financial statements present Marshall County (the primary government) and its component units. The financial statements of the Marshall County Emergency Communications District, a component unit requiring discrete presentation, were excluded from this report due to materiality calculations; therefore, the effect of its 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 Marshall County School Department operates the public school system in the county, and the voters of Marshall 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 Marshall County Emergency Communications District provides a simplified means of securing emergency services through a uniform emergency number for the residents of Marshall County, and the Marshall 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 Marshall County Emergency Communications District were not material to the component units’ opinion unit and therefore have been omitted from this report.

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The Marshall County Board of Public Utilities provides water services for the citizens of Marshall County, and the Marshall County Commission appoints its governing body. The public utility may not issue debt without county approval, and its budget is subject to the county commission’s approval. Water sales are the major source of funding, with the county being contingently liable for any debt. The Marshall County School Department and the Marshall County Board of Public Utilities do not issue separate financial statements from those of the county. Therefore, basic financial statements of the Marshall County School Department and the Marshall County Board of Public Utilities are included in this report as listed in the table of contents. Complete financial statements of the Marshall County Emergency Communications District can be obtained from its administrative office at the following address:

Administrative Office:

Marshall County Emergency Communications District P.O. Box 2786 Lewisburg, TN 37091

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 separately from governmental activities in government-wide financial statements. However, the primary government of Marshall County does not have any business-type activities to report. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The Marshall County School Department component unit only reports governmental activities in the government-wide financial statements while the Marshall County Board of Public Utilities component unit reports an enterprise fund. 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

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properly included among program revenues are reported instead as general revenues. Marshall County issues all debt for the discretely presented Marshall County School Department. Net debt issues totaling $266,485 were contributed by the county to the School Department during the year ended June 30, 2019. Separate financial statements are provided for governmental funds and fiduciary funds. Fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds 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 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 Marshall 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 two major categories: governmental and fiduciary. An emphasis is placed on major funds within the governmental category. Separate financial statements are provided for governmental funds and fiduciary funds. Major individual governmental funds 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. Marshall County considers grants and similar revenues to be available if they are collected within 60 days after year-end. Expenditures are

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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 General Debt Service Fund 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.

The discretely presented Marshall County Board of Public Utilities proprietary fund and the primary government’s 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.

Marshall 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. 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. Other Capital Projects Fund – This fund accounts for various capital projects and capital outlay for the county. Local taxes are the foundational revenues of this fund.

Additionally, Marshall County reports the following fund type:

Agency Funds – These funds account for amounts collected in an agency capacity by the constitutional officers, local sales taxes received by the state to be forwarded to the various cities in Marshall County, assets being held in a custodial capacity for the Marshall County Joint Economic Development Board, and to account for payroll processing of the Marshall County Emergency Communications District. Agency

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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 Marshall 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 Marshall 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 expenditure for specified purposes other than debt service or capital projects.

The discretely presented Marshall County Board of Public Utilities reports the following major proprietary fund:

Board of Public Utilities Fund – This fund accounts for water distribution services to areas of the county not served by existing municipal systems.

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. The discretely presented Marshall County Public Utilities’ proprietary fund (enterprise fund) distinguishes operating revenues and expenses from nonoperating items and is used to account for water distribution services to areas of the county not served by existing municipal systems. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the enterprise fund are charges for services. Operating expenses for the enterprise fund include payments to vendors, administrative expenses, and employee benefits.

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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 for the discretely presented Board of Public Utilities Fund, cash includes cash on hand, demand deposits, 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; 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, the discretely presented Marshall County School Department, and the discretely presented Marshall County Board of Public Utilities. 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 Fund. Marshall County, the School Department, and the Board of Public Utilities 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. 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. 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 and property taxes receivables are shown with an allowance for uncollectibles. Ambulance receivables allowance for uncollectibles is based on historical collection data. The allowance for uncollectible property taxes is equal to one percent of total taxes levied.

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The Marshall County Board of Public Utilities’ accounts receivable for water sales are shown without an allowance for uncollectibles. The utility does not provide an allowance for uncollectible accounts because of its ability to stop service for nonpaying customers.

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 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. Most payables are disaggregated on the face of the financial statements. Current liabilities payable from restricted assets reflected in the Board of Public Utilities Fund represent funds on deposit with the county trustee for customer deposits ($243,953).

3. Inventories Inventories of the Marshall County Board of Public Utilities are recorded at cost, determined on the first-in, first-out method. Inventories are recorded as expenditures when consumed rather than when purchased.

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4. Restricted Assets 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 Marshall 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 Marshall County School Department to fund retirement benefits upon approval of the TCRS Board of Directors. To date, the Marshall 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.

5. 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 primary government, the discretely presented School Department, and the discretely presented Board of Public Utilities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of $25,000 or more ($25,000 infrastructure) and an estimated useful life of 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. Interest incurred during the construction phase of capital assets of the Marshall County Board of Public Utilities Fund is included as part of the capitalized value of the assets constructed. Property, plant, equipment, and infrastructure of the primary government, the discretely presented School Department, and the discretely presented Board of Public Utilities are depreciated using the straight-line method over the following estimated useful lives:

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Assets Years

Buildings and Improvements 7 - 40Other Capital Assets 5 - 20Infrastructure: Roads 50 Bridges 50 Water Systems 50

6. 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 and the governmental funds balance sheet. These items are for the deferred charge on refunding debt, pension changes in assumptions, pension changes in experience, pension changes in the proportionate share of net pension liability, employer contributions made to the pension plan after the measurement date, OPEB benefits paid after the measurement date, OPEB changes in proportion, OPEB changes in experience, and OPEB changes in assumptions. 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 experience, pension changes in investment earnings, pension changes in the proportionate share of net pension liability, OPEB changes in assumptions, OPEB changes in experience, 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.

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7. Compensated Absences

It is the policy of the county, the discretely presented Marshall County School Department, and the discretely presented Marshall County Board of Public Utilities to permit employees to accumulate earned but unused vacation and sick leave benefits. There is no liability for unpaid accumulated sick leave since the county, the School Department, and the Board of Public Utilities do 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 government-wide financial statements for the county and its discretely presented component units. A liability for vacation benefits is reported in governmental funds only if amounts have matured, for example, as a result of employee resignations and retirements.

8. Long-term Debt and Long-term Obligations

In the government-wide financial statements and the Marshall County Board of Public Utilities’ proprietary fund 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 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 and other postemployment benefits, are recognized to the extent that the liabilities have matured (come due for payment) each period.

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9. Net Position and Fund Balance

In the government-wide financial statements and the Marshall County Board of Public Utilities’ 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. The government-wide Statement of Net Position reports $7,530,906 of restricted net position, of which $370,344 is restricted by enabling legislation. As of June 30, 2019, Marshall County had $25,665,445 in outstanding debt for capital purposes for the discretely presented Marshall County School Department. This debt is a liability of Marshall County, but the capital assets acquired are reported in the financial statements of the School Department. Therefore, Marshall 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:

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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. 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 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.

10. Minimum Fund Balance Policy To provide management with appropriate guidelines and direction to assist in making sound decisions related to managing the fund balance of certain governmental funds, the following minimum fund balance policy exists and consists of the sum of committed, assigned, and unassigned fund balances: General Fund – 25 percent of current-year expenditures.

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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 Marshall County’s participation in the Public Employee Retirement Plan of the Tennessee Consolidated Retirement System (TCRS), and additions to/deductions from Marshall 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. Discretely Presented Marshall 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 Marshall County. For this purpose, Marshall County recognizes benefit payments when due and payable in accordance with benefit terms. Marshall County’s OPEB plan is not administered through a trust. Discretely Presented Marshall 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 Marshall 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.

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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.

Discretely Presented Marshall County School Department

Exhibit I-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.

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 Marshall County School Department

Exhibit I-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

Budgetary Information

Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all governmental funds except the Constitutional Officer - Fees Fund (special revenue fund), which is not budgeted. 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, Other Boards and Committees, 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. At June 30, 2019, the Marshall County School Department reported the following significant encumbrances: Opinon Unit Amount

School Department: General Purpose School $ 1,022,531 Nonmajor Governmental 20,670

IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments Marshall County, the Marshall County School Department, and the Marshall County Board of Public Utilities 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 reflected on the balance sheets or statements of net position represents 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 than against each account. The members of the pool may be required by agreement to pay an assessment to cover

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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.

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; deposit 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 and in repurchase agreements. 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.

The county had no pooled and nonpooled investments as of June 30, 2019. TCRS Stabilization Trust

Legal Provisions. The Marshall 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 Marshall County School Department may not impose any restrictions on investments placed by the trust on their behalf.

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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 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 or amortized, which approximates 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 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, 2019, 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 activemarkets 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 arenot active; assets or liabilities that have a bid-ask spread price in an inactivedealer market, brokered market and principal-to-principal market; and Level1 assets or liabilities that are adjusted.

• Level 3 - Valuations derived from valuation techniques in which significantinputs are unobservable.

Investments using the Net Asset Value (“NAV”) per share have no readily determinable fair value and have been determined using amortized cost, which approximates fair value.

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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. 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, 2019, the Marshall 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 $ 27,207 Developed Market International Equity N/A N/A 12,287 Emerging Market International Equity N/A N/A 3,511 U.S. Fixed Income N/A N/A 17,553 Real Estate N/A N/A 8,777 Short-term Securities N/A N/A 878 Investments at Amortized Cost using the NAV: Private Equity and Strategic Lending N/A N/A 17,553

Total $ 87,766

AmortizedQuoted Cost

Prices inActive Significant

Markets for Other SignificantIdentical Observable Unobservable

Investment by Fair Fair Value Assets Inputs Inputs Value Level 6-30-19 (Level 1) (Level 2) (Level 3) NAV

U.S. Equity $ 27,207 $ 27,207 0 $ 0 $ 0Developed Market International Equity 12,287 12,287 0 0 0Emerging Market International Equity 3,511 3,511 0 0 0U.S. Fixed Income 17,553 0 17,553 0 0Real Estate 8,777 0 0 8,777 0Short-term Securities 878 0 878 0 0Private Equity and Strategic Lending 17,553 0 0 0 17,553

Total $ 87,766 $ 43,005 $ 18,431 $ 8,777 $ 17,553

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.

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Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Marshall 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. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Marshall 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. Marshall 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 Marshall 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/2019/ag18092.pdf

B. Capital Assets Capital assets activity for the year ended June 30, 2019, was as follows:

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https://comptroller.tn.gov/content/dam/cot/sa/advanced-search/disclaimer/2019/ag18092.pdf

https://comptroller.tn.gov/content/dam/cot/sa/advanced-search/disclaimer/2019/ag18092.pdf

Primary Government - Governmental Activities:

Balance Balance7-1-18 Increases Decreases 6-30-19

Capital Assets Not Depreciated:Land $ 13,370,636 $ 0 $ 0 $ 13,370,636Construction in Progress 0 289,194 0 289,194Total Capital Assets Not Depreciated $ 13,370,636 $ 289,194 $ 0 $ 13,659,830

Capital Assets Depreciated: Buildings and Improvements $ 19,994,737 $ 101,923 $ 0 $ 20,096,660Infrastructure 32,356,357 1,155,671 0 33,512,028Other Capital Assets 9,524,260 1,724,823 (171,386) 11,077,697Total Capital Assets Depreciated $ 61,875,354 $ 2,982,417 $ (171,386) $ 64,686,385

Less Accumulated Depreciation For:Buildings and Improvements $ 7,385,063 $ 493,479 $ 0 $ 7,878,542Infrastructure 18,515,390 630,795 0 19,146,185Other Capital Assets 6,573,022 734,245 (161,522) 7,145,745Total Accumulated Depreciation $ 32,473,475 $ 1,858,519 $ (161,522) $ 34,170,472Total Capital Assets Depreciated, Net $ 29,401,879 $ 1,123,898 $ (9,864) $ 30,515,913

Governmental Activities Capital Assets, Net $ 42,772,515 $ 1,413,092 $ (9,864) $ 44,175,743

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

General Government $ 210,350Finance 7,698Administration of Justice 2,499Public Safety 379,180Public Health and Welfare 414,926Social, Cultural, and Recreational Services 1,659Highway/Public Works 842,207

Total Depreciation Expense - Governmental Activities $ 1,858,519

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Discretely Presented Marshall County School Department - Governmental Activities:

Balance Balance7-1-18 Increases Decreaes 6-30-19

Capital Assets Not Depreciated:Land $ 2,391,826 $ 0 $ 0 $ 2,391,826Construction in Progress 0 749,593 0 749,593Total Capital Assets Not Depreciated $ 2,391,826 $ 749,593 $ 0 $ 3,141,419

Capital Assets Depreciated:Buildings and Improvements $ 92,055,772 $ 306,476 $ 0 $ 92,362,248Infrastructure 106,997 47,327 0 154,324Other Capital Assets 9,016,633 555,078 (137,357) 9,434,354Total Capital Assets Depreciated $ 101,179,402 $ 908,881 $ (137,357) $ 101,950,926

Less Accumulated Depreciation For:Buildings and Improvements $ 44,613,381 $ 2,193,261 $ 0 $ 46,806,642Infrastructure 25,412 5,350 0 30,762Other Capital Assets 5,431,251 439,624 (128,825) 5,742,050Total Accumulated Depreciation $ 50,070,044 $ 2,638,235 $ (128,825) $ 52,579,454Total Capital Assets Depreciated, Net $ 51,109,358 $ (1,729,354) $ (8,532) $ 49,371,472

Governmental Activities Capital Assets, Net $ 53,501,184 $ (979,761) $ (8,532) $ 52,512,891

Depreciation expense was charged to functions of the discretely presented Marshall County School Department as follows:

Governmental Activities:

Instruction $ 53,815Support Services 2,552,844Operation of Non-instructional Services 31,576

Total Depreciation Expense - Governmental Activities $ 2,638,235

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Discretely Presented Marshall County Board of Public Utilities Discretely Presented Marshall County Board of Public Utilities - Business-type Activities:

Balance Balance7-1-18 Increases Decreases 6-30-19

Capital Assets Not Depreciated:Land $ 355,901 $ 0 $ 0 $ 355,901Construction in Progress 26,215 146,253 (124,400) 48,068Total Capital Assets Not Depreciated $ 382,116 $ 146,253 $ (124,400) $ 403,969

Capital Assets Depreciated:Buildings and Improvements $ 979,951 $ 0 $ 0 $ 979,951Infrastructure 26,866,157 196,079 0 27,062,236Other Capital Assets 2,281,129 29,114 0 2,310,243Total Capital Assets Depreciated $ 30,127,237 $ 225,193 $ 0 $ 30,352,430

Less Accumulated Depreciation For:Buildings and Improvements $ 248,627 $ 25,448 $ 0 $ 274,075Infrastructure 8,194,953 478,993 0 8,673,946Other Capital Assets 2,121,928 64,210 0 2,186,138Total Accumulated Depreciation $ 10,565,508 $ 568,651 $ 0 $ 11,134,159Total Capital Assets Depreciated, Net $ 19,561,729 $ (343,458) $ 0 $ 19,218,271

Business-type Activities Capital Assets, Net $ 19,943,845 $ (197,205) $ (124,400) $ 19,622,240

Depreciation expense totaled $568,651 for the year ended June 30, 2019.

C. Interfund Receivables, Payables, and Transfers The composition of interfund balances as of June 30, 2019, was as follows: Due to/from Other Funds:

Receivable Fund Payable Fund Amount

Primary Government: Nonmajor governmental General $ 194,643

This balance 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.

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Due to/from Primary Government and Component Unit:

Receivable Fund Payable Fund AmountComponent Units:

Primary Government: School Department Governmental Activities Governmental Activities $ 134,456

The Due to Primary Government from the School Department is the balance of a capital lease issued by the county for the School Department. The School Department has agreed to contribute the funds necessary to retire the debt. This debt is reflected in the government-wide financial statements. Interfund Transfers: Interfund transfers for the year ended June 30, 2019, consisted of the following amounts: Primary Government

General OtherDebt Capital Nonmajor

General Service Projects GovernmentalTransfers Out Fund Fund Fund Funds

General Fund $ 0 $ 0 $ 84,225 $ 194,643Nonmajor governmental funds 45,000 6,434 0 0

Total $ 45,000 $ 6,434 $ 84,225 $ 194,643

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.

D. Capital Leases

On July 25, 2017, Marshall County entered into a three-year lease-purchase agreement for the School Department for computer equipment for school facilities. The terms of the agreement require total lease payments of $403,368. Title to the equipment transferred to the School Department immediately upon acceptance of each item of equipment. The General Purpose School Fund is making the lease payments. In the government-wide financial statements, the equipment was expensed in the year of acquisition because those items did not meet criteria of the county’s capitalization policy.

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On July 24, 2018, Marshall County entered into a three-year lease-purchase agreement for the School Department for computer equipment for school facilities. The terms of the agreement require total lease payments of $266,485 plus interest of 1.70 percent. Title to the equipment transferred to the School Department immediately upon acceptance of each item of equipment. The General Debt Service Fund is making the lease payments. In the government-wide financial statements, the equipment was expensed in the year of acquisition because those items did not meet criteria of the county’s capitalization policy. Future minimum lease payments and the net present value of these minimum lease payments as of June 30, 2019, were as follows:

Year EndingJune 30

2020 $ 224,830 2021 90,374 Total Minimum Lease Payments $ 315,204 Less: Amount Representing Interest (4,636)

Present Value of Minimum Lease Payments $ 310,568

GovernmentalFunds

E. Long-term Debt

Primary Government General Obligation Bonds, Notes, and Other Loans General Obligation Bonds - Marshall County issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities for the primary government and the discretely presented School Department. In addition, general obligation bonds have been issued to refund other general obligation bonds. General obligation bonds are direct obligations and pledge the full faith, credit, and taxing authority of the government. General obligation bonds were issued for original terms of up to 30 years. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. All bonds included in long-term debt as of June 30, 2019, will be retired from the General Debt Service Fund. Direct Borrowing and Direct Placements - Marshall 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

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government. Capital outlay notes outstanding were issued for original terms of up to 12 years for notes. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. All notes included in long-term debt as of June 30, 2019, will be retired from the General Debt Service Fund. General obligation bonds, capital outlay notes, and capital leases outstanding as of June 30, 2019, for governmental activities are as follows:

OriginalInterest Final Amount Balance

Type Rate Maturity of Issue 6-30-19

General Obligation Bonds 2.81 to 3.86 % 12-1-44 $ 19,495,000 $ 17,550,000General Obligation Bonds - Refunding 1.78 to 3.8 12-1-44 20,440,000 10,360,000Direct Borrowing and Direct Placement: Capital Outlay Notes 0.75 1-1-24 2,982,250 1,149,877 Capital Leases 0 to 1.7 7-24-20 669,853 310,568

The annual requirements to amortize all general obligation bonds and notes outstanding as of June 30, 2019, including interest payments, are presented in the following tables: Year EndingJune 30 Principal Interest Total

2020 $ 2,375,000 $ 869,085 $ 3,244,0852021 2,425,000 797,144 3,222,1442022 1,205,000 743,732 1,948,7322023 1,235,000 709,147 1,944,1472024 1,270,000 672,501 1,942,5012025-2029 6,150,000 2,768,087 8,918,0872030-2034 3,990,000 1,996,012 5,986,0122035-2039 3,850,000 1,368,410 5,218,4102040-2044 4,710,000 581,192 5,291,1922045 700,000 12,045 712,045

Total $ 27,910,000 $ 10,517,355 $ 38,427,355

Bonds

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Year EndingJune 30 Principal Interest

2020 $ 252,182 $ 7,762 $ 259,9442021 254,080 5,864 259,9442022 256,000 3,944 259,9442023 257,888 2,056 259,9442024 129,727 312 130,039

Total $ 1,149,877 $ 19,938 $ 1,169,815

TotalNotes - Direct Placement

There is $6,095,616 available in the General Debt Service Fund to service long-term debt. Bonded debt per capita totaled $912 based on the 2010 federal census. Total debt per capita, including bonds, notes, capital leases, and unamortized debt premiums, totaled $984, based on the 2010 federal census. The School Department is currently contributing funds to service some of the debt issued on its behalf by the primary government as noted in the table below. This debt is reflected in the government-wide financial statements as Due to the Primary Government in the financial statements of the School Department and as Due from Component Units in the financial statements of the primary government.

OutstandingDescription of Debt 6-30-19

Capital Leases - Direct Placement Contributions from the General Purpose School Fund Computer Equipment $ 134,456

Total $ 134,456

Changes in Long-term Debt Long-term debt activity for the year ended June 30, 2019, was as follows:

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Governmental Activities: CapitalNotes - Leases -Direct Direct

Bonds Placement Placement

Balance, July 1, 2018 $ 30,235,000 $ 1,400,174 $ 299,091Additions 0 0 266,485Reductions (2,325,000) (250,297) (255,008)

Balance, June 30, 2019 $ 27,910,000 $ 1,149,877 $ 310,568

Balance Due Within One Year $ 2,375,000 $ 252,182 $ 221,836

Analysis of Noncurrent Liabilities for Debt Presented on Exhibit A:

Total Noncurrent Liabilities - Debt, June 30, 2019 $ 29,370,445Less: Balance Due Within One Year - Debt (2,849,018)Add: Unamortized Premium on Debt 750,708

Noncurrent Liabilities - Due in More Than One Year - Debt - Exhibit A $ 27,272,135

Discretely Presented Marshall County Board of Public Utilities Revenue Bonds Revenue Bonds - The Board of Public Utilities issues revenue bonds to provide funds for the acquisition and construction of major capital facilities. Revenue bonds were issued for original terms of up to 38 years. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. The Board of Public Utilities has pledged its revenues from operations as collateral for the bonds. All bonds included in long-term debt as of June 30, 2019, will be retired by the utility. Revenue bonds outstanding as of June 30, 2019, for business-type activities were as follows:

OriginalInterest Final Amount Balance

Type Rate Maturity of Issue 6-30-19

Revenue Bonds 2.5 % 6-26-51 $ 409,000 $ 367,182Revenue Bonds - Refunding 1.9 6-01-36 7,005,000 6,120,000

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The annual requirements to amortize all revenue bonds outstanding as of June 30, 2019, including interest payments, are presented in the following table: Year EndingJune 30 Principal Interest Total

2020 $ 312,599 $ 139,400 $ 451,9992021 317,791 133,108 450,8992022 327,988 126,711 454,6992023 333,190 120,109 453,2992024 338,397 113,402 451,7992025-2029 1,800,283 462,016 2,262,2992030-2034 1,986,305 269,594 2,255,8992035-2039 898,127 55,278 953,4052040-2044 65,859 17,601 83,4602045-2049 74,652 8,808 83,4602050-2051 31,991 828 32,819

Total $ 6,487,182 $ 1,446,855 $ 7,934,037

Bonds

Changes in Long-term Debt Long-term debt activity for the Board of Public Utilities for the year ended June 30, 2019, was as follows:

Business-type Activities: Bonds

Balance, July 1, 2018 $ 6,794,594Additions 0Reductions (307,412)

Balance, June 30, 2019 $ 6,487,182

Balance Due Within One Year $ 312,599

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Analysis of Noncurrent Liabilities for Debt Presented on Exhibit A:

Total Noncurrent Liabilities - Debt, June 30, 2019 $ 6,487,182Less: Balance Due Within One Year - Debt (312,599)Add: Unamortized Premium on Debt 168,330

Noncurrent Liabilities - Due in More Than One Year - Debt - Exhibit A $ 6,342,913

F. Long-term Obligations

Primary Government Changes in Long-term Obligations Long-term obligations activity for the year ended June 30, 2019, was as follows:

Governmental Activities: Other Compensated Postemployment

Absences Benefits

Balance, July 1, 2018 $ 277,776 $ 1,044,847Additions 512,981 98,208Reductions (530,425) (614,107)

Balance, June 30, 2019 $ 260,332 $ 528,948

Balance Due Within One Year $ 260,332 $ 0

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

Analysis of Other Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities - Other, June 30, 2019 $ 789,280Less: Balance Due Within One Year - Other (260,332)

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 528,948

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Discretely Presented Marshall County School Department Changes in Long-term Obligations Long-term obligations activity for the discretely presented Marshall County School Department for the year ended June 30, 2019, was as follows:

Governmental Activities: Other Compensated Postemployment

Absences Benefits

Balance, July 1, 2018 $ 158,896 $ 5,770,203Additions 245,774 2,679,860Reductions (241,213) (339,677)

Balance, June 30, 2019 $ 163,457 $ 8,110,386


Compensated absences and other postemployment benefits will be paid from the employing funds, primarily the General Purpose School Fund.


Total Noncurrent Liabilities - Other, June 30, 2019 $ 8,273,843Less: Balance Due Within One Year - Other (163,457)

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 8,110,386

Discretely Presented Marshall County Board of Public Utilities Changes in Long-term Obligations Long-term obligations activity for the Board of Public Utilities for the year ended June 30, 2019, was as follows:

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Business-type Activities: OtherCompensated Postemployment

Absences Benefits

Balance, July 1, 2018 $ 21,355 $ 72,038Additions 36,264 14,707Reductions (34,244) (46,604)

Balance, June 30, 2019 $ 23,375 $ 40,141



Total Noncurrent Liabilities, June 30, 2019 $ 63,516Less: Balance Due Within One Year - Other (23,375)

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 40,141

G. On-Behalf Payments – Discretely Presented Marshall County School

Department The State of Tennessee pays health insurance premiums for retired teachers on-behalf of the Marshall County School Department. These payments are made by the state to the Local Education Group Insurance Plan. The plan is 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 for the year ended June 30, 2019, were $92,579. 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

Primary Government and the Discretely Presented Marshall County Board of Public Utilities Marshall County and the Marshall County Board of Public Utilities are exposed to various risks related to general liability, property, and casualty losses. In prior years, the county and the Board of Public Utilities decided it was more economically feasible to join a public entity risk pool instead of purchasing commercial insurance for general liability, property, and casualty coverage. The county and the Board of Public Utilities joined the Local Government Property and Casualty Fund (LGPCF), which is a public entity

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risk pool established by the Tennessee County Services Association, an association of member counties. The county and the Board of Public Utilities pay annual premiums to the LGPCF for their general liability, property, and casualty insurance coverage. The creation of the LGPCF provides for it to be self-sustaining through member premiums. The LGPCF reinsures through commercial insurance companies for claims exceeding $100,000 for each insured event. The county decided it was more economically feasible to join a public entity risk pool as opposed to purchasing commercial insurance for workers’ compensation coverage. Marshall County joined the Local Government Workers’ Compensation Fund (LGWCF), which is a public entity risk pool established by the Tennessee County Services Association, an association of member counties. Marshall County pays annual premiums to the LGWCF for its workers’ compensation coverage. The creation of the LGWCF provides for it to be self-sustaining through member premiums. Marshall County and the Board of Public Utilities participate in the Local Government Group Insurance Fund (LGGIF), a public entity risk pool established to provide a program of health insurance coverage for employees of local governments and quasi-governmental entities that was established for the primary purpose of providing services for or on behalf of state and local governments. In accordance with Section 8-27-207, Tennessee Code Annotated (TCA), all local governments and quasi-governmental entities described above are eligible to participate. The LGGIF 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. The state statute provides for the LGGIF to be self-sustaining through member premiums. Discretely Presented Marshall County School Department The discretely presented Marshall County School Department participates 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. The School Department pays an annual premium to the TN-RMT for its general liability, property, casualty, and worker’s compensation insurance coverage. The creation of the TN-RMT provides for it to be self-sustaining through member premiums. The 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.

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B. Accounting Changes Provisions of Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations; Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowing and Direct Placements became effective for the year ended June 30, 2019. In addition, Marshall County early implemented the provisions of GASB Statement No. 89, Accounting for Interest Costs Incurred Before the End of a Construction Period. GASB Statement No. 83, Certain Asset Retirement Obligations establishes accounting and reporting requirements for certain asset retirement obligations (AROs) associated with tangible capital assets. The scope of this statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, and expense/expenditures. In addition, this standard establishes note disclosure requirements for AROs. GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and Direct Placements addresses note disclosure requirements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should report when disclosing information related to debt. These required disclosures include direct borrowings and direct placements, unused lines of credit, assets pledged as collateral for debt, terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant acceleration clauses. GASB Statement No. 89, Accounting for Interest Costs Incurred Before the End of a Construction Period amends paragraphs 5 through 22 of GASB Statement No. 62. This standard establishes that interest cost incurred before the end of a construction period should be recognized as an expense/expenditure. The changes adopted to conform with this standard are to be applied prospectively.

C. 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.

D. Financial Guarantee

Marshall County guaranteed the water revenue and tax bonds totaling $6,487,182 issued by the discretely presented Marshall County Board of Public Utilities. In the event that revenues of the utility are insufficient to meet the debt service requirements, the payments will be made by Marshall County from ad valorem taxes levied upon all property in the county.

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E. Changes in Administration

On August 31, 2018, Joe Liggett left the Office of County Mayor and was succeeded by Mike Keny; and Courtney Boatright left the Office of Circuit, General Sessions, and Juvenile Courts Clerk and was succeeded by Mike Wiles.

F. Joint Ventures

Primary Government The Marshall County Joint Economic Development Board is a joint venture between Marshall County, the City of Lewisburg, and the Towns of Chapel Hill, Petersburg, and Cornersville. The board comprises the county mayor, city mayor, town administrators, and 16 additional members. The purpose of the board is to foster communication and facilitate economic and community development between and among governmental entities, industry, and private citizens. The city, towns, and county provide the majority of funding for the board based on the percentage of its population compared to the total census of the county. Marshall County has been designated as the fiscal agent for the board and accounts for its activities through the Community Development - Agency Fund, which is included in the financial statements of this report. Marshall County contributed $56,409 to the operations of the board during the year ended June 30, 2019. The Seventeenth Judicial District Drug Task Force (DTF) is a joint venture formed by an interlocal agreement between the district attorney general of the Seventeenth Judicial District, Lincoln, Moore, and Marshall 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 the judicial district. Marshall County did not contribute to the DTF for the year ended June 30, 2019. Marshall County does not have an equity interest in any of the above-noted joint ventures. Complete financial statements for the DTF can be obtained from its administrative office at the following address:


Office of District Attorney General Seventeenth Judicial District Drug Task Force P.O. Box 878 Fayetteville, TN 37334

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Discretely Presented Marshall County School Department 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 the Boards of Education of Marshall County, Bedford County, Coffee County, Dickson County, Fayetteville City, Hickman County, Houston County, Humphreys County, Lewis County, Lincoln County, Manchester City, and Stewart County. The cooperative was authorized through Chapter 49 of Tennessee Code Annotated 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:


Volunteer State Cooperative 220 McLemore Street Dickson, TN 37055

G. Retirement Commitments

1. Tennessee Consolidated Retirement System (TCRS)

Primary Government General Information About the Pension Plan Plan Description. Employees of Marshall County and non-certified employees of the discretely presented Marshall 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 56.32 percent, the non-certified employees of the discretely presented School Department comprise 40.08 percent, and the employees of the discretely presented Marshall County Board of Public Utilities comprise 3.60 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

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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 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, 2018, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 236Inactive Employees Entitled to But Not Yet Receiving Benefits 377Active Employees 474

Total 1,087

Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees contribute five percent of

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


salary. Marshall 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, 2019, the employer contribution for Marshall County was $1,107,834 based on a rate of 7.5 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept Marshall 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) Marshall County’s net pension liability (asset) was measured as of June 30, 2018, 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, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

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, 2018, 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

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are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target 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 class are summarized in the following table:

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 assumes that employee contributions will be made at the current rate and that contributions from Marshall 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, 2017 $ 39,981,072 $ 40,952,161 $ (971,089)

Changes for the Year: Service Cost $ 1,337,272 $ 0 $ 1,337,272 Interest 2,922,982 0 2,922,982 Differences Between Expected and Actual Experience (141,570) 0 (141,570) Changes in Assumptions 0 0 0 Contributions-Employer 0 1,041,617 (1,041,617) Contributions-Employees 0 696,649 (696,649) Net Investment Income 0 3,386,484 (3,386,484) Benefit Payments, Including Refunds of Employee Contributions (2,002,704) (2,002,704) 0 Administrative Expense 0 (43,635) 43,635 Other Changes 0 0 0Net Changes $ 2,115,980 $ 3,078,411 $ (962,431)

Balance, June 30, 2018 $ 42,097,052 $ 44,030,572 $ (1,933,520)

Increase (Decrease)

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

Plan NetTotal Fiduciary Pension

Pension Net LiabilityLiability Position (Asset)

Primary Government 56.32% $ 23,709,060 $ 24,798,018 $ (1,088,958)School Department 40.08% 16,872,498 17,647,453 (774,955)Public Utilities 3.60% 1,515,494 1,585,101 (69,607)

Total $ 42,097,052 $ 44,030,572 $ (1,933,520)

Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the net pension liability (asset) of Marshall 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 percent) or one percentage point higher (8.25 percent) than the current rate:

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Current1% Discount 1%

Decrease Rate Increase6.25% 7.25% 8.25%

Net Pension Liability $ 3,477,017 $ (1,933,520) $ (6,419,544)

Pension Expense (Negative Pension Expense) and Deferred Outflows of Resources and Deferred Inflows of Resources to Pensions Pension Expense (Negative Pension Expense). For the year ended June 30, 2019, Marshall County recognized pension expense of $494,904. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, Marshall 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 $ 143,447 $ 616,080Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 175,210Changes in Assumptions 561,427 0Contributions Subsequent to the Measurement Date of June 30, 2018 (1) 1,107,834 N/A

Total $ 1,812,708 $ 791,290

(1) The amount shown above for “Contributions Subsequent to the Measurement Date of June 30, 2018,” 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 $ 1,022,303 $ 445,654

School Department 723,658 317,149

Public Utilities 66,747 28,487

Total $ 1,812,708 $ 791,290

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

2020 $ 397,2422021 (59,499)2022 (310,123)2023 (114,038)2024 0Thereafter 0

In the table shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense. Discretely Presented Marshall County School Department Non-certified Employees General Information About the Pension Plan Plan Description. As noted above under the primary government, employees of Marshall County, non-certified employees of the discretely presented Marshall County School Department, and the employees of the discretely presented Marshall County Board of Public Utilities 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 56.32 percent, the non-certified employees of the discretely

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presented School Department comprise 40.08 percent, and the employees of the discretely presented Marshall County Board of Public Utilities comprise 3.60 percent of the plan based on contribution data. Certified Employees Teacher Retirement Plan General Information About the Pension Plan Plan Description. Teachers of the Marshall 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 current benefit. No COLA is granted

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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, 2019, to the Teacher Retirement Plan were $78,481, which is 1.94 percent of covered payroll. In addition, employer contributions of $83,335, which is 2.06 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, 2019, the School Department reported a liability (asset) of ($164,331) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2018, 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 June 30, 2018, the School Department’s proportion was .362339 percent. The proportion as of June 30, 2017, was .362863 percent.

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Pension Expense. For the year ended June 30, 2019, the School Department recognized pension expense of $56,731. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, 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 $ 9,307 $ 6,545Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 9,283Changes in Assumptions 7,753 0Changes in Proportion of Net Pension Liability (Asset) 6,985 0LEA's Contributions Subsequent to the Measurement Date of June 30, 2018 (1) 78,481 N/A

Total $ 102,526 $ 15,828

The School Department’s employer contributions of $78,481, 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, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:


2020 $ (591)2021 (886)2022 (2,209)2023 2172024 1,454Thereafter 10,231

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, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

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Mortality rates are based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2018, 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 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 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 percent) or one percentage point higher (8.25 percent) 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 $ 25,406 $ (164,331) $ (304,122)

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 Marshall 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

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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 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 Marshall County School Department for the year ended June 30, 2019, to the Teacher Legacy Pension Plan were $1,856,168, which is 10.46 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 (Negative Pension Expense), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Liability (Assets). At June 30, 2019, the School Department reported a liability (asset) of ($1,836,492) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2018, 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, 2018, the School Department’s proportion was .521892 percent. The proportion measured at June 30, 2017, was .523583 percent.

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Pension Expense (Negative Pension Expense). For the year ended June 30, 2019, the School Department recognized (negative) pension expense of ($501,161). Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, 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 $ 371,218 $ 2,477,573Changes in Assumptions 1,084,641 0Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 399,697Changes in Proportion of Net Pension Liability (Asset) 130,379 24,756LEA's Contributions Subsequent to the Measurement Date of June 30, 2018 1,856,168 N/A

Total $ 3,442,406 $ 2,902,026

The School Department’s employer contributions of $1,856,168 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, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:


2020 $ 403,1272021 (561,943)2022 (986,032)2023 (170,940)2024 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, 2018, 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, 2018, 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 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 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 percent) or one percentage point higher (8.25 percent) 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 $ 14,156,838 $ (1,836,492) $ (15,068,745)

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

Marshall County, the Marshall County School Department, and the Marshall County Board of Public Utilities offer their 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. 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 $206,674 and teachers contributed $77,882 to this deferred compensation pension plan.

H. Other Postemployment Benefits (OPEB)

Marshall County, the discretely presented Marshall County Board of Public Utilities, the discretely presented Marshall County Emergency Communications District, and the discretely presented Marshall County School Department provide OPEB benefits to its retirees through state administered public entity risk pools. 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.

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OPEB Provided through State Administered Public Entity Risk Pools Retirees of Marshall County, retirees of the discretely presented Marshall County Board of Public Utilities, and retirees of the discretely presented Marshall County Emergency Communications District are provided healthcare under the Local Government Plan (LGP) until they reach Medicare eligibility. The primary government comprised 86.97 percent, the discretely presented Marshall County Board of Public Utilities comprised 6.60 percent, and the discretely presented Marshall County Emergency Communications District comprised 6.43 percent of the plan based on employer contributions to the employee healthcare plan. Likewise, the School Department provides healthcare benefits to its retirees under the Local Education Plan (LEP) until they reach Medicare eligibility. Retirees, both certified and noncertified, of the School Department may then join the Tennessee Plan - Medicare (TNM), which provides supplemental medical insurance for retirees with Medicare. However, the School Department does not provide any subsidy (direct or indirect) to this plan and therefore does not recognize any OPEB liability associated with the TNM.

The county and the School Department’s total OPEB liability for each plan was measured as of June 30, 2018, and was determined by an actuarial valuation as of that date.

Actuarial Assumptions and Other Inputs. The total OPEB liability in the June 30, 2018, actuarial valuation of each 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 2.25%Discount Rate 3.62%Salary Increases Salary increase rates used in the July 1, 2018,

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

Healthcare Cost Trend Rates LGP and LEP: Based on the Getzen Model, with trend starting at 6.75% for the 2019 calendar year, and gradually decreasing over a 32-year period to an ultimate trend rate of 3.53% with .28% (LGP) and .32% (LEP) added to approximate the effect of the excise tax

Retirees Share of Benefit Related Cost Discussed under each plan

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The discount rate was 3.62 percent, based on the daily rate of Fidelity’s 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, 2018, 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, 2018, Pension Actuarial Valuation of the 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-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 percent load for males and a -3 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 percent load.

Changes in Assumptions. The discount rate changed from 3.56 percent as of the beginning of the measurement period to 3.62 percent as of the measurement date of June 30, 2018. The assumed initial costs and premium amounts were revised to reflect rates adopted for the 2019 plan year. The assumed initial trend rate applicable to the 2019 plan year was revised from 5.4 to 6.75 percent. It was also decided to change the status of the LGP from a closed plan to one that is open to all eligible employees regardless of initial hire date.

Local Government OPEB Plan (Primary Government)

Plan Description. Employees of Marshall County are provided with pre-65 retiree health insurance benefits through the Local Government OPEB Plan (LGP) administered by the Tennessee Department of Finance and Administration. All eligible pre-65 retired employees and disability participants of local governments, who choose coverage, participate in the LGP.

Benefits Provided. Marshall County offers the LGP to provide health insurance coverage to eligible pre-65 retirees and disabled participants of local governments. Insurance coverage is the only postemployment benefit provided to retirees. An insurance committee created in accordance with TCA 8-27-701, establishes and amends the benefit terms of the LGP. All members have the option of choosing between the premier preferred provider organization (PPO),

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standard PPO, limited PPO, or the wellness health savings consumer-driven health plan (CDHP) for healthcare benefits. Retired plan members of the LGP 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 the retiree premiums. Marshall County does not provide a direct subsidy and is only subject to the implicit subsidy.

Employees Covered by Benefit Terms

At the measurement date of June 30, 2018, the following employees were covered by the benefit terms of the LGP:

Inactive Employees or Beneficiaries Currently Receiving Benefits 7Inactive Employees Entitled to But Not Yet Receiving Benefits 0Active Employees 215

Total 222

An insurance committee, created in accordance with TCA 8-27-701, establishes the required payments to the LGP 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. For the fiscal year ended June 30, 2019, the county paid $42,302 to the LGP for OPEB benefits as they came due.

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Balance July 1, 2017 $ 1,182,890Changes for the Year: Service Cost $ 87,332 Interest 44,088 Changes in Benefit Terms 0 Difference between Expected and Actuarial Experience (597,271) Changes in Assumption and Other Inputs (45,268) Benefit Payments (63,575)

Net Changes $ (574,694)

Balance June 30, 2018 $ 608,196

LiabilityTotal OPEB

Allocation of the Total OPEB Liability in the LGP

TotalOPEB

Liability

Primary Government 86.97% $ 528,948Public Utilities 6.60% 40,141Emergency Communications District 6.43% 39,107

Total $ 608,196

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the county recognized OPEB expense of $59,314. At June 30, 2019, the county reported deferred outflows of resources and deferred inflows of resources related to OPEB in the LGP from the following sources:

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Changes in the Total OPEB Liability


Difference Between Expected and Actual Experience $ 0 $ 535,055Changes in Assumptions 78,846Benefits Paid after the Measurement Date of June 30, 2018 (1) 42,302 0

Total $ 42,302 $ 613,901

(1) The amount shown above for “Benefits Paid after the Measurement Date” will be recognized as a reduction to total OPEB liability in the following measurement period.

Allocation of LGP Deferred Outflows of Resources and Deferred Inflows of Resources


Primary Government $ 36,790 $ 533,909Public Utilities 2,792 40,518Emergency Communications District 2,720 39,474

Total $ 42,302 $ 613,901

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


2020 $ (72,106)2021 (72,106)2022 (72,106)2023 (72,106)2024 (72,106)Thereafter (253,371)

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 county calculated using the current discount rate as well as what the OPEB liability would be if it was calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Current1% Discount 1%

Decrease Rate Increase2.62% 3.62% 4.62%

Total OPEB Liability $ 657,091 $ 608,196 $ 562,709

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

Current1% Trend 1%

Decrease Rates Increase5.75 to 2.81% 6.75 to 3.81% 7.75 to 4.81%

Total OPEB Liability $ 531,628 $ 608,196 $ 700,476

Closed Local Education OPEB Plan (Discretely Presented School Department) Plan Description. Employees of the Marshall 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 OPEB 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 Marshall 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

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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. With at least 15 years of service with the Marshall County School Department and three years of participation in the LEP or 20 or more years of service and two years of participation in the LEP, retirees are eligible to receive a monthly direct subsidy toward the cost of their insurance premiums. The monthly subsidy is based on years of service and ranges from $169 to $345 for certified teachers and from $369 to $541 for support staff, based on the insurance plan selected by the retiree. The state, as a governmental non-employer contributing entity, provides a direct subsidy for eligible retirees’ premiums based on years of service. Therefore, retirees with 30 or more years of service will receive 45 percent; 20 but less than 30 years, 35 percent; and less than 20 years, 20 percent of the scheduled premium. No subsidy is provided by the state for enrollees of the health savings CDHP. Employees Covered by Benefit Terms At the measurement date of June 30, 2018, the following employees were covered by the benefit terms:

SchoolDepartment

Inactive Employees or Beneficiaries Currently Receiving Benefits 35Inactive Employees Entitled to But Not Yet Receiving Benefits 0Active Employees 502

Total 537

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 $279,606 to the LEP for OPEB benefits as they came due.

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Changes in the Collective Total OPEB Liability

Marshall County State ofSchool Department TN Total OPEB

76.6135% 23.3865% Liability

Balance July 1, 2017 $ 5,770,203 $ 2,809,246 $ 8,579,449Changes for the Year: Service Cost $ 381,627 $ 116,493 $ 498,120 Interest 241,540 73,730 315,270 Changes in Benefit Terms 0 0 0 Difference between Expected and Actual Experience 907,159 276,913 1,184,072 Changes in Proportion 802,813 (802,813) 0 Changes in Assumption and Other Inputs 346,721 105,837 452,558

Benefit Payments (339,677) (103,687) (443,364)Net Changes $ 2,340,183 $ (333,527) $ 2,006,656

Balance June 30, 2018 $ 8,110,386 $ 2,475,719 $ 10,586,105

Share of Collective Liability

The Marshall 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 Marshall County School Department's proportionate share of the collective total OPEB liability was based on a projection of the employer’s 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 $137,842 in revenue for subsidies provided by nonemployer contributing entities for benefits paid by the LEP for School Department retirees.

During the year, the Marshall County School Department’s proportionate share of the collective OPEB liability was 76.6135 percent and the State of Tennessee’s share was 23.3865 percent. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the School Department recognized OPEB expense of $928,858, including the state’s share of the expense. At June 30, 2019, 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 $ 819,933 $ 0Changes of Assumptions/Inputs 313,383 260,022Changes in Proportion and Differences Between Amounts Paid as Benefits Came Due and Proportionate Share Amounts Paid by the Employee and Nonemployer Contributors As Benefits Came Due 746,215 0Benefits Paid After the Measurement Date of June 30, 2108 (1) 279,606 0

Total $ 2,159,137 $ 260,022

(1) The amount shown above for “Benefits Paid After the Measurement Date” will be recognized as a reduction to total OPEB liability in the following measurement period.

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

Year Ending SchoolJune 30 Department

2020 $ 167,8492021 167,8492022 167,8492023 167,8492024 167,849Thereafter 780,264

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

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Discount RateCurrent

1% Discount 1%Decrease Rate Increase

2.62% 3.62% 4.62%

Proportionate Share of the Collective Total OPEB Liability $ 8,718,187 $ 8,110,386 $ 7,528,577

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

5.75% 6.75% 7.75%to 2.85% to 3.85% to 4.85%

Proportionate Share of the Collective Total OPEB Liability $ 7,146,778 $ 8,110,386 $ 9,244,396

I. Office of Central Accounting and Budgeting

Marshall County operates under provisions of Chapter 17, Private Acts of 2005, which provide for a central system of accounting and budgeting covering funds administered by the county mayor and highway superintendent. These funds are maintained in the Office of Director of Accounts and Budgets.

J. Purchasing Laws Office of County Mayor Purchasing procedures for this office are governed by the County Purchasing Law of 1983, Sections 5-14-201 through 5-14-207, Tennessee Code Annotated (TCA), which provide for competitive bids on all purchases exceeding $10,000. Chapter 17, Private Acts of 2005, requires that purchases exceeding $2,500 be approved in advance by the director of accounts and budgets.

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Office of Highway Superintendent Purchasing procedures for the Highway Department are governed by Chapter 17, Private Acts of 2005, and the Uniform Road Law, Section 54-7-113, TCA. Competitive bids are required to be solicited through newspaper advertisement for all purchases exceeding $10,000, and purchases exceeding $2,500 are required to have prior approval by the director of accounts and budgets. Office of Director of Schools Purchasing procedures for the Marshall County School Department are governed by purchasing laws applicable to schools as set forth in Section 49-2-203, TCA, which provides for the County Board of Education, through its executive committee (director of schools and chairman of the Board of Education), to make all purchases. This statute also requires competitive bids to be solicited through newspaper advertisement on all purchases exceeding $10,000. Office of Board of Public Utilities The utility has a general policy of requiring all purchases exceeding $10,000 to be made after public advertisement and solicitation of competitive bids.

K. Subsequent Events

Director of Accounts and Budgets Malinda White retired June 30, 2019, and was succeeded by Robin Bates effective September 23, 2019. On July 23, 2019, Marshall County entered into a three-year lease totaling $467,597 for computer equipment at the School Department.

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REQUIRED SUPPLEMENTARY INFORMATION

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Exhibit E-1

Marshall 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

Total Pension LiabilityService Cost $ 1,004,774 $ 1,074,330 $ 1,099,290 $ 1,188,940 $ 1,337,272Interest 2,357,662 2,511,475 2,699,260 2,821,041 2,922,982Differences Between Actual and Expected Experience 194,505 555,152 (504,622) (501,622) (141,570)Change in Assumptions 0 0 0 935,711 0Benefit Payments, Including Refunds of Employee Contributions (1,570,856) (1,580,468) (1,743,780) (1,775,873) (2,002,704)Net Change in Total Pension Liability $ 1,986,085 $ 2,560,489 $ 1,550,148 $ 2,668,197 $ 2,115,980Total Pension Liability, Beginning 31,216,153 33,202,238 35,762,727 37,312,875 39,981,072

Total Pension Liability, Ending (a) $ 33,202,238 $ 35,762,727 $ 37,312,875 $ 39,981,072 $ 42,097,052

Plan Fiduciary Net PositionContributions - Employer $ 1,181,756 $ 803,925 $ 813,697 $ 871,778 $ 1,041,617Contributions - Employee 594,063 609,918 606,001 665,448 696,649Net Investment Income 5,038,837 1,091,679 961,943 4,182,657 3,386,484Benefit Payments, Including Refunds of Employee Contributions (1,570,856) (1,580,468) (1,743,780) (1,775,873) (2,002,704)Administrative Expense (17,256) (22,195) (32,656) (39,506) (43,635)Other 0 0 3,240 0 0Net Change in Plan Fiduciary Net Position $ 5,226,544 $ 902,859 $ 608,445 $ 3,904,504 $ 3,078,411Plan Fiduciary Net Position, Beginning 30,309,809 35,536,353 36,439,212 37,047,657 40,952,161

Plan Fiduciary Net Position, Ending (b) $ 35,536,353 $ 36,439,212 $ 37,047,657 $ 40,952,161 $ 44,030,572

Net Pension Liability (Asset), Ending (a - b) $ (2,334,115) $ (676,485) $ 265,218 $ (971,089) $ (1,933,520)

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 107.03% 101.89% 99.29% 102.43% 104.59%Covered Payroll $ 11,889,021 $ 12,192,494 $ 12,241,399 $ 13,228,793 $ 13,888,192Net Pension Liability (Asset) as a Percentage of Covered Payroll (19.63)% (5.55)% 2.17% (7.34)% (13.92)%

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

Note 2. 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, discretely presented Board of Public Utilities, and the non-certified employees of the discretely presented School Department. Note 3. Changes of assumptions . In 2017, amounts reported as changes of assumptions resulted from changes to the inflation rate, investment rate of return, salary growth, and mortality improvements.

96

Exhibit E-2

Marshall 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

Actuarially Determined Contribution $ 1,181,756 $ 803,925 $ 813,697 $ 613,816 $ 622,191 $ 676,517Less Contributions in Relation to the Actuarially Determined Contribution (1,181,756) (803,925) (813,697) (871,778) (1,041,617) (1,107,834)

Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ (257,962) $ (419,426) $ (431,317)

Covered Payroll $ 11,889,021 $ 12,192,494 $ 12,241,399 $ 13,228,793 $ 13,888,192 $ 14,771,122

Contributions as a Percentage of Covered Payroll 9.94% 6.59% 6.65% 6.59% 7.50% 7.50%

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

Note 2. 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, discretely presented Board of Public Utilities, and the non-certified employees of the discretely presented School Department.

97

Exhibit E-3

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

2015 2016 2017 2018 2019*

Contractually Required Contribution $ 43,779 $ 71,190 $ 95,264 $ 126,656 $ 78,481Less Contributions in Relation to the Contractually Required Contribution (43,779) (71,190) (95,264) (126,656) (78,481)

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

Covered Payroll $ 1,094,463 $ 1,779,754 $ 2,381,591 $ 3,166,411 $ 4,045,388

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

* - In FY 2019 the School Department placed the actuarially determined contribution rate (1.94%) of covered payroll into the pension plan and placed 2.06 percent of covered payroll into the Pension Stabilization Reserve Trust.

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

98

Exhibit E-4

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

2014 2015 2016 2017 2018 2019

Contractually Required Contribution $ 1,717,390 $ 1,675,968 $ 1,658,502 $ 1,673,159 $ 1,659,365 $ 1,856,168Less Contributions in Relation to the Contractually Required Contribution (1,717,390) (1,675,968) (1,658,502) (1,673,159) (1,659,365) (1,856,168)

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

Covered Payroll $ 19,339,980 $ 18,539,464 $ 18,346,239 $ 18,508,367 $ 18,274,936 $ 17,745,392

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


99

Exhibit E-5

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

2015 2016 2017 2018

School Department's Proportion of the Net Pension Liability (Asset) 0.515889% 0.404487% 0.362863% 0.362339%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (21,191) $ (42,108) $ (95,734) $ (164,331)

Covered Payroll 1,094,463 1,779,754 2,381,591 3,166,411

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)%

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


100

Exhibit E-6

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

2014 2015 2016 2017 2018

School Department's Proportion of the Net Pension Liability (Asset) 0.492739% 0.495244% 0.508235% 0.523583% 0.521892%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (80,068) $ 202,869 $ 3,176,187 $ (171,307) $ (1,836,492)

Covered Payroll $ 19,339,980 $ 18,539,464 $ 18,346,239 $ 18,508,367 $ 18,274,936

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)%

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


101

Exhibit E-7

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

2017 2018Total OPEB LiabilityService Cost $ 92,243 $ 87,332 Interest 35,801 44,088 Changes in Benefit Terms 0 0Differences Between Actual and Expected Experience 0 (597,271)Changes in Assumptions or Other Inputs (48,643) (45,268)Benefit Payments (60,664) (63,575) Net Change in Total OPEB Liability $ 18,737 $ (574,694) Total OPEB Liability, Beginning 1,164,153 1,182,890

Total OPEB Liability, Ending $ 1,182,890 $ 608,196

Proportionate Share of the Total OPEB Liability: Primary Government $ 1,044,847 $ 528,948 Public Utilities (discretely presented component unit) 72,038 40,141 Emergency Communications District (discretely presented component unit) 66,005 39,107

Covered Employee Payroll $ 8,969,062 $ 9,485,778 Net OPEB Liability as a Percentage of Covered Employee Payroll 13.19% 6.41%

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

Note 2: Changes in assumptions. Changes in assumptions and other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period:

2017 2.92%2018 3.56%2019 3.62%

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

102

Exhibit E-8

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

2017 2018Total OPEB LiabilityService Cost $ 538,139 $ 498,120 Interest 261,492 315,270 Changes in Benefit Terms 0 0Differences Between Actual and Expected Experience 0 1,184,072Changes in Assumptions or Other Inputs (423,194) 452,558Benefit Payments (428,126) (443,364) Net Change in Total OPEB Liability $ (51,689) $ 2,006,656 Total OPEB Liability, Beginning 8,631,138 8,579,449

Total OPEB Liability, Ending $ 8,579,449 $ 10,586,105

Nonemployer Contributing Entity Proportionate Share of the Total OPEB Liability $ 2,809,246 $ 2,475,719 Employer Proportionate Share of the Total OPEB Liability 5,770,203 8,110,386

Covered Employee Payroll $ 27,319,044 $ 28,084,801 Net OPEB Liability as a Percentage of Covered Employee Payroll 21.12% 28.88%

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

Note 2: Changes in assumptions. Changes in assumptions and other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period:

2017 2.92%2018 3.56%2019 3.62%

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

103

MARSHALL COUNTY, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION


TENNESSEE CONSOLIDATED RETIREMENT SYSTEM Valuation Date: Actuarially determined contribution rates for fiscal year 2019 were calculated based on the June 30, 2017, 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 Varies by YearAsset Valuation 10-Year Smoothed Within a 20%

Corridor 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 an Adjustment for Some Anticipated Improvement


Changes of Assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3.0 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 to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4 percent; and modified the mortality assumptions.

104

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

105

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.

____________________________ Juvenile Services Fund – The Juvenile Services Fund is used to account for the costs of the delinquency prevention officer’s grant, programs, and services. Solid Waste/Sanitation Fund – The Solid Waste/Sanitation Fund is used to account for the Marshall/Maury Municipal Planning Region. Drug Control Fund – The Drug Control Fund is used to account for revenues received from drug-related fines, forfeitures, and seizures. Constitutional Officer - 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.

106

Capital Projects Funds ____________________________

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 the acquisition or construction of capital facilities for the general government and debt issued by the county that is subsequently contributed to the discretely presented Marshall County School Department for general capital expenditures. Highway Capital Projects Fund – The Highway Capital Projects Fund is used to account for highway-related expenditures of the county. School Bus Acquisition Fund – The School Bus Acquisition Fund is used to account for school bus purchases.

107

Exhibit F-1

Marshall County, TennesseeCombining Balance SheetNonmajor Governmental FundsJune 30, 2019

Solid HighwayJuvenile Waste / Drug CapitalServices Sanitation Control Total Projects

ASSETS

Equity in Pooled Cash and Investments $ 87,458 $ 1,165,990 $ 106,089 $ 1,359,537 $ 38,059Accounts Receivable 0 63,643 0 63,643 0Due from Other Governments 0 15,930 0 15,930 0Due from Other Funds 0 0 0 0 194,643

Total Assets $ 87,458 $ 1,245,563 $ 106,089 $ 1,439,110 $ 232,702

LIABILITIES

Accounts Payable $ 0 $ 11,671 $ 0 $ 11,671 $ 0Payroll Deductions Payable 0 10,047 0 10,047 0Total Liabilities $ 0 $ 21,718 $ 0 $ 21,718 $ 0

FUND BALANCES

Restricted:Restricted for Public Safety $ 0 $ 0 $ 106,089 $ 106,089 $ 0Restricted for Highways/Public Works 0 0 0 0 232,702Restricted for Capital Outlay 0 0 0 0 0

Committed:Committed for Administration of Justice 87,458 0 0 87,458 0Committed for Public Health and Welfare 0 1,223,845 0 1,223,845 0

Total Fund Balances $ 87,458 $ 1,223,845 $ 106,089 $ 1,417,392 $ 232,702

Total Liabilities and Fund Balances $ 87,458 $ 1,245,563 $ 106,089 $ 1,439,110 $ 232,702

(Continued)

Special Revenue Funds

Capital Projects Funds

108

Exhibit F-1

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

TotalSchool Nonmajor

Bus GovernmentalAcquisition Total Funds

ASSETS

Equity in Pooled Cash and Investments $ 944,620 $ 982,679 $ 2,342,216Accounts Receivable 0 0 63,643Due from Other Governments 0 0 15,930Due from Other Funds 0 194,643 194,643

Total Assets $ 944,620 $ 1,177,322 $ 2,616,432

LIABILITIES

Accounts Payable $ 0 $ 0 $ 11,671Payroll Deductions Payable 0 0 10,047Total Liabilities $ 0 $ 0 $ 21,718

FUND BALANCES

Restricted:Restricted for Public Safety $ 0 $ 0 $ 106,089Restricted for Highways/Public Works 0 232,702 232,702Restricted for Capital Outlay 944,620 944,620 944,620

Committed:Committed for Administration of Justice 0 0 87,458Committed for Public Health and Welfare 0 0 1,223,845

Total Fund Balances $ 944,620 $ 1,177,322 $ 2,594,714

Total Liabilities and Fund Balances $ 944,620 $ 1,177,322 $ 2,616,432

Capital Projects Funds (Cont.)

109

Exhibit F-2

Marshall County, TennesseeCombining Statement of Revenues, Expenditures,

and Changes in Fund BalancesNonmajor Governmental FundsFor the Year Ended June 30, 2019

Constitu -Solid tional General

Juvenile Waste / Drug Officers - CapitalServices Sanitation Control Fees Total Projects

RevenuesLocal Taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Fines, Forfeitures, and Penalties 55,195 0 13,329 0 68,524 0Charges for Current Services 0 515,517 0 56 515,573 0Other Local Revenues 0 1,013,704 5,951 0 1,019,655 0State of Tennessee 0 403,078 0 0 403,078 0

Total Revenues $ 55,195 $ 1,932,299 $ 19,280 $ 56 $ 2,006,830 $ 0


Finance $ 0 $ 0 $ 0 $ 56 $ 56 $ 0Administration of Justice 10,652 0 0 0 10,652 0Public Safety 0 0 6,604 0 6,604 0Public Health and Welfare 0 2,146,540 0 0 2,146,540 0

Capital Projects 0 0 0 0 0 266,485Capital Projects - Donated 0 0 0 0 0 0

Total Expenditures $ 10,652 $ 2,146,540 $ 6,604 $ 56 $ 2,163,852 $ 266,485

Excess (Deficiency) of RevenuesOver Expenditures $ 44,543 $ (214,241) $ 12,676 $ 0 $ (157,022) $ (266,485)

Other Financing Sources (Uses)Capital Leases Issued $ 0 $ 0 $ 0 $ 0 $ 0 $ 266,485Transfers In 0 0 0 0 0 0Transfers Out (45,000) 0 0 0 (45,000) (6,434)

Total Other Financing Sources (Uses) $ (45,000) $ 0 $ 0 $ 0 $ (45,000) $ 260,051

(Continued)



110

Exhibit F-2


and Changes in Fund BalancesNonmajor Governmental Funds (Cont.)

Constitu -Solid tional General

Juvenile Waste / Drug Officers - CapitalServices Sanitation Control Fees Total Projects

Net Change in Fund Balances $ (457) $ (214,241) $ 12,676 $ 0 $ (202,022) $ (6,434)Fund Balance, July 1, 2018 87,915 1,438,086 93,413 0 1,619,414 6,434

Fund Balance, June 30, 2019 $ 87,458 $ 1,223,845 $ 106,089 $ 0 $ 1,417,392 $ 0

(Continued)



111

Exhibit F-2



TotalHighway School NonmajorCapital Bus GovernmentalProjects Acquisition Total Funds

RevenuesLocal Taxes $ 0 $ 158,659 $ 158,659 $ 158,659Fines, Forfeitures, and Penalties 0 0 0 68,524Charges for Current Services 0 0 0 515,573Other Local Revenues 0 0 0 1,019,655State of Tennessee 0 119,573 119,573 522,651

Total Revenues $ 0 $ 278,232 $ 278,232 $ 2,285,062


Finance $ 0 $ 0 $ 0 $ 56Administration of Justice 0 0 0 10,652Public Safety 0 0 0 6,604Public Health and Welfare 0 0 0 2,146,540

Capital Projects 348,410 1,587 616,482 616,482Capital Projects - Donated 0 396,564 396,564 396,564

Total Expenditures $ 348,410 $ 398,151 $ 1,013,046 $ 3,176,898

Excess (Deficiency) of RevenuesOver Expenditures $ (348,410) $ (119,919) $ (734,814) $ (891,836)

Other Financing Sources (Uses)Capital Leases Issued $ 0 $ 0 $ 266,485 $ 266,485Transfers In 194,643 0 194,643 194,643Transfers Out 0 0 (6,434) (51,434)

Total Other Financing Sources (Uses) $ 194,643 $ 0 $ 454,694 $ 409,694

(Continued)


112

Exhibit F-2



TotalHighway School NonmajorCapital Bus GovernmentalProjects Acquisition Total Funds

Net Change in Fund Balances $ (153,767) $ (119,919) $ (280,120) $ (482,142)Fund Balance, July 1, 2018 386,469 1,064,539 1,457,442 3,076,856

Fund Balance, June 30, 2019 $ 232,702 $ 944,620 $ 1,177,322 $ 2,594,714


113

Exhibit F-3

Marshall County, TennesseeSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Actual and BudgetJuvenile Services FundFor the Year Ended June 30, 2019



RevenuesFines, Forfeitures, and Penalties $ 55,195 $ 80,000 $ 80,000 $ (24,805)

Total Revenues $ 55,195 $ 80,000 $ 80,000 $ (24,805)

ExpendituresAdministration of Justice

Juvenile Court $ 10,652 $ 22,300 $ 22,300 $ 11,648Total Expenditures $ 10,652 $ 22,300 $ 22,300 $ 11,648

Excess (Deficiency) of RevenuesOver Expenditures $ 44,543 $ 57,700 $ 57,700 $ (13,157)

Other Financing Sources (Uses)Transfers Out $ (45,000) $ (45,000) $ (45,000) $ 0

Total Other Financing Sources $ (45,000) $ (45,000) $ (45,000) $ 0

Net Change in Fund Balance $ (457) $ 12,700 $ 12,700 $ (13,157)Fund Balance, July 1, 2018 87,915 94,863 87,915 0

Fund Balance, June 30, 2019 $ 87,458 $ 107,563 $ 100,615 $ (13,157)

Budgeted Amounts

114

Exhibit F-4


in Fund Balance - Actual and BudgetSolid Waste/Sanitation FundFor the Year Ended June 30, 2019



RevenuesCharges for Current Services $ 515,517 $ 458,000 $ 458,000 $ 57,517Other Local Revenues 1,013,704 912,000 933,350 80,354State of Tennessee 403,078 889,382 889,382 (486,304)

Total Revenues $ 1,932,299 $ 2,259,382 $ 2,280,732 $ (348,433)

ExpendituresPublic Health and Welfare

Sanitation Management $ 2,146,540 $ 2,718,313 $ 2,739,663 $ 593,123Total Expenditures $ 2,146,540 $ 2,718,313 $ 2,739,663 $ 593,123

Excess (Deficiency) of RevenuesOver Expenditures $ (214,241) $ (458,931) $ (458,931) $ 244,690

Other Financing Sources (Uses)Insurance Recovery $ 0 $ 1,500 $ 1,500 $ (1,500)

Total Other Financing Sources $ 0 $ 1,500 $ 1,500 $ (1,500)

Net Change in Fund Balance $ (214,241) $ (457,431) $ (457,431) $ 243,190Fund Balance, July 1, 2018 1,438,086 1,366,328 1,438,086 0

Fund Balance, June 30, 2019 $ 1,223,845 $ 908,897 $ 980,655 $ 243,190

Budgeted Amounts

115

Exhibit F-5


in Fund Balance - Actual and BudgetDrug Control FundFor the Year Ended June 30, 2019



RevenuesFines, Forfeitures, and Penalties $ 13,329 $ 9,810 $ 9,810 $ 3,519Other Local Revenues 5,951 1,500 1,500 4,451

Total Revenues $ 19,280 $ 11,310 $ 11,310 $ 7,970

ExpendituresPublic Safety

Drug Enforcement $ 6,604 $ 12,600 $ 12,600 $ 5,996Total Expenditures $ 6,604 $ 12,600 $ 12,600 $ 5,996

Excess (Deficiency) of RevenuesOver Expenditures $ 12,676 $ (1,290) $ (1,290) $ 13,966

Net Change in Fund Balance $ 12,676 $ (1,290) $ (1,290) $ 13,966Fund Balance, July 1, 2018 93,413 89,838 93,413 0


Budgeted Amounts

116

Exhibit F-6


in Fund Balance - Actual and BudgetGeneral Capital Projects FundFor the Year Ended June 30, 2019



Total Revenues $ 0 $ 0 $ 0 $ 0

ExpendituresCapital Projects

Education Capital Projects $ 266,485 $ 0 $ 266,485 $ 0Total Expenditures $ 266,485 $ 0 $ 266,485 $ 0

Excess (Deficiency) of RevenuesOver Expenditures $ (266,485) $ 0 $ (266,485) $ 0

Other Financing Sources (Uses)Capital Leases Issued $ 266,485 $ 0 $ 266,485 $ 0Transfers Out (6,434) 0 (6,434) 0

Total Other Financing Sources $ 260,051 $ 0 $ 260,051 $ 0

Net Change in Fund Balance $ (6,434) $ 0 $ (6,434) $ 0Fund Balance, July 1, 2018 6,434 0 6,434 0

Fund Balance, June 30, 2019 $ 0 $ 0 $ 0 $ 0

Budgeted Amounts

117

Exhibit F-7


in Fund Balance - Actual and BudgetHighway Capital Projects FundFor the Year Ended June 30, 2019



Total Revenues $ 0 $ 0 $ 0 $ 0


Highway and Street Capital Projects $ 348,410 $ 395,886 $ 395,886 $ 47,476Total Expenditures $ 348,410 $ 395,886 $ 395,886 $ 47,476


Other Financing Sources (Uses)Transfers In $ 194,643 $ 200,000 $ 200,000 $ (5,357)

Total Other Financing Sources $ 194,643 $ 200,000 $ 200,000 $ (5,357)

Net Change in Fund Balance $ (153,767) $ (195,886) $ (195,886) $ 42,119Fund Balance, July 1, 2018 386,469 395,886 386,469 0


Budgeted Amounts

118

Exhibit F-8


in Fund Balance - Actual and BudgetSchool Bus Acquisition FundFor the Year Ended June 30, 2019



RevenuesLocal Taxes $ 158,659 $ 130,000 $ 130,000 $ 28,659State of Tennessee 119,573 120,000 120,000 (427)

Total Revenues $ 278,232 $ 250,000 $ 250,000 $ 28,232


Other General Government Projects $ 1,587 $ 3,000 $ 3,000 $ 1,413Capital Projects - Donated

Capital Projects Donated to School Department 396,564 420,000 420,000 23,436Total Expenditures $ 398,151 $ 423,000 $ 423,000 $ 24,849


Net Change in Fund Balance $ (119,919) $ (173,000) $ (173,000) $ 53,081Fund Balance, July 1, 2018 1,064,539 1,142,142 1,064,539 0


Budgeted Amounts

119

Major Governmental Funds

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.

________________________________________

Other Capital Projects Fund ________________________________________

The Other Capital Projects Fund is used to account for various capital projects and capital outlay for the county.

________________________________________

120

Exhibit G-1


in Fund Balance - Actual and BudgetGeneral Debt Service FundFor the Year Ended June 30, 2019



RevenuesLocal Taxes $ 5,714,831 $ 5,420,282 $ 5,420,282 $ 294,549State of Tennessee 49,352 46,000 46,000 3,352Other Governments and Citizens Groups 516,050 259,944 516,050 0

Total Revenues $ 6,280,233 $ 5,726,226 $ 5,982,332 $ 297,901

ExpendituresPrincipal on Debt

General Government $ 370,000 $ 371,000 $ 371,000 $ 1,000Education 2,460,305 2,207,000 2,462,008 1,703

Interest on DebtGeneral Government 137,556 140,000 138,000 444Education 807,610 810,500 808,598 988

Other Debt ServiceGeneral Government 76,721 80,000 90,000 13,279Highways and Streets 0 5,000 0 0Education 1,525 5,000 5,000 3,475


Excess (Deficiency) of RevenuesOver Expenditures $ 2,426,516 $ 2,107,726 $ 2,107,726 $ 318,790

Other Financing Sources (Uses)Transfers In $ 6,434 $ 0 $ 6,434 $ 0

Total Other Financing Sources $ 6,434 $ 0 $ 6,434 $ 0

Net Change in Fund Balance $ 2,432,950 $ 2,107,726 $ 2,114,160 $ 318,790Fund Balance, July 1, 2018 3,662,666 3,590,223 3,662,666 0

Fund Balance, June 30, 2019 $ 6,095,616 $ 5,697,949 $ 5,776,826 $ 318,790

Budgeted Amounts

121

Exhibit G-2


in Fund Balance - Actual and BudgetOther Capital Projects FundFor the Year Ended June 30, 2019



RevenuesLocal Taxes $ 1,342,510 $ 1,330,680 $ 1,330,680 $ 11,830State of Tennessee 47,814 147,000 147,000 (99,186)

Total Revenues $ 1,390,324 $ 1,477,680 $ 1,477,680 $ (87,356)


Other General Government Projects $ 938,943 $ 3,099,225 $ 3,100,509 $ 2,161,566Total Expenditures $ 938,943 $ 3,099,225 $ 3,100,509 $ 2,161,566

Excess (Deficiency) of RevenuesOver Expenditures $ 451,381 $ (1,621,545) $ (1,622,829) $ 2,074,210

Other Financing Sources (Uses)Transfers In $ 84,225 $ 84,225 $ 84,225 $ 0

Total Other Financing Sources $ 84,225 $ 84,225 $ 84,225 $ 0

Net Change in Fund Balance $ 535,606 $ (1,537,320) $ (1,538,604) $ 2,074,210Fund Balance, July 1, 2018 2,985,968 2,981,226 2,985,968 0

Fund Balance, June 30, 2019 $ 3,521,574 $ 1,443,906 $ 1,447,364 $ 2,074,210

Budgeted Amounts

122

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. Community Development - Agency Fund – The Community Development - Agency Fund is used to account for transactions of the Marshall County Joint Economic Development Board for Marshall County, the City of Lewisburg, the Towns of Chapel Hill, Petersburg, and Cornersville. 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, general sessions, and juvenile 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. Other Agency Fund – The Other Agency Fund is used to account for payroll processing of the Marshall County Emergency Communications District.

123

Exhibit H-1

Marshall County, TennesseeCombining Statement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2019

Constitu -Cities - Community tionalSales Development Officers - OtherTax Agency Agency Agency Total

ASSETS

Cash $ 0 $ 0 $ 788,130 $ 0 $ 788,130Equity in Pooled Cash and Investments 0 50,637 0 50,774 101,411Accounts Receivable 0 0 1,896 0 1,896Due from Other Governments 385,916 0 0 0 385,916

Total Assets $ 385,916 $ 50,637 $ 790,026 $ 50,774 $ 1,277,353

LIABILITIES

Accounts Payable $ 0 $ 9 $ 0 $ 0 $ 9Payroll Deductions Payable 0 974 0 15,774 16,748Due to Other Taxing Units 385,916 0 0 0 385,916Due to Litigants, Heirs, and Others 0 49,654 790,026 0 839,680Other Current Liabilities 0 0 0 35,000 35,000

Total Liabilities $ 385,916 $ 50,637 $ 790,026 $ 50,774 $ 1,277,353

Agency Funds

124

Exhibit H-2

Marshall County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency FundsFor the Year Ended June 30, 2019

Beginning EndingBalance Additions Deductions Balance

Cities - Sales Tax Fund Assets Equity in Pooled Cash and Investments $ 0 $ 2,312,672 $ 2,312,672 $ 0 Due from Other Governments 379,373 385,916 379,373 385,916

Total Assets $ 379,373 $ 2,698,588 $ 2,692,045 $ 385,916

Liabilities Due to Other Taxing Units $ 379,373 $ 2,698,588 $ 2,692,045 $ 385,916

Total Liabilities $ 379,373 $ 2,698,588 $ 2,692,045 $ 385,916

Community Development - Agency Fund Assets Equity in Pooled Cash and Investments $ 43,036 $ 82,652 $ 75,051 $ 50,637

Total Assets $ 43,036 $ 82,652 $ 75,051 $ 50,637

Liabilities Accounts Payable $ 0 $ 9 $ 0 $ 9 Payroll Deductions Payable 1,198 974 1,198 974 Due to Litigants, Heirs, and Others 41,838 81,669 73,853 49,654

Total Liabilities $ 43,036 $ 82,652 $ 75,051 $ 50,637

Constitutional Officers - Agency Fund Assets Cash $ 820,526 $ 8,087,810 $ 8,120,206 $ 788,130 Accounts Receivable 4,369 1,896 4,369 1,896

Total Assets $ 824,895 $ 8,089,706 $ 8,124,575 $ 790,026

Liabilities Due to Litigants, Heirs, and Others $ 824,895 $ 8,089,706 $ 8,124,575 $ 790,026

Total Liabilities $ 824,895 $ 8,089,706 $ 8,124,575 $ 790,026

(Continued)

125

Exhibit H-2

Marshall County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency Funds (Cont.)

Beginning EndingBalance Additions Deductions Balance

Other Agency Fund Assets Equity in Pooled Cash and Investments $ 43,912 $ 791,556 $ 784,694 $ 50,774

Total Assets $ 43,912 $ 791,556 $ 784,694 $ 50,774

Liabilities Payroll Deductions Payable $ 13,263 $ 15,774 $ 13,263 $ 15,774 Due to Other Funds 649 0 649 0 Other Current Liabilities 30,000 775,782 770,782 35,000

Total Liabilities $ 43,912 $ 791,556 $ 784,694 $ 50,774

Totals - All Agency Funds Assets Cash $ 820,526 $ 8,087,810 $ 8,120,206 $ 788,130 Equity in Pooled Cash and Investments 86,948 3,186,880 3,172,417 101,411 Accounts Receivable 4,369 1,896 4,369 1,896 Due from Other Governments 379,373 385,916 379,373 385,916

Total Assets $ 1,291,216 $ 11,662,502 $ 11,676,365 $ 1,277,353

Liabilities Accounts Payable $ 0 $ 9 $ 0 $ 9 Payroll Deductions Payable 14,461 16,748 14,461 16,748 Due to Other Funds 649 0 649 0 Due to Other Taxing Units 379,373 2,698,588 2,692,045 385,916 Due to Litigants, Heirs, and Others 866,733 8,171,375 8,198,428 839,680 Other Current Liabilities 30,000 775,782 770,782 35,000

Total Liabilities $ 1,291,216 $ 11,662,502 $ 11,676,365 $ 1,277,353

126

Marshall County School Department ________________________________________

This section presents fund financial statements for the Marshall 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 cafeteria operations in each of the schools.

127

Exhibit I-1

Marshall County, TennesseeStatement of ActivitiesDiscretely Presented Marshall County School DepartmentFor the Year Ended June 30, 2019

Net (Expense)Revenue and Changes in

Operating Capital Net PositionCharges Grants Grants Total

for and and GovernmentalFunctions/Programs Expenses Services Contributions Contributions Activities

Governmental Activities: Instruction $ 27,535,805 $ 0 $ 2,943,989 $ 0 $ (24,591,816) Support Services 17,724,043 102,341 414,105 673,830 (16,533,767) Operation of Non-instructional Services 4,030,128 1,192,918 2,323,879 0 (513,331)

Total Governmental Activities $ 49,289,976 $ 1,295,259 $ 5,681,973 $ 673,830 $ (41,638,914)

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 9,648,050 Local Option Sales Tax 3,109,336 Other Local Taxes 10,880 Grants and Contributions Not Restricted to Specific Programs 29,801,457 Unrestricted Investment Income 4,838 Miscellaneous 88,750Total General Revenues $ 42,663,311

Change in Net Position $ 1,024,397Net Position, July 1, 2018 57,366,104

Net Position, June 30, 2019 $ 58,390,501

Program Revenues

128

Exhibit I-2

Marshall County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Marshall County School DepartmentJune 30, 2019

OtherGeneral Govern- TotalPurpose mental GovernmentalSchool Funds Funds

ASSETS

Cash $ 0 $ 4,392 $ 4,392Equity in Pooled Cash and Investments 7,813,828 537,733 8,351,561Accounts Receivable 4,719 4,410 9,129Due from Other Governments 725,037 8,173 733,210Property Taxes Receivable 9,402,175 0 9,402,175Allowance for Uncollectible Property Taxes (103,332) 0 (103,332)Restricted Assets 87,766 0 87,766

Total Assets $ 17,930,193 $ 554,708 $ 18,484,901

LIABILITIES

Payroll Deductions Payable $ 810,033 $ 0 $ 810,033Total Liabilities $ 810,033 $ 0 $ 810,033


Deferred Current Property Taxes $ 9,097,439 $ 0 $ 9,097,439Deferred Delinquent Property Taxes 171,404 0 171,404Other Deferred/Unavailable Revenue 230,000 0 230,000Total Deferred Inflows of Resources $ 9,498,843 $ 0 $ 9,498,843

FUND BALANCES

Restricted:Restricted for Education $ 0 $ 354,708 $ 354,708Restricted for Hybrid Retirement Stabilization Funds 87,766 0 87,766

Committed:Committed for Education 0 200,000 200,000

Assigned:Assigned for Education 3,800,324 0 3,800,324

Unassigned 3,733,227 0 3,733,227Total Fund Balances $ 7,621,317 $ 554,708 $ 8,176,025

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 17,930,193 $ 554,708 $ 18,484,901

Nonmajor Funds

Major Fund

129

Exhibit I-3

Marshall County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionDiscretely Presented Marshall County School DepartmentFor the Year Ended June 30, 2019

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

Total fund balances - balance sheet - governmental funds (Exhibit I-2) $ 8,176,025

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 2,391,826 Add: construction in progress 749,593 Add: buildings and improvements net of accumulated depreciation 45,555,606 Add: infrastructure net of accumulated depreciation 123,562 Add: other capital assets net of accumulated depreciation 3,692,304 52,512,891

(2) Long-term liabilities are not due and payablein the current period and therefore are not reportedin the governmental funds. Less: compensated absences payable $ (163,457) Less: other postemployment benefits liability (8,110,386) Less: contributions due on primary govt debt for capital leases (134,456) (8,408,299)

(3) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions and OPEB will be amortized and recognized as components of pension and OPEB expense in future years. Add: deferred outflows of resources related to pensions $ 4,268,590 Less: deferred inflows of resources related to pensions (3,235,003) Add: deferred outflows of resources related to OPEB 2,159,137 Less: deferred inflows of resources related to OPEB (260,022) 2,932,702

(4) Net pension assets of the agent, teacher retirement, and teacher legacy pension plans are not current financial resources and thereforeare not reported in the governmental funds. Add: net pension asset - agent plan $ 774,955 Add: net pension asset - teacher retirement plan 164,331 Add: net pension asset - teacher legacy pension plan 1,836,492 2,775,778

(5) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 401,404

Net position of governmental activities (Exhibit A) $ 58,390,501

130

Exhibit I-4


and Changes in Fund Balances - Governmental Funds

Discretely Presented Marshall County School DepartmentFor the Year Ended June 30, 2019

OtherGeneral Govern- TotalPurpose mental GovernmentalSchool Funds Funds

RevenuesLocal Taxes $ 12,751,527 $ 0 $ 12,751,527Licenses and Permits 2,214 0 2,214Charges for Current Services 102,341 1,192,918 1,295,259Other Local Revenues 93,181 407 93,588State of Tennessee 30,567,355 31,872 30,599,227Federal Government 384,010 4,497,979 4,881,989Other Governments and Citizens Groups 663,049 0 663,049

Total Revenues $ 44,563,677 $ 5,723,176 $ 50,286,853


Instruction $ 27,244,674 $ 1,815,514 $ 29,060,188Support Services 15,245,732 595,960 15,841,692Operation of Non-Instructional Services 645,386 3,460,704 4,106,090Capital Outlay 1,172,370 0 1,172,370

Debt Service:Other Debt Service 516,050 0 516,050

Total Expenditures $ 44,824,212 $ 5,872,178 $ 50,696,390

Excess (Deficiency) of RevenuesOver Expenditures $ (260,535) $ (149,002) $ (409,537)

Other Financing Sources (Uses)Insurance Recovery $ 151,129 $ 0 $ 151,129

Total Other Financing Sources (Uses) $ 151,129 $ 0 $ 151,129

Net Change in Fund Balances $ (109,406) $ (149,002) $ (258,408)Fund Balance, July 1, 2018 7,730,723 703,710 8,434,433

Fund Balance, June 30, 2019 $ 7,621,317 $ 554,708 $ 8,176,025

Nonmajor FundsMajor Fund

131

Exhibit I-5

Marshall County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesDiscretely Presented Marshall County School DepartmentFor the Year Ended June 30, 2019

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

Net change in fund balances - total governmental funds (Exhibit I-4) $ (258,408)

(1) Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of these assets is allocated over their useful lives and reported as depreciation expense. The difference between capital outlays and depreciation is itemized as follows: Add: capital assets purchased in the current period $ 1,647,693 Less: current-year depreciation expense (2,638,235) (990,542)

(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 $ 10,781 Less: book value of capital assets disposed (8,532) 2,249

(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2019 $ 401,404 Less: deferred delinquent property taxes and other deferred June 30, 2018 (384,665) 16,739

(4) The contributions of long-term debt (e.g., notes, bonds, leases) by the primary government provide current financial resources to governmental funds, while the contributions by the School Department of the principal of long-term debt consume the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.

Add: principal contributions on loans to primary government 164,635

(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 net pension asset - agent pension plan $ 374,381 Change in net pension asset - teacher retirement plan 68,597 Change in net pension asset - teacher legacy pension plan 1,665,185 Change in deferred outflows of resources related to pensions (138,017) Change in deferred inflows of resources related to pensions 635,549 Change in other postemployment benefits liability (2,340,183) Change in deferred outflows of resources related to OPEB 1,832,352 Change in deferred inflows of resources related to OPEB (3,579) Change in compensated absences payable (4,561) 2,089,724

Change in net position of governmental activities (Exhibit B) $ 1,024,397

132

Exhibit I-6

Marshall County, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Marshall County School DepartmentJune 30, 2019

TotalSchool NonmajorFederal Central GovernmentalProjects Cafeteria Funds

ASSETS

Cash $ 0 $ 4,392 $ 4,392Equity in Pooled Cash and Investments 200,000 337,733 537,733Accounts Receivable 0 4,410 4,410Due from Other Governments 0 8,173 8,173

Total Assets $ 200,000 $ 354,708 $ 554,708

FUND BALANCES

Restricted:Restricted for Education $ 0 $ 354,708 $ 354,708

Committed:Committed for Education 200,000 0 200,000

Total Fund Balances $ 200,000 $ 354,708 $ 554,708


133

Exhibit I-7


and Changes in Fund Balances - Nonmajor Governmental Funds

Discretely Presented Marshall County School DepartmentFor the Year Ended June 30, 2019

TotalSchool NonmajorFederal Central GovernmentalProjects Cafeteria Funds

RevenuesCharges for Current Services $ 0 $ 1,192,918 $ 1,192,918Other Local Revenues 0 407 407State of Tennessee 0 31,872 31,872Federal Government 2,411,474 2,086,505 4,497,979

Total Revenues $ 2,411,474 $ 3,311,702 $ 5,723,176


Instruction $ 1,815,514 $ 0 $ 1,815,514Support Services 595,960 0 595,960Operation of Non-Instructional Services 0 3,460,704 3,460,704

Total Expenditures $ 2,411,474 $ 3,460,704 $ 5,872,178

Excess (Deficiency) of RevenuesOver Expenditures $ 0 $ (149,002) $ (149,002)

Net Change in Fund Balances $ 0 $ (149,002) $ (149,002)Fund Balance, July 1, 2018 200,000 503,710 703,710

Fund Balance, June 30, 2019 $ 200,000 $ 354,708 $ 554,708


134

Exhibit I-8


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Marshall County School DepartmentGeneral Purpose School FundFor the Year Ended June 30, 2019

Actual VarianceRevenues/ with Final

Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2018 6/30/2019 Basis) Original Final (Negative)

RevenuesLocal Taxes $ 12,751,527 $ 0 $ 0 $ 12,751,527 $ 11,580,488 $ 11,580,488 $ 1,171,039Licenses and Permits 2,214 0 0 2,214 1,867 1,867 347Charges for Current Services 102,341 0 0 102,341 92,000 92,000 10,341Other Local Revenues 93,181 0 0 93,181 450,000 450,002 (356,821)State of Tennessee 30,567,355 0 0 30,567,355 30,208,999 30,624,775 (57,420)Federal Government 384,010 0 0 384,010 0 397,458 (13,448)Other Governments and Citizens Groups 663,049 0 0 663,049 0 266,485 396,564

Total Revenues $ 44,563,677 $ 0 $ 0 $ 44,563,677 $ 42,333,354 $ 43,413,075 $ 1,150,602

ExpendituresInstruction

Regular Instruction Program $ 22,702,899 $ (390,058) $ 155,553 $ 22,468,394 $ 23,807,499 $ 23,657,878 $ 1,189,484Alternative Instruction Program 236,023 0 0 236,023 243,977 243,977 7,954Special Education Program 2,883,077 0 0 2,883,077 2,983,813 3,016,392 133,315Career and Technical Education Program 1,422,675 0 8,580 1,431,255 1,380,313 1,439,725 8,470

Support ServicesAttendance 248,197 (269) 8,013 255,941 226,770 276,770 20,829Health Services 434,795 (6,868) 2,543 430,470 457,897 457,897 27,427Other Student Support 1,113,569 0 19,387 1,132,956 1,044,438 1,159,338 26,382Regular Instruction Program 1,276,147 (2,945) 0 1,273,202 1,362,426 1,362,426 89,224Special Education Program 60,266 0 0 60,266 63,478 63,478 3,212Career and Technical Education Program 95,435 0 0 95,435 133,786 133,786 38,351Technology 570,285 (100) 6,650 576,835 525,341 590,341 13,506Other Programs 92,579 0 0 92,579 0 92,579 0Board of Education 556,909 (4,986) 1,561 553,484 653,316 653,316 99,832Director of Schools 227,639 (279) 0 227,360 231,098 231,098 3,738Office of the Principal 2,896,869 (4,630) 9,698 2,901,937 2,940,452 2,940,452 38,515Fiscal Services 357,814 0 0 357,814 373,050 373,050 15,236Human Services/Personnel 180,882 (985) 8 179,905 178,033 188,033 8,128

(Continued)

Budgeted Amounts

135

Exhibit I-8


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



Expenditures (Cont.)Support Services (Cont.)

Operation of Plant $ 3,328,934 $ 0 $ 37,788 $ 3,366,722 $ 3,491,409 $ 3,491,409 $ 124,687Maintenance of Plant 1,339,991 (37,425) 116,342 1,418,908 1,409,499 1,504,249 85,341Transportation 2,251,224 (45,916) 13,383 2,218,691 2,415,772 2,415,772 197,081Central and Other 214,197 (4,685) 0 209,512 287,435 287,435 77,923

Operation of Non-Instructional ServicesCommunity Services 423,224 0 4,725 427,949 0 438,428 10,479Early Childhood Education 222,162 0 315 222,477 203,948 223,948 1,471

Capital OutlayRegular Capital Outlay 1,172,370 (32,435) 637,985 1,777,920 550,000 1,778,689 769

Other Debt ServiceEducation 516,050 0 0 516,050 0 516,061 11

Total Expenditures $ 44,824,212 $ (531,581) $ 1,022,531 $ 45,315,162 $ 44,963,750 $ 47,536,527 $ 2,221,365

Excess (Deficiency) of RevenuesOver Expenditures $ (260,535) $ 531,581 $ (1,022,531) $ (751,485) $ (2,630,396) $ (4,123,452) $ 3,371,967

Other Financing Sources (Uses)Insurance Recovery $ 151,129 $ 0 $ 0 $ 151,129 $ 15,000 $ 38,919 $ 112,210Transfers Out 0 0 0 0 (259,955) 0 0

Total Other Financing Sources $ 151,129 $ 0 $ 0 $ 151,129 $ (244,955) $ 38,919 $ 112,210

Net Change in Fund Balance $ (109,406) $ 531,581 $ (1,022,531) $ (600,356) $ (2,875,351) $ (4,084,533) $ 3,484,177Fund Balance, July 1, 2018 7,730,723 (531,581) 0 7,199,142 6,108,980 7,199,142 0

Fund Balance, June 30, 2019 $ 7,621,317 $ 0 $ (1,022,531) $ 6,598,786 $ 3,233,629 $ 3,114,609 $ 3,484,177

Budgeted Amounts

136

Exhibit I-9


in Fund Balance - Actual and BudgetDiscretely Presented Marshall County School DepartmentSchool Federal Projects FundFor the Year Ended June 30, 2019



RevenuesFederal Government $ 2,411,474 $ 2,405,955 $ 2,686,776 $ (275,302)

Total Revenues $ 2,411,474 $ 2,405,955 $ 2,686,776 $ (275,302)

ExpendituresInstruction

Regular Instruction Program $ 991,202 $ 990,246 $ 1,099,288 $ 108,086Special Education Program 763,458 778,961 813,136 49,678Career and Technical Education Program 60,854 57,557 60,854 0

Support ServicesOther Student Support 23,396 30,093 26,629 3,233Regular Instruction Program 193,085 166,096 244,338 51,253Special Education Program 223,439 220,131 273,589 50,150Career and Technical Education Program 4,300 4,229 4,300 0Transportation 151,740 158,642 164,642 12,902


Excess (Deficiency) of RevenuesOver Expenditures $ 0 $ 0 $ 0 $ 0

Net Change in Fund Balance $ 0 $ 0 $ 0 $ 0Fund Balance, July 1, 2018 200,000 200,000 200,000 0

Fund Balance, June 30, 2019 $ 200,000 $ 200,000 $ 200,000 $ 0

Budgeted Amounts

137

Exhibit I-10


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Marshall County School DepartmentCentral Cafeteria FundFor the Year Ended June 30, 2019



RevenuesCharges for Current Services $ 1,192,918 $ 0 $ 0 $ 1,192,918 $ 1,262,857 $ 1,262,857 $ (69,939)Other Local Revenues 407 0 0 407 305 305 102State of Tennessee 31,872 0 0 31,872 29,503 29,503 2,369Federal Government 2,086,505 0 0 2,086,505 2,195,479 2,195,479 (108,974)

Total Revenues $ 3,311,702 $ 0 $ 0 $ 3,311,702 $ 3,488,144 $ 3,488,144 $ (176,442)

ExpendituresOperation of Non-Instructional Services

Food Service $ 3,460,704 $ (28,986) $ 20,670 $ 3,452,388 $ 3,632,508 $ 3,632,507 $ 180,119Total Expenditures $ 3,460,704 $ (28,986) $ 20,670 $ 3,452,388 $ 3,632,508 $ 3,632,507 $ 180,119

Excess (Deficiency) of RevenuesOver Expenditures $ (149,002) $ 28,986 $ (20,670) $ (140,686) $ (144,364) $ (144,363) $ 3,677

Net Change in Fund Balance $ (149,002) $ 28,986 $ (20,670) $ (140,686) $ (144,364) $ (144,363) $ 3,677Fund Balance, July 1, 2018 503,710 (28,986) 0 474,724 521,812 474,724 0

Fund Balance, June 30, 2019 $ 354,708 $ 0 $ (20,670) $ 334,038 $ 377,448 $ 330,361 $ 3,677

Budgeted Amounts

138

Marshall County Board of Public Utilities ________________________________________

This section presents fund financial statements for the Marshall County Board of Public Utilities, a discretely presented component unit. The utility uses a single enterprise fund.

________________________________________

139

Exhibit J-1

Marshall County, TennesseeStatement of Net PositionDiscretely Presented Marshall County Board of Public UtilitiesJune 30, 2019

ASSETS

Current Assets: Cash $ 1,803 Equity in Pooled Cash and Investments 4,208,821 Net Pension Asset - Agent Plan 69,607 Inventories 62,649 Accounts Receivable 266,026 Restricted Assets: Customer Deposits 243,953Noncurrent Assets: Capital Assets: Assets Not Depreciated: Land 355,901 Construction in Progress 48,068 Assets Net of Accumulated Depreciation: Buildings and Improvements 705,876 Infrastructure 18,388,290 Other Capital Assets 124,105Total Assets $ 24,475,099

DEFERRED OUTFLOWS OF RESOURCES

Deferred Charge on Refunding $ 103,028Pension Changes in Assumptions 20,211Pension Changes in Experience 5,164Pension Contributions after Measurement Date 41,372OPEB Benefits Paid After Measurement Date 2,792Total Deferred Outflows of Resources $ 172,567

LIABILITIES

Current Liabilities: Accounts Payable $ 13,732 Accrued Interest Payable 10,959 Payroll Deductions Payable 17,624 Current Liabilities Payable from Restricted Assets: Customer Deposits Payable 243,953 Due to State of Tennessee 18,314Noncurrent Liabilities: Due Within One Year - Debt 312,599 Due Within One Year - Other 23,375 Due in More Than One Year - Debt 6,342,913 Due in More Than One Year - Other 40,141Total Liabilities $ 7,023,610

(Continued)

Enterprise Fund Marshall County


140

Exhibit J-1

Marshall County, TennesseeStatement of Net PositionDiscretely Presented Marshall County Board of Public Utilities (Cont.)


Pension Changes in Investment Earnings $ 6,308Pension Changes in Experience 22,179OPEB Changes in Assumptions 5,204OPEB Changes in Experience 35,314Total Deferred Inflows of Resources $ 69,005

NET POSITION

Net Investment in Capital Assets $ 12,966,728Restricted for Pensions 69,607Unrestricted 4,518,716

Total Net Position $ 17,555,051



141

Exhibit J-2

Marshall County, TennesseeStatement of Revenues, Expenses, and Changes in Net PositionDiscretely Presented Marshall County Board of Public UtilitiesFor the Year Ended June 30, 2019

Operating Revenues Charges for Current Services $ 2,749,789 Other Local Revenues 2,847Total Operating Revenues $ 2,752,636

Operating Expenses Other Economic and Community Development $ 2,103,252 Depreciation 568,651Total Operating Expenses $ 2,671,903Operating Income (Loss) $ 80,733

Nonoperating Revenues (Expenses) Investment Income $ 21,307 Interest on Bonds (145,085)Total Nonoperating Revenues (Expenses) $ (123,778)

Income (Loss) Before Contributions $ (43,045)Capital Contributions 490,268Change in Net Position $ 447,223Net Position, July 1, 2018 17,107,828

Net Position, June 30, 2019 $ 17,555,051



142

Exhibit J-3

Marshall County, TennesseeStatement of Cash FlowsDiscretely Presented Marshall County Board of Public UtilitiesFor the Year Ended June 30, 2019

Cash Flows from Operating Activities Receipts from Customers and Users $ 2,754,169 Other Receipts (Payments) 2,847 Payments to Vendors (1,307,562) Payments to Employees (590,623) Payments to Fringe Benefits (200,185)Net Cash Provided By (Used In) Operating Activities $ 658,646

Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets $ (247,046) Capital Contributions 190,268 Principal Paid on Bonds (307,412) Interest Paid on Bonds (145,085)Net Cash Provided By (Used In) Capital and Related Financing Activities $ (509,275)

Cash Flows from Noncapital Financing Activities Contributions from Primary Government (Adequate Facilities Tax) $ 300,000Net Cash Provided By (Used In) Noncapital Financing Activities $ 300,000

Cash Flows from Investing Activities Interest on Investments $ 21,307Net Cash Provided By (Used In) Investing Activities $ 21,307

Increase (Decrease) in Cash $ 470,678Cash, July 1, 2018 3,983,899

Cash, June 30, 2019 $ 4,454,577

(Continued)

Public Utilities


Board of

143

Exhibit J-3

Marshall County, TennesseeStatement of Cash FlowsDiscretely Presented Marshall County Board of Public Utilities (Cont.)

Reconciliation of Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ 80,733 Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Depreciation 568,651 Changes in Deferred Outflows Related to Deferred Charge on Refunding Debt 10,967 Changes in Deferred Outflows Related to Pensions 8,908 Changes in Deferred Inflows Related to Pensions 2,500 Changes in Deferred Outflows Related to OPEB 1,080 Changes in Deferred Inflows Related to OPEB 37,871 Changes in Assets and Liabilities: (Increase) Decrease in Current Receivables 4,380 (Increase) Decrease in Inventories 574 (Increase) Decrease in Net Pension Asset (33,871) Increase (Decrease) in OPEB Obligation (31,897) Increase (Decrease) in Accounts Payable (10,930) Increase (Decrease) in Payroll Deductions Payable 4,646 Increase (Decrease) in Accrued Interest Payable (502) Increase (Decrease) in Customer Deposits 24,063 Increase (Decrease) in Due to State of Tennessee (587) Increase (Decrease) in Accrued Leave 2,020 Increase (Decrease) in Unamortized Debt Premiums (9,960)

Net Cash Provided By (Used In) Operating Activities $ 658,646

Reconciliation of Cash With Statement of Net Position Cash Per Net Position $ 1,803 Equity in Pooled Cash and Investments Per Net Position 4,208,821 Restricted Customer Deposits 243,953

Cash, June 30, 2019 $ 4,454,577



144

MISCELLANEOUS SCHEDULES

145

Exhibit K-1

Marshall County, TennesseeSchedule of Changes in Long-term Capital Leases, Notes, and BondsPrimary Government and Discretely Presented Marshall County Board of Public UtilitiesFor the Year Ended June 30, 2019

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

Description of Indebtedness of Issue Rate Issue Date 7-1-18 Period Period 6-30-19

PRIMARY GOVERNMENT

CAPITAL LEASES PAYABLE Contributions Due by the School Department from the General

Purpose School Fund to the General Debt Service Fund VAR Chromebooks for Schools $ 46,462 1.8 % 8-15-16 12-13-18 $ 15,764 $ 0 $ 15,764 $ 0 Dell Laptops for Schools 43,290 5.51 10-1-16 9-21-18 14,415 0 14,415 0 VAR Chromebooks for Schools 403,368 0 7-25-17 10-31-19 268,912 0 134,456 134,456Total Contributions Due by the School Department from the General Purpose School Fund to the General Debt Service Fund $ 299,091 $ 0 $ 164,635 $ 134,456

Payable through General Debt Service Fund VAR Chromebooks for Schools 266,485 1.7 7-24-18 7-24-20 $ 0 $ 266,485 $ 90,373 $ 176,112

Total Capital Leases Payable $ 299,091 $ 266,485 $ 255,008 $ 310,568

NOTES PAYABLE Payable through General Debt Service Fund Energy Efficient Schools Initiative 2,982,250 .75 3-28-11 1-1-24 $ 1,400,174 $ 0 $ 250,297 $ 1,149,877

Total Notes Payable $ 1,400,174 $ 0 $ 250,297 $ 1,149,877

BONDS PAYABLE Payable through General Debt Service Fund School Refunding 5,115,000 3.8 9-11-08 11-1-20 $ 1,525,000 $ 0 $ 490,000 $ 1,035,000 GO Public Improvement Refunding Bonds, Series 2011 6,160,000 3.32 3-15-11 9-1-27 4,075,000 0 370,000 3,705,000 GO School Improvement Bonds, Series 2013 5,945,000 3.86 12-23-13 10-1-43 5,445,000 0 135,000 5,310,000 GO School Improvement Bonds, Series 2014 5,550,000 2.81 10-14-14 12-1-44 5,080,000 0 150,000 4,930,000 GO School Refunding Bonds, Series 2014 4,105,000 2.81 10-14-14 12-1-44 2,140,000 0 695,000 1,445,000 GO School Improvement Bonds, Series 2015 8,000,000 3.02 1-20-15 10-1-44 7,490,000 0 180,000 7,310,000 GO School Refunding Bonds, Series 2016 5,060,000 1.78 3-23-16 5-1-31 4,480,000 0 305,000 4,175,000

Total Bonds Payable $ 30,235,000 $ 0 $ 2,325,000 $ 27,910,000

(Continued)

146

Exhibit K-1

Marshall County, TennesseeSchedule of Changes in Long-term Capital Leases, Notes, and BondsPrimary Government and Discretely Presented Marshall County Board of Public Utilities (Cont.)

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

Description of Indebtedness of Issue Rate Issue Date 7-1-18 Period Period 6-30-19

DISCRETELY PRESENTED MARSHALL COUNTY BOARD OF PUBLIC UTILITIES

BONDS PAYABLE Water Revenue and Tax Bonds, Series 2011B $ 409,000 2.5 % 6-26-13 6-26-51 $ 374,594 $ 0 $ 7,412 $ 367,182 Water Revenue and Tax Refunding Bonds, Series 2016 7,005,000 1.9 6-30-16 6-1-36 6,420,000 0 300,000 6,120,000

Total Bonds Payable $ 6,794,594 $ 0 $ 307,412 $ 6,487,182

147

Exhibit K-2

Marshall County, TennesseeSchedule of Long-term Debt Requirements by YearPrimary Government and Discretely Presented Marshall County Board of Public Utilities

PRIMARY GOVERNMENT

YearEndingJune 30 Principal Interest Total

2020 $ 221,836 $ 2,994 $ 224,8302021 88,732 1,642 90,374

Total $ 310,568 $ 4,636 $ 315,204


2020 $ 252,182 $ 7,762 $ 259,9442021 254,080 5,864 259,9442022 256,000 3,944 259,9442023 257,888 2,056 259,9442024 129,727 312 130,039

Total $ 1,149,877 $ 19,938 $ 1,169,815

(Continued)

Notes

Capital Leases

148

Exhibit K-2

Marshall County, TennesseeSchedule of Long-term Debt Requirements by YearPrimary Government and Discretely Presented Marshall County Board of Public Utilities (Cont.)

PRIMARY GOVERNMENT (Cont.)


2020 $ 2,375,000 $ 869,085 $ 3,244,0852021 2,425,000 797,144 3,222,1442022 1,205,000 743,732 1,948,7322023 1,235,000 709,147 1,944,1472024 1,270,000 672,501 1,942,5012025 1,310,000 633,926 1,943,9262026 1,355,000 592,951 1,947,9512027 1,400,000 549,564 1,949,5642028 1,135,000 510,801 1,645,8012029 950,000 480,845 1,430,8452030 980,000 453,677 1,433,6772031 1,015,000 424,376 1,439,3762032 640,000 394,170 1,034,1702033 670,000 372,983 1,042,9832034 685,000 350,806 1,035,8062035 710,000 327,410 1,037,4102036 750,000 302,042 1,052,0422037 775,000 274,888 1,049,8882038 795,000 246,650 1,041,6502039 820,000 217,420 1,037,4202040 865,000 186,220 1,051,2202041 905,000 152,723 1,057,7232042 945,000 117,688 1,062,6882043 980,000 81,203 1,061,2032044 1,015,000 43,358 1,058,3582045 700,000 12,045 712,045

Total $ 27,910,000 $ 10,517,355 $ 38,427,355

(Continued)

Bonds

149

Exhibit K-2

Marshall County, TennesseeSchedule of Long-term Debt Requirements by YearPrimary Government and Discretely Presented Marshall County Board of Public Utilities (Cont.)

DISCRETELY PRESENTED MARSHALL COUNTY BOARD OF PUBLIC UTILITIES


2020 $ 312,599 $ 139,400 $ 451,9992021 317,791 133,108 450,8992022 327,988 126,711 454,6992023 333,190 120,109 453,2992024 338,397 113,402 451,7992025 343,610 106,589 450,1992026 353,828 99,672 453,5002027 359,051 92,549 451,6002028 369,280 85,320 454,6002029 374,514 77,886 452,4002030 379,755 70,345 450,1002031 390,002 62,698 452,7002032 395,254 54,846 450,1002033 405,514 45,923 451,4372034 415,780 35,782 451,5622035 426,052 25,385 451,4372036 436,332 15,560 451,8922037 11,618 5,074 16,6922038 11,912 4,780 16,6922039 12,213 4,479 16,6922040 12,522 4,170 16,6922041 12,839 3,853 16,6922042 13,164 3,528 16,6922043 13,496 3,196 16,6922044 13,838 2,854 16,6922045 14,188 2,504 16,6922046 14,547 2,145 16,6922047 14,914 1,778 16,6922048 15,292 1,400 16,6922049 15,711 981 16,6922050 16,075 617 16,6922051 15,916 211 16,127

Total $ 6,487,182 $ 1,446,855 $ 7,934,037

Bonds

150

Exhibit K-3

Marshall County, TennesseeSchedule of TransfersFor the Year Ended June 30, 2019

From Fund To Fund Purpose

General Highway Capital Projects Operations $ 194,643General Other Capital Projects Operations 84,225General Capital Projects General Debt Service Debt retirement 6,434Juvenile Services General Operations 45,000

Total Transfers $ 330,302

Amount

151

Exhibit K-4

Schedule of Salaries and Official Bonds of Principal OfficialsPrimary Government, Discretely Presented Marshall County School Department, and Discretely Presented Marshall County Board of Public UtilitiesFor the Year Ended June 30, 2019

SalaryPaid

DuringOfficial Authorization for Salary Period Bond Surety

County Mayor: Joe Boyd Liggett (7-1-18 through 8-31-18) Section 8-24-102, TCA $ 14,643 $ 100,000 Auto Owners Mutual Insurance Company Mike Keny (9-1-18 through 6-30-19) Section 8-24-102, TCA 73,845 (4)Highway Superintendent Section 8-24-102, TCA 83,676 (4)Director of Schools State Board of Education and

County Board of Education 120,593 (1) (5)Trustee Section 8-24-102, TCA 76,069 (4)Assessor of Property Section 8-24-102, TCA 76,069 50,000 Auto Owners Mutual Insurance CompanyCounty Clerk Section 8-24-102, TCA 76,069 (4)Circuit, General Sessions, and Juvenile Courts Clerk: Courtney Boatright (7-1-18 through 8-31-18) Section 8-24-102, TCA 12,678 115,000 Auto Owners Mutual Insurance Company Mike Wiles (9-1-18 through 6-30-19) Section 8-24-102, TCA 63,391 (4)Clerk and Master Section 8-24-102, TCA 76,069 100,000 Auto Owners Mutual Insurance CompanyRegister of Deeds Section 8-24-102, TCA 76,069 (4)Sheriff Section 8-24-102, TCA 83,676 (2) (4)Director of Accounts and Budgets Chapter 17, Private Acts of 2005, and

County Commission 89,571 (4)Board of Public Utilities Manager Board of Public Utilities 66,144 (3) (6)

Employee Blanket Bonds: Employee Fidelity - County Departments 400,000 Local Government Property and Casualty Fund Employee Fidelity - School Department 400,000 Tennessee Risk Management Trust Employee Fidelity - Board of Public Utilities 400,000 Local Government Property and Casualty Fund

(1) Does not include a chief executive officer training supplement of $1,000, a cell phone allowance of $50 per month,100 percent of the premium for dental and vision insurance ($378), and the director's five percent share of retirement ($6,100).

(2) Does not include a law enforcement training supplement of $600.(3) Does not include longevity pay of $750.(4) Included in the public employee blanket bond of the county.(5) Included in the public employee blanket bond of the School Department.(6) Included in the public employee blanket bond of the Board of Public Utilities.

152

Marshall County, Tennessee

Exhibit K-5

Marshall County, TennesseeSchedule of Detailed Revenues -

All Governmental Fund TypesFor the Year Ended June 30, 2019

Constitu -Solid tional Highway /

Juvenile Waste / Drug Officers - PublicGeneral Services Sanitation Control Fees Works

Local TaxesCounty Property Taxes

Current Property Tax $ 6,043,309 $ 0 $ 0 $ 0 $ 0 $ 469,758Trustee's Collections - Prior Year 181,894 0 0 0 0 11,120Trustee's Collections - Bankruptcy 931 0 0 0 0 73Circuit Clerk/Clerk and Master Collections - Prior Years 62,336 0 0 0 0 5,412Interest and Penalty 27,405 0 0 0 0 2,133Payments in-Lieu-of Taxes - T.V.A. 6,945 0 0 0 0 0Payments in-Lieu-of Taxes - Local Utilities 106,051 0 0 0 0 0Payments in-Lieu-of Taxes - Other 451,957 0 0 0 0 0

County Local Option TaxesLocal Option Sales Tax 365,044 0 0 0 0 0Hotel/Motel Tax 197,572 0 0 0 0 0Wheel Tax 75,868 0 0 0 0 227,605Litigation Tax - General 209,505 0 0 0 0 0Litigation Tax - Special Purpose 20,401 0 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 0 0 0 0 0 0Litigation Tax - Courthouse Security 73,933 0 0 0 0 0Business Tax 325,588 0 0 0 0 0Mixed Drink Tax 586 0 0 0 0 0Mineral Severance Tax 0 0 0 0 0 384,855Adequate Facilities/Development Tax 494,643 0 0 0 0 0

Statutory Local TaxesBank Excise Tax 0 0 0 0 0 0Wholesale Beer Tax 112,535 0 0 0 0 0

Total Local Taxes $ 8,756,503 $ 0 $ 0 $ 0 $ 0 $ 1,100,956

(Continued)


153

Exhibit K-5


All Governmental Fund Types (Cont.)



Licenses and PermitsLicenses

Cable TV Franchise $ 60,077 $ 0 $ 0 $ 0 $ 0 $ 0Permits

Beer Permits 1,852 0 0 0 0 0Building Permits 292,707 0 0 0 0 0Other Permits 2,925 0 0 0 0 0

Total Licenses and Permits $ 357,561 $ 0 $ 0 $ 0 $ 0 $ 0

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 2,737 $ 0 $ 0 $ 0 $ 0 $ 0Officers Costs 4,998 0 0 0 0 0Drug Control Fines 0 0 0 1,530 0 0Drug Court Fees 0 0 0 707 0 0DUI Treatment Fines 285 0 0 0 0 0Data Entry Fee - Circuit Court 2,506 0 0 0 0 0Courtroom Security Fee 129 0 0 0 0 0

General Sessions CourtFines 19,241 0 0 0 0 0Officers Costs 68,428 0 0 0 0 0Game and Fish Fines 477 0 0 0 0 0Drug Control Fines 0 0 0 4,864 0 0Drug Court Fees 0 0 0 6,162 0 0Jail Fees 0 0 0 66 0 0DUI Treatment Fines 6,207 0 0 0 0 0Data Entry Fee - General Sessions Court 10,469 0 0 0 0 0Courtroom Security Fee 781 0 0 0 0 0

(Continued)


154

Exhibit K-5





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

Fines $ 5,297 $ 0 $ 0 $ 0 $ 0 $ 0Officers Costs 3,029 0 0 0 0 0Data Entry Fee - Juvenile Court 6,216 0 0 0 0 0Courtroom Security Fee 4 0 0 0 0 0

Chancery CourtOfficers Costs 3,301 0 0 0 0 0Data Entry Fee - Chancery Court 5,628 0 0 0 0 0

Other Courts - In-countyFines 0 55,195 0 0 0 0

Judicial District Drug ProgramFines 937 0 0 0 0 0

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 22,062 0 0 0 0 0Other Fines, Forfeitures, and Penalties 16,625 0 0 0 0 0

Total Fines, Forfeitures, and Penalties $ 179,357 $ 55,195 $ 0 $ 13,329 $ 0 $ 0

Charges for Current ServicesGeneral Service Charges

Surcharge - Host Agency $ 0 $ 0 $ 487,763 $ 0 $ 0 $ 0Surcharge - General 0 0 27,754 0 0 0Patient Charges 1,731,631 0 0 0 0 0Zoning Studies 13,150 0 0 0 0 0Other General Service Charges 43,973 0 0 0 0 0

FeesCopy Fees 12,873 0 0 0 0 0

(Continued)


155

Exhibit K-5





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

Library Fees $ 414 $ 0 $ 0 $ 0 $ 0 $ 0Telephone Commissions 100,557 0 0 0 0 0Vending Machine Collections 9,207 0 0 0 0 0Constitutional Officers' Fees and Commissions 0 0 0 0 56 0Data Processing Fee - Register 13,054 0 0 0 0 0Data Processing Fee - Sheriff 4,955 0 0 0 0 0Sexual Offender Registration Fee - Sheriff 4,200 0 0 0 0 0Data Processing Fee - County Clerk 4,809 0 0 0 0 0Vehicle Insurance Coverage and Reinstatement Fees 710 0 0 0 0 0

Education ChargesOther Charges for Services 175 0 0 0 0 0

Total Charges for Current Services $ 1,939,708 $ 0 $ 515,517 $ 0 $ 56 $ 0

Other Local RevenuesRecurring Items

Investment Income $ 244,258 $ 0 $ 0 $ 0 $ 0 $ 0Lease/Rentals 12,400 0 0 0 0 0Sale of Materials and Supplies 6 0 0 0 0 0Sale of Gasoline 0 0 0 0 0 956Sale of Maps 2,034 0 0 0 0 0Sale of Recycled Materials 64 0 687,975 0 0 2,497E-Rate Funding 5,195 0 0 0 0 0Cobra Insurance Payments 0 0 0 0 0 683Miscellaneous Refunds 10,242 0 15,729 0 0 310Expenditure Credits 371 0 0 0 0 0

(Continued)


156

Exhibit K-5





Other Local Revenues (Cont.)Nonrecurring Items

Sale of Equipment $ 14,270 $ 0 $ 0 $ 0 $ 0 $ 9,950Damages Recovered from Individuals 362 0 0 0 0 7,000Contributions and Gifts 5,204 0 310,000 5,951 0 0

Other Local RevenuesOther Local Revenues 2,057 0 0 0 0 0

Total Other Local Revenues $ 296,463 $ 0 $ 1,013,704 $ 5,951 $ 0 $ 21,396

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 421,579 $ 0 $ 0 $ 0 $ 0 $ 0Circuit Court Clerk 58,426 0 0 0 0 0General Sessions Court Clerk 198,787 0 0 0 0 0Clerk and Master 139,515 0 0 0 0 0Juvenile Court Clerk 53,903 0 0 0 0 0Register 178,695 0 0 0 0 0Sheriff 20,954 0 0 0 0 0Trustee 670,114 0 0 0 0 0

Total Fees Received From County Officials $ 1,741,973 $ 0 $ 0 $ 0 $ 0 $ 0

State of TennesseeGeneral Government Grants

Juvenile Services Program $ 4,500 $ 0 $ 0 $ 0 $ 0 $ 0Solid Waste Grants 0 0 333,926 0 0 0

Public Safety GrantsLaw Enforcement Training Programs 15,000 0 0 0 0 0Other Public Safety Grants 48,862 0 0 0 0 0

(Continued)


157

Exhibit K-5





State of Tennessee (Cont.)Health and Welfare Grants

Other Health and Welfare Grants $ 212,193 $ 0 $ 0 $ 0 $ 0 $ 0Public Works Grants

Bridge Program 0 0 0 0 0 177,170State Aid Program 0 0 0 0 0 286,694Litter Program 0 0 44,550 0 0 0

Other State RevenuesIncome Tax 57,849 0 0 0 0 0Beer Tax 17,959 0 0 0 0 0Vehicle Certificate of Title Fees 8,193 0 0 0 0 0Alcoholic Beverage Tax 69,620 0 0 0 0 0State Revenue Sharing - T.V.A. 201,895 0 0 0 0 15,703State Revenue Sharing - Telecommunications 145,945 0 0 0 0 0Contracted Prisoner Boarding 1,014,507 0 0 0 0 0Gasoline and Motor Fuel Tax 0 0 0 0 0 2,269,700Petroleum Special Tax 0 0 0 0 0 22,092Registrar's Salary Supplement 15,164 0 0 0 0 0State Shared Sales Tax - Cities 5,146 0 0 0 0 0Other State Grants 5,000 0 0 0 0 0Other State Revenues 42,180 0 24,602 0 0 0

Total State of Tennessee $ 1,864,013 $ 0 $ 403,078 $ 0 $ 0 $ 2,771,359

Federal GovernmentFederal Through State

Disaster Relief $ 1,282 $ 0 $ 0 $ 0 $ 0 $ 0Homeland Security Grants 56,157 0 0 0 0 0

(Continued)


158

Exhibit K-5





Federal Government (Cont.)Direct Federal Revenue

Medicare $ 1,800 $ 0 $ 0 $ 0 $ 0 $ 0Other Direct Federal Revenue 1,189 0 0 0 0 0

Total Federal Government $ 60,428 $ 0 $ 0 $ 0 $ 0 $ 0

Other Governments and Citizens GroupsOther Governments

Prisoner Board $ 34,330 $ 0 $ 0 $ 0 $ 0 $ 0Contributions 107,445 0 0 0 0 0Contracted Services 17,955 0 0 0 0 0

Citizens GroupsDonations 7,811 0 0 0 0 0

OtherOther 23,240 0 0 0 0 0

Total Other Governments and Citizens Groups $ 190,781 $ 0 $ 0 $ 0 $ 0 $ 0

Total $ 15,386,787 $ 55,195 $ 1,932,299 $ 19,280 $ 56 $ 3,893,711

(Continued)


159

Exhibit K-5



General School OtherDebt Bus Capital

Service Acquisition Projects Total


Current Property Tax $ 1,472,822 $ 0 $ 1,292,050 $ 9,277,939Trustee's Collections - Prior Year 34,947 0 30,452 258,413Trustee's Collections - Bankruptcy 229 0 202 1,435Circuit Clerk/Clerk and Master Collections - Prior Years 16,024 0 13,963 97,735Interest and Penalty 6,703 0 5,843 42,084Payments in-Lieu-of Taxes - T.V.A. 0 0 0 6,945Payments in-Lieu-of Taxes - Local Utilities 0 0 0 106,051Payments in-Lieu-of Taxes - Other 0 0 0 451,957

County Local Option TaxesLocal Option Sales Tax 2,894,857 0 0 3,259,901Hotel/Motel Tax 0 0 0 197,572Wheel Tax 1,213,896 0 0 1,517,369Litigation Tax - General 0 0 0 209,505Litigation Tax - Special Purpose 0 0 0 20,401Litigation Tax - Jail, Workhouse, or Courthouse 75,353 0 0 75,353Litigation Tax - Courthouse Security 0 0 0 73,933Business Tax 0 0 0 325,588Mixed Drink Tax 0 0 0 586Mineral Severance Tax 0 0 0 384,855Adequate Facilities/Development Tax 0 0 0 494,643

Statutory Local TaxesBank Excise Tax 0 158,659 0 158,659Wholesale Beer Tax 0 0 0 112,535

Total Local Taxes $ 5,714,831 $ 158,659 $ 1,342,510 $ 17,073,459

(Continued)

Debt Service Fund Capital Projects Funds

160

Exhibit K-5






Cable TV Franchise $ 0 $ 0 $ 0 $ 60,077Permits

Beer Permits 0 0 0 1,852Building Permits 0 0 0 292,707Other Permits 0 0 0 2,925

Total Licenses and Permits $ 0 $ 0 $ 0 $ 357,561

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 0 $ 0 $ 0 $ 2,737Officers Costs 0 0 0 4,998Drug Control Fines 0 0 0 1,530Drug Court Fees 0 0 0 707DUI Treatment Fines 0 0 0 285Data Entry Fee - Circuit Court 0 0 0 2,506Courtroom Security Fee 0 0 0 129

General Sessions CourtFines 0 0 0 19,241Officers Costs 0 0 0 68,428Game and Fish Fines 0 0 0 477Drug Control Fines 0 0 0 4,864Drug Court Fees 0 0 0 6,162Jail Fees 0 0 0 66DUI Treatment Fines 0 0 0 6,207Data Entry Fee - General Sessions Court 0 0 0 10,469Courtroom Security Fee 0 0 0 781

(Continued)


161

Exhibit K-5





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

Fines $ 0 $ 0 $ 0 $ 5,297Officers Costs 0 0 0 3,029Data Entry Fee - Juvenile Court 0 0 0 6,216Courtroom Security Fee 0 0 0 4

Chancery CourtOfficers Costs 0 0 0 3,301Data Entry Fee - Chancery Court 0 0 0 5,628

Other Courts - In-countyFines 0 0 0 55,195

Judicial District Drug ProgramFines 0 0 0 937

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 0 0 22,062Other Fines, Forfeitures, and Penalties 0 0 0 16,625

Total Fines, Forfeitures, and Penalties $ 0 $ 0 $ 0 $ 247,881

Charges for Current ServicesGeneral Service Charges

Surcharge - Host Agency $ 0 $ 0 $ 0 $ 487,763Surcharge - General 0 0 0 27,754Patient Charges 0 0 0 1,731,631Zoning Studies 0 0 0 13,150Other General Service Charges 0 0 0 43,973

FeesCopy Fees 0 0 0 12,873

(Continued)


162

Exhibit K-5





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

Library Fees $ 0 $ 0 $ 0 $ 414Telephone Commissions 0 0 0 100,557Vending Machine Collections 0 0 0 9,207Constitutional Officers' Fees and Commissions 0 0 0 56Data Processing Fee - Register 0 0 0 13,054Data Processing Fee - Sheriff 0 0 0 4,955Sexual Offender Registration Fee - Sheriff 0 0 0 4,200Data Processing Fee - County Clerk 0 0 0 4,809Vehicle Insurance Coverage and Reinstatement Fees 0 0 0 710

Education ChargesOther Charges for Services 0 0 0 175

Total Charges for Current Services $ 0 $ 0 $ 0 $ 2,455,281


Investment Income $ 0 $ 0 $ 0 $ 244,258Lease/Rentals 0 0 0 12,400Sale of Materials and Supplies 0 0 0 6Sale of Gasoline 0 0 0 956Sale of Maps 0 0 0 2,034Sale of Recycled Materials 0 0 0 690,536E-Rate Funding 0 0 0 5,195Cobra Insurance Payments 0 0 0 683Miscellaneous Refunds 0 0 0 26,281Expenditure Credits 0 0 0 371

(Continued)


163

Exhibit K-5





Other Local Revenues (Cont.)Nonrecurring Items

Sale of Equipment $ 0 $ 0 $ 0 $ 24,220Damages Recovered from Individuals 0 0 0 7,362Contributions and Gifts 0 0 0 321,155

Other Local RevenuesOther Local Revenues 0 0 0 2,057

Total Other Local Revenues $ 0 $ 0 $ 0 $ 1,337,514

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 0 $ 0 $ 0 $ 421,579Circuit Court Clerk 0 0 0 58,426General Sessions Court Clerk 0 0 0 198,787Clerk and Master 0 0 0 139,515Juvenile Court Clerk 0 0 0 53,903Register 0 0 0 178,695Sheriff 0 0 0 20,954Trustee 0 0 0 670,114

Total Fees Received From County Officials $ 0 $ 0 $ 0 $ 1,741,973


Juvenile Services Program $ 0 $ 0 $ 0 $ 4,500Solid Waste Grants 0 0 0 333,926

Public Safety GrantsLaw Enforcement Training Programs 0 0 0 15,000Other Public Safety Grants 0 0 0 48,862

(Continued)


164

Exhibit K-5





State of Tennessee (Cont.)Health and Welfare Grants

Other Health and Welfare Grants $ 0 $ 0 $ 0 $ 212,193Public Works Grants

Bridge Program 0 0 0 177,170State Aid Program 0 0 0 286,694Litter Program 0 0 0 44,550

Other State RevenuesIncome Tax 0 0 0 57,849Beer Tax 0 0 0 17,959Vehicle Certificate of Title Fees 0 0 0 8,193Alcoholic Beverage Tax 0 0 0 69,620State Revenue Sharing - T.V.A. 49,352 119,573 43,004 429,527State Revenue Sharing - Telecommunications 0 0 0 145,945Contracted Prisoner Boarding 0 0 0 1,014,507Gasoline and Motor Fuel Tax 0 0 0 2,269,700Petroleum Special Tax 0 0 0 22,092Registrar's Salary Supplement 0 0 0 15,164State Shared Sales Tax - Cities 0 0 0 5,146Other State Grants 0 0 4,810 9,810Other State Revenues 0 0 0 66,782

Total State of Tennessee $ 49,352 $ 119,573 $ 47,814 $ 5,255,189


Disaster Relief $ 0 $ 0 $ 0 $ 1,282Homeland Security Grants 0 0 0 56,157

(Continued)


165

Exhibit K-5





Federal Government (Cont.)Direct Federal Revenue

Medicare $ 0 $ 0 $ 0 $ 1,800Other Direct Federal Revenue 0 0 0 1,189

Total Federal Government $ 0 $ 0 $ 0 $ 60,428


Prisoner Board $ 0 $ 0 $ 0 $ 34,330Contributions 516,050 0 0 623,495Contracted Services 0 0 0 17,955

Citizens GroupsDonations 0 0 0 7,811

OtherOther 0 0 0 23,240

Total Other Governments and Citizens Groups $ 516,050 $ 0 $ 0 $ 706,831

Total $ 6,280,233 $ 278,232 $ 1,390,324 $ 29,236,117


166

Exhibit K-6


All Governmental Fund TypesDiscretely Presented Marshall County School DepartmentFor the Year Ended June 30, 2019

General SchoolPurpose Federal CentralSchool Projects Cafeteria Total


Current Property Tax $ 9,298,712 $ 0 $ 0 $ 9,298,712Trustee's Collections - Prior Year 186,216 0 0 186,216Trustee's Collections - Bankruptcy 1,458 0 0 1,458Circuit Clerk/Clerk and Master Collections - Prior Years 102,861 0 0 102,861Interest and Penalty 42,064 0 0 42,064

County Local Option TaxesLocal Option Sales Tax 3,109,336 0 0 3,109,336Mixed Drink Tax 10,880 0 0 10,880

Total Local Taxes $ 12,751,527 $ 0 $ 0 $ 12,751,527


Marriage Licenses $ 2,214 $ 0 $ 0 $ 2,214Total Licenses and Permits $ 2,214 $ 0 $ 0 $ 2,214

Charges for Current ServicesEducation Charges

Lunch Payments - Children $ 0 $ 0 $ 535,794 $ 535,794Lunch Payments - Adults 0 0 52,707 52,707Income from Breakfast 0 0 73,582 73,582A la Carte Sales 0 0 530,835 530,835Receipts from Individual Schools 99,391 0 0 99,391TBI Criminal Background Fee 2,950 0 0 2,950

Total Charges for Current Services $ 102,341 $ 0 $ 1,192,918 $ 1,295,259

(Continued)


167

Exhibit K-6


All Governmental Fund TypesDiscretely Presented Marshall County School Department (Cont.)



Investment Income $ 4,431 $ 0 $ 407 $ 4,838Sale of Materials and Supplies 3,079 0 0 3,079Miscellaneous Refunds 84,444 0 0 84,444

Nonrecurring ItemsDamages Recovered from Individuals 1,227 0 0 1,227

Total Other Local Revenues $ 93,181 $ 0 $ 407 $ 93,588


On-behalf Contributions for OPEB $ 92,579 $ 0 $ 0 $ 92,579State Education Funds

Basic Education Program 29,516,664 0 0 29,516,664Early Childhood Education 205,502 0 0 205,502School Food Service 0 0 26,872 26,872Driver Education 32,572 0 0 32,572Other State Education Funds 293,198 0 0 293,198Coordinated School Health 88,545 0 0 88,545Career Ladder Program 115,933 0 0 115,933

Other State RevenuesState Revenue Sharing - T.V.A. 190,000 0 0 190,000Other State Grants 25,000 0 5,000 30,000Other State Revenues 7,362 0 0 7,362

Total State of Tennessee $ 30,567,355 $ 0 $ 31,872 $ 30,599,227

(Continued)


168

Exhibit K-6





USDA School Lunch Program $ 0 $ 0 $ 1,384,596 $ 1,384,596USDA - Commodities 0 0 211,964 211,964Breakfast 0 0 489,945 489,945Vocational Education - Basic Grants to States 0 74,586 0 74,586Title I Grants to Local Education Agencies 0 950,320 0 950,320Special Education - Grants to States 32,579 1,107,404 0 1,139,983Special Education Preschool Grants 0 28,110 0 28,110English Language Acquisition Grants 0 23,936 0 23,936Eisenhower Professional Development State Grants 0 129,148 0 129,148Other Federal through State 351,431 97,970 0 449,401

Total Federal Government $ 384,010 $ 2,411,474 $ 2,086,505 $ 4,881,989


Contributions $ 663,049 $ 0 $ 0 $ 663,049Total Other Governments and Citizens Groups $ 663,049 $ 0 $ 0 $ 663,049

Total $ 44,563,677 $ 2,411,474 $ 3,311,702 $ 50,286,853


169

Exhibit K-7

Marshall County, TennesseeSchedule of Detailed Expenditures -

All Governmental Fund TypesFor the Year Ended June 30, 2019

General FundGeneral Government

County CommissionOther Per Diem and Fees $ 86,958Social Security 4,926Extension Service Medicare 1,152Employee and Dependent Insurance 30,657Audit Services 11,634Communication 1,463Contracts with Private Agencies 6,932Data Processing Services 1,155Dues and Memberships 7,154Legal Notices, Recording, and Court Costs 3,653Postal Charges 222Printing, Stationery, and Forms 952Travel 4,022Other Contracted Services 660Food Supplies 364Other Supplies and Materials 2,914In Service/Staff Development 1,155Furniture and Fixtures 528

Total County Commission $ 166,501

Board of EqualizationBoard and Committee Members Fees $ 1,410Social Security 87Extension Service Medicare 20

Total Board of Equalization 1,517

Other Boards and CommitteesBoard and Committee Members Fees $ 3,800Social Security 236Extension Service Medicare 55

Total Other Boards and Committees 4,091

County Mayor/ExecutiveCounty Official/Administrative Officer $ 88,488Secretary(ies) 31,726Social Security 7,338Extension Service Medicare 1,716Pensions 8,969Employee and Dependent Insurance 12,511Communication 2,231Data Processing Services 1,794Dues and Memberships 1,500Postal Charges 305Internet Connectivity 401Travel 1,078Office Supplies 2,126In Service/Staff Development 605

(Continued)

170

Exhibit K-7



General Fund (Cont.)General Government (Cont.)

County Mayor/Executive (Cont.)Other Charges $ 360Furniture and Fixtures 259Other Equipment 181

Total County Mayor/Executive $ 161,588

County AttorneySupervisor/Director $ 45,300Social Security 2,755Extension Service Medicare 644Pensions 4,682Employee and Dependent Insurance 4,214Dues and Memberships 100In Service/Staff Development 1,000

Total County Attorney 58,695

Election CommissionCounty Official/Administrative Officer $ 68,462Deputy(ies) 32,105Longevity Pay 350Election Commission 3,770Election Workers 30,663Social Security 7,100Extension Service Medicare 1,660Pensions 7,569Employee and Dependent Insurance 11,818Communication 1,440Data Processing Services 23,523Dues and Memberships 350Legal Notices, Recording, and Court Costs 5,037Maintenance Agreements 88Maintenance and Repair Services - Office Equipment 282Postal Charges 2,921Internet Connectivity 810Travel 2,495Office Supplies 2,107In Service/Staff Development 1,475

Total Election Commission 204,025

Register of DeedsCounty Official/Administrative Officer $ 76,069Deputy(ies) 64,688Part-time Personnel 7,078Longevity Pay 650Social Security 8,669Extension Service Medicare 2,027Pensions 10,606Employee and Dependent Insurance 31,784

(Continued)

171

Exhibit K-7




Register of Deeds (Cont.)Communication $ 1,440Contracts with Government Agencies 1,978Data Processing Services 15,894Dues and Memberships 727Evaluation and Testing 36Maintenance Agreements 600Postal Charges 579Internet Connectivity 401Travel 2,235Office Supplies 5,056In Service/Staff Development 465

Total Register of Deeds $ 230,982

BuildingAssistant(s) $ 41,496Supervisor/Director 63,000Secretary(ies) 36,542Part-time Personnel 21,173Longevity Pay 950Social Security 9,993Extension Service Medicare 2,337Pensions 9,472Employee and Dependent Insurance 12,631Communication 1,915Data Processing Services 3,103Dues and Memberships 355Engineering Services 5,311Evaluation and Testing 237Legal Notices, Recording, and Court Costs 427Maintenance Agreements 600Maintenance and Repair Services - Vehicles 327Postal Charges 709Printing, Stationery, and Forms 572Internet Connectivity 401Travel 8Gasoline 3,620Office Supplies 773Road Signs 200Uniforms 406Vehicle and Equipment Insurance 1,655In Service/Staff Development 332Other Charges 143Office Equipment 1,279

Total Building 219,967

County BuildingsMaintenance Personnel $ 167,315

(Continued)

172

Exhibit K-7




County Buildings (Cont.)Longevity Pay $ 350Overtime Pay 10,722Social Security 10,934Extension Service Medicare 2,557Pensions 10,209Employee and Dependent Insurance 22,237Advertising 162Communication 1,176Data Processing Services 208Evaluation and Testing 263Janitorial Services 49,239Maintenance and Repair Services - Buildings 330,135Maintenance and Repair Services - Vehicles 822Pest Control 1,838Internet Connectivity 918Disposal Fees 5,415Custodial Supplies 7,235Electricity 97,535Gasoline 3,739Natural Gas 32,780Office Supplies 406Uniforms 773Water and Sewer 38,601Other Supplies and Materials 4,200Vehicle and Equipment Insurance 1,581In Service/Staff Development 680

Total County Buildings $ 802,030

FinanceAccounting and Budgeting

Assistant(s) $ 74,252Supervisor/Director 89,571Accountants/Bookkeepers 114,115Longevity Pay 2,200Other Salaries and Wages 34,998Social Security 19,021Extension Service Medicare 4,448Pensions 22,610Employee and Dependent Insurance 40,506Advertising 50Communication 2,545Data Processing Services 52,879Dues and Memberships 614Evaluation and Testing 88Licenses 409Maintenance Agreements 1,503Maintenance and Repair Services - Office Equipment 436

(Continued)

173

Exhibit K-7



General Fund (Cont.)Finance (Cont.)

Accounting and Budgeting (Cont.)Postal Charges $ 2,194Internet Connectivity 502Travel 3,545Office Supplies 9,734In Service/Staff Development 1,930Furniture and Fixtures 1,678Office Equipment 609

Total Accounting and Budgeting $ 480,437

Property Assessor's OfficeCounty Official/Administrative Officer $ 76,069Deputy(ies) 82,443Secretary(ies) 20,093Longevity Pay 1,850Social Security 10,982Extension Service Medicare 2,568Pensions 13,422Employee and Dependent Insurance 15,352Advertising 73Audit Services 18,530Communication 3,008Data Processing Services 9,350Dues and Memberships 1,759Evaluation and Testing 216Maintenance Agreements 600Postal Charges 1,453Rentals 731Travel 698Office Supplies 2,041Other Supplies and Materials 3,906In Service/Staff Development 475

Total Property Assessor's Office 265,619

Reappraisal ProgramAssistant(s) $ 37,440Deputy(ies) 53,928Part-time Personnel 9,860Social Security 5,990Extension Service Medicare 1,401Pensions 5,977Employee and Dependent Insurance 12,690Data Processing Services 3,239Maintenance and Repair Services - Vehicles 83Postal Charges 1,812Other Contracted Services 13,930Gasoline 1,361Office Supplies 541Vehicle and Equipment Insurance 548

Total Reappraisal Program 148,800

(Continued)

174

Exhibit K-7



General Fund (Cont.)Finance (Cont.)

County Trustee's OfficeCounty Official/Administrative Officer $ 76,069Deputy(ies) 67,888Part-time Personnel 9,603Longevity Pay 950Social Security 9,437Extension Service Medicare 2,207Pensions 10,868Employee and Dependent Insurance 14,002Communication 1,440Data Processing Services 11,226Dues and Memberships 1,082Legal Services 175Maintenance Agreements 40Postal Charges 6,464Printing, Stationery, and Forms 3,572Internet Connectivity 401Travel 1,459Office Supplies 2,032In Service/Staff Development 385Office Equipment 1,935

Total County Trustee's Office $ 221,235

County Clerk's OfficeCounty Official/Administrative Officer $ 76,069Deputy(ies) 205,726Longevity Pay 1,350Bonus Payments 3,500Social Security 17,222Extension Service Medicare 4,028Pensions 20,255Employee and Dependent Insurance 65,314Communication 1,920Data Processing Services 21,288Dues and Memberships 868Evaluation and Testing 181Maintenance Agreements 1,493Postal Charges 10,105Internet Connectivity 1,320Travel 1,964Office Supplies 11,167In Service/Staff Development 460Office Equipment 5,238Other Equipment 166

Total County Clerk's Office 449,634

(Continued)

175

Exhibit K-7



General Fund (Cont.)Administration of Justice

Circuit CourtCounty Official/Administrative Officer $ 76,069Deputy(ies) 205,683Attendants 900Longevity Pay 1,850Overtime Pay 20,686Jury and Witness Expense 9,504Social Security 18,247Extension Service Medicare 4,268Pensions 21,270Employee and Dependent Insurance 68,706Communication 5,147Data Processing Services 21,875Dues and Memberships 612Evaluation and Testing 31Legal Notices, Recording, and Court Costs 332Maintenance Agreements 586Postal Charges 3,643Travel 521Other Contracted Services 200Food Supplies 1,351Office Supplies 9,364In Service/Staff Development 705Office Equipment 2,954

Total Circuit Court $ 474,504

General Sessions JudgeJudge(s) $ 142,072Secretary(ies) 32,906Longevity Pay 300Other Salaries and Wages 25,277Social Security 11,479Extension Service Medicare 2,830Pensions 13,146Employee and Dependent Insurance 28,502Advertising 70Communication 480Contracts with Private Agencies 3,480Data Processing Services 599Dues and Memberships 500Evaluation and Testing 243Licenses 489Postal Charges 349Other Contracted Services 4,600Office Supplies 682In Service/Staff Development 275

Total General Sessions Judge 268,279

(Continued)

176

Exhibit K-7



General Fund (Cont.)Administration of Justice (Cont.)

Chancery CourtCounty Official/Administrative Officer $ 76,069Deputy(ies) 64,034Part-time Personnel 13,206Longevity Pay 250Social Security 8,859Extension Service Medicare 2,072Pensions 9,776Employee and Dependent Insurance 31,919Communication 1,440Data Processing Services 14,780Dues and Memberships 762Evaluation and Testing 67Legal Notices, Recording, and Court Costs 2,337Maintenance Agreements 474Postal Charges 2,240Travel 584Other Contracted Services 2,121Office Supplies 4,245In Service/Staff Development 470Office Equipment 3,832

Total Chancery Court $ 239,537

Juvenile CourtProbation Officer(s) $ 58,620Youth Service Officer(s) 48,317Guidance Personnel 57,021Secretary(ies) 13,617Longevity Pay 800Overtime Pay 11,411Social Security 11,516Extension Service Medicare 2,693Pensions 9,711Employee and Dependent Insurance 34,078Advertising 144Communication 2,252Data Processing Services 4,112Dues and Memberships 570Evaluation and Testing 314Maintenance Agreements 600Maintenance and Repair Services - Office Equipment 235Postal Charges 417Internet Connectivity 815Travel 2,594Office Supplies 1,559In Service/Staff Development 1,125Other Charges 1,628Office Equipment 4,402

Total Juvenile Court 268,551

(Continued)

177

Exhibit K-7



General Fund (Cont.)Administration of Justice (Cont.)

Courtroom SecurityDeputy(ies) $ 82,329Overtime Pay 987Social Security 4,874Extension Service Medicare 1,140Pensions 6,249Employee and Dependent Insurance 19,507Other Contracted Services 124,379Other Equipment 74,264

Total Courtroom Security $ 313,729

Public SafetySheriff's Department

County Official/Administrative Officer $ 83,676Assistant(s) 59,296Deputy(ies) 571,750Detective(s) 134,417Captain(s) 49,489Sergeant(s) 88,627Accountants/Bookkeepers 74,256Salary Supplements 28,596School Resource Officer 223,055Longevity Pay 5,500Overtime Pay 89,766In-service Training 15,000Social Security 86,867Extension Service Medicare 20,316Pensions 103,741Employee and Dependent Insurance 195,351Communication 6,280Contracts with Private Agencies 6,680Data Processing Services 16,316Dues and Memberships 2,300Evaluation and Testing 1,482Legal Notices, Recording, and Court Costs 44Maintenance and Repair Services - Buildings 1,466Maintenance and Repair Services - Equipment 624Maintenance and Repair Services - Office Equipment 874Maintenance and Repair Services - Vehicles 47,630Pest Control 314Postal Charges 1,299Internet Connectivity 1,227Towing Services 815Travel 1,421Tuition 3,600Disposal Fees 1,871Other Contracted Services 39,615Electricity 19,355

(Continued)

178

Exhibit K-7



General Fund (Cont.)Public Safety (Cont.)

Sheriff's Department (Cont.)Gasoline $ 81,395Law Enforcement Supplies 14,065Natural Gas 3,918Office Supplies 4,768Tires and Tubes 597Uniforms 13,744Water and Sewer 27,969Other Supplies and Materials 48Vehicle and Equipment Insurance 24,986In Service/Staff Development 2,077Other Charges 1,427Law Enforcement Equipment 14,854Office Equipment 1,008

Total Sheriff's Department $ 2,173,772

Administration of the Sexual Offender RegistryOther Charges $ 127

Total Administration of the Sexual Offender Registry 127

JailAssistant(s) $ 39,992Supervisor/Director 49,162Salary Supplements 31,792Guards 652,183Clerical Personnel 31,248Longevity Pay 3,250Overtime Pay 65,012Social Security 53,198Extension Service Medicare 12,441Pensions 54,889Employee and Dependent Insurance 136,981Communication 3,805Contracts with Private Agencies 8,507Data Processing Services 9,689Evaluation and Testing 4,851Maintenance and Repair Services - Equipment 8,276Maintenance and Repair Services - Office Equipment 1,339Maintenance and Repair Services - Vehicles 6,731Medical and Dental Services 374,447Pest Control 335Postal Charges 1,286Internet Connectivity 287Travel 797Disposal Fees 5,612Electricity 58,064Food Supplies 251,630Natural Gas 32,985

(Continued)

179

Exhibit K-7




Jail (Cont.)Office Supplies $ 5,339Prisoners Clothing 4,316Uniforms 7,009Water and Sewer 65,260Other Supplies and Materials 46,062Vehicle and Equipment Insurance 750In Service/Staff Development 500

Total Jail $ 2,028,025

Rural Fire ProtectionEvaluation and Testing $ 16Maintenance and Repair Services - Equipment 2,441Maintenance and Repair Services - Vehicles 6,899Other Contracted Services 36,282Diesel Fuel 3,628Electricity 17,324Gasoline 1,423Natural Gas 8,755Water and Sewer 2,765Other Supplies and Materials 4,591Excess Risk Insurance 7,905Vehicle and Equipment Insurance 17,005Other Equipment 4,907

Total Rural Fire Protection 113,941

Civil DefenseSupervisor/Director $ 68,286Secretary(ies) 32,906Part-time Personnel 11,205Longevity Pay 1,000Overtime Pay 4,305Other Salaries and Wages 56,750Social Security 10,686Extension Service Medicare 2,499Pensions 11,866Employee and Dependent Insurance 14,318Communication 3,641Data Processing Services 914Dues and Memberships 524Maintenance Agreements 734Maintenance and Repair Services - Equipment 2,109Maintenance and Repair Services - Vehicles 10,088Postal Charges 292Internet Connectivity 1,640Towing Services 400Travel 2,894Diesel Fuel 2,679

(Continued)

180

Exhibit K-7




Civil Defense (Cont.)Gasoline $ 2,134Office Supplies 942Uniforms 2,598Other Supplies and Materials 23,969Vehicle and Equipment Insurance 6,216In Service/Staff Development 2,020Other Charges 6,428Furniture and Fixtures 1,176Office Equipment 3,859Other Equipment 13,007

Total Civil Defense $ 302,085

Other Emergency ManagementRemittance of Revenue Collected $ 13,302Other Supplies and Materials 24,792

Total Other Emergency Management 38,094

County Coroner/Medical ExaminerAssistant(s) $ 63Supervisor/Director 5,315Social Security 333Extension Service Medicare 78Pensions 5Travel 1,280Other Contracted Services 50,665Other Equipment 493

Total County Coroner/Medical Examiner 58,232

Other Public SafetyCommunication $ 545

Total Other Public Safety 545

Public Health and WelfareLocal Health Center

Communication $ 4,953Contracts with Government Agencies 19,141Contracts with Private Agencies 2,200Dues and Memberships 200Janitorial Services 15,519Pest Control 100Disposal Fees 764Electricity 8,399Natural Gas 3,180Office Supplies 84Water and Sewer 1,001Other Supplies and Materials 6,381Other Charges 1,241

Total Local Health Center 63,163

(Continued)

181

Exhibit K-7



General Fund (Cont.)Public Health and Welfare (Cont.)

Rabies and Animal ControlAssistant(s) $ 33,238Longevity Pay 350Overtime Pay 791Social Security 1,999Extension Service Medicare 468Pensions 2,578Employee and Dependent Insurance 11,120Communication 1,628Contracts with Government Agencies 8,840Data Processing Services 104Evaluation and Testing 26Maintenance and Repair Services - Vehicles 69Gasoline 1,226Uniforms 343Other Supplies and Materials 40Vehicle and Equipment Insurance 526Other Equipment 1,584

Total Rabies and Animal Control $ 64,930

Ambulance/Emergency Medical ServicesSupervisor/Director $ 69,638Accountants/Bookkeepers 32,105Medical Personnel 11,831Paraprofessionals 1,596,618Longevity Pay 4,600Social Security 103,872Extension Service Medicare 24,293Pensions 111,847Employee and Dependent Insurance 216,674Communication 8,841Contracts with Government Agencies 5,500Contracts with Private Agencies 83,324Data Processing Services 616Dues and Memberships 815Evaluation and Testing 2,705Licenses 2,500Maintenance Agreements 600Maintenance and Repair Services - Buildings 491Maintenance and Repair Services - Equipment 12,200Maintenance and Repair Services - Office Equipment 18Maintenance and Repair Services - Vehicles 30,419Pest Control 347Postal Charges 310Internet Connectivity 2,359Towing Services 135Travel 1,703Disposal Fees 874

(Continued)

182

Exhibit K-7



General Fund (Cont.)Public Health and Welfare (Cont.)

Ambulance/Emergency Medical Services (Cont.)Other Contracted Services $ 37,590Custodial Supplies 1,443Diesel Fuel 9,005Drugs and Medical Supplies 98,414Electricity 20,918Gasoline 58,942Natural Gas 3,622Office Supplies 1,177Tires and Tubes 6,217Uniforms 7,425Water and Sewer 1,732Other Supplies and Materials 132Vehicle and Equipment Insurance 10,302In Service/Staff Development 6,127Furniture and Fixtures 1,159Motor Vehicles 18Office Equipment 770Other Equipment 16,062

Total Ambulance/Emergency Medical Services $ 2,606,290

Maternal and Child Health ServicesContracts with Government Agencies $ 5,000

Total Maternal and Child Health Services 5,000

Other Local Health ServicesParaprofessionals $ 92,841Secretary(ies) 44,535Social Security 7,640Extension Service Medicare 1,787Pensions 10,303Employee and Dependent Insurance 50,661Disability Insurance 439Travel 1,606Other Supplies and Materials 2,042

Total Other Local Health Services 211,854

Regional Mental Health CenterContracts with Government Agencies $ 21,600Contributions 2,500

Total Regional Mental Health Center 24,100

Other Public Health and WelfareContracts with Private Agencies $ 43,084Contributions 48,500

Total Other Public Health and Welfare 91,584

(Continued)

183

Exhibit K-7



General Fund (Cont.)Social, Cultural, and Recreational Services

Senior Citizens AssistanceContributions $ 79,500

Total Senior Citizens Assistance $ 79,500

LibrariesAssistant(s) $ 33,482Supervisor/Director 54,314Librarians 104,291Part-time Personnel 76,487Longevity Pay 1,650Overtime Pay 841Social Security 16,458Extension Service Medicare 3,849Pensions 14,530Employee and Dependent Insurance 26,275Advertising 375Communication 1,903Data Processing Services 3,539Dues and Memberships 504Maintenance and Repair Services - Equipment 180Pest Control 182Postal Charges 670Internet Connectivity 6,491Rentals 5,292Travel 822Disposal Fees 240Electricity 10,652Library Books/Media 9,729Natural Gas 2,861Office Supplies 9,479Periodicals 281Water and Sewer 1,358Other Supplies and Materials 8,984In Service/Staff Development 380Other Charges 80Office Equipment 1,558

Total Libraries 397,737

Agriculture and Natural ResourcesAgricultural Extension Service

Assistant(s) $ 11,724Supervisor/Director 13,253Secretary(ies) 11,004Educational Assistants 9,916Longevity Pay 518Social Security 652Extension Service Medicare 2,617Pensions 8,346

(Continued)

184

Exhibit K-7



General Fund (Cont.)Agriculture and Natural Resources (Cont.)

Agricultural Extension Service (Cont.)Employee and Dependent Insurance $ 7,984Communication 3,174Dues and Memberships 760Janitorial Services 3,823Travel 5,858Electricity 5,800Natural Gas 5,161Office Supplies 619Water and Sewer 2,975Other Supplies and Materials 481Office Equipment 2,321

Total Agricultural Extension Service $ 96,986

Forest ServiceContributions $ 2,000

Total Forest Service 2,000

Soil ConservationSupervisor/Director $ 32,906Longevity Pay 900Social Security 1,905Extension Service Medicare 446Pensions 2,535Employee and Dependent Insurance 9,428

Total Soil Conservation 48,120

Other OperationsTourism

Advertising $ 2,000Contributions 46,675

Total Tourism 48,675

Other Economic and Community DevelopmentContributions $ 356,409Other Contracted Services 398Refunds 4,602

Total Other Economic and Community Development 361,409

Veterans' ServicesSupervisor/Director $ 31,613Part-time Personnel 8,684Social Security 2,442Extension Service Medicare 571Pensions 1,169Employee and Dependent Insurance 6,570Communication 1,318Data Processing Services 553

(Continued)

185

Exhibit K-7



General Fund (Cont.)Other Operations (Cont.)

Veterans' Services (Cont.)Evaluation and Testing $ 175Maintenance Agreements 113Maintenance and Repair Services - Office Equipment 61Maintenance and Repair Services - Vehicles 4,043Postal Charges 279Internet Connectivity 810Travel 707Gasoline 171Office Supplies 765Vehicle and Equipment Insurance 488Other Charges 426

Total Veterans' Services $ 60,958

Other ChargesLife Insurance $ 4,167Disability Insurance 19,503Unemployment Compensation 7,653Contributions 15,000Data Processing Services 400Other Contracted Services 10,871Liability Insurance 187,410Trustee's Commission 187,446Workers' Compensation Insurance 167,702Liability Claims 10,550Other Charges 31,121Land 870Office Equipment 24,971

Total Other Charges 667,664

Contributions to Other AgenciesContributions $ 430,500

Total Contributions to Other Agencies 430,500

Total General Fund $ 14,955,012

Juvenile Services FundAdministration of Justice

Juvenile CourtContracts with Private Agencies $ 9,800Other Supplies and Materials 292Trustee's Commission 560

Total Juvenile Court $ 10,652

Total Juvenile Services Fund 10,652

(Continued)

186

Exhibit K-7



Solid Waste/Sanitation FundPublic Health and Welfare

Sanitation ManagementAssistant(s) $ 56,098Supervisor/Director 62,421Equipment Operators - Light 66,527Truck Drivers 104,893Secretary(ies) 27,489Maintenance Personnel 37,098Part-time Personnel 164,490Longevity Pay 400Overtime Pay 31,686Social Security 33,148Extension Service Medicare 7,914Pensions 28,920Employee and Dependent Insurance 60,651Life Insurance 242Disability Insurance 1,154Advertising 2,804Communication 6,474Contracts with Private Agencies 8,960Contracts with Public Carriers 27,062Data Processing Services 3,940Dues and Memberships 1,009Evaluation and Testing 1,541Janitorial Services 3,884Laundry Service 2,528Legal Notices, Recording, and Court Costs 232Licenses 650Maintenance Agreements 90Maintenance and Repair Services - Buildings 44,708Maintenance and Repair Services - Equipment 58,659Maintenance and Repair Services - Vehicles 30,009Medical and Dental Services 3,627Pest Control 93Postal Charges 294Rentals 14,070Travel 2,893Disposal Fees 27,616Custodial Supplies 678Diesel Fuel 56,698Electricity 51,688Food Supplies 9,591Garage Supplies 10,177Gasoline 4,137Instructional Supplies and Materials 745Natural Gas 12,477Office Supplies 1,110Uniforms 675Water and Sewer 8,115

(Continued)

187

Exhibit K-7



Solid Waste/Sanitation Fund (Cont.)Public Health and Welfare (Cont.)

Sanitation Management (Cont.)Wire $ 10,961Other Supplies and Materials 18Liability Insurance 13,312Trustee's Commission 11,692Vehicle and Equipment Insurance 6,467Workers' Compensation Insurance 11,669In Service/Staff Development 2,670Other Charges 4Building Improvements 60,264Motor Vehicles 152,930Office Equipment 4,352Other Equipment 761,177Other Capital Outlay 30,659

Total Sanitation Management $ 2,146,540

Total Solid Waste/Sanitation Fund $ 2,146,540

Drug Control FundPublic Safety

Drug EnforcementRemittance of Revenue Collected $ 6,295Other Supplies and Materials 160Trustee's Commission 149

Total Drug Enforcement $ 6,604

Total Drug Control Fund 6,604

Constitutional Officers - Fees FundFinance

County Trustee's OfficeConstitutional Officers' Operating Expenses $ 56

Total County Trustee's Office $ 56

Total Constitutional Officers - Fees Fund 56

Highway/Public Works FundHighways

AdministrationCounty Official/Administrative Officer $ 83,676Assistant(s) 43,181Accountants/Bookkeepers 40,747Salary Supplements 6,200Longevity Pay 1,250Overtime Pay 5,511Social Security 11,176Extension Service Medicare 2,614Pensions 13,509

(Continued)

188

Exhibit K-7



Highway/Public Works Fund (Cont.)Highways (Cont.)

Administration (Cont.)Employee and Dependent Insurance $ 14,821Dues and Memberships 3,832Legal Notices, Recording, and Court Costs 212Maintenance and Repair Services - Equipment 152Maintenance and Repair Services - Office Equipment 1,346Postal Charges 660Travel 2,193Office Supplies 992Other Charges 281Office Equipment 2,250

Total Administration $ 234,603

Highway and Bridge MaintenanceForemen $ 94,682Equipment Operators 495,893Truck Drivers 247,739Laborers 96,992Longevity Pay 11,700Overtime Pay 26,848Social Security 59,367Extension Service Medicare 13,884Pensions 67,795Employee and Dependent Insurance 193,160Evaluation and Testing 1,152Asphalt 384,801Crushed Stone 224,849Fertilizer, Lime, and Seed 9,000General Construction Materials 2,037Pipe 59,305Road Signs 10,722Salt 3,926

Total Highway and Bridge Maintenance 2,003,852

Operation and Maintenance of EquipmentForemen $ 53,560Mechanic(s) 121,867Longevity Pay 2,000Social Security 10,783Extension Service Medicare 2,522Pensions 13,307Employee and Dependent Insurance 39,430Evaluation and Testing 253Laundry Service 11,550Crushed Stone 1,123Diesel Fuel 88,913Equipment and Machinery Parts 191,747Garage Supplies 48,989

(Continued)

189

Exhibit K-7



Highway/Public Works Fund (Cont.)Highways (Cont.)

Operation and Maintenance of Equipment (Cont.)Gasoline $ 15,569Lubricants 12,606Office Supplies 111Tires and Tubes 46,212Other Supplies and Materials 28,914

Total Operation and Maintenance of Equipment $ 689,456

Other ChargesCommunication $ 5,862Electricity 10,509Water and Sewer 3,362Liability Insurance 9,354Trustee's Commission 38,058Vehicle and Equipment Insurance 24,483

Total Other Charges 91,628

Employee BenefitsLife Insurance $ 791Disability Insurance 4,102Workers' Compensation Insurance 53,342

Total Employee Benefits 58,235

Capital OutlayBridge Construction $ 225,325Highway Construction 95,639Highway Equipment 62,831Motor Vehicles 72,044Plant Operation Equipment 933State Aid Projects 296,420

Total Capital Outlay 753,192

Total Highway/Public Works Fund $ 3,830,966

General Debt Service FundPrincipal on Debt

General GovernmentPrincipal on Bonds $ 370,000

Total General Government $ 370,000

EducationPrincipal on Bonds $ 1,955,000Principal on Notes 250,297Principal on Capital Leases 255,008

Total Education 2,460,305

(Continued)

190

Exhibit K-7



General Debt Service Fund (Cont.)Interest on Debt

General GovernmentInterest on Bonds $ 137,556

Total General Government $ 137,556

EducationInterest on Bonds $ 796,865Interest on Notes 9,647Interest on Capital Leases 1,098

Total Education 807,610

Other Debt ServiceGeneral Government

Contracts with Private Agencies $ 936Trustee's Commission 73,285Other Debt Issuance Charges 2,500

Total General Government 76,721

EducationContracts with Private Agencies $ 1,525

Total Education 1,525

Total General Debt Service Fund $ 3,853,717

General Capital Projects FundCapital Projects

Education Capital ProjectsContributions $ 266,485

Total Education Capital Projects $ 266,485

Total General Capital Projects Fund 266,485

Highway Capital Projects FundCapital Projects

Highway and Street Capital ProjectsHighway Construction $ 348,410

Total Highway and Street Capital Projects $ 348,410

Total Highway Capital Projects Fund 348,410

School Bus Acquisition FundCapital Projects

Other General Government ProjectsTrustee's Commission $ 1,587

Total Other General Government Projects $ 1,587

Capital Projects - DonatedCapital Projects Donated to School Department

Contributions $ 396,564Total Capital Projects Donated to School Department 396,564

Total School Bus Acquisition Fund 398,151

(Continued)

191

Exhibit K-7



Other Capital Projects FundCapital Projects

Other General Government ProjectsArchitects $ 8,326Trustee's Commission 27,225Motor Vehicles 509,279Office Equipment 83,823Other Equipment 306,125Other Capital Outlay 4,165

Total Other General Government Projects $ 938,943

Total Other Capital Projects Fund $ 938,943

Total Governmental Funds - Primary Government $ 26,755,536

192

Exhibit K-8


All Governmental Fund TypesDiscretely Presented Marshall County School DepartmentFor the Year Ended June 30, 2019

General Purpose School FundInstruction

Regular Instruction ProgramTeachers $ 14,454,526Career Ladder Program 54,282Homebound Teachers 15,438Educational Assistants 696,397Longevity Pay 157,550Other Salaries and Wages 96,787Certified Substitute Teachers 34,090Non-certified Substitute Teachers 167,414Social Security 905,190Pensions 1,466,890Medical Insurance 3,148,807Dental Insurance 10,760Unemployment Compensation 11,617Employer Medicare 214,458Maintenance and Repair Services - Equipment 43,340Travel 1,670Tuition 3,000Other Contracted Services 11,057Instructional Supplies and Materials 418,402Textbooks - Bound 425,786Regular Instruction Equipment 365,438

Total Regular Instruction Program $ 22,702,899

Alternative Instruction ProgramTeachers $ 163,706Longevity Pay 1,450Non-certified Substitute Teachers 1,095Social Security 9,550Pensions 15,336Medical Insurance 41,428Dental Insurance 91Unemployment Compensation 88Employer Medicare 2,233Communication 95Instructional Supplies and Materials 951

Total Alternative Instruction Program 236,023

Special Education ProgramTeachers $ 1,241,399Career Ladder Program 9,982Homebound Teachers 6,838Educational Assistants 371,128Speech Pathologist 227,146Longevity Pay 21,325Certified Substitute Teachers 3,290Non-certified Substitute Teachers 28,140

(Continued)

193

Exhibit K-8



General Purpose School Fund (Cont.)Instruction (Cont.)

Special Education Program (Cont.)Social Security $ 108,209Pensions 171,353Medical Insurance 563,729Dental Insurance 1,806Unemployment Compensation 1,819Employer Medicare 25,438Other Contracted Services 95,813Instructional Supplies and Materials 5,662

Total Special Education Program $ 2,883,077

Career and Technical Education ProgramTeachers $ 959,378Career Ladder Program 3,000Longevity Pay 8,400Certified Substitute Teachers 420Non-certified Substitute Teachers 8,038Social Security 56,931Pensions 93,808Medical Insurance 194,403Dental Insurance 648Unemployment Compensation 646Employer Medicare 13,331Retirement - Hybrid Stabilization 1Maintenance and Repair Services - Equipment 2,207Instructional Supplies and Materials 27,229Textbooks - Bound 21,640Vocational Instruction Equipment 32,595

Total Career and Technical Education Program 1,422,675

Support ServicesAttendance

Supervisor/Director $ 38,523Career Ladder Program 600Social Workers 72,912Clerical Personnel 38,775Longevity Pay 2,200Social Security 6,704Pensions 8,541Medical Insurance 21,338Dental Insurance 137Unemployment Compensation 109Employer Medicare 2,135Travel 1,832Other Contracted Services 48,918Other Supplies and Materials 2,377In Service/Staff Development 2,744

(Continued)

194

Exhibit K-8



General Purpose School Fund (Cont.)Support Services (Cont.)

Attendance (Cont.)Other Charges $ 138Attendance Equipment 214

Total Attendance $ 248,197

Health ServicesSupervisor/Director $ 69,585Career Ladder Program 550Medical Personnel 201,639Longevity Pay 1,700Social Security 13,801Pensions 14,264Medical Insurance 51,582Dental Insurance 114Unemployment Compensation 357Employer Medicare 3,740Travel 750Other Contracted Services 40,000Other Supplies and Materials 34,765In Service/Staff Development 500Other Charges 1,448

Total Health Services 434,795

Other Student SupportCareer Ladder Program $ 2,990Guidance Personnel 638,184Longevity Pay 7,700Other Salaries and Wages 1,860Social Security 37,579Pensions 63,296Medical Insurance 150,692Dental Insurance 228Unemployment Compensation 371Employer Medicare 8,796Contracts with Government Agencies 104,445Evaluation and Testing 30,496Other Contracted Services 8,170Other Supplies and Materials 3,547Other Charges 18,980Other Equipment 36,235

Total Other Student Support 1,113,569

Regular Instruction ProgramSupervisor/Director $ 323,497Career Ladder Program 5,550Librarians 509,916Secretary(ies) 23,834

(Continued)

195

Exhibit K-8




Regular Instruction Program (Cont.)Longevity Pay $ 12,625Other Salaries and Wages 4,860Social Security 48,924Pensions 86,215Medical Insurance 179,955Dental Insurance 575Unemployment Compensation 438Employer Medicare 11,922Travel 2,624Other Contracted Services 26,500Library Books/Media 22,893Other Supplies and Materials 4,222In Service/Staff Development 11,597

Total Regular Instruction Program $ 1,276,147

Special Education ProgramPsychological Personnel $ 39,444Social Security 2,209Pensions 2,737Medical Insurance 15,088Dental Insurance 32Unemployment Compensation 28Employer Medicare 517Retirement - Hybrid Stabilization 1Communication 210

Total Special Education Program 60,266

Career and Technical Education ProgramSupervisor/Director $ 40,540Secretary(ies) 23,730Longevity Pay 825Social Security 3,927Pensions 6,288Medical Insurance 14,258Dental Insurance 68Unemployment Compensation 42Employer Medicare 918Communication 2,999Travel 447Other Contracted Services 1,393

Total Career and Technical Education Program 95,435

TechnologySupervisor/Director $ 75,954Data Processing Personnel 197,160Longevity Pay 750

(Continued)

196

Exhibit K-8




Technology (Cont.)Social Security $ 15,956Pensions 18,637Medical Insurance 58,902Dental Insurance 214Unemployment Compensation 198Employer Medicare 3,732Maintenance and Repair Services - Equipment 35,642Internet Connectivity 94,243Other Contracted Services 14,770Software 52,710In Service/Staff Development 1,417

Total Technology $ 570,285

Other ProgramsOn-behalf Payments to OPEB $ 92,579

Total Other Programs 92,579

Board of EducationBoard and Committee Members Fees $ 6,600Social Security 409Employer Medicare 96Dues and Memberships 6,640Legal Services 3,070Other Contracted Services 15,750Liability Insurance 70,209Trustee's Commission 276,016Workers' Compensation Insurance 171,238In Service/Staff Development 1,270Criminal Investigation of Applicants - TBI 1,149Other Charges 4,462

Total Board of Education 556,909

Director of SchoolsCounty Official/Administrative Officer $ 120,593Career Ladder Program 1,000Secretary(ies) 43,180Longevity Pay 1,150Social Security 10,021Pensions 22,155Medical Insurance 18,388Dental Insurance 328Unemployment Compensation 56Employer Medicare 2,344Communication 600Dues and Memberships 2,388Travel 1,085

(Continued)

197

Exhibit K-8




Director of Schools (Cont.)In Service/Staff Development $ 3,129Other Charges 1,222

Total Director of Schools $ 227,639

Office of the PrincipalPrincipals $ 809,687Career Ladder Program 12,280Assistant Principals 842,798Secretary(ies) 219,955Clerical Personnel 160,292Longevity Pay 22,100Social Security 121,627Pensions 203,285Medical Insurance 310,647Dental Insurance 1,072Unemployment Compensation 1,048Employer Medicare 28,445Travel 150Other Contracted Services 9,678Office Supplies 5,354Other Charges 134,661Administration Equipment 13,790

Total Office of the Principal 2,896,869

Fiscal ServicesSupervisor/Director $ 43,211Accountants/Bookkeepers 182,392Longevity Pay 3,400Social Security 13,545Pensions 13,904Medical Insurance 34,407Dental Insurance 91Unemployment Compensation 140Employer Medicare 3,168Data Processing Services 53,416Travel 138Other Contracted Services 375Data Processing Supplies 3,449Office Supplies 4,343In Service/Staff Development 1,835

Total Fiscal Services 357,814

Human Services/PersonnelSupervisor/Director $ 75,954Clerical Personnel 44,580Longevity Pay 550

(Continued)

198

Exhibit K-8




Human Services/Personnel (Cont.)Social Security $ 6,999Pensions 9,081Medical Insurance 28,207Dental Insurance 91Unemployment Compensation 56Employer Medicare 1,637Travel 676Office Supplies 2,206Other Supplies and Materials 1,981In Service/Staff Development 1,316Other Charges 7,249Administration Equipment 299

Total Human Services/Personnel $ 180,882

Operation of PlantSecretary(ies) $ 49,394Custodial Personnel 922,592Longevity Pay 15,575Other Salaries and Wages 59,056Social Security 59,201Pensions 64,754Medical Insurance 253,801Dental Insurance 885Unemployment Compensation 1,544Employer Medicare 14,162Disposal Fees 84,262Other Contracted Services 8,267Custodial Supplies 120,406Electricity 1,197,653Natural Gas 107,409Water and Sewer 159,322Other Supplies and Materials 27Boiler Insurance 10,959Building and Contents Insurance 199,665

Total Operation of Plant 3,328,934

Maintenance of PlantMaintenance Personnel $ 431,882Longevity Pay 5,000Other Salaries and Wages 28,250Social Security 26,930Pensions 33,696Medical Insurance 100,484Dental Insurance 214Unemployment Compensation 366Employer Medicare 6,373

(Continued)

199

Exhibit K-8




Maintenance of Plant (Cont.)Communication $ 1,290Dues and Memberships 200Maintenance and Repair Services - Buildings 357,818Maintenance and Repair Services - Equipment 128,093Travel 862Other Contracted Services 179,342Other Charges 991Administration Equipment 38,200

Total Maintenance of Plant $ 1,339,991

TransportationSupervisor/Director $ 59,160Mechanic(s) 106,439Bus Drivers 646,803Clerical Personnel 32,423Longevity Pay 16,950Other Salaries and Wages 37,422Social Security 47,894Pensions 63,354Medical Insurance 409,916Dental Insurance 1,660Unemployment Compensation 1,585Employer Medicare 11,362Communication 1,766Medical and Dental Services 4,850Travel 219Other Contracted Services 27,091Diesel Fuel 157,983Gasoline 34,818Tires and Tubes 22,546Vehicle Parts 84,938Vehicle and Equipment Insurance 61,646In Service/Staff Development 994Other Charges 22,841Transportation Equipment 396,564

Total Transportation 2,251,224

Central and OtherClerical Personnel $ 23,280Longevity Pay 250Social Security 1,334Pensions 1,765Life Insurance 15,094Medical Insurance 74,604Unemployment Compensation 28Employer Medicare 312

(Continued)

200

Exhibit K-8




Central and Other (Cont.)Other Fringe Benefits $ 64,982Communication 15,741Postal Charges 8,882Office Supplies 2,212Other Charges 5,713

Total Central and Other $ 214,197

Operation of Non-Instructional ServicesCommunity Services

Supervisor/Director $ 95,177Teachers 220,342Educational Assistants 7,234Other Salaries and Wages 462Social Security 18,990Pensions 31,520Unemployment Compensation 196Employer Medicare 4,441Instructional Supplies and Materials 33,873In Service/Staff Development 4,002Other Charges 6,987

Total Community Services 423,224

Early Childhood EducationTeachers $ 109,966Career Ladder Program 945Educational Assistants 26,704Longevity Pay 1,650Non-certified Substitute Teachers 3,470Social Security 8,023Pensions 13,348Medical Insurance 43,295Dental Insurance 137Unemployment Compensation 150Employer Medicare 1,876Instructional Supplies and Materials 11,585In Service/Staff Development 802Other Charges 126Regular Instruction Equipment 85

Total Early Childhood Education 222,162

Capital OutlayRegular Capital Outlay

Other Capital Outlay $ 1,172,370Total Regular Capital Outlay 1,172,370

(Continued)

201

Exhibit K-8



General Purpose School Fund (Cont.)Other Debt Service

EducationDebt Service Contribution to Primary Government $ 516,050

Total Education $ 516,050

Total General Purpose School Fund $ 44,824,212

School Federal Projects FundInstruction

Regular Instruction ProgramTeachers $ 542,588Educational Assistants 107,026Certified Substitute Teachers 70Non-certified Substitute Teachers 2,153Social Security 34,888Pensions 56,947Medical Insurance 128,361Dental Insurance 438Unemployment Compensation 462Employer Medicare 8,134Instructional Supplies and Materials 57,800Other Charges 535Regular Instruction Equipment 51,800

Total Regular Instruction Program $ 991,202

Special Education ProgramTeachers $ 191,861Educational Assistants 312,139Social Security 27,564Pensions 39,601Medical Insurance 154,060Dental Insurance 620Unemployment Compensation 829Employer Medicare 6,447Instructional Supplies and Materials 19,038Other Supplies and Materials 4,523Special Education Equipment 6,776


Career and Technical Education ProgramVocational Instruction Equipment $ 60,854


Support ServicesOther Student Support

Other Salaries and Wages $ 2,678Travel 5,260Other Contracted Services 1,495

(Continued)

202

Exhibit K-8



School Federal Projects Fund (Cont.)Support Services (Cont.)

Other Student Support (Cont.)Other Supplies and Materials $ 626Other Charges 13,337

Total Other Student Support $ 23,396

Regular Instruction ProgramSupervisor/Director $ 28,934Secretary(ies) 38,024Social Security 3,885Pensions 5,810Medical Insurance 7,826Dental Insurance 84Unemployment Compensation 52Employer Medicare 909Travel 41Other Supplies and Materials 26,973In Service/Staff Development 73,342Other Charges 3,334Other Equipment 3,871

Total Regular Instruction Program 193,085

Special Education ProgramSupervisor/Director $ 39,339Secretary(ies) 20,038Clerical Personnel 27,840Other Salaries and Wages 30,000Social Security 4,752Pensions 7,706Medical Insurance 27,164Dental Insurance 93Unemployment Compensation 113Employer Medicare 1,546Travel 1,945Other Contracted Services 49,678Other Supplies and Materials 7,032In Service/Staff Development 6,193


Career and Technical Education ProgramSupervisor/Director $ 3,729In Service/Staff Development 571


TransportationBus Drivers $ 56,362Other Salaries and Wages 39,659Social Security 5,192

(Continued)

203

Exhibit K-8



School Federal Projects Fund (Cont.)Support Services (Cont.)

Transportation (Cont.)Pensions $ 7,161Medical Insurance 41,763Dental Insurance 214Unemployment Compensation 174Employer Medicare 1,215

Total Transportation $ 151,740

Total School Federal Projects Fund $ 2,411,474

Central Cafeteria FundOperation of Non-Instructional Services

Food ServiceSupervisor/Director $ 63,043Clerical Personnel 69,270Cafeteria Personnel 1,028,125Maintenance Personnel 33,910Longevity Pay 24,475Social Security 69,207Pensions 68,555Medical Insurance 391,705Dental Insurance 1,126Unemployment Compensation 2,295Employer Medicare 16,190Other Fringe Benefits 318Communication 2,635Transportation - Other than Students 5,848Travel 439Other Contracted Services 44,145Food Supplies 1,188,298Office Supplies 3,908Uniforms 4,176USDA - Commodities 211,964Other Supplies and Materials 171,394In Service/Staff Development 7,018Food Service Equipment 52,660

Total Food Service $ 3,460,704

Total Central Cafeteria Fund 3,460,704

Total Governmental Funds - Marshall County School Department $ 50,696,390

204

Exhibit K-9

Marshall County, TennesseeSchedule of Detailed Revenues and ExpensesDiscretely Presented Marshall County Board of Public UtilitiesFor the Year Ended June 30, 2019

Revenues Operating Revenues Charges for Current Services General Service Charges Sewer Fees $ 81,680 Water Sales 2,419,262 Water Tap Sales 190,400 Service Charges 58,447 Total Charges for Current Services $ 2,749,789

Other Local Revenues Recurring Items Miscellaneous Refunds $ 688 Other Local Revenues Other Local Revenues 2,159 Total Other Local Revenues $ 2,847 Total Operating Revenues $ 2,752,636

Nonoperating Revenues Investment Income $ 21,307 Total Nonoperating Revenues $ 21,307

Total Revenues $ 2,773,943

Expenses Operating Expenses Other Economic and Community Development Assistants $ 39,350 Supervisor/Director 66,144 Accountants/Bookkeepers 146,838 Foremen 100,630 Equipment Operators 39,499 Laborers 167,020 Longevity Pay 6,900 Overtime Pay 26,262 Board and Committee Members Fees 4,200 Social Security 35,586 Extension Service Medicare 8,323 State Retirement 18,909 Employee and Dependent Insurance 119,762 Life Insurance 376 Disability Insurance 1,820 Audit Services 1,753 Communication 10,973

(Continued)

205

Exhibit K-9

Marshall County, TennesseeSchedule of Detailed Revenues and ExpensesDiscretely Presented Marshall County Board of Public Utilities (Cont.)

Expenses (Cont.) Operating Expenses (Cont.) Other Economic and Community Development (Cont.) Contracts with Government Agencies $ 869,549 Data Processing Services 28,036 Debt Collection Services 1,232 Dues and Memberships 5,877 Engineering Services 29,242 Evaluation and Testing 3,987 Janitorial Services 810 Legal Services 8,996 Legal Notices, Recording and Court Costs 882 Licenses 400 Maintenance and Repair Services - Buildings 1,154 Maintenance and Repair Services - Equipment 12,855 Maintenance and Repair Services - Office Equipment 246 Maintenance and Repair Services - Vehicles 5,065 Pest Control 260 Postal Charges 21,533 Travel 2,218 Other Contracted Services 2,000 Custodial Supplies 566 Diesel Fuel 13,801 Electricity 53,012 Fertilizer, Lime, and Seed 2,224 Gasoline 32,087 General Construction Materials 112,531 Natural Gas 2,796 Office Supplies 4,336 Small Tools 1,757 Tires and Tubes 6,059 Uniforms 4,003 Water and Sewer 1,610 Indirect Cost 24 Liability Insurance 9,992 Premiums on Corporate Surety Bonds 2,960 Trustee's Commission 31,030 Vehicle and Equipment Insurance 9,020 Workers' Compensation Insurance 14,282 Depreciation 568,651 In-Service/Staff Development 3,205 Fines, Assessments, and Penalties 5,721 Other Charges 3,549 Total Other Economic and Community Development $ 2,671,903 Total Operating Expenses $ 2,671,903

Nonoperating Expenses General Government Debt Service Interest on Bonds $ 145,085 Total Nonoperating Expenses $ 145,085

Total Expenses $ 2,816,988

206

Exhibit K-10

Marshall County, TennesseeSchedule of Detailed Receipts, Disbursements, and Changes in Cash Balance - City Agency FundFor the Year Ended June 30, 2019

Cities -Sales Tax

Fund

Cash Receipts Local Option Sales Tax $ 2,312,672Total Cash Receipts $ 2,312,672

Cash Disbursements Remittance of Revenues Collected $ 2,289,545 Trustee's Commission 23,127Total Cash Disbursements $ 2,312,672

Excess of Cash Receipts Over (Under) Cash Disbursements $ 0Cash Balance, July 1, 2018 0

Cash Balance, June 30, 2019 $ 0

207

STATUTORY SECTION

This part of Marshall County’s annual financial report presents detailed information required by state statute for the Marshall County Board of Public Utilities. This information is presented solely for the purposes of statutory compliance and additional analysis and is not a required part of the financial statements. This information is unaudited. It has not been subjected to any auditing procedures.

Table(s) Page(s) Demographic and Economic Information:

These schedules offer water rates and water loss reports required by state statute to help the reader understand how well the utility is performing. 1-2 209-211

Source: Marshall County Board of Public Utility Management.

208

Table 1

Marshall County, TennesseeSchedule of Utility RatesDiscretely Presented Marshall County Board of Public UtilitiesJune 30, 2019

Utility Rates in Effect

Dry Tap $ 20.00 per monthFirst 1,000 gallons 20.00 minimumOver 1,000 to 6,999 gallons 8.00 per 1,000 gallonsOver 7,000 to 12,000 gallons 10.00 per 1,000 gallonsAll over 12,000 gallons 15.00 per 1,000 gallonsHorton Park 4.25 per 1,000 gallonsTown of Chapel Hill 4.25 per 1,000 gallons

Number of Customers 4,207

209

Table 2

Marshall County, TennesseeSchedule of Unaccounted for WaterDiscretely Presented Marshall County Board of Public UtilitiesFor the Year Ended June 30, 2019

Water Audit Report for:Reporting Year:

All volumes to be entered as: MILLION GALLONS (US) PER YEAR

Master Meter and Supply Error AdjustmentsWATER SUPPLIED Pcnt: Value:

Volume from own sources: MG/Yr MG/YrWater imported: 8 288.154 MG/Yr MG/YrWater exported: MG/Yr MG/Yr

Enter negative % or value for under-registrationWATER SUPPLIED: 288.154 MG/Yr Enter positive % or value for over-registration

.AUTHORIZED CONSUMPTION

Billed metered: 7 212.511 MG/YrBilled unmetered: MG/YrUnbilled metered: 9 2.350 MG/Yr Pcnt: Value:

Unbilled unmetered: 3.602 MG/Yr 1.25% MG/Yr

AUTHORIZED CONSUMPTION: 218.463 MG/Yr

WATER LOSSES (Water Supplied - Authorized Consumption) 69.691 MG/Yr

Apparent Losses Pcnt: Value:Unauthorized consumption: 0.720 MG/Yr 0.25% MG/Yr

Customer metering inaccuracies: 7 11.308 MG/Yr 5.00% MG/YrSystematic data handling errors: 9 0.500 MG/Yr 0.25% MG/Yr

Apparent Losses: 12.529 MG/Yr

Real Losses (Current Annual Real Losses or CARL)Real Losses = Water Losses - Apparent Losses: 57.162 MG/Yr

WATER LOSSES: 69.691 MG/Yr

NON-REVENUE WATERNON-REVENUE WATER: 75.643 MG/Yr

= Water Losses + Unbilled Metered + Unbilled Unmetered

SYSTEM DATALength of mains: 9 397.0 miles

Number of active AND inactive service connections: 10 4,220Service connection density: 11 conn./mile main

YesAverage length of customer service line: ft

Average operating pressure: 9 115.0 psi

COST DATA

Total annual cost of operating water system: 9 $2,657,017 $/YearCustomer retail unit cost (applied to Apparent Losses): 9 $11.39

Variable production cost (applied to Real Losses): 10 $3,201.63 $/Million gallons

WATER AUDIT DATA VALIDITY SCORE:

PRIORITY AREAS FOR ATTENTION:

1: Water imported

2: Billed metered

3: Unauthorized consumption

Average length of customer service line has been set to zero and a data grading score of 10 has been applied

Are customer meters typically located at the curbstop or property line?

AWWA Free Water Audit Software: Reporting Worksheet

Default option selected for Unbilled unmetered - a grading of 5 is applied but not displayed

2019 7/2018 - 6/2019Marshall County Board of Public Utilties (0000105)

*** YOUR SCORE IS: 81 out of 100 ***

A weighted scale for the components of consumption and water loss is included in the calculation of the Water Audit Data Validity Score

Based on the information provided, audit accuracy can be improved by addressing the following components:

$/1000 gallons (US)

<----------- Enter grading in column 'E' and 'J' ---------->

Default option selected for unauthorized consumption - a grading of 5 is applied but not displayed

0.500

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? Click to access definition

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Please enter data in the white cells below. Where available, metered values should be used; if metered values are unavailable please estimate a value. Indicate your confidence in the accuracy of the input data by grading each component (n/a or 1-10) using the drop-down list to the left of the input cell. Hover the mouse over the cell to obtain a description of the grades

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(length of service line, beyond the property boundary, that is the responsibility of the utility)

Use buttons to selectpercentage of water

suppliedOR

value

?Click here: for help using option buttons below

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+

+ Click to add a comment

WAS v5.0

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American Water Works Association.Copyright © 2014, All Rights Reserved.

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++ Use Customer Retail Unit Cost to value real losses

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To select the correct data grading for each input, determine the highest grade where the utility meets or exceeds all criteria for that grade and all grades below it.

210

Marshall County, TennesseeSchedule of Unaccounted for WaterDiscretely Presented Marshall County Board of Public UtilitiesFor the Year Ended June 30, 2019

Water Audit Report for: Marshall County Board of Public Utilties (0000105)Reporting Year:

System Attributes:Apparent Losses: 12.529 MG/Yr

+ Real Losses: 57.162 MG/Yr

= Water Losses: 69.691 MG/Yr

Unavoidable Annual Real Losses (UARL): 116.72 MG/Yr

Annual cost of Apparent Losses: $142,704Annual cost of Real Losses: $183,012 Valued at Variable Production Cost

Performance Indicators:

Non-revenue water as percent by volume of Water Supplied: 26.3%

Non-revenue water as percent by cost of operating system: 13.0% Real Losses valued at Variable Production Cost

Apparent Losses per service connection per day: 8.13 gallons/connection/day

Real Losses per service connection per day: N/A gallons/connection/day

Real Losses per length of main per day*: 394.48 gallons/mile/day

Real Losses per service connection per day per psi pressure: N/A gallons/connection/day/psi

From Above, Real Losses = Current Annual Real Losses (CARL): 57.16 million gallons/year

0.49

* This performance indicator applies for systems with a low service connection density of less than 32 service connections/mile of pipeline

Infrastructure Leakage Index (ILI) [CARL/UARL]:

2019 7/2018 - 6/2019

Return to Reporting Worksheet to change this assumpiton

AWWA Free Water Audit Software: System Attributes and Performance Indicators

*** YOUR WATER AUDIT DATA VALIDITY SCORE IS: 81 out of 100 ***

?

?

American Water Works Association.Copyright © 2014, All Rights Reserved.

WAS v5.0

Financial:

Operational Efficiency:

211

SINGLE AUDIT SECTION

212

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 Marshall County Mayor and Board of County Commissioners Marshall, Tennessee To the County Mayor and Board of County Commissioners: 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 aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Marshall County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise Marshall County’s basic financial statements, as listed in the table of contents, and have issued our report thereon dated October 23, 2019. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Marshall County’s internal control over financial reporting (internal control) to determine the 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 Marshall County’s internal control. Accordingly, we do not express an opinion on the effectiveness of Marshall County’s internal control. 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. 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. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control

213

that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Marshall 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 determination of financial statement amounts. 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 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 results 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 Marshall County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Very truly yours,


214

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 Marshall County Mayor and Board of County Commissioners Marshall, Tennessee To the County Mayor and Board of County Commissioners: Report on Compliance for Each Major Federal Program We have audited Marshall County’s compliance with the types of compliance requirements

described in the OMB Compliance Supplement that could have a direct and material effect on each of Marshall County’s major federal programs for the year ended June 30, 2019. Marshall 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 Marshall 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 Marshall County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

215

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 Marshall County’s compliance. Opinion on Each Major Federal Program In our opinion, Marshall 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, 2019. Report on Internal Control Over Compliance Management of Marshall 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 Marshall 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 Marshall 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. 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.

216

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Marshall County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise Marshall County’s basic financial statements. We issued our report thereon dated October 23, 2019, 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,


217

Marshall County, Tennessee, the Marshall County School Department, and the Marshall County Board of Public UtilitiesSchedule of Expenditures of Federal Awards and State Grants (1) (2)For the Year Ended June 30, 2019

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: (4) National School Lunch Program (Commodities - Noncash Assistance) 10.555 N/A $ 211,964 (5) Passed-through State Department of Education: Child Nutrition Cluster: (4) School Breakfast Program 10.553 N/A 489,945 National School Lunch Program 10.555 N/A 1,384,596 (5)Total U.S. Department of Agriculture $ 2,086,505

U.S. Department of Transportation: Passed-through State Department of Military: Interagency Hazardous Materials Public Sector Training and Planning Grants 20.703 (3) $ 6,160Total U.S. Department of Transportation $ 6,160

U.S. Department of Education: Passed-through State Department of Education: Title I Grants to Local Educational Agencies 84.010 N/A $ 967,010 Special Education Cluster: (4) Special Education - Grants to States 84.027 N/A 1,139,983 Special Education - Preschool Grants 84.173 N/A 28,110 Career and Technical Education - Basic Grants to States 84.048 N/A 74,586 Twenty-first Century Community Learning Centers 84.287 N/A 351,431 English Language Acquisition State Grants 84.365 N/A 23,775 Supporting Effective Instruction State Grants 84.367 N/A 113,022 Student Support and Academic Enrichment Program 84.424 N/A 55,885Total U.S. Department of Education $ 2,753,802

U.S. Department of Health and Human Services: Passed-through State Department of Education: CCDF Cluster: (4) Child Care and Development Block Grant 93.575 (3) $ 41,682 Total U.S. Department of Health and Human Services $ 41,682

U.S. Department of Homeland Security: Passed-through State Department of Military: Emergency Management Performance Grants 97.042 (3) $ 33,850 Homeland Security Grant Program 97.067 (3) 16,147Total U.S. Department of Homeland Security $ 49,997

Total Expenditures of Federal Grants $ 4,938,146

(Continued)

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Marshall County, Tennessee, the Marshall County School Department, and the Marshall County Board of Public UtilitiesSchedule of Expenditures of Federal Awards and State Grants (1) (2) (Cont.)

FederalFederal/Pass-through Agency/State CFDA ContractGrantor Program Title Number Number Expenditures

State Grants Juvenile Justice and Delinquency Prevention - State Commission on Children and Youth N/A (3) $ 4,500 Administrative Office of the Courts Court Security Grant Program - Supreme Court of Tennessee N/A (3) 48,862 Safe Schools Act - State Department of Education N/A (3) 59,900 School Safety and Security Grant - State Department of Education N/A (3) 149,750 Early Childhood Education - State Department of Education N/A (3) 205,502 Coordinated School Health - State Department of Education N/A (3) 88,545 Lottery for Education Afterschool Programs - State Department of Education N/A (3) 73,548 Work-based Learning Grant Program - State Department of Economic and Community Development N/A (3) 25,000 Read to Be Ready Coaching Network - State Department of Education N/A (3) 10,000 2019 Alternative Breakfast Grant - State Department of Education N/A (3) 5,000 Litter Program - State Department of Transportation N/A (3) 44,550 Recycling Measurement Grant - State Department of Environment and Conservation N/A (3) 2,800 Used Oil Grant - State Department of Environment and Conservation N/A (3) 31,645 Convenience Center Grant - State Department of Environment and Conservation N/A (3) 119,553 Waste Reduction Grant - State Department of Environment and Conservation N/A (3) 179,928 Technology Grant - Tennessee State Library and Archives N/A (3) 2,503 STEM Program - Tennessee State Library and Archives N/A (3) 2,307 Local Health Services - State Department of Health N/A (3) 212,193 ThreeStar Grant Program - State Department of Economic and Community Development N/A (3) 5,000

Total State Grants $ 1,271,086

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) Marshall County elected not to use the 10% de minimis cost rate permitted in the Uniform Guidance.(3) Information not available.(4) Child Nutrition Cluster total $2,086,505; Special Education Cluster total $1,168,093; CCDF Cluster total $41,682.(5) Total for CFDA No. 10.555 is $1,596,560.

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Marshall County, TennesseeSummary Schedule of Prior-year FindingsFor the Year Ended June 30, 2019

There were no prior-year federal award findings to report.

Prior-year Federal Awards Findings

Government Auditing Standards require auditors to report the status of uncorrected findings from prior audits. Inaddition, 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 AnnualFinancial Report for Marshall County, Tennessee, for the year ended June 30, 2019.

Prior-year Financial Statement Findings

There were no prior-year financial statement findings to report.

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Financial Statements:

1. Our report on the financial statements of Marshall County is unmodified.

2. Internal Control Over Financial Reporting:

* Material weakness identified? NO

* Significant deficiency identified? NO

3. Noncompliance material to the financial statements noted? NO

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 Number: 84.010 Title I Grants to Local Educational Agencies

8. Dollar threshold used to distinguish between Type A and Type B Programs. $750,000

9. Auditee qualified as low-risk auditee? YES

MARSHALL 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 There were no findings and recommendations as a result of our audit of the financial statements of Marshall County, Tennessee.

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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, 2019.

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Marshall County, Tennessee Management’s Corrective Action Plan

For the Year Ended June 30, 2019 The audit of Marshall County did not report any findings and recommendations. Therefore, no management responses are required by the auditee requirements within Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

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BEST PRACTICE

Accounting literature describes a best practice as a recommended policy, procedure, or technique that aids management in improving financial performance. Historically, a best practice has consistently shown superior results over conventional methods. The Division of Local Government Audit strongly believes that the item noted below is a best practice that should be adopted by the governing body as a means of significantly improving accountability and the quality of services provided to the citizens of Marshall County.

MARSHALL COUNTY SHOULD ADOPT A CENTRAL SYSTEM OF ACCOUNTING, BUDGETING, AND PURCHASING

Marshall County does not have a central system of accounting, budgeting, and purchasing. Sound business practices dictate that establishing a central system would significantly improve internal controls over the accounting, budgeting, and purchasing processes. The absence of a central system of accounting, budgeting, and purchasing has been a management decision by the county commission resulting in decentralization and some duplication of effort. The Division of Local Government Audit strongly believes that the adoption of a central system of accounting, budgeting, and purchasing is a best practice that would significantly improve accountability and the quality of services provided to the citizens of Marshall County. Therefore, we recommend the adoption of the County Financial Management System of 1981 or a private act, which would provide for a central system of accounting, budgeting, and purchasing covering all county departments.

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Documents

MARSHALL COUNTY TENNESSEE - TN Comptroller · annual financial report marshall county, tennessee for the year ended june 30, 2019 comptroller of the treasury justin p. wilson division