MONTGOMERY COUNTY TENNESSEE - TN …...JUSTIN P. WILSON DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE Director JEFF BAILEY, CPA, CGFM, CFE Audit Manager KATIE ARMSTRONG, CPA,

ANNUAL FINANCIAL REPORT

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

DIVISION OF LOCAL GOVERNMENT AUDIT

ANNUAL FINANCIAL REPORT

MONTGOMERY 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

KATIE ARMSTRONG, CPA, CGFM, CFE

CARRIE SABIN TYLER ENSMINGER, CPA BETHANY GRAVES State Auditors

Senior Auditor

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

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Exhibit Page(s)

Summary of Audit Findings 6

INTRODUCTORY SECTION 7

Montgomery County Officials 8

FINANCIAL SECTION 9

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

Government-wide Financial Statements:Statement of Net Position A 14-16Statement of Activities B 17-18

Fund Financial Statements:Governmental Funds:

Balance Sheet C-1 19-21Reconciliation 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

Statement of Revenues, Expenditures, and Changes in FundBalance – Actual (Budgetary Basis) and Budget:

General Fund C-5 26-29Proprietary Funds:

Statement of Net Position D-1 30Statement of Revenues, Expenses, and Changes in Net Position D-2 31Statement of Cash Flows D-3 32

Fiduciary Funds:Statement of Fiduciary Assets and Liabilities E 33

Index and Notes to the Financial Statements 34-114REQUIRED SUPPLEMENTARY INFORMATION: 115

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Legacy Pension Planof TCRS – Primary Government F-1 116

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Planof TCRS – Primary Government F-2 117

Schedule of Contributions Based on Participation in the Public EmployeeLegacy Pension Plan of TCRS – Primary Government F-3 118

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Primary Government F-4 119

Schedule of Contributions Based on Participation in the TeacherRetirement Plan of TCRS – Discretely Presented Clarksville-MontgomeryCounty School System F-5 120

TABLE OF CONTENTSMONTGOMERY COUNTY, TENNESSEE

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Exhibit Page(s)

Schedule of Contributions Based on Participation in the TeacherLegacy Pension Plan of TCRS – Discretely Presented Clarksville-Montgomery County School System F-6 121

Schedule of Proportionate Share of the Net Pension Asset in theTeacher Pension Plan of TCRS – Discretely PresentedClarksville-Montgomery County School System F-7 122

Schedule of Proportionate Share of the Net Pension Asset in theTeacher Legacy Pension Plan of TCRS – Discretely PresentedClarksville-Montgomery County School System F-8 123

Schedule of Changes in the Total OPEB Liability and RelatedRatios - Commercial Plan - Primary Government F-9 124

Schedule of Changes in the Total OPEB Liability and RelatedRatios - Commercial Plan - Discretely Presented Clarksville-Montgomery County School System F-10 125

Notes to the Required Supplementary Information 126-127COMBINING AND INDIVIDUAL FUND FINANCIAL

STATEMENTS AND SCHEDULES: 128Nonmajor Governmental Funds: 129

Combining Balance Sheet G-1 130-131Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances G-2 132-133Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual (Budgetary Basis) and Budget:Drug Control Fund G-3 134Highway/Public Works Fund G-4 135

Major Governmental Funds: 136Schedule of Revenues, Expenditures, and Changes in Fund

Balance – Actual and Budget:General Debt Service Fund H-1 137General Capital Projects Fund H-2 138-139

Proprietary Funds: 140Combining Statement of Net Position I-1 141Combining Statement of Revenues, Expenses, and Changes in

Net Position I-2 142Combining Statement of Cash Flows I-3 143-144

Fiduciary Funds: 145Combining Statement of Fiduciary Assets and Liabilities J-1 146Combining Statement of Changes in Assets and Liabilities –

All Agency Funds J-2 147-148Component Unit:

Discretely Presented Clarksville-Montgomery County School System: 149Statement of Activities K-1 150Balance Sheet – Governmental Funds K-2 151-152Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position K-3 153Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds K-4 154-155Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities K-5 156

Combining Balance Sheet – Nonmajor Governmental Funds K-6 157-158Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances – Nonmajor Governmental Funds K-7 159-160

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Exhibit Page(s)

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

General Purpose School Fund K-8 161-162School Federal Projects Fund K-9 163Central Cafeteria Fund K-10 164School Transportation Fund K-11 165Extended School Program Fund K-12 166

Miscellaneous Schedules: 167Schedule of Changes in Long-term Other Loans, Capital Leases, and Bonds L-1 168Schedule of Long-term Debt Requirements by Year L-2 169-170Schedule of Transfers – Primary Government and Discretely

Presented Clarksville-Montgomery County School System L-3 171Schedule of Salaries and Official Bonds of Principal Officials –

Primary Government and Discretely Presented Clarksville-Montgomery County School System L-4 172

Schedule of Detailed Revenues – All Governmental Fund Types L-5 173-186Schedule of Detailed Revenues – All Governmental Fund Types –

Discretely Presented Clarksville-Montgomery County SchoolSystem L-6 187-194

Schedule of Detailed Expenditures – All Governmental Fund Types L-7 195-228Schedule of Detailed Expenditures – All Governmental Fund Types –

Discretely Presented Clarksville-Montgomery County SchoolSystem L-8 229-244

Schedule of Detailed Revenues and Expenses – All Proprietary Funds L-9 245-247Schedule of Detailed Receipts, Disbursements, and Changes in

Cash Balances – City Agency Fund L-10 248

SINGLE AUDIT SECTION 249

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 250-251

Auditor's Report on Compliance for Each Major Federal Program; Reporton Internal Control Over Compliance; and Report on the Scheduleof Expenditures of Federal Awards Required by Uniform Guidance 252-254

Schedule of Expenditures of Federal Awards and State GrantsSummary Schedule of Prior-year Findings

255-256 257

Schedule of Findings and Questioned Costs 258-261Management's Corrective Action Plan 262-264Best Practice 265

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Summary of Audit Findings Annual Financial Report

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

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

Results Our report on Montgomery County’s financial statements is unmodified. Our audit resulted in two findings, which we have reviewed with Montgomery County management. The detailed findings and management’s responses are included in the Single Audit section of this report.

Findings The following is a summary of the audit findings: OFFICES OF COUNTY MAYOR AND DIRECTOR OF ACCOUNTS AND BUDGETS ♦ Capital asset records were not completed in a timely manner. ♦ The office did not file reports on debt obligations with the State Comptroller’s Office.

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INTRODUCTORY SECTION

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Montgomery County OfficialsJune 30, 2019

Officials

Jim Durrett, County MayorMike Frost, Highway SupervisorMillard House II, Director of SchoolsKimberly Wiggins, TrusteeErinne Hester, Assessor of PropertyKellie Jackson, County ClerkCheryl Castle, Circuit, General Sessions, and Juvenile Courts ClerkMichael Dale, Clerk and MasterConnie Gunnett, Register of DeedsJohn Fuson, SheriffJeffrey Taylor, Director of Accounts and BudgetsJane Davis, Purchasing Agent

Board of County Commissioners

Jim Durrett, County Mayor, Chairman Lisa PrichardJohn Gannon, Sr. Joe CreekArnold Hodges David HarperJoe Smith Walker WoodruffRickey Ray Joshua BealRashidah Leverett Loretta BryantTangi Smith Chris RasnicBrandon Butts Jason KnightCarmelle Chandler Garland JohnsonJames Lewis Larry RocconiCharles Keene Jerry Allbert

Highway Commission

Mike Frost, Highway Supervisor, ChairmanEdgar Ray GrovesOrville Lewis

Board of Education

Margaret Pace, Chairperson Carol BerryCharlie Patterson Anne MurthaJimmie Garland Josh Baggett

Audit Committee

David Harper, Chairman Arnold HodgesBrandon Butts Lisa PrichardJoe Smith

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FINANCIAL SECTION

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Independent Auditor's Report

Montgomery County Mayor and Board of County Commissioners Montgomery County, Tennessee

To the County Mayor and Board of County Commissioners:

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Montgomery 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 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

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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 Montgomery County, Tennessee, as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the schedule of changes in the county’s net pension liability and related ratios, schedules of county and school contributions, schedule of school’s proportionate share of the net pension liability, and schedules of county and school changes in the 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.

Supplementary and Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Montgomery 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 General Capital Projects funds, combining and individual fund financial statements of the Clarksville-Montgomery County School System (a discretely presented component unit), miscellaneous schedules and the other information such as the introductory section and management’s corrective action plan are presented for purposes of additional analysis and are not a required part of the

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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 the General Capital Projects funds, combining and individual fund financial statements of the Clarksville-Montgomery County School System (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 the General Capital Projects funds, combining and individual fund financial statements of the Clarksville-Montgomery County School System (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 section and management’s corrective action plan 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 February 17, 2020, on our consideration of Montgomery County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Montgomery 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 Montgomery County’s internal control over financial reporting and compliance.

Very truly yours,

Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee

February 17, 2020

JPW/tg

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BASIC FINANCIAL STATEMENTS

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Exhibit A

Montgomery County, TennesseeStatement of Net PositionJune 30, 2019

Component UnitClarksville-

Primary MontgomeryGovernment County

Governmental SchoolActivities System

ASSETS

Cash $ 364,114 $ 654,011Equity in Pooled Cash and Investments 118,472,997 58,334,576Inventories 89,289 260,143Accounts Receivable 15,453,574 3,884,118Allowance for Uncollectibles (11,289,162) 0Due from Other Governments 2,722,489 15,596,297Due from Primary Government 0 1,059,759Due from Component Units 4,055,780 0Property Taxes Receivable 111,371,897 30,982,205Allowance for Uncollectible Property Taxes (1,963,907) (617,033)Prepaid Items 93,401 2,640,960Restricted Assets: Amounts Accumulated for Pension Benefits 215,144 1,251,401Net Pension Asset - Public Employee Pension Plan 80,570 96,044Net Pension Asset - Public Employee Legacy Pension Plan 1,569,244 1,589,460Net Pension Asset - Teacher Retirement Plan 0 1,981,594Net Pension Asset - Teacher Legacy Pension Plan 0 10,505,037Capital Assets: Assets Not Depreciated: Land 12,694,260 14,167,519 Construction in Progress 14,063,660 424,491 Assets Net of Accumulated Depreciation: Buildings and Improvements 106,561,805 277,298,307 Other Capital Assets 7,697,208 18,421,342 Intangibles 1,895,902 0 Infrastructure 38,538,857 0Total Assets $ 422,687,122 $ 438,530,231

(Continued)

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Exhibit A

Montgomery County, TennesseeStatement of Net Position (Cont.)

Clarksville-Primary Montgomery

Government CountyGovernmental School

Activities System

DEFERRED OUTFLOWS OF RESOURCES

Deferred Charge on Refunding $ 7,466,920 $ 0Pension Changes in Experience 1,053,621 3,331,615Pension Changes in Assumptions 1,812,543 8,133,704Pension Contributions After Measurement Date 4,545,943 16,237,217Pension Changes in Proportionate Share 0 557,969Other Postemployment Benefits Changes in Experience 0 6,917,954Total Deferred Outflows of Resources $ 14,879,027 $ 35,178,459

LIABILITIES

Accounts Payable $ 2,587,206 $ 4,857,557Accrued Payroll 0 16,849,110Payroll Deductions Payable 316,783 9,622,881Due to State of Tennessee 306 0Accrued Interest Payable 2,161,139 0Due to Primary Government 0 1,700,559Due to Component Units 1,059,759 0Due to Litigants, Heirs, and Others 313,544 0Other Current Liabilities 2,071 0Customer Deposits Payable 175,050 217,407Other Collections 6,940 0Noncurrent Liabilities: Due Within One Year - Debt 33,508,709 0 Due Within One Year - Other 5,211,932 1,999,823 Due in More Than One Year - Debt 276,854,363 0 Due in More Than One Year - Other 19,981,677 33,894,490Total Liabilities $ 342,179,479 $ 69,141,827

(Continued)

Component Unit

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Exhibit A

Montgomery County, TennesseeStatement of Net Position (Cont.)

Clarksville-Primary Montgomery

Government CountyGovernmental School

Activities System

DEFERRED INFLOWS OF RESOURCES

Deferred Current Property Taxes $ 107,485,154 $ 29,671,382Pension Changes in Experience 1,576,342 15,847,705Pension Changes in Investment Earnings 607,964 3,014,412Pension Changes in Proportionate Share 0 446,932Other Postemployment Benefits Changes in Experience 0 80,268Other Postemployment Benefits Changes in Assumptions 0 715,676Total Deferred Inflows of Resources $ 109,669,460 $ 49,776,375

NET POSITION

Net Investment in Capital Assets $ 51,703,306 $ 310,311,659Restricted for: Capital Projects 7,348,932 2,330,718 Debt Service 38,930,855 0 Highways 5,713,306 0 General Government 483,859 0 Finance 1,755,262 0 Administration of Justice 1,044,717 0 Public Safety 290,895 0 Public Health and Welfare 66,212 0 Social, Cultural, and Recreational Services 3,019 0 Education 0 61,967 Central Cafeteria 0 6,936,810 School Transportation 0 3,622,497 School Federal Projects 0 54,647 Pensions 1,864,958 15,423,536Unrestricted (123,488,111) 16,048,654

Total Net Position $ (14,282,790) $ 354,790,488

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

Component Unit

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Exhibit B

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


Operating Capital MontgomeryCharges Grants Grants County

for and and SchoolFunctions/Programs Expenses Services Contributions Contributions System

Primary Government: Governmental Activities: General Government $ 19,969,622 $ 5,290,528 $ 200,863 $ 24,857 $ (14,453,374) $ 0 Finance 8,279,259 5,601,408 5,095 0 (2,672,756) 0 Administration of Justice 9,023,230 4,675,829 596,635 0 (3,750,766) 0 Public Safety 36,228,739 1,912,601 1,044,376 275,821 (32,995,941) 0 Public Health and Welfare 17,154,607 8,353,590 2,475,643 0 (6,325,374) 0 Social, Cultural, and Recreational Services 4,566,680 437,804 0 20,000 (4,108,876) 0 Agriculture and Natural Resources 762,114 0 0 0 (762,114) 0 Highways/Public Works 8,876,404 3,661 4,174,849 24,180 (4,673,714) 0 Education 72,851,838 49,503,454 0 2,578,325 (20,770,059) 0 Interest on Long-term Debt 14,009,463 0 0 0 (14,009,463) 0

Total Primary Government $ 191,721,956 $ 75,778,875 $ 8,497,461 $ 2,923,183 $ (104,522,437) $ 0

Component Unit: Clarksville-Montgomery County School System $ 325,972,361 $ 6,157,960 $ 27,401,664 $ 0 $ 0 $ (292,412,737)

Total Component Unit $ 325,972,361 $ 6,157,960 $ 27,401,664 $ 0 $ 0 $ (292,412,737)

(Continued)

Net (Expense) Revenue and Changes in Net Position

Program Revenues PrimaryGovernment

TotalGovernmental

Activities

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Exhibit B

Montgomery County, TennesseeStatement of Activities (Cont.)


Operating Capital MontgomeryCharges Grants Grants County

for and and SchoolFunctions/Programs Expenses Services Contributions Contributions System

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 51,571,313 $ 31,372,054 Property Taxes Levied for Debt Service 37,288,641 0 Local Option Sales Tax 408,095 59,275,081 Hotel/Motel Tax 3,352,769 0 Wheel Tax 2,974,780 4,980,990 Business Tax 1,819,254 877,010 Mixed Drink Tax 0 445,322 Adequate Facilities/Development Tax 1,875,500 0 Litigation Tax 1,270,320 0 Wholesale Beer Tax 376,558 0 Mineral Severance Tax 359,682 0 Interstate Telecommunications Tax 18,330 0 Grants and Contributions Not Restricted to Specific Programs 7,492,849 217,555,309 Interest Income 3,855,144 102,423 Miscellaneous 6,072,313 343,991Total General Revenues $ 118,735,548 $ 314,952,180

Change in Net Position $ 14,213,111 $ 22,539,443Net Position, July 1, 2018 (28,495,901) 332,251,045

Net Position, June 30, 2019 $ (14,282,790) $ 354,790,488


GovernmentalActivities

Program Revenues PrimaryGovernment

Total

Net (Expense) Revenue and Changes in Net Position

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Exhibit C-1

Montgomery County, TennesseeBalance SheetGovernmental FundsJune 30, 2019

OtherGeneral General Govern- Total

Debt Capital mental GovernmentalGeneral Service Projects Funds Funds

ASSETS

Cash $ 7,058 $ 0 $ 0 $ 307,056 $ 314,114Equity in Pooled Cash and Investments 34,205,982 32,631,199 20,245,761 6,337,097 93,420,039Inventories 89,289 0 0 0 89,289Accounts Receivable 15,045,642 103,567 240,336 8,260 15,397,805Allowance for Uncollectibles (11,289,162) 0 0 0 (11,289,162)Due from Other Governments 1,837,253 87,389 792 797,035 2,722,469Property Taxes Receivable 50,465,578 40,740,174 14,848,184 5,317,961 111,371,897Allowance for Uncollectible Property Taxes (933,798) (764,010) (171,422) (94,677) (1,963,907)Prepaid Items 93,401 0 0 0 93,401Restricted Assets 201,158 0 0 13,986 215,144

Total Assets $ 89,722,401 $ 72,798,319 $ 35,163,651 $ 12,686,718 $ 210,371,089

LIABILITIES

Accounts Payable $ 1,389,764 $ 2,950 $ 1,090,829 $ 25,751 $ 2,509,294Payroll Deductions Payable 295,305 0 0 19,762 315,067Due to Component Units 0 0 1,059,559 0 1,059,559Due to State of Tennessee 306 0 0 0 306Due to Litigants, Heirs, and Others 582 0 0 312,962 313,544Other Current Liabilities 2,000 0 0 71 2,071Current Liabilities Payable From Restricted Assets 4,500 0 0 170,550 175,050Other Collections 6,940 0 0 0 6,940Total Liabilities $ 1,699,397 $ 2,950 $ 2,150,388 $ 529,096 $ 4,381,831

(Continued)

Major FundsNonmajor

Funds

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Exhibit C-1

Montgomery County, TennesseeBalance SheetGovernmental Funds (Cont.)




Deferred Current Property Taxes $ 48,561,839 $ 39,170,295 $ 14,623,577 $ 5,129,443 $ 107,485,154Deferred Delinquent Property Taxes 847,799 704,312 46,692 82,024 1,680,827Other Deferred/Unavailable Revenue 3,510,426 39,623 0 347,016 3,897,065Total Deferred Inflows of Resources $ 52,920,064 $ 39,914,230 $ 14,670,269 $ 5,558,483 $ 113,063,046

FUND BALANCES

Nonspendable:Inventory $ 89,289 $ 0 $ 0 $ 0 $ 89,289Prepaid Items 93,401 0 0 0 93,401

Restricted:Restricted for General Government 483,859 0 0 0 483,859Restricted for Finance 1,755,262 0 0 0 1,755,262Restricted for Administration of Justice 1,044,717 0 0 0 1,044,717Restricted for Public Safety 240,734 0 0 50,161 290,895Restricted for Public Health and Welfare 66,212 0 0 0 66,212Restricted for Social, Cultural, and Recreational Services 3,019 0 0 0 3,019Restricted for Highways/Public Works 0 0 0 5,500,145 5,500,145Restricted for Debt Service 0 32,881,139 0 0 32,881,139Restricted for Capital Projects 0 0 18,342,994 0 18,342,994Restricted for Hybrid Retirement Stabilization Funds 201,158 0 0 13,986 215,144

Committed:Committed for General Government 381,175 0 0 0 381,175

Assigned:Assigned for General Government 846,806 0 0 0 846,806Assigned for Finance 579,773 0 0 0 579,773

(Continued)

Major FundsNonmajor

Funds

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Exhibit C-1

Montgomery County, TennesseeBalance SheetGovernmental Funds (Cont.)



FUND BALANCES (Cont.)

Assigned (Cont.):Assigned for Highways/Public Works $ 0 $ 0 $ 0 $ 1,034,847 $ 1,034,847

Unassigned 29,317,535 0 0 0 29,317,535Total Fund Balances $ 35,102,940 $ 32,881,139 $ 18,342,994 $ 6,599,139 $ 92,926,212

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 89,722,401 $ 72,798,319 $ 35,163,651 $ 12,686,718 $ 210,371,089


Major FundsNonmajor

Funds

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Exhibit C-2

Montgomery 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) $ 92,926,212

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 12,694,260 Add: construction in progress 14,063,660 Add: buildings and improvements net of accumulated depreciation 106,561,805 Add: other capital assets net of accumulated depreciation 7,697,208 Add: intangibles net of accumulated depreciation 1,895,902 Add: infrastructure net of accumulated depreciation 38,538,857 Less: capital assets of internal service funds, which are included below in item (2) (12,306) 181,439,386

(2) Internal service funds are used by management to chargethe cost of liability, workers' compensation insurance,and employee dental benefits to individual funds. The assets and liabilities are included in governmental activities in thestatement of net position. 19,988,887

(3) Long-term liabilities are not due and payable in the currentperiod and therefore are not reported in the governmental funds. Less: bonds payable $ (271,100,000) Less: other loans payable (9,365,463) Less: capital leases payable (5,162,076) Add: debt to be contributed by component units 4,051,208 Add: deferred amount on refunding 7,466,920 Less: unamortized premium on debt (24,735,533) Less: accrued interest on bonds, capital leases, and other loans (2,161,139) Less: other postemployment benefits liability (16,573,278) Less: compensated absences payable (3,513,421) (321,092,782)

(4) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions will be amortized andrecognized as components of pension expense in future years: Add: deferred outflows of resources related to pensions $ 7,412,107 Less: deferred inflows of resources related to pensions (2,184,306) 5,227,801

(5) Net pension assets of the agent and hybrid plans are not current financial resources and therefore are not reported in the governmental funds Add: net pension asset - hybrid plan $ 80,570 Add: net pension asset - agent legacy plan 1,569,244 1,649,814

(6) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 5,577,892

Net position of governmental activities (Exhibit A) $ (14,282,790)


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Exhibit C-3

Montgomery County, TennesseeStatement of Revenues, Expenditures,

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



RevenuesLocal Taxes $ 51,789,377 $ 40,632,379 $ 6,798,599 $ 4,852,250 $ 104,072,605Licenses and Permits 2,890,459 0 0 0 2,890,459Fines, Forfeitures, and Penalties 1,084,085 0 0 30,238 1,114,323Charges for Current Services 8,219,232 0 0 45,376 8,264,608Other Local Revenues 3,725,047 1,479,933 55,636 16,167 5,276,783Fees Received From County Officials 10,043,338 0 0 0 10,043,338State of Tennessee 7,569,634 0 111,059 4,087,204 11,767,897Federal Government 474,541 90,807 49,037 0 614,385Other Governments and Citizens Groups 324,247 3,103,785 130,276 0 3,558,308

Total Revenues $ 86,119,960 $ 45,306,904 $ 7,144,607 $ 9,031,235 $ 147,602,706

ExpendituresCurrent:

General Government $ 10,300,142 $ 0 $ 0 $ 0 $ 10,300,142Finance 7,932,155 0 0 0 7,932,155Administration of Justice 8,018,666 0 0 45,376 8,064,042Public Safety 34,151,668 0 0 26,264 34,177,932Public Health and Welfare 14,480,898 0 0 0 14,480,898Social, Cultural, and Recreational Services 3,152,518 0 0 0 3,152,518Agriculture and Natural Resources 717,102 0 0 0 717,102Other Operations 7,241,359 0 0 0 7,241,359Highways 165,135 0 0 8,112,755 8,277,890

Debt Service:Principal on Debt 0 31,999,563 0 0 31,999,563Interest on Debt 0 11,836,701 0 0 11,836,701Other Debt Service 0 804,652 104,565 0 909,217

(Continued)

Major FundsNonmajor

Funds

23

Exhibit C-3


and Changes in Fund BalancesGovernmental Funds (Cont.)



Expenditures (Cont.)Capital Projects $ 0 $ 0 $ 29,956,466 $ 4,836,049 $ 34,792,515

Total Expenditures $ 86,159,643 $ 44,640,916 $ 30,061,031 $ 13,020,444 $ 173,882,034

Excess (Deficiency) of RevenuesOver Expenditures $ (39,683) $ 665,988 $ (22,916,424) $ (3,989,209) $ (26,279,328)

Other Financing Sources (Uses)Bonds Issued $ 0 $ 0 $ 14,630,000 $ 0 $ 14,630,000Capital Leases Issued 0 0 0 4,836,049 4,836,049Premiums on Debt Sold 0 0 1,174,905 0 1,174,905Proceeds from Sale of Capital Assets 0 0 25,250 0 25,250Insurance Recovery 69,340 0 29,060 2,567 100,967

Total Other Financing Sources (Uses) $ 69,340 $ 0 $ 15,859,215 $ 4,838,616 $ 20,767,171

Net Change in Fund Balances $ 29,657 $ 665,988 $ (7,057,209) $ 849,407 $ (5,512,157)Fund Balance, July 1, 2018 35,073,283 32,215,151 25,400,203 5,749,732 98,438,369

Fund Balance, June 30, 2019 $ 35,102,940 $ 32,881,139 $ 18,342,994 $ 6,599,139 $ 92,926,212


Major FundsNonmajor

Funds

24

Exhibit C-4

Montgomery 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) $ (5,512,157)

(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 $ 13,359,120 Less: current-year depreciation expense (6,462,465) Add: current-year depreciation expense in internal service fund 991 6,897,646

(2) The net effect of various miscellaneous transactions involving capitalassets (sales, trade-ins, and donations) is to increase net position. Add: capital assets donated $ 2,578,325 Less: book value of capital assets disposed (82,314) 2,496,011

(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Less: deferred delinquent property taxes and other deferred June 30, 2018 $ (5,674,538) Add: deferred delinquent property taxes and other deferred June 30, 2019 5,577,892 (96,646)

(4) The issuance of long-term debt (e.g., notes, bonds, other loans) provides current financial resources to governmental funds, while the repaymentof the principal of long-term debt consumes the current financialresources of governmental funds. Neither transaction, however,has any effect on net position. Also, governmental funds report the effectof premiums, discounts, and similar items when debt isfirst issued, whereas these amounts are deferred and amortized in thestatement of activities. This amount is the effect of these differencesin the treatment of long-term debt and related items. Less: bond proceeds $ (14,630,000) Less: capital lease proceeds (4,836,049) Add: principal payments on bonds 28,345,000 Add: principal payments on other loans 1,403,571 Add: principal payments on capital leases 2,250,992 Less: contributions from school system - component unit for capital leases (881,032) Less: contributions from bi-county component unit for bonds (150,000) Add: change in deferred amount on refunding debt (2,323,846) Less: change in unamortized premium on debt issuances 1,320,480 10,499,116

(5) Some expenses reported in the statement of activities do not requirethe use of current financial resources and therefore are not reportedas expenditures in the governmental funds. Change in accrued interest payable $ 151,084 Change in other postemployment benefits liability (1,376,028) Change in compensated absences payable (85,191) Change in net pension asset - hybrid plan 78,967 Change in net pension asset - agent legacy plan 165,535 Change in deferred outflows of resources related to pensions 43,830 Change in deferred inflows of resources related to pensions (76,516) (1,098,319)

(6) Internal service funds are used by management to charge the costof liability, workers' compensation insurance, and employee dentalbenefits to individual funds. The net revenue (expense) of certain activities of theinternal service funds is reported with governmental activities in thestatement of activities. 1,027,460

Change in net position of governmental activities (Exhibit B) $ 14,213,111


25

Exhibit C-5

Montgomery County, TennesseeStatement of Revenues, Expenditures, and Changes

in Fund Balance - Actual (Budgetary Basis) and BudgetGeneral 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 $ 51,789,377 $ 0 $ 0 $ 51,789,377 $ 51,633,926 $ 51,783,926 $ 5,451Licenses and Permits 2,890,459 0 0 2,890,459 1,448,500 1,448,500 1,441,959Fines, Forfeitures, and Penalties 1,084,085 0 0 1,084,085 1,106,475 1,106,475 (22,390)Charges for Current Services 8,219,232 0 0 8,219,232 7,743,250 7,743,250 475,982Other Local Revenues 3,725,047 0 0 3,725,047 1,879,388 1,889,538 1,835,509Fees Received From County Officials 10,043,338 0 0 10,043,338 9,193,000 9,193,000 850,338State of Tennessee 7,569,634 0 0 7,569,634 7,531,639 8,150,696 (581,062)Federal Government 474,541 0 0 474,541 157,988 741,671 (267,130)Other Governments and Citizens Groups 324,247 0 0 324,247 376,110 468,398 (144,151)

Total Revenues $ 86,119,960 $ 0 $ 0 $ 86,119,960 $ 81,070,276 $ 82,525,454 $ 3,594,506

ExpendituresGeneral Government

County Commission $ 370,451 $ (4,124) $ 0 $ 366,327 $ 367,936 $ 381,730 $ 15,403Board of Equalization 0 0 0 0 2,692 2,692 2,692Beer Board 3,440 0 0 3,440 5,020 6,070 2,630Other Boards and Committees 3,795 0 0 3,795 5,168 5,168 1,373County Mayor/Executive 542,447 0 0 542,447 521,090 561,423 18,976Personnel Office 528,484 0 0 528,484 570,486 570,486 42,002County Attorney 145,429 0 0 145,429 125,000 150,000 4,571Election Commission 872,570 0 0 872,570 854,671 1,111,273 238,703Register of Deeds 523,167 0 0 523,167 537,641 537,641 14,474Planning 411,849 0 0 411,849 411,849 411,849 0Building 317,568 (28) 0 317,540 321,477 321,505 3,965Codes Compliance 826,724 (36,427) 0 790,297 856,879 896,037 105,740Geographical Information Systems 209,980 0 0 209,980 290,215 290,215 80,235County Buildings 383,359 (4,790) 0 378,569 510,760 515,550 136,981Other Facilities 2,712,925 (3,744) 2,210 2,711,391 2,759,952 2,913,696 202,305Other General Administration 2,223,615 (140) 5,340 2,228,815 1,206,213 2,356,353 127,538Preservation of Records 224,339 0 0 224,339 238,546 238,546 14,207

(Continued)

Budgeted Amounts

26

Exhibit C-5


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



Expenditures (Cont.)Finance

Accounting and Budgeting $ 726,726 $ (15,000) $ 0 $ 711,726 $ 742,559 $ 757,559 $ 45,833Purchasing 311,277 0 0 311,277 319,434 319,434 8,157Property Assessor's Office 1,316,146 0 0 1,316,146 1,386,645 1,386,645 70,499County Trustee's Office 653,416 0 1,125 654,541 734,519 765,815 111,274County Clerk's Office 2,274,667 (1,150) 0 2,273,517 2,342,087 2,343,237 69,720Data Processing 2,615,971 (32,144) 35,482 2,619,309 2,690,462 2,724,991 105,682Other Finance 33,952 0 0 33,952 61,300 61,300 27,348

Administration of JusticeCircuit Court 3,527,295 0 0 3,527,295 3,847,651 3,847,651 320,356General Sessions Court 638,170 0 0 638,170 641,649 641,649 3,479Drug Court 59,047 0 0 59,047 70,000 70,000 10,953Chancery Court 651,630 0 0 651,630 687,415 687,415 35,785Juvenile Court 1,201,252 0 0 1,201,252 1,183,777 1,258,777 57,525District Attorney General 60,630 0 0 60,630 59,750 60,630 0Office of Public Defender 7,180 0 0 7,180 7,313 7,313 133Judicial Commissioners 238,548 0 0 238,548 257,966 260,966 22,418Probate Court 262,660 0 0 262,660 206,220 314,883 52,223Other Administration of Justice 518,187 0 729 518,916 97,717 519,799 883Probation Services 854,067 0 0 854,067 1,105,719 1,105,719 251,652

Public SafetySheriff's Department 11,381,978 (59,012) 66,828 11,389,794 11,588,121 11,940,865 551,071Special Patrols 2,507,107 0 663 2,507,770 2,796,982 2,840,591 332,821Administration of the Sexual Offender Registry 10,494 0 0 10,494 16,125 16,125 5,631Jail 16,037,815 (20,198) 35,472 16,053,089 14,371,571 16,504,727 451,638Workhouse 1,848,428 0 0 1,848,428 1,974,164 1,940,072 91,644Correctional Incentive Program Improvements 492,649 0 0 492,649 493,802 518,802 26,153Juvenile Services 284,222 0 0 284,222 290,123 293,123 8,901Fire Prevention and Control 535,703 (1,002) 5,044 539,745 555,242 574,245 34,500Civil Defense 509,748 0 0 509,748 495,070 535,620 25,872

(Continued)

Budgeted Amounts

27

Exhibit C-5





Expenditures (Cont.)Public Safety (Cont.)

Other Emergency Management $ 207,129 $ 0 $ 0 $ 207,129 $ 0 $ 456,558 $ 249,429County Coroner/Medical Examiner 336,395 0 0 336,395 224,700 362,200 25,805

Public Health and WelfareLocal Health Center 228,723 (667) 0 228,056 273,821 324,205 96,149Rabies and Animal Control 887,025 0 64,209 951,234 979,440 1,095,182 143,948Ambulance/Emergency Medical Services 10,660,986 (13,139) 13,092 10,660,939 12,079,907 12,109,021 1,448,082Other Local Health Services 2,452,118 0 0 2,452,118 3,268,800 3,266,300 814,182Appropriation to State 219,146 0 0 219,146 221,796 221,796 2,650Other Local Welfare Services 9,150 0 0 9,150 20,825 20,825 11,675Other Public Health and Welfare 23,750 0 0 23,750 2,500 26,500 2,750

Social, Cultural, and Recreational ServicesLibraries 2,064,386 0 0 2,064,386 2,064,386 2,064,386 0Parks and Fair Boards 1,081,454 (794) 0 1,080,660 1,143,642 1,157,550 76,890Other Social, Cultural, and Recreational 6,678 0 0 6,678 9,688 9,688 3,010

Agriculture and Natural ResourcesAgricultural Extension Service 342,685 0 0 342,685 374,479 375,705 33,020Forest Service 2,000 0 0 2,000 2,000 2,000 0Soil Conservation 37,789 0 0 37,789 36,487 37,896 107Storm Water Management 334,628 0 555,701 890,329 1,000,000 1,000,000 109,671

Other OperationsTourism 1,897,407 0 0 1,897,407 1,537,500 2,058,500 161,093Industrial Development 1,238,957 0 0 1,238,957 1,238,957 1,238,957 0Airport 261,208 0 0 261,208 234,125 261,208 0Veterans' Services 465,583 0 0 465,583 536,057 536,057 70,474Other Charges 2,229,765 (14,022) 0 2,215,743 2,316,406 2,345,428 129,685Contributions to Other Agencies 625,696 (63,753) 53,291 615,234 544,500 695,198 79,964Employee Benefits 508,245 0 0 508,245 536,300 536,300 28,055Miscellaneous 14,498 (1,192) 0 13,306 16,000 17,192 3,886

(Continued)

Budgeted Amounts

28

Exhibit C-5





Expenditures (Cont.)Highways

Litter and Trash Collection $ 165,135 $ 0 $ 0 $ 165,135 $ 140,824 $ 166,074 $ 939Total Expenditures $ 86,159,643 $ (271,326) $ 839,186 $ 86,727,503 $ 87,412,118 $ 93,952,913 $ 7,225,410

Excess (Deficiency) of RevenuesOver Expenditures $ (39,683) $ 271,326 $ (839,186) $ (607,543) $ (6,341,842) $ (11,427,459) $ 10,819,916

Other Financing Sources (Uses)Insurance Recovery $ 69,340 $ 0 $ 0 $ 69,340 $ 0 $ 46,029 $ 23,311Transfers In 0 0 0 0 508,844 539,197 (539,197)Transfers Out 0 0 0 0 0 (46,215) 46,215

Total Other Financing Sources $ 69,340 $ 0 $ 0 $ 69,340 $ 508,844 $ 539,011 $ (469,671)

Net Change in Fund Balance $ 29,657 $ 271,326 $ (839,186) $ (538,203) $ (5,832,998) $ (10,888,448) $ 10,350,245Fund Balance, July 1, 2018 35,073,283 (271,326) 0 34,801,957 27,846,956 35,073,283 (271,326)

Fund Balance, June 30, 2019 $ 35,102,940 $ 0 $ (839,186) $ 34,263,754 $ 22,013,958 $ 24,184,835 $ 10,078,919


Budgeted Amounts

29

Exhibit D-1Montgomery County, TennesseeStatement of Net PositionProprietary FundsJune 30, 2019

ASSETS

Current Assets: Equity in Pooled Cash and Investments $ 25,052,958 Cash with Paying Agents 50,000 Accounts Receivable 55,769 Due from Other Governments 20 Due from Component Units 4,572Total Current Assets $ 25,163,319

Noncurrent Assets: Capital Assets: Buildings and Improvements $ 24,803 Accumulated Depreciation - Buildings and Improvements (12,497)Total Noncurrent Assets $ 12,306Total Assets $ 25,175,625

LIABILITIES

Current Liabilities: Accounts Payable $ 77,912 Payroll Deductions Payable 1,716 Due to Component Units 200 Claims and Judgments Payable 2,553,455Total Current Liabilities $ 2,633,283

Noncurrent Liabilities: Claims and Judgments Payable $ 2,553,455Total Noncurrent Liabilities $ 2,553,455

Total Liabilities $ 5,186,738

NET POSITION

Unrestricted $ 19,988,887

Total Net Position $ 19,988,887


Funds

GovernmentalActivities -

InternalService

30

Exhibit D-2

Montgomery County, TennesseeStatement of Revenues, Expenses, and Changes in Net PositionProprietary FundsFor the Year Ended June 30, 2019

Operating Revenues Charges for Current Services $ 63,048,238Total Operating Revenues $ 63,048,238

Operating Expenses Codes Compliance $ 937 Other Facilities 2,941 Risk Management 304,186 County Trustee 3,973 Circuit Court 1,373 Probation Services 44 Sheriff's Department 84,533 Jail 78,580 Civil Defense 3,345 Rabies and Animal Control 6,268 Ambulance/Emergency Medical Services 39,503 Landfill Operation and Maintenance 4,328 Parks and Fair Boards 1,207 Depreciation 991 Other Charges 1,887,379 Employee Benefits 62,906,187 Highway and Bridge Maintenance 3,380Total Operating Expenses $ 65,329,155Operating Income (Loss) $ (2,280,917)

Nonoperating Revenues (Expenses) Investment Income $ 232,622 Miscellaneous Refunds 3,075,755Total Nonoperating Revenues (Expenses) $ 3,308,377

Changes in Net Position $ 1,027,460Net Position, July 1, 2018 18,961,427

Net Position, June 30, 2019 $ 19,988,887



InternalServiceFunds

31

Exhibit D-3

Montgomery County, TennesseeStatement of Cash FlowsProprietary FundsFor the Year Ended June 30, 2019


InternalServiceFunds

Cash Flows from Operating Activities Receipts from Interfund Services Provided $ 63,606,719 Other Self-Insured Claims (64,731,214) Other Receipts (Payments) 3,075,755Net Cash Provided By (Used In) Operating Activities $ 1,951,260

Cash Flows from Investing Activities Investment Income $ 232,622Net Cash Provided By (Used In) Investing Activities $ 232,622

Net Increase (Decrease) in Cash $ 2,183,882Cash, July 1, 2018 22,919,076

Cash, June 30, 2019 $ 25,102,958

Reconciliation of Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ (2,280,917) Miscellaneous Refunds 3,075,755 Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Depreciation Expense 991 (Increase) Decrease in Accounts Receivable 559,473 (Increase) Decrease in Due from Other Governments (20) (Increase) Decrease in Due from Component Units (972) Increase (Decrease) in Accounts Payable 11,739 Increase (Decrease) in Payroll Deductions Payable 132 Increase (Decrease) in Due to Component Units 200 Increase (Decrease) in Claims and Judgments Payable 584,879

Net Cash Provided By (Used In) Operating Activities $ 1,951,260


32

Exhibit E

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

ASSETS

Cash $ 10,118,037Equity in Pooled Cash and Investments 536,797Accounts Receivable 526Due from Other Governments 3,199,399

Total Assets $ 13,854,759

LIABILITIES

Accounts Payable $ 6,950Due to Other Taxing Units 3,191,618Due to Litigants, Heirs, and Others 10,250,122Due to Joint Ventures 349,008Other Current Liabilities 57,061

Total Liabilities $ 13,854,759


AgencyFunds

33

Note Page(s)

I. Summary of Significant Accounting PoliciesA. Reporting Entity 36B. Government-wide and Fund Financial Statements 38C. Measurement Focus, Basis of Accounting, and Financial

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

Net Position/Fund Balance1. Deposits and Investments 422. Receivables and Payables 433. Inventories and Prepaid Items 444. Restricted Assets 445. Capital Assets 456. Deferred Outflows/Inflows of Resources 457. Compensated Absences 468. Long-term Debt and Long-term Obligations 469. Net Position and Fund Balance 47

E. Pension Plans 49F. OPEB Plans 49

II. Reconciliation of Government-wide and Fund Financial StatementsA. Explanation of Certain Differences Between the Governmental Fund

Balance Sheet and the Government-wide Statement of Net Position 50B. Explanation of Certain Differences Between the Governmental Fund

Statement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 50

III. Stewardship, Compliance, and AccountabilityBudgetary Information 50

IV. Detailed Notes on All FundsA. Deposits and Investments 51B. Capital Assets 60C. Construction Commitments 63D. Interfund Receivables, Payables, and Transfers 63E. Capital Leases 64F. Long-term Debt 66G. Long-term Obligations 70

MONTGOMERY COUNTY, TENNESSEEIndex of Notes to the Financial Statements

(Continued)

34

Note Page(s)

V. Other InformationA. Risk Management 71B. Accounting Changes 75C. Contingent Liabilities 75D. Change in Administration 76E. Landfill Closure/Postclosure Care Costs 76F. Joint Ventures 76G. Jointly Governed Organization 78H. Retirement Commitments 78I. Other Postemployment Benefits (OPEB) 103J. Office of Central Accounting, Budgeting, and Purchasing 113K. Purchasing Laws 113L. Subsequent Events 113

MONTGOMERY COUNTY, TENNESSEEIndex of Notes to the Financial Statements (Cont.)

35

MONTGOMERY COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended June 30, 2019 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Montgomery 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 Montgomery County: A. Reporting Entity

Montgomery County is a public municipal corporation governed by an elected 21-member board. As required by GAAP, these financial statements present Montgomery County (the primary government) and its component units. The financial statements of the Emergency Communications District of Montgomery County, the Bi-County Solid Waste Management System, the Clarksville-Montgomery County Industrial Development Board, the Clarksville-Montgomery County Public Library, and the Clarksville-Montgomery County Tourism Commission, component units requiring discrete presentation, were excluded from this report due to materiality calculations; therefore, the effect of their 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 Clarksville-Montgomery County School System operates the public school system in the county, and the voters of Montgomery County elect its board. The school system 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 system’s taxes are levied under the taxing authority of the county and are included as part of the county’s total tax levy. The Emergency Communications District of Montgomery County provides a simplified means of securing emergency services through a uniform emergency number for the residents of Montgomery County, and the Montgomery County Commission and the Clarksville City Council appoint 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

36

statements of the Emergency Communications District of Montgomery County were not material to the component units’ opinion unit and therefore have been omitted from this report. The Bi-County Solid Waste Management System provides landfill and collection services for Montgomery and Stewart counties, and Montgomery County operates the transfer station. The joint participants appoint the board members of the system; however, Montgomery County appoints a voting majority of the board members and contributes the majority of funding for the system. This system is treated as a discrete component unit of Montgomery County since the county may unilaterally control the operations of the system. The financial statements of the Bi-County Solid Waste Management System were not material to the component units’ opinion unit and therefore have been omitted from this report. The Clarksville-Montgomery County Industrial Development Board primarily provides inducements to industry to locate or remain in Montgomery County, and the Montgomery County Commission appoints its governing body. City and county appropriations provide the majority of its funding. The financial statements of the Clarksville-Montgomery County Industrial Development Board were not material to the component units’ opinion unit and therefore have been omitted from this report. The Clarksville-Montgomery County Public Library provides for the maintenance and operation of the public library for the benefit of residents of Montgomery County, and the Montgomery County Commission appoints its nine board members. County appropriations and donations provide the majority of its funding. The financial statements of the Clarksville-Montgomery County Public Library were not material to the component units’ opinion unit and therefore have been omitted from this report.

The county, in conjunction with the City of Clarksville, has created the Clarksville-Montgomery County Tourism Commission to promote tourist and recreational activity in the Clarksville-Montgomery County area. The nine-member tourism commission is selected by and with the joint approval of the city mayor and county mayor. Major funding for this organization is from the hotel/motel tax. The annual budget of the tourism commission is prepared and legally adopted by the board of commissioners and approved by the Montgomery County Director of Accounts and Budgets. The financial statements of the Clarksville-Montgomery County Tourism Commission were not material to the component units’ opinion unit and therefore have been omitted from this report.

The Clarksville-Montgomery County School System does not issue separate financial statements from those of the county. Therefore, basic financial statements of the school system are included in this report as listed in the table of contents. The financial statements of the Emergency Communications District of Montgomery County, the Bi-County Solid Waste Management System, the Clarksville-Montgomery County Industrial

37

Development Board, the Clarksville-Montgomery County Public Library, and the Clarksville-Montgomery County Tourism Commission were not material to the component units’ opinion unit and, therefore, have been omitted from this report, as previously mentioned. Complete financial statements of the Emergency Communications District of Montgomery County, the Bi-County Solid Waste Management System, the Clarksville-Montgomery County Industrial Development Board, the Clarksville-Montgomery County Public Library, and the Clarksville-Montgomery County Tourism Commission can be obtained from their administrative offices at the following addresses:

Administrative Offices:

Emergency Communications District of Montgomery County 130 South First Street Clarksville, TN 37040

Bi-County Solid Waste Management System P.O. Box 192 Woodlawn, TN 37191-0192

Clarksville-Montgomery County Industrial Development Board

P.O. Box 883 25 Jefferson Street, Suite 300 Clarksville, TN 37040

Clarksville-Montgomery County Public Library 350 Pageant Lane, Suite 501 Clarksville, TN 37040

Clarksville-Montgomery County Tourism Commission 25 Jefferson Street, Suite 300 Clarksville, TN 37040 Related Organization – The Montgomery County Public Building Authority is a related organization of Montgomery County. County officials are responsible for appointing members to the board of the Montgomery County Public Building Authority; however, the county’s accountability for this organization does not extend beyond making the appointments.

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

38

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 Montgomery 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 Clarksville-Montgomery County School System component unit only reports governmental activities in the government-wide financial statements. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Montgomery County issues all debt for the discretely presented Clarksville-Montgomery County School System. Net debt issues totaling $21,319,909 were contributed by the county to the school system during the year ended June 30, 2019. Separate financial statements are provided for governmental funds, proprietary funds (internal service), and fiduciary funds. The internal service funds are reported with the governmental activities in the government-wide financial statements, and the 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 funds 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 Montgomery 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

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organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental category. Montgomery County reports three proprietary funds (internal service funds). It has no enterprise funds to report. Separate financial statements are provided for governmental funds, proprietary 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 internal service funds and the fiduciary funds in total are reported in single columns by fund type. 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. Montgomery County considers grants and similar revenues to be available if they are collected within 60 days after year-end. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Principal and interest on long-term debt are recognized as fund liabilities when due or when amounts have been accumulated in the 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.

Proprietary funds and fiduciary funds financial statements are reported using the economic resources measurement focus, except for agency funds, which have no measurement focus, and the accrual basis of accounting. Revenues are recognized when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

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Montgomery 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. 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. General Capital Projects Fund – This fund accounts for the financial resources to be used for the acquisition or construction of major capital facilities.

Additionally, Montgomery County reports the following fund types:

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

Internal Service Funds – These funds, the Self-Insurance, the Workers’ Compensation, and the Unemployment Compensation funds, are used to account for risk management activities for employees’ health insurance, workers’ compensation, on-the-job injury, and unemployment compensation provided to other departments on a cost-reimbursement basis. 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 Montgomery County, state grants and other restricted revenues held for the benefit of the Judicial District Drug Task Force, restricted revenues held for the benefit of the Office of District Attorney General, and assets held in a custodial capacity for a regional port authority. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. They do, however, use the accrual basis of accounting to recognize receivables and payables.

The discretely presented Clarksville-Montgomery County School System reports the following major governmental funds:

General Purpose School Fund – This fund is the primary operating fund for the school system. It is used to account for general operations of the school system.

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Education Capital Projects Fund – This fund is used to account for the receipt of debt issued by Montgomery County and contributed to the school system for building construction and renovations.

Additionally, the Clarksville-Montgomery County School System 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.

Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided; (2) operating grants and contributions; and (3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. The county has three proprietary funds, internal service funds used to account for the employees’ health insurance, workers’ compensation, on-the-job injury, and unemployment compensation programs. Operating revenues and expenses generally result from providing services in connection with the funds’ principal ongoing operations. The principal operating revenues of the county’s internal service funds are charges for services. Operating expenses for the internal service funds include administrative expenses and employee benefits.

D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance

1. Deposits and Investments

For purposes of the Statement of Cash Flows, cash includes cash on deposit with the county trustee and cash with paying agents. 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 of Montgomery County, the Clarksville-Montgomery County School System, the Bi-County Solid Waste

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Management System, the Emergency Communications District of Montgomery County, the Clarksville-Montgomery County Public Library, and the Montgomery County Rail Service Authority (joint venture). 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 and General Debt Service funds. Montgomery County and the school system 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.

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 receivable 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.

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.

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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 primary government funds represent deposits placed with Montgomery County for rental deposits ($4,500) and road construction ($170,550) and in the school system represent prepaid meal plans for students ($217,407). Claims and Judgments Payable totaling $5,106,910 for the primary government and $160,800 for the discretely presented Clarksville-Montgomery County School System are discussed in Note V.A. Risk Management.

3. Inventories and Prepaid Items

Inventories of governmental funds consist of expendable supplies held for consumption and are valued at cost on the average cost method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Inventories are offset in the nonspendable fund balance account in governmental funds. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as an expenditure when consumed rather than when purchased. Prepaids are offset in the nonspendable fund balance account in governmental funds.

4. Restricted Assets

Restricted assets consist of amounts held in two separate pension stabilization trusts by the Tennessee Consolidated Retirement System (TCRS) for the benefit of Montgomery County’s Public Employee Retirement Plan and the discretely presented Clarksville-Montgomery County School System’s Teacher Retirement Plan. The purpose of these trusts is to accumulate funds to provide stabilization (smoothing) of retirement costs to the county and 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 Montgomery County and the Clarksville-Montgomery County School System to fund retirement benefits upon approval of the TCRS Board of Directors. To date, Montgomery County and the Clarksville-Montgomery County School System have not withdrawn any funds from these trusts to pay pension costs. Trust documents provide that

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the funds are not subject to the claims of general creditors of Montgomery County or the Clarksville-Montgomery County School System.

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 governmental column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of $25,000 ($5,000 for the school system) or more and an estimated useful life of more than two years (one year for the school system). Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant, equipment, and infrastructure of the primary government and the discretely presented school system are depreciated using the straight-line method over the following estimated useful lives:

Assets Years

Buildings and Improvements 18 - 50Other Capital Assets 4 - 20Intangibles 7 - 100Infrastructure: Roads 100 Bridges 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

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reported in the government-wide Statement of Net Position and the governmental funds balance sheet. These items are for deferred charge on refunding, pension changes in experience, pension changes in proportionate share, pension changes in assumptions, employer contributions made to the pension plan after the measurement date, and other postemployment benefits changes in experience. 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 revenues are from the following sources: current and delinquent property taxes, pension changes in experience, pension changes in investment earnings, pension changes in proportionate share, other postemployment benefits changes in experience, other postemployment benefits changes in assumptions, 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.

7. Compensated Absences

It is the county’s and the school system’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the county and the school system 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 the school system. A liability for vacation pay is reported in governmental funds only if amounts have matured, for example, as a result of employee resignations and retirements.

8. Long-term Debt and Long-term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities 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

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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, claims and judgments, and other postemployment benefits, are recognized to the extent that the liabilities have matured (come due for payment) each period.

9. Net Position and Fund Balance

In the government-wide financial statements and the proprietary funds in the fund financial statements, equity is classified as net position and displayed in three components: a. Net investment in capital assets – Consists of capital assets,

including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

b. Restricted net position – Consists of net position with

constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or (2) law through constitutional provisions or enabling legislation.

c. Unrestricted net position – All other net position that does not

meet the definition of restricted or net investment in capital assets.

As of June 30, 2019, Montgomery County had $156,044,828 in outstanding debt for capital purposes for the discretely presented Clarksville-Montgomery County School System. This debt is a liability of Montgomery County, but the capital assets acquired are reported in the financial statements of the school system. Therefore, Montgomery County has incurred a liability significantly decreasing its

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unrestricted net position with no corresponding increase in the county’s capital assets.

It is the county’s policy that restricted amounts would be reduced first followed by unrestricted amounts when expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available. Also, it is the county’s policy that committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of these unrestricted fund balance classifications could be used.

In the fund financial statements, governmental funds report fund balance in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in these funds can be spent. These classifications may consist of the following:

Nonspendable Fund Balance – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

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 system’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 system.

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

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to specific purposes within the General and General Purpose School funds.

E. Pension Plans

Primary Government For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of Montgomery County’s participation in the Public Employee Retirement Plan and Public Employee Legacy Retirement Plan of the Tennessee Consolidated Retirement System (TCRS), and additions to/deductions from Montgomery 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 and the Public Employee Legacy Retirement Plan of TCRS. Investments are reported at fair value. Discretely Presented Clarksville-Montgomery County School System

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 Montgomery County. For this purpose, Clarksville-Montgomery County recognizes benefit payments when due and payable in accordance with benefit terms. Montgomery County’s OPEB plan is not administered through a trust. Discretely Presented Clarksville-Montgomery County School System

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB

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expense, have been determined on the same basis as they are reported by the discretely presented Montgomery County School System. For this purpose, the school system recognizes benefit payments when due and payable in accordance with benefit terms. The school system’s OPEB plan is not administered through a trust.

II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL

STATEMENTS

A. Explanation of certain differences between the governmental fund balance sheet and the government-wide Statement of Net Position

Primary Government Exhibit C-2 includes explanations of the nature of individual elements of items required to reconcile the balance sheet of governmental funds with the government-wide Statement of Net Position. Discretely Presented Clarksville-Montgomery County School System Exhibit K-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 Clarksville-Montgomery County School System Exhibit K-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 Officers - Fees Fund (special revenue fund), which is not budgeted, and the

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Education Capital Projects Funds, which adopt project length budgets. All annual appropriations lapse at fiscal year-end. The county is required by state statute to adopt annual budgets. Annual budgets are prepared on the basis in which current available funds must be sufficient to meet current expenditures. Expenditures and encumbrances may not legally exceed appropriations authorized by the county commission and any authorized revisions. Unencumbered appropriations lapse at the end of each fiscal year. The budgetary level of control is at the major category level established by the County Uniform Chart of Accounts, as prescribed by the Comptroller of the Treasury of the State of Tennessee. Major categories are at the department level (examples of General Fund major categories: County Commission, Board of Equalization, Beer Board, Other Boards and Committees, 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, Montgomery County had outstanding encumbrances in budget funds as follows:

Fund Amount

Primary Government: General $ 839,186 General Capital Projects 4,757,252 Nonmajor Governmental 1,039,306Total $ 6,635,744

Discretely Presented School System: General Purpose School $ 966,893 Nonmajor Governmental 1,498,364Total $ 2,465,257

IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments Montgomery County, the Clarksville-Montgomery County School System, the Bi-County Solid Waste Management System, the Emergency Communications District of Montgomery County, the Clarksville-Montgomery County Public

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Library, and the Montgomery County Rail Service Authority 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 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; deposits at state and federal chartered banks and savings and loan associations; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; nonconvertible debt securities of certain federal government sponsored enterprises; and the county’s own legally issued bonds or notes. These investments may not have a maturity greater than two years. The county may make investments with longer maturities if various restrictions set out in state law are followed. Counties are also authorized to make investments in the State Treasurer’s Investment Pool 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

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guaranteed by the U.S. government or any of its agencies. When repurchase agreements are executed, the purchase of the securities must be priced at least two percent below the fair value of the securities on the day of purchase. Investment Balances. As of June 30, 2019, Montgomery County had the following investments carried at amortized cost using a Stable Net Asset Value or fair value within the fair value hierarchy established by generally accepted accounting principles. All investments are in the county trustee’s investment pool. Separate disclosures concerning pooled investments cannot be made for Montgomery County and the discretely presented Clarksville-Montgomery County School System since both pool their deposits and investments through the county trustee.

Weighted FairAverage Value or Maturity Amortized

Investment (days) Maturities Cost

Investments at Amortized Cost: State Treasurer's Investment Pool 1 to 86 N/A $ 48,477

Investments at Fair Value: Federal Farm Credit Banks N/A various 428,521 Federal Home Loan Bank System N/A various 2,252,275 Federal Home Loan Mortgage N/A various 499,730 U.S. Treasury Note N/A various 4,928,432

Total $ 8,157,435

QuotedPrices in

ActiveMarkets Significant

for Other SignificantIdentical Observable Unobservable

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

Federal Farm Credit Banks $ 428,521 $ 428,521 $ 0 $ 0Federal Home Loan Bank System 2,252,275 2,252,275 0 0Federal Home Loan Mortgage 499,730 499,730 0 0U.S. Treasury Note 4,928,432 4,928,432 0 0

Total $ 8,108,958 $ 8,108,958 $ 0 $ 0

Fair Value Measurements Using

Fair value investments classified at Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Fair value investments classified as Level 2 of the fair value hierarchy are valued using the active market rates for the underlying securities. Fair value investments

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classified as Level 3 of the fair value hierarchy are valued using non-observable inputs. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. State statutes limit the maturities of certain investments as previously disclosed. Montgomery County does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State statutes limit the ratings of certain investments as previously explained. Montgomery County has no investment policy that would further limit its investment choices. As of June 30, 2019, Montgomery County’s investment in the State Treasurer’s Investment Pool was unrated. Montgomery County’s investments in Federal Farm Credit Banks, Federal Home Loan Bank System, and Federal Home Loan Mortgage Association were rated Aaa by Moody’s Investor’s Service, AA+ by Standard & Poor’s, and AAA by Fitch Ratings. 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. Montgomery County places no limit on the amount the county may invest in one issuer. More than five percent of the county’s investments are in the Federal Farm Credit Bank, Federal Home Loan Bank System, and Federal Home Loan Mortgage Association. These investments are 5.25 percent, 27.61 percent, and 6.13 percent, respectively, of the county’s total investments. TCRS Stabilization Trust

Legal Provisions. Montgomery County’s Public Employee Hybrid Retirement Plan and the discretely presented Clarksville-Montgomery County School System’s Teacher Hybrid Retirement Plan are members of the Tennessee Consolidated Retirement System (TCRS) Stabilization Reserve Trust. The county and the school system have 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 county or the school system. The trust is authorized to make investments as directed by the TCRS Board of Trustees. Montgomery County and the Clarksville-Montgomery County School System 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 cost, 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 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 active markets that can be accessed at the measurement date. • Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; assets or liabilities that have a bid-ask spread price in an inactive dealer market, brokered market and principal-to-principal market; and Level 1 assets or liabilities that are adjusted. • Level 3 - Valuations derived from valuation techniques in which significant inputs are unobservable. Investments 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. 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.

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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, Montgomery County’s Public Employee Hybrid Retirement Plan had the following investments held by the trust on its behalf.

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Primary Government:WeightedAverageMaturity Fair

Investment (days) Maturities ValueInvestments at Fair Value: U.S. Equity N/A N/A $ 66,695 Developed Market International Equity N/A N/A 30,120 Emerging Market International Equity N/A N/A 8,606 U.S. Fixed Income N/A N/A 43,029 Real Estate N/A N/A 21,514 Short-term Securities N/A N/A 2,151 Investments at Amortized Cost using the NAV: Private Equity and Strategic Lending N/A N/A 43,029

Total $ 215,144

AmortizedQuoted Cost

Prices inActive Significant

Markets for Other SignificantIdentical Observable Unobservable

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

U.S. Equity $ 66,695 $ 66,695 $ 0 $ 0 $ 0Developed Market International Equity 30,120 30,120 0 0 0Emerging Market International Equity 8,606 8,606 0 0 0U.S. Fixed Income 43,029 0 43,029 0 0Real Estate 21,514 0 0 21,514 0Short-term Securities 2,151 0 2,151 0 0Private Equity and Strategic Lending 43,029 0 0 0 43,029

Total $ 215,144 $ 105,421 $ 45,180 $ 21,514 $ 43,029


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School System:WeightedAverageMaturity Fair


Total $ 226,482




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


Total $ 226,482 $ 110,977 $ 47,561 $ 22,648 $ 45,296


At June 30, 2019, the discretely presented Clarksville-Montgomery County School System’s Teacher Hybrid Retirement Plan had the following investments held by the trust on its behalf.

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School System:WeightedAverageMaturity Fair


Total $ 1,024,919




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


Total $ 1,024,919 $ 502,210 $ 215,233 $ 102,492 $ 204,984


Risks and Uncertainties. The trust’s investments include various types of investment funds, which in turn invest in any combination of stock, bonds and other investments exposed to various risks, such as interest rate, credit, and market risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported for trust investments. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Montgomery County nor the Clarksville-Montgomery County School System has the ability to limit trust investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

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Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Montgomery County and the Clarksville-Montgomery County School System do 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. Montgomery County and the Clarksville-Montgomery County School System 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 Montgomery County and the Clarksville-Montgomery County School System to pay retirement benefits of the county and school system employees. For further information concerning the School System’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: Primary Government (Includes Internal Service Fund)

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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

Governmental Activities:

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

Capital Assets Not Depreciated:Land $ 12,362,641 $ 331,619 $ 0 $ 12,694,260Construction in Progress 11,861,017 9,053,058 (6,850,415) 14,063,660Total Capital Assets Not Depreciated $ 24,223,658 $ 9,384,677 $ (6,850,415) $ 26,757,920

Capital Assets Depreciated:Buildings and Improvements $ 145,840,659 $ 7,712,408 $ 0 $ 153,553,067Other Capital Assets 20,026,404 2,750,559 (777,163) 21,999,800Intangibles 9,892,987 361,890 0 10,254,877Infrastructure 56,113,321 2,578,326 0 58,691,647Total Capital Assets Depreciated $ 231,873,371 $ 13,403,183 $ (777,163) $ 244,499,391

Less Accumulated Depreciation For:Buildings and Improvements $ 42,851,936 $ 4,139,326 $ 0 $ 46,991,262Other Capital Assets 13,335,472 1,661,969 (694,849) 14,302,592Intangibles 8,222,030 136,945 0 8,358,975Infrastructure 19,628,565 524,225 0 20,152,790Total Accumulated Depreciation $ 84,038,003 $ 6,462,465 $ (694,849) $ 89,805,619

Total Capital Assets Depreciated, Net $ 147,835,368 $ 6,940,718 $ (82,314) $ 154,693,772

Governmental Activities Capital Assets, Net $ 172,059,026 $ 16,325,395 $ (6,932,729) $ 181,451,692

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

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Governmental Activities:

General Government $ 1,094,081 Finance 253,621 Administration of Justice 947,721 Public Safety 1,703,494 Public Health and Welfare 924,999 Social, Cultural, and Recreational Services 767,388 Agriculture and Natural Resources 41,310 Highway/Public Works 729,851

Total Depreciation Expense - Governmental Activities $ 6,462,465

Discretely Presented Clarksville-Montgomery County School System Governmental Activities:

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

Capital Assets Not Depreciated:Land $ 14,065,154 $ 102,365 $ 0 $ 14,167,519Construction in Progress 3,550,033 12,178,835 (15,304,377) 424,491Total Capital Assets Not Depreciated $ 17,615,187 $ 12,281,200 $ (15,304,377) $ 14,592,010

Capital Assets Depreciated:Buildings and Improvements $ 405,884,126 $ 15,653,650 $ 0 $ 421,537,776Other Capital Assets 41,357,356 1,123,610 (1,325,798) 41,155,168Total Capital Assets Depreciated $ 447,241,482 $ 16,777,260 $ (1,325,798) $ 462,692,944

Less Accumulated Depreciation For:Buildings and Improvements $ 134,810,170 $ 9,429,299 $ 0 $ 144,239,469Other Capital Assets 21,523,141 2,487,486 (1,276,801) 22,733,826Total Accumulated Depreciation $ 156,333,311 $ 11,916,785 $ (1,276,801) $ 166,973,295

Total Capital Assets Depreciated, Net $ 290,908,171 $ 4,860,475 $ (48,997) $ 295,719,649

Governmental Activities Capital Assets, Net $ 308,523,358 $ 17,141,675 $ (15,353,374) $ 310,311,659

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Depreciation expense was charged to functions of the discretely presented school system as follows: Governmental Activities:

Instruction $ 137,823Support Services 11,455,909Operation of Non-instructional Services 323,053

Total Depreciation Expense - Governmental Activities $ 11,916,785

C. Construction Commitments

At June 30, 2019, the General Capital Projects Fund had uncompleted construction contracts of approximately $4,757,252 for various construction projects. Funding for these future expenditures is currently available or is expected to be received from property taxes.

D. 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

School System Component Unit: General Purpose School Nonmajor governmental $ 1,052,239 Nonmajor governmental General Purpose School 231,441

These balances resulted from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur and payments between funds are made.

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Due to/from Primary Government and Component Unit:

Receivable Fund Payable Fund Amount

Primary Government: Component Unit: Government-wide School System:

Government-wide $ 1,695,987 " Bi-County Solid Waste

Management System 2,355,221 School System:

Internal Service - Self-Insurance Nonmajor Governmental 4,572

School System: Primary Government: Education Capital Projects General Capital Projects 1,059,559 General Purpose School Internal Service 200

Interfund Transfers:

Interfund transfers for the year ended June 30, 2019, consisted of the

following amounts:

Discretely Presented Clarksville-Montgomery County School System:

General EducationPurpose Capital NonmajorSchool Projects Governmental

Transfers Out Fund Fund Funds

General Purpose School Fund $ 0 $ 25,000 $ 0Nonmajor governmental funds 1,038,309 0 1,291,137

$ 1,038,309 $ 25,000 $ 1,291,137

Transfers In

Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and to use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

E. Capital Leases

On May 31, 2017, Montgomery County entered into a three-year lease-purchase agreement for the school system for teacher laptops. The terms of the agreement require total lease payments of $446,800 including interest of 1.703 percent. The General Purpose School Fund is making the lease payments. In the government-wide financial statements, the laptops were expensed in the year of acquisition because the items did not meet criteria of the county’s capitalization policy.

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On June 1, 2017, Montgomery County entered into a three-year lease-purchase agreement for the school system for student laptops. The terms of the agreement require total lease payments of $2,054,251 including interest of 1.703 percent. The General Purpose School Fund is making the lease payments. In the government-wide financial statements, the laptops were expensed in the year of acquisition because the items did not meet criteria of the county’s capitalization policy. On September 12, 2017, Montgomery County entered into a three-year lease-purchase agreement for the school system for computers. The terms of the agreement require total lease payments of $1,200,000 including interest of 1.703 percent. The General Purpose School Fund is making the lease payments. In the government-wide financial statements, the computers were expensed in the year of acquisition because the items did not meet criteria of the county’s capitalization policy. On August 1, 2018, Montgomery County entered into a three-year lease-purchase agreement for the school system for student laptops. The terms of the agreement require total lease payments of $1,359,841 including interest of 4.868 percent. The General Debt Service Fund is making the lease payments. In the government-wide financial statements, the computers were expensed in the year of acquisition because the items did not meet criteria of the county’s capitalization policy. On May 5, 2019, Montgomery County entered into a three-year lease-purchase agreement for the school system for IT equipment. The terms of the agreement require total lease payments of $3,487,556 including interest of 2.63 percent. The General Debt Service Fund is making the lease payments. In the government-wide financial statements, the computers were expensed in the year of acquisition because the items did not meet criteria of the county’s capitalization policy. On June 1, 2019, Montgomery County entered into a three-year lease-purchase agreement for the school system for student laptops. The terms of the agreement require total lease payments of $241,486 including interest of 4.868 percent. The General Debt Service Fund is making the lease payments. In the government-wide financial statements, the computers were expensed in the year of acquisition because the 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:

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Year Ending GovernmentalJune 30 Funds

2020 $ 2,295,2222021 2,183,5222022 979,003Total Minimum Lease Payments $ 5,457,747Less: Amount Representing Interest (295,671)

Present Value of Minimum Lease Payments $ 5,162,076

F. Long-term Debt

Primary Government General Obligation Bonds - Montgomery 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 system. 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 outstanding were issued for original terms of up to 20 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 - Montgomery 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 system. Other loans are direct obligations and pledge the full faith, credit, and taxing authority of the government. Other loans outstanding were issued for original terms of up to 17 years. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. All loans included in long-term debt as of June 30, 2019, will be retired from the General Debt Service Fund. General obligation bonds, other loans, and capital leases outstanding as of June 30, 2019, for governmental activities are as follows:

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OriginalInterest Final Amount Balance

Type Rate Maturity of Issue 6-30-19

General Obligation Bonds 2 to 5.6 % 6-30-38 $ 131,225,000 $ 90,960,000General Obligation Bonds - Refunding .20 to 5 4-1-37 289,990,000 180,140,000Direct Borrowing and

Direct Placement: Other Loans 0 to 1.515 7-1-26 23,763,987 9,365,463 Capital Leases 1.703 to 4.868 6-1-22 8,439,358 5,162,076

In prior years, Montgomery County entered into a loan agreement with the Tennessee State School Bond Authority. Under this loan agreement, the authority borrowed $3,763,987 (Series 2005) Qualified Zone Academy Bonds and loaned the proceeds to Montgomery County for various renovation and construction projects. This loan is repayable at zero percent interest with annual administrative fees of $1,246. Qualified School Construction Bonds were issued through the State of Tennessee, and the proceeds were loaned to Montgomery County and various other local governments across Tennessee. The county pays interest of 1.515 percent on its share of the bonds and also pays a monthly administrative fee. The county and the other borrowers of the bond proceeds are required to comply with federal regulations established for the Qualified School Construction Bond program. Failure to comply with those requirements may result in the loss of the tax credit status on the bonds. This would result in further charges to the borrowers including the requirement to pay the tax-credit rate (5.86 percent) in addition to the 1.515 percent for a total rate of 7.375 percent.

The annual requirements to amortize all general obligation bonds and other loans outstanding as of June 30, 2019, including interest payments and other loan fees, are presented in the following tables:

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Year EndingJune 30 Total

2020 $ 29,860,000 $ 10,892,677 $ 40,752,6772021 31,070,000 9,787,601 40,857,6012022 27,830,000 8,375,001 36,205,0012023 27,580,000 7,251,988 34,831,9882024 27,630,000 6,065,726 33,695,7262025-2029 85,990,000 16,684,800 102,674,8002030-2034 27,585,000 5,620,467 33,205,4672035-2038 13,555,000 1,029,074 14,584,074

Total $ 271,100,000 $ 65,707,334 $ 336,807,334

InterestPrincipalBonds

Year EndingJune 30 Principal Interest Other Fees Total

2020 $ 1,507,569 $ 303,000 $ 21,246 $ 1,831,8152021 1,377,556 303,000 21,246 1,701,8022022 1,247,969 303,000 20,000 1,570,9692023 1,247,969 303,000 20,000 1,570,9692024 1,247,969 303,000 20,000 1,570,9692025-2027 2,736,431 631,250 45,000 3,412,681

Total $ 9,365,463 $ 2,146,250 $ 147,492 $ 11,659,205

Other Loans - Direct placement

There is $32,881,139 available in the General Debt Service Fund to service long-term debt. Bonded debt per capita totaled $1,573, based on the 2010 federal census. Total debt per capita, including bonds, other loans, capital leases, and unamortized debt premiums, totaled $1,801, based on the 2010 federal census. The school system and Bi-County Solid Waste Management System, a component unit, are currently contributing funds to service some of the debt issued on their 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 system and Bi-County Solid Waste Management System and as Due from Component Units in the government-wide financial statements of the primary government.

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OutstandingDescription of Debt 6-30-19

Capital Leases - Direct Placement Contributions from the General Purpose School Fund Teacher Laptops $ 109,815 Student Laptops 1,001,273 Computers 584,899

Bonds Payable Contributions from the Bi-County Solid Waste Management System General Obligation Refunding and Improvement 840,000 General Obligation Refunding and Improvement 1,515,221

Total $ 4,051,208

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

Capital OtherLeases - Loans -

Governmental Activities: Direct DirectBonds Placement Placement

Balance, July 1, 2018 $ 284,815,000 $ 2,577,019 $ 10,769,034Additions 14,630,000 4,836,049 0Reductions (28,345,000) (2,250,992) (1,403,571)

Balance, June 30, 2019 $ 271,100,000 $ 5,162,076 $ 9,365,463

Balance Due Within One Year $ 29,860,000 $ 2,141,140 $ 1,507,569

Analysis of Noncurrent Liabilities for Debt Presented on Exhibit A:

Total Noncurrent Liabilities - Debt, June 30, 2019 $ 285,627,539Less: Due Within One Year - Debt (33,508,709)Add: Unamortized Premium on Debt 24,735,533

Noncurrent Liabilities - Due in More Than One Year - Debt - Exhibit A $ 276,854,363

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Defeasance of Prior Debt In prior years, Montgomery County defeased certain outstanding general obligation bonds by placing the proceeds of new bonds into an irrevocable trust to provide for all future debt service payments on the old bonds. The trustee is empowered and required to pay all principal and interest on the defeased bonds as originally scheduled. Accordingly, the trust accounts and the defeased bonds are not included in the county’s financial statements. At June 30, 2019, the following outstanding bonds are considered defeased:

Amount

2008 General Obligation Industrial Park Bonds $ 10,450,0002011 General Obligation School & Public Improvement Bonds 25,900,000

G. Long-term Obligations

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

Internal Service OtherClaims and Compensated PostemploymentJudgments Absences Benefits

Balance, July 1, 2018 $ 4,522,031 $ 3,428,230 $ 15,197,250Additions 59,438,241 3,972,087 1,617,713Reductions (58,853,362) (3,886,896) (241,685)

Balance, June 30, 2019 $ 5,106,910 $ 3,513,421 $ 16,573,278

Balance Due Within One Year $ 2,553,455 $ 2,658,477 $ 0

Analysis of Noncurrent Liabilities - Other Presented on Exhibit A:

Total Noncurrent Liabilities - Other, June 30, 2019 $ 25,193,609Less: Due Within One Year (5,211,932)

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 19,981,677

The internal service funds primarily serve the governmental funds. Accordingly, claims and judgments for the internal service funds are included as part of the above totals for governmental activities. Compensated absences and other postemployment benefits will be paid from the employing funds, primarily the General and Highway/Public Works funds.

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

OtherPostemployment Compensated Claims and

Benefits Absences Judgments

Balance, July 1, 2018 $ 25,001,771 $ 1,838,956 $ 191,100Additions 11,688,585 1,920,956 393,166Reductions (2,916,145) (1,800,610) (423,466)

Balance, June 30, 2019 $ 33,774,211 $ 1,959,302 $ 160,800

Balance Due Within One Year $ 0 $ 1,900,523 $ 99,300

Analysis of Noncurrent Liabilities - Other - Presented on Exhibit A:

Total Noncurrent Liabilities - Other, June 30, 2019 $ 35,894,313Less: Due Within One Year (1,999,823)

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 33,894,490

Claims and judgments for the school system’s workers’ compensation program will be retired primarily from the General Purpose School Fund. Compensated absences and other postemployment benefits will be paid from the employing funds, primarily the General Purpose School and School Transportation funds.

V. OTHER INFORMATION A. Risk Management

Montgomery County, the Clarksville-Montgomery County School System, the Bi-County Solid Waste Management System, the Emergency Communications District of Montgomery County, and the Clarksville-Montgomery County Public Library, component units, have chosen to establish the Self-insurance Fund for risks associated with the employees’ health insurance plan. The Self-insurance Fund is accounted for as an internal service fund where assets are set aside for claim settlements. The county retains the risk of loss to a limit of $500,000 per specific loss. The county obtained a stop/loss commercial insurance policy to cover claims beyond this liability. The reinsurance carrier

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will cover 85 percent of paid claims exceeding $500,000 per specific loss to an unlimited maximum less the county’s deductible. All full-time and certain part-time employees of the primary government and the above-noted discretely presented component units are eligible to participate. A premium charge is allocated to each fund that accounts for all eligible participating employees. This charge is based on actuarial estimates of the amounts needed to pay prior- and current-year claims and to establish a reserve for catastrophic losses. Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. The Self-insurance Fund establishes claims liabilities based on estimates of the ultimate cost of claims that have been reported but not settled and of claims that have been incurred but not reported. Claims liabilities include incremental claim adjustment expenditures/expenses, if any. In addition, estimated recoveries, if any, on settled claims have been deducted from the liability for unpaid claims. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the past two fiscal years are as follows:

2017-18 $ 4,400,290 $ 52,130,704 $ (52,289,863) $ 4,241,1312018-19 4,241,131 59,121,672 (58,533,093) 4,829,710

Payments

Balanceat FiscalYear-end

Beginning ofFiscal Year

Liability

Current-year Claims and

Estimates

Montgomery County has decided to maintain a self-insurance plan for risks associated with workers’ compensation claims. Claims are paid from the Workers’ Compensation Fund. The county administers this plan internally instead of contracting out this service. The county retains the risk of loss to a limit of $300,000 per specific loss. All employees of Montgomery County, the Bi-County Solid Waste Management System, the Emergency Communications District of Montgomery County, and the Clarksville-Montgomery County Public Library participate. Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. The fund establishes claims liabilities based on estimates of the ultimate cost of claims that have been reported but not settled, and of claims that have been incurred but not reported. Claims liabilities include incremental claim adjustment expenditures/expenses, if any. In addition, estimated recoveries, if any, on settled claims have been deducted from the liability for unpaid claims. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the past two fiscal years are as follows:

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2017-18 $ 22,291 $ 206,972 $ (6,263) $ 223,0002018-19 223,000 200,494 (204,494) 219,000

Payments



Liability


Estimates

On December 1, 2004, Montgomery County decided to establish an on-the-job injury program for risks associated with workplace injury. The on-the-job injury program is accounted for in the Workers’ Compensation Fund (internal service fund) where assets are set aside for claims settlements. All employees of the primary government, the Emergency Communications District of Montgomery County, the Bi-County Solid Waste Management System, and the Clarksville-Montgomery County Library are eligible to participate. Qualified individuals shall receive a portion of their salary, not to exceed six months of benefits, provided there is medical documentation from a county-designated physician. Benefits shall not extend beyond one calendar year from the date of injury or illness. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the current fiscal year are as follows:

2017-18 $ 266,552 $ 4,962 $ (213,614) $ 57,9002018-19 57,900 116,075 (115,775) 58,200

Payments



Liability


Estimates

Montgomery County, the Clarksville-Montgomery County School System, the Emergency Communications District of Montgomery County, the Bi-County Solid Waste Management System, and the Clarksville-Montgomery County Library decided to maintain a self-insurance plan for risks associated with unemployment compensation claims. The county and the above-noted component units participate in the unemployment compensation program administered by the State of Tennessee. The fund is financed from interest earnings, and each fund is assessed for excess claims filed. Montgomery County is exposed to various risks related to general liability, property, and casualty losses. Officials decided it was more economically feasible to join a public entity risk pool for general liability, property, and casualty insurance coverage. Montgomery County joined the Local Government Property and Casualty Fund (LGPCF), which is a public entity risk pool established by the Tennessee County Services Association, an association of member counties. Montgomery County pays annual premiums to the LGPCF for its general liability, property, and casualty insurance coverage. The creation of the LGPCF provides for it to be self-sustaining

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through member premiums. The LGPCF reinsures through commercial insurance companies. It is the policy of the Clarksville-Montgomery County School System to purchase commercial insurance for the risks of losses to which it is exposed. These risks include general liability, property, and casualty losses. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. The school system decided to maintain a self-insurance plan for risks associated with workers’ compensation claims made prior to January 1, 2006. Claims are paid from the General Purpose School Fund, and the plan is administered by Brentwood Services. The school system retains the risk of loss to a limit of $275,000 per specific loss. The school system has obtained a stop/loss commercial insurance policy to cover claims beyond this liability. All employees of the school system participate. Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. The fund establishes claims liabilities based on estimates of the ultimate cost of claims that have been reported but not settled, and of claims that have been incurred but not reported. Claims liabilities include incremental claim adjustment expenditures/expenses, if any. In addition, estimated recoveries, if any, on settled claims have been deducted from the liability for unpaid claims. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the past two fiscal years are as follows:

2017-18 $ 149,000 $ 31,675 $ (39,675) $ 141,0002018-19 141,000 0 (18,000) 123,000

Payments



Liability


Estimates

On January 1, 2006, the School System decided to establish an on-the-job injury program for risks associated with workplace injury. The on-the-job injury program is accounted for in the General Purpose School Fund where assets are set aside for claims settlements. All employees of the school system are eligible to participate. Qualified individuals shall receive a portion of their salary, not to exceed three months of benefits, provided there is medical documentation from a county-designated physician. Benefits shall not extend beyond one calendar year from the date of injury or illness. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the past two fiscal years are as follows:

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2017-18 $ 49,500 $ 285,883 $ (285,283) $ 50,1002018-19 50,100 393,166 (405,466) 37,800

Payments



Liability


Estimates

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, Montgomery 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.

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D. Change in Administration Trustee Brenda Radford retired August 31, 2018, and was succeeded by Kimberly Wiggins effective September 1, 2018.

E. Landfill Closure/Postclosure Care Costs

State and federal laws and regulations require the county to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the Bi-County Solid Waste Management System, a component unit, will report a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date.

F. Joint Ventures The Montgomery County Rail Service Authority provides a continuation of rail service within the area of Montgomery County, and its governing body comprises four members. The county mayor serves as a member of the authority and appoints another member subject to the county commission’s approval. The mayor of the City of Clarksville serves as a member and appoints another member subject to the Clarksville City Council’s approval. State grants provide the majority of funding for the rail authority. Montgomery County and the City of Clarksville jointly created the Clarksville Montgomery County Airport and the Clarksville-Montgomery County Regional Planning Commission. These joint ventures are operated by county/city-appointed boards/commissions for the benefit of all citizens of the two entities. Montgomery County has control over budgeting and financing the joint ventures only to the extent of representation by the board members appointed. Each entity is responsible for funding 50 percent of any deficits from operations if not covered by prior earnings. Montgomery County contributed $261,208 for the operations of the airport and $411,849 for the operations of the planning commission during the year ended June 30, 2019. The Joint Economic and Community Development Board is a joint venture between Montgomery County and the City of Clarksville. The board comprises the county mayor, city mayor, and several additional members. The purpose of the board is to foster communications relative to economic and community development between and among governmental entities, industry, and private citizens. The county and city will provide the majority of funding for the board based on the percentage of their population compared to the total census of the county when financial activity begins. Montgomery County did not appropriate any funds to the Economic and Community Development Board during the 2018-2019 year.

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The Clarksville-Montgomery County Sports Authority promotes and develops sports and recreational opportunities in Montgomery County. The county and the City of Clarksville jointly appoint the nine-member board. Montgomery County has control over budgeting and financing the joint venture only to the extent of representation by the board members appointed. The Nineteenth Judicial District Drug Task Force (DTF) is a joint venture formed by an interlocal agreement between the district attorney general of the Nineteenth Judicial District and Montgomery County. 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 and the Montgomery County Sheriff. Montgomery County did not appropriate any funds to the DTF during the 2018-19 year.

Montgomery County does not have an equity interest in any of the above-noted joint ventures. Complete financial statements for the joint ventures can be obtained from their administrative offices at the following addresses:

Administrative Offices:

Montgomery County Rail Service AuthorityMontgomery County MayorP.O. Box 368Clarksville, TN 37040

Clarksville-Montgomery County Airport200 Airport RoadClarksville, TN 37042

Clarksville-Montgomery County Regional Planning Commission329 Main StreetClarksville, TN 37040

Economic and Community Development Board329 Main StreetClarksville, TN 37040

Montgomery County Sports Authorityc/o Economic Development Council312 Madison StreetClarksville, TN 37040

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Clarksville-Montgomery County Airport200 Airport RoadClarksville, TN 37042

Clarksville-Montgomery County Regional Planning Commission329 Main StreetClarksville, TN 37040

Economic and Community Development Board329 Main StreetClarksville, TN 37040

Montgomery County Sports Authorityc/o Economic Development Council25 Jefferson Street Suite 300Clarksville, TN 37040

Office of District Attorney GeneralNineteenth Judicial District Drug Task ForceP.O. Box 3203Clarksville, TN 37043

G. Jointly Governed Organization The county and the City of Clarksville jointly appoint the 13-member board of the Clarksville-Montgomery County Community Health Foundation, Inc. The foundation is designed to facilitate activities that promote the general health of the community. The county and city do not have any ongoing financial interest or responsibility for the foundation.

H. Retirement Commitments

1. Tennessee Consolidated Retirement System (TCRS)

Primary Government General Information About the Pension Plan Plan Description. Employees of Montgomery County and non-certified employees of the discretely presented Clarksville-Montgomery County School System with membership in the TCRS before January 1, 2017, are provided a defined benefit pension plan through the Public Employee Legacy Retirement Plan, an agent multiple-employer

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pension plan administered by the TCRS. The Public Employee Legacy Pension Plan is closed to new membership. Employees of Montgomery County and non-certified employees of the discretely presented Clarksville-Montgomery County School System with membership in the TCRS after January 1, 2017, are provided with pensions through a legally separate plan, referred to as the Public Employee Retirement Plan, an agent 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 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. Public Employee Legacy Pension Plan Plan Description. Employees of Montgomery County and non-certified employees of the discretely presented Clarksville-Montgomery County School System with membership in the TCRS before January 1, 2017, are provided a defined benefit pension plan through the Public Employee Legacy Pension Plan, an agent multiple-employer pension plan administered by the TCRS. The Public Employee Legacy Pension Plan was closed to new membership on December 31, 2016, but will continue providing benefits to existing members and retirees. The primary government employees comprise 49.68 percent and the non-certified employees of the discretely presented school system comprise 50.32 percent of the Public Employee Legacy Pension Plan based on contribution data. 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.

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


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 1,206Inactive Employees Entitled to But Not Yet Receiving Benefits 1,397Active Employees 2,128

Total 4,731

Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees are non-contributory. Montgomery 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 Montgomery County was $8,908,677 for the Public Employee Legacy Pension Plan based on a rate of 12.86 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept Montgomery 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) Montgomery 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.

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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 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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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 Montgomery 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 Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)

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

Balance, July 1, 2017 $ 246,552,949 $ 249,416,493 $ (2,863,544)

Changes for the Year: Service Cost $ 6,662,671 $ 0 $ 6,662,671 Interest 18,018,915 0 18,018,915 Differences Between Expected and Actual Experience 1,770,004 0 1,770,004 Changes in Assumptions 3,319,525 0 3,319,525 Contributions-Employer 0 9,565,557 (9,565,557) Contributions-Employees 0 8,119 (8,119) Net Investment Income 0 20,703,256 (20,703,256) Benefit Payments, Including Refunds of Employee Contributions (9,357,724) (9,357,724) 0 Administrative Expense 0 (210,657) 210,657 Other Changes 0 0 0Net Changes $ 20,413,391 $ 20,708,551 $ (295,160)

Balance, June 30, 2018 $ 266,966,340 $ 270,125,044 $ (3,158,704)

Increase (Decrease)

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

Plan NetTotal Fiduciary Pension

Pension Net LiabilityLiability Position (Asset)

Primary Government 49.68% $ 132,628,878 $ 134,198,122 $ (1,569,244)

School System 50.32% 134,337,462 135,926,922 (1,589,460)

Total $ 266,966,340 $ 270,125,044 $ (3,158,704)

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

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Current1% Discount 1%

Decrease Rate Increase6.25% 7.25% 8.25%

Net Pension Liability $ 32,821,291 $ (3,158,704) $ (33,057,844)

Pension Expense (Income) and Deferred Outflows of Resources and Deferred Inflows of Resources to Pensions Pension Expense. For the year ended June 30, 2019, Montgomery County recognized pension expense of $8,962,841. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, Montgomery 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 $ 1,797,642 $ 3,172,992Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 1,219,891Changes in Assumptions 3,648,436 0Contributions Subsequent to the Measurement Date of June 30, 2018 (1) 8,908,677 N/A

Total $ 14,354,755 $ 4,392,883

(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 $ 7,136,192 $ 2,182,384

School System 7,218,563 2,210,499

Total $ 14,354,755 $ 4,392,883

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 $ 2,019,3342021 190,4792022 (2,059,446)2023 607,8182024 295,010Thereafter 0

In the table shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense. Primary Government Public Employee Hybrid Retirement Plan General Information About the Pension Plan Plan Description. As noted above under the primary government, beginning January 1, 2017, the Public Employee Pension Plan became effective for employees of Montgomery County and non-certified employees of the school system hired after January 1, 2017. The primary government employees comprise 45.62 percent and the non-certified employees of the discretely presented school system comprise 54.38 percent of the plan based on contribution data.

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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 in which the member’s age and service credits total 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 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 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. 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 0Inactive Employees Entitled to But Not Yet Receiving Benefits 107Active Employees 479

Total 586

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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salary. Montgomery County makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation and statutory provisions. 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 Retirement Plan are required to be paid. The TCRS may intercept the state shared taxes of the sponsoring governmental entity of Montgomery County if the required employer contributions are not remitted. Employer contributions for the year ended June 30, 2019, to the Public Employee Hybrid Retirement Plan were $238,008, which is 1.94 percent of covered payroll. In addition, employer contributions of $420,415, 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 to Pensions Pension Liabilities (Assets). Montgomery County’s net pension liability (asset) was measured at June 30, 2018, and the total pension liability 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:





Mortality rates were based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2017, actuarial valuation were based on the results of an actuarial experience study

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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:




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 Montgomery County will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding

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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.

Changes in the Net Pension Liability (Asset)

Total Plan Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)

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

Balance, July 1, 2017 $ 63,548 $ 66,734 $ (3,186)

Changes for the Year: Service Cost $ 153,138 $ 0 $ 153,138 Interest 15,644 0 15,644 Changes in Benefit Terms 0 0 0 Differences Between Expected and Actual Experience 391,040 0 391,040 Changes in Assumptions 0 0 0 Contributions-Employer 0 329,323 (329,323) Contributions-Employees 0 407,528 (407,528) Net Investment Income 0 34,466 (34,466) Benefit Payments, Including Refunds of Employee Contributions (1,807) (1,807) 0 Administrative Expense 0 (38,067) 38,067 Other Changes 0 0 0Net Changes $ 558,015 $ 731,443 $ (173,428)

Balance, June 30, 2018 $ 621,563 $ 798,177 $ (176,614)

Increase (Decrease)

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

Plan NetTotal Fiduciary Pension

Pension Net LiabilityLiability Position (Asset)

Primary Government 45.62% $ 283,557 $ 364,127 $ (80,570)

School System 54.38% 338,006 434,050 (96,044)

Total $ 621,563 $ 798,177 $ (176,614)

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



Net Pension Liability $ (3,536) $ (176,614) $ (304,692)

Pension Expense (Income) and Deferred Outflows of Resources and Deferred Inflows of Resources to Pensions Pension Expense. For the year ended June 30, 2019, Montgomery County recognized pension (negative) expense of ($192,793). Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, Montgomery County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



Difference Between Expected and Actual Experience $ 351,936 $ 0Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 4,216Changes in Assumptions 0 0Contributions Subsequent to the Measurement Date of June 30, 2018 (1) 238,008 N/A

Total $ 589,944 $ 4,216

(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 $ 275,915 $ 1,922

School System 314,029 2,294

Total $ 589,944 $ 4,216

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:


2019 $ 37,9902020 37,9902021 37,9902022 38,2322023 39,104Thereafter 156,414

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

Discretely Presented Clarksville-Montgomery County School System

Non-certified Employees General Information About the Pension Plan Plan Description. As noted above under the primary government, employees of Montgomery County and non-certified employees of the discretely presented Clarksville-Montgomery County School System hired before January 1, 2017, 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 49.68 percent and the non-certified employees of the discretely presented school System comprise

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50.32 percent of the plan based on contribution data. Beginning January 1, 2017, the Public Employee Pension Plan became effective for employees of Montgomery County and non-certified employees of the school system hired after January 1, 2017. The primary government employees comprise 45.62 percent and the non-certified employees of the discretely presented school system comprise 54.38 percent of the plan based on contribution data. Certified Employees Teacher Retirement Plan General Information About the Pension Plan Plan Description. Teachers of the Clarksville-Montgomery County School System 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

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(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. 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 $1,001,625, which is 1.94 percent of covered payroll. In addition, employer contributions of $973,178, 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 system reported a liability (asset) of ($1,981,594) 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 system’s proportion of the net pension liability (asset) was based on the school system’s

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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 system’s proportion was 4.369288 percent. The proportion as of June 30, 2017, was 4.118983 percent. Pension Expense. For the year ended June 30, 2019, the school system recognized pension expense of $670,927. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the school system reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



Difference Between Expected and Actual Experience $ 112,232 $ 78,928Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 111,925Changes in Assumptions 93,486 0Changes in Proportion of Net Pension Liability (Asset) 4,628 70,318LEA's Contributions Subsequent to the Measurement Date of June 30, 2018 (1) 1,001,625 N/A

Total $ 1,211,971 $ 261,171

The school system’s employer contributions of $1,001,625, 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:

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2020 $ (20,305)2021 (23,857)2022 (39,811)2023 (10,562)2024 4,350Thereafter 39,360

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:





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

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TCRS investment policy target asset allocation for each major class are summarized in the following table:




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 system’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.25 percent, as well as what the school system’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is one percentage point lower (6.25%) or one percentage point higher (8.25%)

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than the current rate: 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 $ 306,356 $ (1,981,594) $ (3,667,273)

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 Clarksville-Montgomery County School System 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

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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 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 Clarksville-Montgomery County School System for the year ended June 30, 2019, to the Teacher Legacy Pension Plan were $10,634,850, 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, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Liability (Assets). At June 30, 2019, the school system reported a liability (asset) of ($10,505,037) 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 system’s proportion of the net pension liability (asset) was based on the school system’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 system’s proportion was 2.985305 percent.

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The proportion measured at June 30, 2017, was 2.980699 percent. Pension Expense. For the year ended June 30, 2019, the school system recognized (negative) pension expense of ($2,918,308). Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the school system reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



Difference Between Expected and Actual Experience $ 2,123,426 $ 14,172,127Changes in Assumptions 6,204,325 0Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 2,286,334Changes in Proportion of Net Pension Liability (Asset) 553,341 376,614LEA's Contributions Subsequent to the Measurement Date of June 30, 2018 10,634,850 N/A

Total $ 19,515,942 $ 16,835,075

The school system’s employer contributions of $10,634,850 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 $ 2,254,3632021 (3,265,997)2022 (5,974,282)2023 (968,067)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 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 system’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.25 percent, as well as what the school system’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is one percentage point lower (6.25%) or one percentage point higher (8.25%) than the current rate:

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

Net Pension Liability $ 80,979,444 $ (10,505,037) $ (86,195,700)

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

2. Deferred Compensation – Primary Government

Montgomery County offers its employees two deferred compensation plans, one established pursuant to IRC Section 457 and the other pursuant to IRC Section 401(k). All costs of administering and funding these programs are the responsibility of plan participants. The Section 401(k) and Section 457 plan assets remain the property of the contributing employees and are not presented in the accompanying financial statements. IRC Sections 401(k) and 457 establish participation, contribution, and withdrawal provisions for the plans. Employees hired after January 1, 2017, by the primary government 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 primary government contribute five percent of each employee’s salary into their deferred compensation plan. In addition, employees 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 primary government contributed $392,718 to this deferred compensation pension plan.

3. Deferred Compensation – Discretely Presented Clarksville-Montgomery County School System

The discretely presented Clarksville-Montgomery County School System offers its employees a deferred compensation plan established pursuant to IRC Section 403(b). All costs of administering and funding this program are the responsibility of plan participants. The Section 403(b) plan assets remain the property of the contributing employees and are not presented in the accompanying financial statements. IRC Section 403(b) establishes participation, contribution, and withdrawal provisions for the plans.

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Teachers hired after July 1, 2014, and non-certified employees hired after January 1, 2017, by the school system 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 system 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 system contributed $2,949,016 to this deferred compensation pension plan.

I. Other Postemployment Benefits (OPEB)

Montgomery County, the discretely presented Clarksville-Montgomery County School System, the Bi-county Solid Waste Management System, the Clarksville-Montgomery County Public Library, the Emergency Communications District of Montgomery County (component units), and the Clarksville-Montgomery County Regional Planning Commission (a joint venture) provide OPEB benefits to their retirees through commercial insurance plans administered by Blue Cross Blue Shield of Tennessee. 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.

Commercial Postemployment Benefits Plan – Primary Government Plan Description. All full-time employees and eligible retirees of Montgomery County, the Bi-county Solid Waste Management System, the Clarksville-Montgomery County Public Library, the Emergency Communications District of Montgomery County (component units), and the Clarksville-Montgomery County Regional Planning Commission (a joint venture) are eligible to participate in the health insurance plan accounted for in the Self-Insurance Fund (internal service fund). The premium requirements of plan members are established and may be amended by the 17-member insurance committee. The committee is comprised of 4 members appointed by the County Mayor with the approval of the county commission to represent Montgomery County employees, the current on-site medical administrator, and 12 members appointed by the Director of Schools (3 elementary school certified employees, 2 middle school certified employees, 2 high school certified employees, 2 members to represent classified employees, 2 administrative members to serve as representatives of the Board of Education, and one other appointed by the Director of Schools). The plan is self-insured and financed on a pay-as-you-go

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basis with the risk shared equally among the participants. Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premium rates. The insurance committee develops its own contribution policy in terms of subsidizing active employees or retired employees’ premiums. Benefits Provided. The plan provides healthcare, dental, and vision insurance benefits to retirees and their dependents if the retiree has at least 30 years of creditable service with Tennessee Consolidated Retirement System or at age 55, with a minimum of 20 years with Montgomery County and participation in the group medical insurance for at least the last 2 years prior to retirement. For employees of Montgomery County, the Bi-county Solid Waste Management System, the Clarksville-Montgomery County Public Library, and the Emergency Communications District of Montgomery County hired prior to July 1, 2016, the benefit terms for health and dental insurance provide for the primary government to pay 85 percent of the plan premium if the retiree is within 120 months of medicare eligibility, 80 percent of the plan premium if the retiree is 121-132 months from medicare eligibility, 75 percent if the retiree is 133-144 months from medicare eligibility, 70 percent if the retiree is 145-156 months from medicare eligibility, 65 percent if the retiree is 157-168 months from medicare eligibility, and 60 percent if the employee is 169-180 months from medicare eligibility. The retiree pays the full premium on vision insurance. Dependents of the retiree are permitted to remain on the plan until age 26 and spouses may remain on the plan until they become medicare eligible. For employees of the Clarksville-Montgomery County Regional Planning Commission hired prior to July 1, 2016, the benefit terms for health insurance provide for the primary government to pay 75 percent of the plan premium for the first 24 months after retirement, 70 percent of the plan premium for 25 to 60 months after retirement, 50 percent of the plan premium for 61 to 120 months after retirement, and 0 percent of the plan premium more than 120 months subsequent to retirement. Dental and vision insurance are not provided to Planning Commission retirees. Dependents of the retiree are permitted to remain on the health plan until age 26 and spouses may remain on the plan until they become medicare eligible. For all employees hired after July 1, 2016, benefit terms for health and dental insurance provide for the primary government to pay 50 percent of the premium rate set at retirement. In increases to the premium subsequent to retirement are the responsibility of the retiree. Employees Covered by Benefit Terms At the valuation date of July 1, 2018, the following employees were covered by the benefit terms:

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Active Employees with Medical Coverage 831Active Employees without Medical Coverage 298Retirees with Medical Coverage 27Retirees without Medical Coverage 0Retiree Spouses with Medical Coverage 0Total 1,156

Total OPEB Liability The plan’s total OPEB liability was measured as of June 30, 2019, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and Methods. The total OPEB liability in the June 30, 2019, actuarial valuation 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 NormalDiscount Rate 2.98%Inflation Rate No factor was included for inflationSalary Increases 4.00%Healthcare Cost Trend Rate 8% for medical graded down to 5% over 10 years;

5% for dental; 5% for administrative fees; 5% for stop loss

Fututre Participation Rates 20% to 40% depending on age at retirement

The discount rate was based on the S&P Municipal Bond 20 Year High Grade Index. Mortality rates were based on Mortality Table RP-2014 projected with Mortality Improvement Scale MP-2017. The actuarial assumptions used in the June 30, 2019, valuation were based on plan data and costs presented by the primary government with concurrence by the actuary.

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Changes in the Total OPEB Liability

Primary PublicGovernment Bi-County Library

Balance July 1, 2018 $ 15,197,250 $ 1,780,314 $ 522,890Changes for the Year: Service Cost $ 1,138,121 $ 124,597 $ 27,325 Interest 479,592 55,721 15,653

Benefit Payments/Refunds (241,685) (35,072) (24,960)Net Changes $ 1,376,028 $ 145,246 $ 18,018

Balance June 30, 2019 $ 16,573,278 $ 1,925,560 $ 540,908

Share of Collective Liability

PlanningCommission E-911 Total

Balance July 1, 2018 $ 559,158 $ 1,275,976 $ 19,335,588Changes for the Year: Service Cost $ 20,045 $ 40,963 $ 1,351,051 Interest 15,702 36,353 603,021

Benefit Payments/Refunds (52,284) (97,040) (451,041)Net Changes $ (16,537) $ (19,724) $ 1,503,031

Balance June 30, 2019 $ 542,621 $ 1,256,252 $ 20,838,619

Share of Collective Liability

During the year, the plan member’s proportionate share of the collective OPEB liability was as follows: Primary Government 79.53 percent, Bi-county Solid Waste Management System 9.24 percent, Clarksville-Montgomery County Public Library 2.60 percent, Clarksville-Montgomery County Regional Planning Commission 2.60 percent, and Emergency Communications District of Montgomery County 6.03 percent.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the plan recognized OPEB expense of $1,954,072, which was allocated as follows: Primary Government $1,617,713, Bi-county Solid Waste Management System $180,318, Clarksville-Montgomery County Public Library $42,978, Clarksville-Montgomery County Regional Planning Commission $35,747, and Emergency Communications District of Montgomery County $77,316. There were no deferred inflows and outflows reported at June 30, 2019.

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following presents the proportionate share of the total OPEB liability of the plan members calculated using the discount rate of 2.98 percent, as well as what the OPEB liability would be if it was calculated using a discount rate

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that is one percentage point lower (1.98%) or one percentage point higher (3.98%) than the current rate:


Decrease Rate IncreasePrimary Government 1.98% 2.98% 3.98%

Total OPEB Liability $ 18,123,069 $ 16,573,278 $ 15,152,046




Bi-County Solid Waste Management System

Current

1% Discount 1%Decrease Rate Increase

1.98% 2.98% 3.98%

Total OPEB Liability $ 591,489 $ 540,908 $ 494,523

Clarksville-Montgomery County Public Library

Current


1.98% 2.98% 3.98%


Clarksville-Montgomery County Regional Planning

Commission

Current


1.98% 2.98% 3.98%


Emergency Communications District

of Montgomery County

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rate. The following presents the proportionate share of the total OPEB liability of the plan members calculated using the healthcare cost trend rate of 8 percent decreasing to 5 percent over 10 years, as well as what the OPEB

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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:

1% Current 1%Decrease Trend Increase

Rates7% decreasing to 8% decreasing to 9% decreasing to

Primary Government 4% over 10 years 5% over 10 years 6% over 10 years



Rates7% decreasing to 8% decreasing to 9% decreasing to4% over 10 years 5% over 10 years 6% over 10 years


Bi-County Solid Waste Management

System




Clarksville-Montgomery County

Public Library

1% Current 1%

Decrease Trend IncreaseRates

7% decreasing to 8% decreasing to 9% decreasing to4% over 10 years 5% over 10 years 6% over 10 years


Clarksville-Montgomery County Regional Planning

Commission




Emergency Communications

District of Montgomery County

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Commercial Postemployment Benefits Plan – Discretely Presented Clarksville-Montgomery County School System Plan Description. All full-time employees and eligible retirees of the Clarksville-Montgomery County School System are eligible to participate in the health insurance plan accounted for in the Self-Insurance Fund (internal service fund). The premium requirements of plan members are established and may be amended by the 17-member insurance committee. The committee is comprised of 4 members appointed by the county cayor with the approval of the county commission to represent Montgomery County employees, the current on-site medical administrator, and 12 members appointed by the Director of Schools (3 elementary school certified employees, 2 middle school certified employees, 2 high school certified employees, 2 members to represent classified employees, 2 administrative members to serve as representatives of the Board of Education, and one other appointed by the Director of Schools). The plan is self-insured and financed on a pay-as-you-go basis with the risk shared equally among the participants. Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premium rates. The insurance committee develops its own contribution policy in terms of subsidizing active employees or retired employees’ premiums. Benefits Provided. The plan provides healthcare, dental, and vision insurance benefits to retirees and their dependents if the retiree has at least 30 years of creditable service with Tennessee Consolidated Retirement System or at age 55, with a minimum of 20 years with the Clarksville-Montgomery County School System and participation in the group medical insurance for at least the last 3 years prior to retirement. The benefit terms for health insurance provide for the school system to pay 50 percent of the premium cost at the time of retirement. Any increase in the cost of insurance during the retiree's eligible participation period would be the sole responsibility of the retiree. The retiree is eligible to stay on vision and dental insurance, but the retiree is responsible for the full premium. Dependents and spouses of the retiree are permitted to remain on the plan, however, the school system's contributions will cease once the retired employee becomes medicare eligible or participates a maximum of 10 years, whichever comes first. At this point, the spouse may remain on the policy until age 65 and qualified dependent children may remain on the policy, with the full premium cost being the responsibility of the retiree. Lastly, for certified employees with 20 years of service hired prior to July 1, 2007, the school system provides postemployment life insurance benefits. The school system pays 100 percent of the life insurance premium on a $7,000 policy until death of the retiree.

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Employees Covered by Benefit Terms At the valuation date of July 1, 2019, the following employees were covered by the benefit terms: Active Employees in Medical Plan 2,870Active Employees in Life Plan 607Retirees in Medical Plan 145Retirees in Life Plan 648Total 4,270

Total OPEB Liability The discretely presented school system’s total OPEB liability was measured as of June 30, 2019, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and Methods. The total OPEB liability in the June 30, 2019, actuarial valuation 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 NormalDiscount Rate 2.79%Inflation Rate No factor was included for inflationSalary Increases 3.00%Healthcare Cost Trend Rate Medical: 7.5% graded uniformly to 6.5% over 3

years and following the Getzen model thereafter to an ultimate rate of 3.94% in the year 2075Administrative Expenses: 5% per annum

The discount rate was based on the S&P Municipal Bond 20 Year High Grade Index. Mortality rates were based on Mortality Table RP-2014 adjusted to base year 2006 using improvement scale MP 2014 and projected forward generationally using improvement scale MP 2019. The actuarial assumptions used in the June 30, 2019, valuation were based on plan data and costs presented by the primary government with concurrence by the actuary.

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Changes in the Total OPEB Liability

Total OPEBLiability

Balance July 1, 2018 $ 25,001,771Changes for the Year: Service Cost $ 3,058,024 Interest 724,328 Difference between actual and expected experience 7,906,233 Changes in Assumptions (817,915)

Benefit Payments/Refunds (2,098,230)Net Changes $ 8,772,440

Balance June 30, 2019 $ 33,774,211

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the school system recognized OPEB expense of $4,658,359. At June 30, 2019, the school system reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:



Difference Between Expected and Actual Experience $ 6,917,954 $ 80,268Changes in Assumptions 0 715,676

Total $ 6,917,954 $ 795,944

Amounts reported as deferred outflows and deferred outflows of resources, with the exception of benefits paid after the measurement date, related to OPEB will be recognized in OPEB expense as follows:

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2020 $ 876,0072021 876,0072022 876,0072023 876,0072024 876,007Thereafter 1,741,975

In the table shown above, positive amounts will increase OPEB expense while negative amounts will decrease OPEB expense. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following presents the total OPEB liability of the school system calculated using the discount rate of 2.79 percent, as well as what the OPEB liability would be if it was calculated using a discount rate that is one percentage point lower (1.79%) or one percentage point higher (3.79%) than the current rate:




Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rate. The following presents the total OPEB liability of the school system calculated using the healthcare cost trend rate of 7.5 percent decreasing to 6.75 percent over 3 years and following the Getzen model thereafter, 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:

6.5% decreasing to 7.5% decreasing to 8.5% decreasing to5.75% over 3 years 6.75% over 3 years 7.75% over 3 yearsand following the and following the and following theGetzen model less Getzen model Getzen model plus

1% thereafter thereafter 1% thereafter


112

J. Office of Central Accounting, Budgeting, and Purchasing

Montgomery County operates under the provisions of the Fiscal Control Acts of 1957. These acts provide for a central system of accounting, budgeting, and purchasing covering funds administered by the county mayor and highway supervisor. These funds are maintained in the Offices of Central Accounting and Budgeting and Central Purchasing under the supervision of the director of accounts and budgets and the purchasing agent.

K. Purchasing Laws

Office of Central Purchasing

Purchasing procedures for the Office of County Mayor and the Highway Department are governed by the County Purchasing Law of 1957, Section 5-14-101 et seq., Tennessee Code Annotated (TCA). Purchases for the highway department are also governed by the Uniform Road Law, Section 54-7-113, TCA. Section 5-14-101 et seq., TCA, provides for a purchasing agent, appointed by the county mayor and approved by the Montgomery County Commission, to make all purchases. This statute also provides for a County Purchasing Commission to assist the purchasing agent in the determination of overall purchasing policies. These statutes, along with TCA Section 12-3-1212, require all purchases exceeding $25,000 to be made on the basis of publicly advertised competitive bids. Office of Director of Schools Purchasing procedures for the school system 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, along with TCA Section 12-3-1212, also provides for the school system, which has a purchasing division, to use a comprehensive vendor list to solicit competitive bids on all purchases exceeding $25,000 provided the vendors on such list are given notice to bid. This statute also requires the purchasing division to periodically advertise in a county newspaper of general circulation for vendors and to update the list of vendors following such advertisement.

L. Subsequent Events On October 1, 2019, Montgomery County issued a $7,500,000 general obligation bond anticipation note to finance the acquisition of land for a multi-purpose event center. On October 1, 2019, Montgomery County issued a $4,300,000 capital outlay note for renovation of school buildings and other facilities.

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On November 12, 2019, Montgomery County approved a $130,700,000 general obligation bond to finance a multi-purpose event center. On January 13, 2020, Montgomery County approved a $16,400,000 capital lease for school computers. On January 13, 2020, Montgomery County approved a $32,900,000 general obligation bond to finance various capital projects for the county and schools.

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REQUIRED SUPPLEMENTARY INFORMATION

115

Exhibit F-1

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

2014 2015 2016 2017 2018

Total Pension Liability Service Cost $ 5,364,200 $ 5,781,524 $ 5,973,457 $ 6,572,627 $ 6,662,671Interest 14,385,325 15,453,553 16,294,055 17,141,116 18,018,915Differences Between Actual and Expected Experience 1,129,234 (2,606,966) (3,509,703) (451,308) 1,770,004Changes of benefit terms 0 0 0 0 3,319,525Changes of Assumptions 0 0 0 5,472,654 0Benefit Payments, Including Refunds of Employee Contributions (6,689,595) (7,416,482) (7,810,221) (8,315,453) (9,357,724)Net Change in Total Pension Liability $ 14,189,164 $ 11,211,629 $ 10,947,588 $ 20,419,636 $ 20,413,391Total Pension Liability, Beginning 189,784,932 203,974,096 215,185,725 226,133,313 246,552,949

Total Pension Liability, Ending (a) $ 203,974,096 $ 215,185,725 $ 226,133,313 $ 246,552,949 $ 266,966,340

Plan Fiduciary Net PositionContributions - Employer $ 9,861,110 $ 9,884,158 $ 10,115,859 $ 10,597,843 $ 9,565,557Contributions - Employee 1,936 9,073 20,647 28,082 8,119Net Investment Income 29,005,282 6,354,345 5,701,037 25,280,451 20,703,256Benefit Payments, Including Refunds of Employee Contributions (6,689,595) (7,416,482) (7,810,221) (8,315,453) (9,357,724)Administrative Expense (92,900) (121,228) (188,418) (206,927) (210,657)Other Changes 0 9,750 0 8,318 0Net Change in Plan Fiduciary Net Position $ 32,085,833 $ 8,719,616 $ 7,838,904 $ 27,392,314 $ 20,708,551Plan Fiduciary Net Position, Beginning 173,379,826 205,465,659 214,185,275 222,024,179 249,416,493

Plan Fiduciary Net Position, Ending (b) $ 205,465,659 $ 214,185,275 $ 222,024,179 $ 249,416,493 $ 270,125,044

Net Pension Liability (Asset), Ending (a - b) $ (1,491,563) $ 1,000,450 $ 4,109,134 $ (2,863,544) $ (3,158,704)

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 100.73% 99.54% 98.18% 101.16% 101.18%Covered Payroll $ 68,814,466 $ 71,520,680 $ 73,260,275 $ 76,319,231 $ 73,124,240Net Pension Liability (Asset) as a Percentage of Covered Payroll 2.17% 1.40% 5.61% (3.75)% (4.32)%

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

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

116

Exhibit F-2

Montgomery 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

2017 2018

Total Pension Liability Service Cost $ 0 153,138Interest 0 15,644Differences Between Actual and Expected Experience 0 $ 391,040Changes of benefit terms 63,548 0Changes of Assumptions 0 0Benefit Payments, Including Refunds of Employee Contributions 0 (1,807)Net Change in Total Pension Liability $ 63,548 $ 558,015Total Pension Liability, Beginning 0 63,548

Total Pension Liability, Ending (a) $ 63,548 $ 621,563

Plan Fiduciary Net PositionContributions - Employer $ 31,282 $ 329,323Contributions - Employee 39,103 407,528Net Investment Income 3,578 34,466Benefit Payments, including refunds of employee contributions 0 (1,807)Administrative Expense (7,229) (38,067)Net Change in Plan Fiduciary Net Position $ 66,734 $ 731,443Plan Fiduciary Net Position, Beginning 0 66,734

Plan Fiduciary Net Position, Ending (b) $ 66,734 $ 798,177

Net Pension Liability (Asset), Ending (a - b) $ (3,186) $ (176,614)

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 105.01% 128.41%Covered Payroll $ 782,476 $ 8,143,631Net Pension Liability (Asset) as a Percentage of Covered Payroll (0.41)% (2.17)%


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

117

Exhibit F-3

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

2014 2015 2016 2017 2018 2019

Actuarially Determined Contribution $ 9,861,110 $ 9,884,158 $ 10,115,859 $ 10,597,843 $ 9,565,557 $ 8,908,677Less Contributions in Relation to the Actuarially Determined Contribution (9,861,110) (9,884,158) (10,115,859) (10,597,843) (9,565,557) (8,908,677)

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

Covered Payroll $ 68,814,466 $ 71,520,680 $ 73,260,275 $ 76,319,231 $ 73,124,240 $ 67,929,901

Contributions as a Percentage of Covered Payroll 14.33% 13.82% 13.81% 13.89% 13.08% 12.86%


Note: In the audit reports prior to fiscal year 2019, information related to POST-certified employees was presented in a separate statement. As these employees are included in the same actuarial report as all other primary government employees and non-certified employees of the discretely-presented school system hired prior to January 1, 2017, they are presented together beginning in fiscal year 2019.

Note: The agent plan is a single plan reported under one account with the Tennessee Consolidated RetirementSystem. This plan covers employees of the primary government and non-certified employees of the discretelypresented school department, and POST-certified employees hired prior to January 1, 2017.

118

Exhibit F-4

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

2017 2018 2019

Actuarially Determined Contribution $ 31,282 $ 329,323 $ 238,008Less Contributions in Relation to the Actuarially Determined Contribution (31,282) (329,323) (238,008)

Contribution Deficiency (Excess) $ 0 $ 0 $ 0

Covered Payroll $ 782,476 $ 8,143,631 $ 16,728,007

Contributions as a Percentage of Covered Payroll 4.00% 4.04% 1.94%


Note: In the audit reports prior to fiscal year 2019, information related to POST-certified employees was presented in a separate statement. As these employees are included in the same actuarial report as all other primary government employees and non-certified employees of the discretely-presented school system hired after January 1, 2017, they are presented together beginning in fiscal year 2019.

Note: The agent plan is a single plan reported under one account with the Tennessee Consolidated Retirement System. This plan covers employees of the primary government and non-certified employees of the discretely presented school department, and POST-certified employees hired prior to January 1, 2017.

119

Exhibit F-5

Montgomery County, TennesseeSchedule of Contributions Based on Participation in the Teacher Retirement Plan of TCRSDiscretely Presented Clarksville - Montgomery County School SystemFor the Fiscal Year Ended June 30

2015 2016 2017 2018 2019

Contractually Required Contribution $ 318,055 $ 732,918 $ 1,081,379 $ 1,527,293 $ 1,001,625Less Contributions in Relation to the Contractually Required Contribution (318,055) (732,918) (1,081,379) (1,527,293) (1,001,625)

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

Covered Payroll $ 7,951,405 $ 18,323,029 $ 28,106,731 $ 38,185,241 $ 49,646,880

Contributions as a Percentage of Covered Payroll 4.00% 4.00% 3.85% 4.00% 1.94%


120

Exhibit F-6

Montgomery County, TennesseeSchedule of Contributions Based on Participation in the Teacher Legacy Pension Plan of TCRSDiscretely Presented Clarksville - Montgomery County School SystemFor the Fiscal Year Ended June 30

2014 2015 2016 2017 2018 2019

Contractually Required Contribution $ 10,592,992 $ 10,341,505 $ 9,702,087 $ 9,525,105 $ 9,491,839 $ 10,634,850Less Contributions in Relation to the Contractually Required Contribution (10,592,992) (10,341,505) (9,702,087) (9,525,105) (9,491,839) (10,634,850)

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

Covered Payroll $ 119,290,487 $ 114,397,283 $ 107,324,025 $ 105,366,326 $ 104,535,539 $ 101,442,579

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


121

Exhibit F-7

Montgomery County, TennesseeSchedule of Proportionate Share of the Net Pension Asset in the Teacher Pension Plan of TCRSDiscretely Presented Clarksville - Montgomery County School SystemFor the Fiscal Year Ended June 30

2015 2016 2017 2018

School System's Proportion of the Net Pension Liability (Asset) 3.826940% 4.164263% 4.118983% 4.369288%

School System's Proportionate Share of the Net Pension Liability (Asset) $ (153,956) $ (433,513) $ (1,086,727) $ (1,981,594)

Covered Payroll $ 7,951,405 $ 18,323,029 $ 28,106,731 $ 38,185,241

School System's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (1.94)% (2.37)% (3.87)% (5.19)%

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


122

Exhibit F-8

Montgomery County, TennesseeSchedule of Proportionate Share of the Net Pension Asset in the Teacher Legacy Pension Plan of TCRSDiscretely Presented Clarksville-Montgomery County School SystemFor the Fiscal Year Ended June 30

2014 2015 2016 2017 2018

School System's Proportion of the Net Pension Liability (Asset) 3.039254% 3.055886% 2.973129% 2.980699% 2.985305%

School System's Proportionate Share of the Net Pension Liability (Asset) $ (493,865) $ 1,251,796 $ 18,580,408 $ (975,235) $ (10,505,037)

Covered Payroll $ 119,290,452 $ 114,397,283 $ 107,324,028 $ 105,366,326 $ 104,535,539

School System's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (0.414002)% 1.094253% 17.31% (0.93)% (10.05)%

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


123

Exhibit F-9

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

2018 2019Total OPEB Liability Service Cost $ 1,083,925 $ 1,138,121 Interest 439,773 479,592 Changes in Benefit Terms 0 0Differences Between Actual and Expected Experience 0 0Changes of Assumptions 0 0Benefit Payments /Refunds (230,176) (241,685) Net Change in Total OPEB Liability $ 1,293,522 $ 1,376,028 Total OPEB Liability, Beginning 13,903,728 15,197,250

Total OPEB Liability, Ending (a) $ 15,197,250 $ 16,573,278

Covered Employee Payroll 28,888,228 29,754,875 Net OPEB Liability (Asset) as a Percentage of Covered Employee Payroll 52.61% 55.70%

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

Note 2: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

124

Exhibit F-10

Montgomery County, TennesseeSchedule of Changes in the Total OPEB Liability and Related Ratios - Commercial PlanDiscretely Presented Clarksville - Montgomery County School SystemFor the Fiscal Year Ended June 30

2018 2019Total OPEB Liability Service Cost $ 2,676,305 $ 3,058,024 Interest 771,287 724,328 Changes in Benefit Terms 0 0Differences Between Actual and Expected Experience (100,334) 7,906,233Changes of Assumptions 0 (817,915)Benefit Payments /Refunds (1,464,856) (2,098,230) Net Change in Total OPEB Liability $ 1,882,402 $ 8,772,440 Total OPEB Liability, Beginning 23,119,369 25,001,771

Total OPEB Liability, Ending (a) $ 25,001,771 $ 33,774,211

Covered Employee Payroll 158,826,770 135,946,083 Net OPEB Liability (Asset) as a Percentage of Covered Employee Payroll 15.70% 24.80%

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

Note 2: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

125

MONTGOMERY COUNTY, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

For the Year Ended June 30, 2019

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: Public Employee Legacy Pension Plan:

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 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.50 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.00 percent; and modified mortality assumptions.

126

Public Employee Pension Plan:

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 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.50 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.00 percent; and modified mortality assumptions.

127

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

128

Nonmajor Governmental Funds

Special Revenue Funds ____________________________

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

____________________________

Drug Control Fund – The Drug Control Fund is used to account for revenues received from drug-related fines, forfeitures, and seizures. Constitutional Officers - Fees Fund – The Constitutional Officers - Fees Fund is used to account for operating expenses paid directly from the fee and commission accounts of the trustee, clerks, register of deeds, and sheriff. Highway/Public Works Fund – The Highway/Public Works Fund is used to account for the transactions of the county’s highway department.

Capital Projects Fund _____________________________

Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

_____________________________ Education Capital Projects Fund – The Education Capital Projects Fund accounts for debt issued by Montgomery County that is subsequently contributed to the discretely presented Clarksville-Montgomery County School System for general capital expenditures of the school system.

129

Exhibit G-1

Montgomery County, TennesseeCombining Balance SheetNonmajor Governmental FundsJune 30, 2019

Constitu - Totaltional Highway / Nonmajor

Drug Officers - Public GovernmentalControl Fees Works Funds

ASSETS

Cash $ 0 $ 307,006 $ 50 $ 307,056Equity in Pooled Cash and Investments 50,035 0 6,287,062 6,337,097Accounts Receivable 273 5,956 2,031 8,260Due from Other Governments 0 0 797,035 797,035Property Taxes Receivable 0 0 5,317,961 5,317,961Allowance for Uncollectible Property Taxes 0 0 (94,677) (94,677)Restricted Assets 0 0 13,986 13,986

Total Assets $ 50,308 $ 312,962 $ 12,323,448 $ 12,686,718

LIABILITIES

Accounts Payable $ 76 $ 0 $ 25,675 $ 25,751Payroll Deductions Payable 0 0 19,762 19,762Due to Litigants, Heirs, and Others 0 312,962 0 312,962Other Current Liabilities 71 0 0 71Current Liabilities Payable From Restricted Assets 0 0 170,550 170,550Total Liabilities $ 147 $ 312,962 $ 215,987 $ 529,096


Deferred Current Property Taxes $ 0 $ 0 $ 5,129,443 $ 5,129,443Deferred Delinquent Property Taxes 0 0 82,024 82,024Other Deferred/Unavailable Revenue 0 0 347,016 347,016Total Deferred Inflows of Resources $ 0 $ 0 $ 5,558,483 $ 5,558,483

(Continued)

Special Revenue Funds

130

Exhibit G-1

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

Constitu - Totaltional Highway / Nonmajor

Drug Officers - Public GovernmentalControl Fees Works Funds

FUND BALANCES

Restricted:Restricted for Public Safety $ 50,161 $ 0 $ 0 $ 50,161Restricted for Highways/Public Works 0 0 5,500,145 5,500,145Restricted for Hybrid Retirement Stabilization Funds 0 0 13,986 13,986

Assigned:Assigned for Highways/Public Works 0 0 1,034,847 1,034,847

Total Fund Balances $ 50,161 $ 0 $ 6,548,978 $ 6,599,139

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 50,308 $ 312,962 $ 12,323,448 $ 12,686,718


131

Exhibit G-2

Montgomery County, TennesseeCombining Statement of Revenues, Expenditures,

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

Constitu - Totaltional Highway / Education Nonmajor

Drug Officers - Public Capital GovernmentalControl Fees Works Total Projects Funds

RevenuesLocal Taxes $ 0 $ 0 $ 4,852,250 $ 4,852,250 $ 0 $ 4,852,250Fines, Forfeitures, and Penalties 30,238 0 0 30,238 0 30,238Charges for Current Services 0 45,376 0 45,376 0 45,376Other Local Revenues 0 0 16,167 16,167 0 16,167State of Tennessee 0 0 4,087,204 4,087,204 0 4,087,204

Total Revenues $ 30,238 $ 45,376 $ 8,955,621 $ 9,031,235 $ 0 $ 9,031,235


Administration of Justice $ 0 $ 45,376 $ 0 $ 45,376 $ 0 $ 45,376Public Safety 26,264 0 0 26,264 0 26,264Highways 0 0 8,112,755 8,112,755 0 8,112,755

Capital Projects 0 0 0 0 4,836,049 4,836,049Total Expenditures $ 26,264 $ 45,376 $ 8,112,755 $ 8,184,395 $ 4,836,049 $ 13,020,444

Excess (Deficiency) of RevenuesOver Expenditures $ 3,974 $ 0 $ 842,866 $ 846,840 $ (4,836,049) $ (3,989,209)

Other Financing Sources (Uses)Capital Leases Issued $ 0 $ 0 $ 0 $ 0 $ 4,836,049 $ 4,836,049Insurance Recovery 0 0 2,567 2,567 0 2,567

Total Other Financing Sources (Uses) $ 0 $ 0 $ 2,567 $ 2,567 $ 4,836,049 $ 4,838,616

(Continued)

Special Revenue FundsCapital

Projects Fund

132

Exhibit G-2


and Changes in Fund BalancesNonmajor Governmental Funds (Cont.)

Constitu - Totaltional Highway / Education Nonmajor

Drug Officers - Public Capital GovernmentalControl Fees Works Total Projects Funds

Net Change in Fund Balances $ 3,974 $ 0 $ 845,433 $ 849,407 $ 0 $ 849,407Fund Balance, July 1, 2018 46,187 0 5,703,545 5,749,732 0 5,749,732

Fund Balance, June 30, 2019 $ 50,161 $ 0 $ 6,548,978 $ 6,599,139 $ 0 $ 6,599,139

Special Revenue FundsCapital

Projects Fund

133

Exhibit G-3

Montgomery County, TennesseeSchedule of Revenues, Expenditures, and Changes

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



RevenuesFines, Forfeitures, and Penalties $ 30,238 $ 0 $ 0 $ 30,238 $ 41,000 $ 41,000 $ (10,762)

Total Revenues $ 30,238 $ 0 $ 0 $ 30,238 $ 41,000 $ 41,000 $ (10,762)

ExpendituresPublic Safety

Sheriff's Department $ 26,264 $ (688) $ 4,459 $ 30,035 $ 40,620 $ 41,308 $ 11,273Total Expenditures $ 26,264 $ (688) $ 4,459 $ 30,035 $ 40,620 $ 41,308 $ 11,273

Excess (Deficiency) of RevenuesOver Expenditures $ 3,974 $ 688 $ (4,459) $ 203 $ 380 $ (308) $ 511

Net Change in Fund Balance $ 3,974 $ 688 $ (4,459) $ 203 $ 380 $ (308) $ 511Fund Balance, July 1, 2018 46,187 (688) 0 45,499 448 46,187 (688)

Fund Balance, June 30, 2019 $ 50,161 $ 0 $ (4,459) $ 45,702 $ 828 $ 45,879 $ (177)

Budgeted Amounts

134

Exhibit G-4


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



RevenuesLocal Taxes $ 4,852,250 $ 0 $ 0 $ 4,852,250 $ 4,752,265 $ 4,752,265 $ 99,985Other Local Revenues 16,167 0 0 16,167 43,000 43,000 (26,833)State of Tennessee 4,087,204 0 0 4,087,204 4,474,345 4,474,345 (387,141)Other Governments and Citizens Groups 0 0 0 0 20,000 20,000 (20,000)

Total Revenues $ 8,955,621 $ 0 $ 0 $ 8,955,621 $ 9,289,610 $ 9,289,610 $ (333,989)

ExpendituresHighways

Administration $ 476,296 $ 0 $ 0 $ 476,296 $ 480,700 $ 480,700 $ 4,404Highway and Bridge Maintenance 5,017,960 (90,865) 0 4,927,095 5,072,358 5,732,326 805,231Operation and Maintenance of Equipment 1,126,584 (56,076) 15,875 1,086,383 1,276,956 1,290,975 204,592Traffic Control 352,250 0 0 352,250 505,218 505,218 152,968Other Charges 528,588 0 0 528,588 561,986 586,986 58,398Employee Benefits 54,312 0 0 54,312 35,000 53,100 (1,212)Capital Outlay 556,765 (296,761) 1,018,972 1,278,976 2,143,500 2,187,799 908,823

Total Expenditures $ 8,112,755 $ (443,702) $ 1,034,847 $ 8,703,900 $ 10,075,718 $ 10,837,104 $ 2,133,204

Excess (Deficiency) of RevenuesOver Expenditures $ 842,866 $ 443,702 $ (1,034,847) $ 251,721 $ (786,108) $ (1,547,494) $ 1,799,215

Other Financing Sources (Uses)Insurance Recovery $ 2,567 $ 0 $ 0 $ 2,567 $ 12,000 $ 12,000 $ (9,433)

Total Other Financing Sources $ 2,567 $ 0 $ 0 $ 2,567 $ 12,000 $ 12,000 $ (9,433)

Net Change in Fund Balance $ 845,433 $ 443,702 $ (1,034,847) $ 254,288 $ (774,108) $ (1,535,494) $ 1,789,782Fund Balance, July 1, 2018 5,703,545 (443,702) 0 5,259,843 3,336,113 5,703,545 (443,702)

Fund Balance, June 30, 2019 $ 6,548,978 $ 0 $ (1,034,847) $ 5,514,131 $ 2,562,005 $ 4,168,051 $ 1,346,080

Budgeted Amounts

135

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.

____________________________

General Capital Projects Fund ____________________________

The General Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities.

136

Exhibit H-1


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

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesLocal Taxes $ 40,632,379 $ 39,813,100 $ 39,813,100 $ 819,279Other Local Revenues 1,479,933 400,000 400,000 1,079,933Federal Government 90,807 90,000 90,000 807Other Governments and Citizens Groups 3,103,785 0 2,554,894 548,891

Total Revenues $ 45,306,904 $ 40,303,100 $ 42,857,994 $ 2,448,910

ExpendituresPrincipal on Debt

General Government $ 11,473,895 $ 11,162,395 $ 11,473,895 $ 0Education 20,525,668 18,245,174 20,629,666 103,998

Interest on DebtGeneral Government 4,743,204 4,568,226 4,743,204 0Education 7,093,497 6,999,527 7,118,749 25,252

Other Debt ServiceGeneral Government 314,359 268,500 367,000 52,641Education 490,293 678,000 628,000 137,707

Total Expenditures $ 44,640,916 $ 41,921,822 $ 44,960,514 $ 319,598

Excess (Deficiency) of RevenuesOver Expenditures $ 665,988 $ (1,618,722) $ (2,102,520) $ 2,768,508

Net Change in Fund Balance $ 665,988 $ (1,618,722) $ (2,102,520) $ 2,768,508Fund Balance, July 1, 2018 32,215,151 30,283,707 32,215,151 0

Fund Balance, June 30, 2019 $ 32,881,139 $ 28,664,985 $ 30,112,631 $ 2,768,508

Budgeted Amounts

137

Exhibit H-2


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



RevenuesLocal Taxes $ 6,798,599 $ 0 $ 0 $ 6,798,599 $ 5,189,680 $ 5,189,680 $ 1,608,919Other Local Revenues 55,636 0 0 55,636 40,000 40,000 15,636State of Tennessee 111,059 0 0 111,059 0 635,000 (523,941)Federal Government 49,037 0 0 49,037 0 3,057,789 (3,008,752)Other Governments and Citizens Groups 130,276 0 0 130,276 0 129,787 489

Total Revenues $ 7,144,607 $ 0 $ 0 $ 7,144,607 $ 5,229,680 $ 9,052,256 $ (1,907,649)

ExpendituresOther Debt Service

General Government $ 73,196 $ 0 $ 0 $ 73,196 $ 0 $ 92,554 $ 19,358Education 31,369 0 0 31,369 0 32,324 955

Capital ProjectsGeneral Administration Projects 245,922 (68,883) 96,562 273,601 210,000 1,808,136 1,534,535Administration of Justice Projects 101,177 0 0 101,177 50,000 185,000 83,823Public Safety Projects 1,212,873 (532,690) 107,137 787,320 1,320,000 2,444,289 1,656,969Public Health and Welfare Projects 2,357,499 (1,095,637) 51,489 1,313,351 1,550,000 3,092,487 1,779,136Social, Cultural, and Recreation Projects 9,412,225 (8,368,501) 4,435,142 5,478,866 4,751,000 17,127,988 11,649,122Other General Government Projects 112,684 0 0 112,684 539,343 647,135 534,451Highway and Street Capital Projects 30,226 (75,367) 66,922 21,781 0 3,492,250 3,470,469Education Capital Projects 16,483,860 0 0 16,483,860 4,565,000 17,528,654 1,044,794

Total Expenditures $ 30,061,031 $ (10,141,078) $ 4,757,252 $ 24,677,205 $ 12,985,343 $ 46,450,817 $ 21,773,612

Excess (Deficiency) of RevenuesOver Expenditures $ (22,916,424) $ 10,141,078 $ (4,757,252) $ (17,532,598) $ (7,755,663) $ (37,398,561) $ 19,865,963

Other Financing Sources (Uses)Bonds Issued $ 14,630,000 $ 0 $ 0 $ 14,630,000 $ 13,500,000 $ 14,630,000 $ 0Premiums on Debt Sold 1,174,905 0 0 1,174,905 0 1,174,905 0Proceeds from Sale of Capital Assets 25,250 0 0 25,250 0 25,250 0Insurance Recovery 29,060 0 0 29,060 0 29,060 0

(Continued)

Budgeted Amounts

138

Exhibit H-2


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



Other Financing Sources (Uses) (Cont.)Transfers In $ 0 $ 0 $ 0 $ 0 $ 0 $ 46,216 $ (46,216)

Total Other Financing Sources $ 15,859,215 $ 0 $ 0 $ 15,859,215 $ 13,500,000 $ 15,905,431 $ (46,216)

Net Change in Fund Balance $ (7,057,209) $ 10,141,078 $ (4,757,252) $ (1,673,383) $ 5,744,337 $ (21,493,130) $ 19,819,747Fund Balance, July 1, 2018 25,400,203 (10,141,078) 0 15,259,125 498,074 25,400,203 (10,141,078)

Fund Balance, June 30, 2019 $ 18,342,994 $ 0 $ (4,757,252) $ 13,585,742 $ 6,242,411 $ 3,907,073 $ 9,678,669

Budgeted Amounts

139

Proprietary Funds ____________________________

Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the county, or other governments, on a cost-reimbursed basis.

____________________________ Self-Insurance Fund – The Self-Insurance Fund is used to account for transactions of the county’s self-insured group medical plan. Workers’ Compensation Fund – The Workers’ Compensation Fund is used to account for the county’s self-insured workers’ compensation and on-the-job injury programs. Unemployment Compensation Fund – The Unemployment Compensation Fund is used to account for transactions of the county’s self-insured unemployment compensation plan.

140

Exhibit I-1

Montgomery County, TennesseeCombining Statement of Net PositionProprietary FundsJune 30, 2019

Self- Workers' UnemploymentInsurance Compensation Compensation Total

ASSETS

Current Assets: Equity in Pooled Cash and Investments $ 23,622,301 $ 1,392,382 $ 38,275 $ 25,052,958 Cash with Paying Agents 0 50,000 0 50,000 Accounts Receivable 55,769 0 0 55,769 Due from Other Governments 20 0 0 20 Due from Component Units 4,572 0 0 4,572Total Current Assets $ 23,682,662 $ 1,442,382 $ 38,275 $ 25,163,319

Noncurrent Assets: Capital Assets: Buildings and Improvements $ 24,803 $ 0 $ 0 $ 24,803 Accumulated Depreciation - Buildings and Improvements (12,497) 0 0 (12,497)Total Noncurrent Assets $ 12,306 $ 0 $ 0 $ 12,306Total Assets $ 23,694,968 $ 1,442,382 $ 38,275 $ 25,175,625

LIABILITIES

Current Liabilities: Accounts Payable $ 37,867 $ 40,045 $ 0 $ 77,912 Payroll Deductions Payable 0 1,716 0 1,716 Due to Component Units 200 0 0 200 Claims and Judgments Payable 2,414,855 138,600 0 2,553,455Total Current Liabilities $ 2,452,922 $ 180,361 $ 0 $ 2,633,283

Noncurrent Liabilities: Claims and Judgments Payable $ 2,414,855 $ 138,600 $ 0 $ 2,553,455Total Noncurrent Liabilities $ 2,414,855 $ 138,600 $ 0 $ 2,553,455Total Liabilities $ 4,867,777 $ 318,961 $ 0 $ 5,186,738

NET POSITION

Unrestricted $ 18,827,191 $ 1,123,421 $ 38,275 $ 19,988,887

Total Net Position $ 18,827,191 $ 1,123,421 $ 38,275 $ 19,988,887

Internal Service Funds

141

Exhibit I-2

Montgomery County, TennesseeCombining Statement of Revenues, Expenses, and Changes in Net PositionProprietary FundsFor the Year Ended June 30, 2019


Operating Revenues Charges for Current Services $ 62,215,246 $ 787,111 $ 45,881 $ 63,048,238Total Operating Revenues $ 62,215,246 $ 787,111 $ 45,881 $ 63,048,238

Operating Expenses Codes Compliance $ 0 $ 937 $ 0 $ 937 Other Facilities 0 466 2,475 2,941 Risk Management 0 304,186 0 304,186 County Trustee 0 0 3,973 3,973 Circuit Court 0 366 1,007 1,373 Probation Services 0 0 44 44 Sheriff's Department 0 75,458 9,075 84,533 Jail 0 78,462 118 78,580 Civil Defense 0 3,345 0 3,345 Rabies and Animal Control 0 6,268 0 6,268 Ambulance/Emergency Medical Services 0 39,503 0 39,503 Landfill Operation and Maintenance 0 4,328 0 4,328 Parks and Fair Boards 0 1,207 0 1,207 Depreciation 991 0 0 991 Other Charges 1,860,519 0 26,860 1,887,379 Employee Benefits 62,904,479 0 1,708 62,906,187 Highway and Bridge Maintenance 0 2,759 621 3,380Total Operating Expenses $ 64,765,989 $ 517,285 $ 45,881 $ 65,329,155Operating Income (Loss) $ (2,550,743) $ 269,826 $ 0 $ (2,280,917)

Nonoperating Revenues (Expenses) Investment Income $ 232,622 $ 0 $ 0 $ 232,622 Miscellaneous Refunds 3,075,755 0 0 3,075,755Total Nonoperating Revenues (Expenses) $ 3,308,377 $ 0 $ 0 $ 3,308,377

Changes in Net Position $ 757,634 $ 269,826 $ 0 $ 1,027,460Net Position, July 1, 2018 18,069,557 853,595 38,275 18,961,427

Net Position, June 30, 2019 $ 18,827,191 $ 1,123,421 $ 38,275 $ 19,988,887


142

Exhibit I-3Montgomery County, TennesseeCombining Statement of Cash FlowsProprietary FundsFor the Year Ended June 30, 2019


Cash Flows from Operating Activities Receipts from Interfund Services Provided $ 62,773,727 $ 787,111 $ 45,881 $ 63,606,719 Other Self-Insured Claims (64,190,287) (495,046) (45,881) (64,731,214) Other Receipts (Payments) 3,075,755 0 0 3,075,755Net Cash Provided By (Used In) Operating Activities $ 1,659,195 $ 292,065 $ 0 $ 1,951,260

Cash Flows from Investing Activities Investment Income $ 232,622 $ 0 $ 0 $ 232,622Net Cash Provided By (Used In) Investing Activities $ 232,622 $ 0 $ 0 $ 232,622

Net Increase (Decrease) in Cash $ 1,891,817 $ 292,065 $ 0 $ 2,183,882Cash, July 1, 2018 21,730,484 1,150,317 38,275 22,919,076

Cash, June 30, 2019 $ 23,622,301 $ 1,442,382 $ 38,275 $ 25,102,958

(Continued)


143

Exhibit I-3Montgomery County, TennesseeCombining Statement of Cash FlowsProprietary Funds (Cont.)


Reconciliation of Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ (2,550,743) $ 269,826 $ 0 $ (2,280,917) Miscellaneous Refunds 3,075,755 0 0 3,075,755 Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Depreciation Expense 991 0 0 991 (Increase) Decrease in Accounts Receivable 559,473 0 0 559,473 (Increase) Decrease in Due from Other Governments (20) 0 0 (20) (Increase) Decrease in Due from Component Units (972) 0 0 (972) Increase (Decrease) in Accounts Payable (14,068) 25,807 0 11,739 Increase (Decrease) in Payroll Deductions Payable 0 132 0 132 Increase (Decrease) in Due to Component Units 200 0 0 200 Increase (Decrease) in Claims and Judgments Payable 588,579 (3,700) 0 584,879

Net Cash Provided By (Used In) Operating Activities $ 1,659,195 $ 292,065 $ 0 $ 1,951,260


144

Fiduciary Funds ____________________________

Agency Funds are used to account for assets held by the county as an agent for individuals, private organizations, other governments, and/or other funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.

____________________________ Cities - Sales Tax Fund – The Cities - Sales Tax Fund is used to account for the second half of the sales tax revenues collected inside incorporated cities of the county. These revenues are received by the county from the State of Tennessee and forwarded to the various cities on a monthly basis. Constitutional Officers - Agency Fund – The Constitutional Officers - Agency Fund is used to account for amounts collected in an agency capacity by the county clerk, circuit and general sessions courts clerk, clerk and master, register of deeds, and sheriff. Such collections include amounts due the state, cities, other county funds, litigants, heirs, and others. Judicial District Drug Fund – The Judicial District Drug Fund is used to account for state grants and other restricted revenues that are held for the benefit of the multi-jurisdictional drug task force, which was created by contract (mutual aid agreement) between the participating city and county governments. District Attorney General Fund – The District Attorney General Fund is used to account for restricted revenue held in trust for the benefit of the Office of District Attorney General. Port Authority Fund – The Port Authority Fund is used to account for restricted revenue held in trust for the benefit of the Port Authority.

145

Exhibit J-1

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

Constitu- DistrictCities - tional Judicial Attorney PortSales Officers - District General AuthorityTax Agency Drug Fund Fund Total

ASSETS

Cash $ 0 $ 10,109,219 $ 8,818 $ 0 $ 0 $ 10,118,037Equity in Pooled Cash and Investments 0 0 397,257 89,540 50,000 536,797Accounts Receivable 0 0 0 526 0 526Due from Other Governments 3,191,618 0 4,781 3,000 0 3,199,399

Total Assets $ 3,191,618 $ 10,109,219 $ 410,856 $ 93,066 $ 50,000 $ 13,854,759

LIABILITIES

Accounts Payable $ 0 $ 0 $ 4,787 $ 2,163 $ 0 $ 6,950Due to Other Taxing Units 3,191,618 0 0 0 0 3,191,618Due to Litigants, Heirs, and Others 0 10,109,219 0 90,903 50,000 10,250,122Due to Joint Ventures 0 0 349,008 0 0 349,008Other Current Liabilities 0 0 57,061 0 0 57,061

Total Liabilities $ 3,191,618 $ 10,109,219 $ 410,856 $ 93,066 $ 50,000 $ 13,854,759

Agency Funds

146

Exhibit J-2

Montgomery 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 $ 18,957,691 $ 18,957,691 $ 0 Due from Other Governments 3,076,683 3,191,618 3,076,683 3,191,618

Total Assets $ 3,076,683 $ 22,149,309 $ 22,034,374 $ 3,191,618

Liabilities Due to Other Taxing Units $ 3,076,683 $ 22,149,309 $ 22,034,374 $ 3,191,618

Total Liabilities $ 3,076,683 $ 22,149,309 $ 22,034,374 $ 3,191,618

Constitutional Officers - Agency Fund Assets Cash $ 8,621,687 $ 55,853,838 $ 54,366,306 $ 10,109,219 Accounts Receivable 1,208 0 1,208 0

Total Assets $ 8,622,895 $ 55,853,838 $ 54,367,514 $ 10,109,219

Liabilities Due to Litigants, Heirs, and Others $ 8,622,895 $ 55,853,838 $ 54,367,514 $ 10,109,219


Judicial District Drug Fund Assets Cash $ 6,998 $ 8,818 $ 6,998 $ 8,818 Equity in Pooled Cash and Investments 425,804 159,040 187,587 397,257 Accounts Receivable 317 0 317 0 Due from Other Governments 0 4,781 0 4,781

Total Assets $ 433,119 $ 172,639 $ 194,902 $ 410,856

Liabilities Accounts Payable $ 10,677 $ 4,787 $ 10,677 $ 4,787 Due to Joint Ventures 398,684 22,752 72,428 349,008 Other Current Liabilities 23,758 145,100 111,797 57,061

Total Liabilities $ 433,119 $ 172,639 $ 194,902 $ 410,856

(Continued)

147

Exhibit J-2

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

Beginning EndingBalance Additions Deductions Balance

District Attorney General Fund Assets Equity in Pooled Cash and Investments $ 89,187 $ 42,696 $ 42,343 $ 89,540 Accounts Receivable 882 526 882 526 Due from Other Governments 761 3,000 761 3,000

Total Assets $ 90,830 $ 46,222 $ 43,986 $ 93,066

Liabilities Accounts Payable $ 445 $ 2,163 $ 445 $ 2,163 Due to Litigants, Heirs, and Others 90,385 44,059 43,541 90,903

Total Liabilities $ 90,830 $ 46,222 $ 43,986 $ 93,066

Port Authority Fund Assets Equity in Pooled Cash and Investments $ 50,000 $ 0 $ 0 $ 50,000

Total Assets $ 50,000 $ 0 $ 0 $ 50,000

Liabilities Due to Litigants, Heirs, and Others $ 50,000 $ 0 $ 0 $ 50,000

Total Liabilities $ 50,000 $ 0 $ 0 $ 50,000

Totals - All Agency Funds Assets Cash $ 8,628,685 $ 55,862,656 $ 54,373,304 $ 10,118,037 Equity in Pooled Cash and Investments 564,991 19,159,427 19,187,621 536,797 Accounts Receivable 2,407 526 2,407 526 Due from Other Governments 3,077,444 3,199,399 3,077,444 3,199,399

Total Assets $ 12,273,527 $ 78,222,008 $ 76,640,776 $ 13,854,759

Liabilities Accounts Payable $ 11,122 $ 6,950 $ 11,122 $ 6,950 Due to Other Taxing Units 3,076,683 22,149,309 22,034,374 3,191,618 Due to Litigants, Heirs, and Others 8,763,280 55,897,897 54,411,055 10,250,122 Due to Joint Ventures 398,684 22,752 72,428 349,008 Other Current Liabilities 23,758 145,100 111,797 57,061


148

Clarksville-Montgomery CountySchool System

____________________________

This section presents combining and individual fund financial statements for the Clarksville-Montgomery County School System, a discretely presented component unit. The school system uses a General Fund, four Special Revenue Funds, and one Capital Projects Fund.

____________________________

General Purpose School Fund – The General Purpose School Fund is used to account for general operations of the school system.

School Federal Projects Funds – The School Federal Projects Fund is used to account for restricted federal revenues, which must be expended on specific education programs.

Central Cafeteria Fund – The Central Cafeteria Fund is used to account for the cafeteria operations in each of the schools.

School Transportation Fund – The School Transportation Fund accounts for a local tax levy used to fund school transportation.

Extended School Program Fund – The Extended School Program Fund is used to account for transactions related to the after-school programs in the individual schools.

Education Capital Projects Fund – The Education Capital Projects Fund is used to account for building construction and renovations of the school system.

149

Exhibit K-1

Montgomery County, TennesseeStatement of ActivitiesDiscretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2019

Net (Expense)Revenue andChanges in

Operating Capital Net PositionCharges Grants Grants Total

for and and GovernmentalFunctions/Programs Expenses Services Contributions Contributions Activities

Governmental Activities: Instruction $ 176,607,263 $ 484,554 $ 12,354,296 $ 0 $ (163,768,413) Support Services 129,022,066 701,519 1,881,235 0 (126,439,312) Operation of Non-instructional Services 20,343,032 4,971,887 13,166,133 0 (2,205,012)

Total Governmental Activities $ 325,972,361 $ 6,157,960 $ 27,401,664 $ 0 $ (292,412,737)

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 31,372,054 Local Option Sales Tax 59,275,081 Wheel Tax 4,980,990 Business Tax 877,010 Mixed Drink Tax 445,322 Grants and Contributions Not Restricted to Specific Programs 217,555,309 Unrestricted Investment Earnings 102,423 Miscellaneous 343,991Total General Revenues $ 314,952,180

Change in Net Position $ 22,539,443Net Position, July 1, 2018 332,251,045

Net Position, June 30, 2019 $ 354,790,488

Program Revenues

150

Exhibit K-2

Montgomery County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Clarksville-Montgomery County School SystemJune 30, 2019

OtherGeneral Education Govern- TotalPurpose Capital mental GovernmentalSchool Projects Funds Funds

ASSETS

Cash $ 161,004 $ 0 $ 493,007 $ 654,011Equity in Pooled Cash and Investments 46,340,041 1,304,901 10,689,634 58,334,576Inventories 138,894 0 121,249 260,143Accounts Receivable 3,702,119 0 181,999 3,884,118Due from Other Governments 12,512,510 0 3,083,787 15,596,297Due from Other Funds 1,052,239 0 231,441 1,283,680Due from Primary Government 200 1,059,559 0 1,059,759Property Taxes Receivable 28,947,235 0 2,034,970 30,982,205Allowance for Uncollectible Property Taxes (575,999) 0 (41,034) (617,033)Prepaid Items 2,640,960 0 0 2,640,960Restricted Assets 1,170,875 0 80,526 1,251,401

Total Assets $ 96,090,078 $ 2,364,460 $ 16,875,579 $ 115,330,117

LIABILITIES

Accounts Payable $ 4,603,960 $ 33,742 $ 219,855 $ 4,857,557Accrued Payroll 16,159,033 0 690,077 16,849,110Payroll Deductions Payable 9,240,981 0 381,900 9,622,881Due to Other Funds 231,441 0 1,052,239 1,283,680Due to Primary Government 0 0 4,572 4,572Current Liabilities Payable From Restricted Assets 0 0 217,407 217,407Total Liabilities $ 30,235,415 $ 33,742 $ 2,566,050 $ 32,835,207

(Continued)

Nonmajor Funds

Major Funds

151

Exhibit K-2

Montgomery County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Clarksville-Montgomery County School System (Cont.)



Deferred Current Property Taxes $ 27,724,154 $ 0 $ 1,947,228 $ 29,671,382Deferred Delinquent Property Taxes 590,512 0 42,624 633,136Other Deferred/Unavailable Revenue 5,164,375 0 0 5,164,375Total Deferred Inflows of Resources $ 33,479,041 $ 0 $ 1,989,852 $ 35,468,893

FUND BALANCES

Nonspendable:Inventory $ 138,894 $ 0 $ 121,249 $ 260,143Prepaid Items 2,640,960 0 0 2,640,960

Restricted:Restricted for Education 61,967 0 10,936,032 10,997,999Restricted for Capital Projects 0 2,330,718 0 2,330,718Restricted for Hybrid Retirement Stabilization Funds 1,170,875 0 80,526 1,251,401

Committed:Committed for Education 13,234,338 0 1,181,870 14,416,208

Assigned:Assigned for Education 7,659,393 0 0 7,659,393

Unassigned 7,469,195 0 0 7,469,195Total Fund Balances $ 32,375,622 $ 2,330,718 $ 12,319,677 $ 47,026,017

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 96,090,078 $ 2,364,460 $ 16,875,579 $ 115,330,117

Nonmajor Funds

Major Funds

152

Exhibit K-3

Montgomery County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionDiscretely Presented Clarksville-Montgomery County School SystemJune 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 K-2) $ 47,026,017

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 14,167,519 Add: construction in progress 424,491 Add: buildings and improvements net of accumulated depreciation 277,298,307 Add: other capital assets net of accumulated depreciation 18,421,342 310,311,659

(2) Long-term liabilities are not due and payable in the current period and therefore are not reported in thegovernmental funds. Less: contributions due on primary government debt for capital leases $ (1,695,987) Less: claims and judgments payable (160,800) Less: other postemployment benefits liability (33,774,211) Less: compensated absences payable (1,959,302) (37,590,300)

(3) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions will be amortized andrecognized as components of pension expense in future years: Add: deferred outflows of resources related to pensions $ 28,260,505 Less: deferred inflows of resources related to pensions (19,309,049) Add: deferred outflows of resources related to other postemployment benefits 6,917,954 Less: deferred inflows of resources related to other postemployment benefits (795,944) 15,073,466

(4) Net pension assets of the teacher retirement plans are not currentfinancial resources and therefore are not reported in the governmental funds. Add: net pension asset - public employee retirement plan $ 96,044 Add: net pension asset - public employee legacy agent pension plan 1,589,460 Add: net pension asset - teacher retirement plan 1,981,594 Add: net pension asset - teacher legacy pension plan 10,505,037 14,172,135

(5) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 5,797,511

Net position of governmental activities (Exhibit A) $ 354,790,488

153

Exhibit K-4


and Changes in Fund Balances - Governmental Funds

Discretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2019


RevenuesLocal Taxes $ 95,287,507 $ 0 $ 2,169,875 $ 97,457,382Charges for Current Services 457,252 0 5,151,341 5,608,593Other Local Revenues 1,039,765 0 180,552 1,220,317State of Tennessee 174,877,760 0 13,329,570 188,207,330Federal Government 4,556,682 0 29,745,640 34,302,322Other Governments and Citizens Groups 4,918,768 16,483,860 0 21,402,628

Total Revenues $ 281,137,734 $ 16,483,860 $ 50,576,978 $ 348,198,572


Instruction $ 173,520,567 $ 0 $ 8,191,392 $ 181,711,959Support Services 98,489,556 0 21,909,577 120,399,133Operation of Non-Instructional Services 2,068,783 0 18,603,875 20,672,658

Debt Service:Other Debt Service 2,844,114 0 0 2,844,114

Capital Projects 0 14,634,657 0 14,634,657Total Expenditures $ 276,923,020 $ 14,634,657 $ 48,704,844 $ 340,262,521

Excess (Deficiency) of RevenuesOver Expenditures $ 4,214,714 $ 1,849,203 $ 1,872,134 $ 7,936,051

Other Financing Sources (Uses)Insurance Recovery $ 542,909 $ 0 $ 0 $ 542,909Transfers In 1,038,309 25,000 1,291,137 2,354,446Transfers Out (25,000) 0 (2,329,446) (2,354,446)

Total Other Financing Sources (Uses) $ 1,556,218 $ 25,000 $ (1,038,309) $ 542,909

(Continued)

Nonmajor Funds

Major Funds

154

Exhibit K-4


and Changes in Fund Balances - Governmental Funds

Discretely Presented Clarksville-Montgomery County School System (Cont.)


Net Change in Fund Balances $ 5,770,932 $ 1,874,203 $ 833,825 $ 8,478,960Fund Balance, July 1, 2018 26,604,690 456,515 11,485,852 38,547,057

Fund Balance, June 30, 2019 $ 32,375,622 $ 2,330,718 $ 12,319,677 $ 47,026,017

Nonmajor Funds

Major Funds

155

Exhibit K-5

Montgomery County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesDiscretely Presented Clarksville-Montgomery County School SystemFor 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 K-4) $ 8,478,960

(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 $ 13,754,083 Less: current-year depreciation expense (11,916,785) 1,837,298

(2) The net effect of various miscellaneous transactions involving capitalassets (sales, trade-ins, and donations) is to decrease net position. Less: book value of capital assets disposed (48,997)

(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Less: deferred delinquent property taxes and other deferred June 30, 2018 $ (5,474,393) Add: deferred delinquent property taxes and other deferred June 30, 2019 5,797,511 323,118

(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 system of the principal of long-term debt consumethe current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Add: principal contributions on leases to primary government 881,032

(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 - Public Employee Retirement Plan $ 94,461 Change in net pension asset/liability - Public Employee Legacy Agent Pension Plan 129,625 Change in net pension asset/liability - Teacher Retirement Plan 894,867 Change in net pension asset/liability - Teacher Legacy Pension Plan 9,529,802 Change in deferred outflows of resources related to pensions (483,423) Change in deferred inflows of resources related to pensions 3,670,063 Change in deferred outflows of resources related to other postemployment benefits 6,800,766 Change in deferred inflows of resources related to other postemployment benefits (705,643) Change in claims and judgments payable 30,300 Change in other postemployment benefits liability (8,772,440) Change in compensated absences payable (120,346) 11,068,032

Change in net position of governmental activities (Exhibit B) $ 22,539,443

156

Exhibit K-6

Montgomery County, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Clarksville-Montgomery County School SystemJune 30, 2019

TotalSchool School Extended NonmajorFederal Central Transpor - School GovernmentalProjects Cafeteria tation Program Funds

ASSETS

Cash $ 0 $ 493,007 $ 0 $ 0 $ 493,007Equity in Pooled Cash and Investments 1,215,380 5,659,872 3,614,254 200,128 10,689,634Inventories 0 121,249 0 0 121,249Accounts Receivable 130 37,581 63,788 80,500 181,999Due from Other Governments 2,062,994 1,020,793 0 0 3,083,787Due from Other Funds 8,578 145,779 77,084 0 231,441Property Taxes Receivable 0 0 2,034,970 0 2,034,970Allowance for Uncollectible Property Taxes 0 0 (41,034) 0 (41,034)Restricted Assets 0 26,643 53,453 430 80,526

Total Assets $ 3,287,082 $ 7,504,924 $ 5,802,515 $ 281,058 $ 16,875,579

LIABILITIES

Accounts Payable $ 114,658 $ 94,329 $ 10,868 $ 0 $ 219,855Accrued Payroll 634,309 0 455 55,313 690,077Payroll Deductions Payable 338,210 0 245 43,445 381,900Due to Other Funds 1,044,087 7,698 454 0 1,052,239Due to Primary Government 312 0 4,260 0 4,572Current Liabilities Payable From Restricted Assets 0 217,407 0 0 217,407Total Liabilities $ 2,131,576 $ 319,434 $ 16,282 $ 98,758 $ 2,566,050

(Continued)


157

Exhibit K-6

Montgomery County, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Clarksville-Montgomery County School System (Cont.)



Deferred Current Property Taxes $ 0 $ 0 $ 1,947,228 $ 0 $ 1,947,228Deferred Delinquent Property Taxes 0 0 42,624 0 42,624Total Deferred Inflows of Resources $ 0 $ 0 $ 1,989,852 $ 0 $ 1,989,852

FUND BALANCES

Nonspendable:Inventory $ 0 $ 121,249 $ 0 $ 0 $ 121,249

Restricted:Restricted for Education 155,506 7,037,598 3,742,928 0 10,936,032Restricted for Hybrid Retirement Stabilization Funds 0 26,643 53,453 430 80,526

Committed:Committed for Education 1,000,000 0 0 181,870 1,181,870

Total Fund Balances $ 1,155,506 $ 7,185,490 $ 3,796,381 $ 182,300 $ 12,319,677

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 3,287,082 $ 7,504,924 $ 5,802,515 $ 281,058 $ 16,875,579


158

Exhibit K-7


and Changes in Fund Balances - Nonmajor Governmental Funds

Discretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2019


RevenuesLocal Taxes $ 0 $ 0 $ 2,169,875 $ 0 $ 2,169,875Charges for Current Services 0 5,019,341 0 132,000 5,151,341Other Local Revenues 0 114,927 65,625 0 180,552State of Tennessee 1,037,139 153,431 12,139,000 0 13,329,570Federal Government 16,732,938 13,012,702 0 0 29,745,640

Total Revenues $ 17,770,077 $ 18,300,401 $ 14,374,500 $ 132,000 $ 50,576,978


Instruction $ 8,077,380 $ 0 $ 0 $ 114,012 $ 8,191,392Support Services 8,046,677 0 13,847,722 15,178 21,909,577Operation of Non-Instructional Services 0 18,603,875 0 0 18,603,875

Total Expenditures $ 16,124,057 $ 18,603,875 $ 13,847,722 $ 129,190 $ 48,704,844

Excess (Deficiency) of RevenuesOver Expenditures $ 1,646,020 $ (303,474) $ 526,778 $ 2,810 $ 1,872,134

Other Financing Sources (Uses)Transfers In $ 0 $ 0 $ 1,291,137 $ 0 $ 1,291,137Transfers Out (2,329,446) 0 0 0 (2,329,446)

Total Other Financing Sources (Uses) $ (2,329,446) $ 0 $ 1,291,137 $ 0 $ (1,038,309)

(Continued)


159

Exhibit K-7


and Changes in Fund Balances - Nonmajor Governmental Funds

Discretely Presented Clarksville-Montgomery County School System (Cont.)


Net Change in Fund Balances $ (683,426) $ (303,474) $ 1,817,915 $ 2,810 $ 833,825Fund Balance, July 1, 2018 1,838,932 7,488,964 1,978,466 179,490 11,485,852

Fund Balance, June 30, 2019 $ 1,155,506 $ 7,185,490 $ 3,796,381 $ 182,300 $ 12,319,677


160

Exhibit K-8


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



RevenuesLocal Taxes $ 95,287,507 $ 0 $ 0 $ 95,287,507 $ 89,972,915 $ 95,572,915 $ (285,408)Charges for Current Services 457,252 0 0 457,252 388,875 442,158 15,094Other Local Revenues 1,039,765 0 0 1,039,765 680,129 780,755 259,010State of Tennessee 174,877,760 0 0 174,877,760 175,143,013 174,329,911 547,849Federal Government 4,556,682 0 0 4,556,682 2,417,893 4,348,884 207,798Other Governments and Citizens Groups 4,918,768 0 0 4,918,768 31,494 4,921,907 (3,139)

Total Revenues $ 281,137,734 $ 0 $ 0 $ 281,137,734 $ 268,634,319 $ 280,396,530 $ 741,204

ExpendituresInstruction

Regular Instruction Program $ 137,137,369 $ (12,311) $ 3,428 $ 137,128,486 $ 137,163,876 $ 140,633,082 $ 3,504,596Alternative Instruction Program 1,132,239 0 0 1,132,239 1,288,095 1,295,376 163,137Special Education Program 29,259,901 (2,950) 0 29,256,951 29,294,100 30,507,760 1,250,809Career and Technical Education Program 5,991,058 0 0 5,991,058 6,033,772 6,100,442 109,384

Support ServicesAttendance 914,120 (7) 88 914,201 911,986 927,271 13,070Health Services 1,695,527 0 0 1,695,527 1,730,428 1,771,811 76,284Other Student Support 9,809,195 0 0 9,809,195 9,968,305 10,100,368 291,173Regular Instruction Program 14,409,735 0 750 14,410,485 15,105,470 15,226,675 816,190Alternative Instruction Program 22,300 0 0 22,300 30,948 30,948 8,648Special Education Program 3,359,034 0 3,095 3,362,129 3,575,907 3,803,483 441,354Career and Technical Education Program 133,162 0 0 133,162 135,638 135,639 2,477Technology 12,185,589 (283,966) 148,742 12,050,365 12,108,484 12,882,485 832,120Adult Programs 268,715 0 0 268,715 305,008 305,008 36,293Board of Education 4,518,837 (248,165) 23,158 4,293,830 3,873,335 4,505,406 211,576Director of Schools 1,544,327 (13,026) 18,782 1,550,083 1,628,630 1,638,620 88,537Office of the Principal 19,357,193 (3,428) 0 19,353,765 19,651,018 19,621,315 267,550Fiscal Services 2,865,217 (7,073) 0 2,858,144 2,906,235 2,994,175 136,031Human Services/Personnel 2,912,520 (5,250) 1,750 2,909,020 2,945,754 2,997,006 87,986

(Continued)

Budgeted Amounts

161

Exhibit K-8


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Clarksville-Montgomery County School SystemGeneral Purpose School Fund (Cont.)



Expenditures (Cont.)Support Services (Cont.)

Operation of Plant $ 17,407,624 $ (238,758) $ 306,408 $ 17,475,274 $ 18,333,412 $ 18,483,288 $ 1,008,014Maintenance of Plant 7,086,461 (137,792) 453,771 7,402,440 7,067,497 7,660,548 258,108

Operation of Non-Instructional ServicesEarly Childhood Education 2,068,783 (5,900) 6,921 2,069,804 2,216,220 2,264,720 194,916

Principal on DebtEducation 0 0 0 0 1,199,032 0 0

Interest on DebtEducation 0 0 0 0 90,606 0 0

Other Debt ServiceEducation 2,844,114 0 0 2,844,114 0 2,868,912 24,798

Total Expenditures $ 276,923,020 $ (958,626) $ 966,893 $ 276,931,287 $ 277,563,756 $ 286,754,338 $ 9,823,051

Excess (Deficiency) of RevenuesOver Expenditures $ 4,214,714 $ 958,626 $ (966,893) $ 4,206,447 $ (8,929,437) $ (6,357,808) $ 10,564,255

Other Financing Sources (Uses)Capital Leases Issued $ 0 $ 0 $ 0 $ 0 $ 1,360,000 $ 0 $ 0Insurance Recovery 542,909 0 0 542,909 1,000 771,000 (228,091)Transfers In 1,038,309 0 0 1,038,309 862,452 862,452 175,857Transfers Out (25,000) 0 0 (25,000) (548,892) (25,000) 0

Total Other Financing Sources $ 1,556,218 $ 0 $ 0 $ 1,556,218 $ 1,674,560 $ 1,608,452 $ (52,234)

Net Change in Fund Balance $ 5,770,932 $ 958,626 $ (966,893) $ 5,762,665 $ (7,254,877) $ (4,749,356) $ 10,512,021Fund Balance, July 1, 2018 26,604,690 (958,626) 0 25,646,064 23,466,894 25,646,064 0


Budgeted Amounts

162

Exhibit K-9


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Clarksville-Montgomery County School SystemSchool Federal Projects FundFor the Year Ended June 30, 2019



RevenuesState of Tennessee $ 1,037,139 $ 0 $ 0 $ 1,037,139 $ 349,882 $ 1,591,900 $ (554,761)Federal Government 16,732,938 0 0 16,732,938 18,601,162 18,860,112 (2,127,174)

Total Revenues $ 17,770,077 $ 0 $ 0 $ 17,770,077 $ 18,951,044 $ 20,452,012 $ (2,681,935)


Regular Instruction Program $ 4,296,090 $ 0 $ 0 $ 4,296,090 $ 4,677,802 $ 5,053,071 $ 756,981Special Education Program 3,531,664 0 2,400 3,534,064 3,634,455 3,777,380 243,316Career and Technical Education Program 249,626 (1,624) 0 248,002 229,597 272,733 24,731

Support ServicesHealth Services 154,569 0 0 154,569 155,000 155,000 431Other Student Support 439,788 0 0 439,788 597,078 557,115 117,327Regular Instruction Program 5,134,643 0 0 5,134,643 5,307,856 6,188,220 1,053,577Special Education Program 1,697,870 0 0 1,697,870 2,121,906 1,883,955 186,085Career and Technical Education Program 3,553 0 0 3,553 5,000 4,700 1,147Maintenance of Plant 535,080 0 3,972 539,052 0 911,030 371,978Transportation 81,174 0 0 81,174 1,359,598 124,400 43,226

Total Expenditures $ 16,124,057 $ (1,624) $ 6,372 $ 16,128,805 $ 18,088,292 $ 18,927,604 $ 2,798,799

Excess (Deficiency) of RevenuesOver Expenditures $ 1,646,020 $ 1,624 $ (6,372) $ 1,641,272 $ 862,752 $ 1,524,408 $ 116,864

Other Financing Sources (Uses)Transfers In $ 0 $ 0 $ 0 $ 0 $ 1,000,000 $ 1,000,000 $ (1,000,000)Transfers Out (2,329,446) 0 0 (2,329,446) (1,862,452) (3,361,686) 1,032,240

Total Other Financing Sources $ (2,329,446) $ 0 $ 0 $ (2,329,446) $ (862,452) $ (2,361,686) $ 32,240

Net Change in Fund Balance $ (683,426) $ 1,624 $ (6,372) $ (688,174) $ 300 $ (837,278) $ 149,104Fund Balance, July 1, 2018 1,838,932 (1,624) 0 1,837,308 1,000,000 1,000,000 837,308

Fund Balance, June 30, 2019 $ 1,155,506 $ 0 $ (6,372) $ 1,149,134 $ 1,000,300 $ 162,722 $ 986,412

Budgeted Amounts

163

Exhibit K-10


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



RevenuesCharges for Current Services $ 5,019,341 $ 0 $ 0 $ 5,019,341 $ 4,921,368 $ 4,919,586 $ 99,755Other Local Revenues 114,927 0 0 114,927 57,073 93,209 21,718State of Tennessee 153,431 0 0 153,431 144,279 153,431 0Federal Government 13,012,702 0 0 13,012,702 13,019,685 12,927,276 85,426

Total Revenues $ 18,300,401 $ 0 $ 0 $ 18,300,401 $ 18,142,405 $ 18,093,502 $ 206,899

ExpendituresOperation of Non-Instructional Services

Food Service $ 18,603,875 $ (374,976) $ 5,097 $ 18,233,996 $ 18,961,719 $ 19,362,897 $ 1,128,901Total Expenditures $ 18,603,875 $ (374,976) $ 5,097 $ 18,233,996 $ 18,961,719 $ 19,362,897 $ 1,128,901

Excess (Deficiency) of RevenuesOver Expenditures $ (303,474) $ 374,976 $ (5,097) $ 66,405 $ (819,314) $ (1,269,395) $ 1,335,800

Net Change in Fund Balance $ (303,474) $ 374,976 $ (5,097) $ 66,405 $ (819,314) $ (1,269,395) $ 1,335,800Fund Balance, July 1, 2018 7,488,964 (374,976) 0 7,113,988 6,240,000 7,113,989 (1)


Budgeted Amounts

164

Exhibit K-11


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Clarksville-Montgomery County School SystemSchool Transportation FundFor the Year Ended June 30, 2019


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

RevenuesLocal Taxes $ 2,169,875 $ 0 $ 2,169,875 $ 2,112,280 $ 2,112,280 $ 57,595Other Local Revenues 65,625 0 65,625 55,700 55,700 9,925State of Tennessee 12,139,000 0 12,139,000 12,193,600 12,139,000 0Federal Government 0 0 0 1,291,137 0 0

Total Revenues $ 14,374,500 $ 0 $ 14,374,500 $ 15,652,717 $ 14,306,980 $ 67,520

ExpendituresSupport Services

Board of Education $ 43,316 $ 0 $ 43,316 $ 43,000 $ 43,316 $ 0Transportation 13,804,406 1,486,895 15,291,301 16,522,357 16,646,507 1,355,206

Total Expenditures $ 13,847,722 $ 1,486,895 $ 15,334,617 $ 16,565,357 $ 16,689,823 $ 1,355,206

Excess (Deficiency) of RevenuesOver Expenditures $ 526,778 $ (1,486,895) $ (960,117) $ (912,640) $ (2,382,843) $ 1,422,726

Other Financing Sources (Uses)Transfers In $ 1,291,137 $ 0 $ 1,291,137 $ 0 $ 1,291,137 $ 0

Total Other Financing Sources $ 1,291,137 $ 0 $ 1,291,137 $ 0 $ 1,291,137 $ 0

Net Change in Fund Balance $ 1,817,915 $ (1,486,895) $ 331,020 $ (912,640) $ (1,091,706) $ 1,422,726Fund Balance, July 1, 2018 1,978,466 0 1,978,466 1,414,000 1,978,467 (1)

Fund Balance, June 30, 2019 $ 3,796,381 $ (1,486,895) $ 2,309,486 $ 501,360 $ 886,761 $ 1,422,725

Budgeted Amounts

165

Exhibit K-12


in Fund Balance - Actual and BudgetDiscretely Presented Clarksville-Montgomery County School SystemExtended School Program FundFor the Year Ended June 30, 2019

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesCharges for Current Services $ 132,000 $ 230,000 $ 230,000 $ (98,000)

Total Revenues $ 132,000 $ 230,000 $ 230,000 $ (98,000)


Regular Instruction Program $ 114,012 $ 184,548 $ 224,448 $ 110,436Support Services

Board of Education 393 600 600 207Office of the Principal 14,785 35,433 35,433 20,648

Total Expenditures $ 129,190 $ 220,581 $ 260,481 $ 131,291

Excess (Deficiency) of RevenuesOver Expenditures $ 2,810 $ 9,419 $ (30,481) $ 33,291

Net Change in Fund Balance $ 2,810 $ 9,419 $ (30,481) $ 33,291Fund Balance, July 1, 2018 179,490 133,098 179,490 0

Fund Balance, June 30, 2019 $ 182,300 $ 142,517 $ 149,009 $ 33,291

Budgeted Amounts

166

MISCELLANEOUS SCHEDULES

167

Exhibit L-1

Montgomery County, TennesseeSchedule of Changes in Long-term Other Loans, Capital Leases, and BondsFor 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

OTHER LOANS PAYABLE Payable through General Debt Service Fund Qualified Zone Academy Bonds $ 3,763,987 0 % 5-22-06 12-1-20 $ 648,787 $ 0 $ 259,600 $ 389,187 Qualified School Construction Bonds 20,000,000 1.515 12-1-09 7-1-26 10,120,247 0 1,143,971 8,976,276

Total Other Loans Payable $ 10,769,034 $ 0 $ 1,403,571 $ 9,365,463

CAPITAL LEASES PAYABLE Contributions Due by the School Department from the General Purpose School Fund to the General Debt Service Fund Teacher Laptops 435,000 1.703 5-31-17 6-30-20 $ 217,777 $ 0 $ 107,962 $ 109,815 Student Laptops 2,000,000 1.703 7-1-17 8-1-20 1,489,275 0 488,002 1,001,273 Computers 1,168,309 1.703 9-12-17 10-12-20 869,967 0 285,068 584,899 Payable through General Debt Service Fund Student Laptops 1,268,052 4.868 8-1-18 8-1-21 0 1,268,052 339,960 928,092 IT Equipment 3,341,000 2.63 5-15-19 5-15-22 0 3,341,000 969,628 2,371,372 Student Laptops 226,997 4.868 6-1-19 6-1-22 0 226,997 60,372 166,625

Total Capital Lease Payable $ 2,577,019 $ 4,836,049 $ 2,250,992 $ 5,162,076

BONDS PAYABLE Payable through General Debt Service Fund General Obligation Industrial Park 18,450,000 5 to 5.625 8-28-08 5-1-19 $ 1,500,000 $ 0 $ 1,500,000 $ 0 General Obligation Schools - Build America Bonds 5,400,000 4.55 to 5.6 2-4-10 4-1-30 5,400,000 0 0 5,400,000 General Obligation Refunding 74,155,000 2 to 5 4-1-10 4-1-24 51,575,000 0 4,855,000 46,720,000 General Obligation School and Public Improvement 62,335,000 2 to 5 7-28-11 4-1-29 29,935,000 0 1,500,000 28,435,000 General Obligation Refunding 19,465,000 2 to 5 4-25-12 4-1-25 7,755,000 0 370,000 7,385,000 General Obligation Public Improvement and Refunding 27,415,000 2 to 5 10-11-12 4-1-29 18,805,000 0 1,715,000 17,090,000 General Obligation Refunding 37,120,000 .20 to 1.65 5-17-13 5-1-20 12,735,000 0 6,400,000 6,335,000 General Obligation Public Improvement 13,200,000 3 to 5 8-29-13 4-1-28 10,700,000 0 500,000 10,200,000 General Obligation Refunding 50,155,000 2.5 to 5 5-15-14 4-1-26 33,840,000 0 8,175,000 25,665,000 General Obligation Schools 18,060,000 2 to 5 5-15-15 4-1-35 17,760,000 0 100,000 17,660,000 General Obligation Refunding and Improvement 19,120,000 2 to 5 11-5-15 4-1-35 18,200,000 0 925,000 17,275,000 General Obligation Public Improvement 17,600,000 3 to 4 11-30-16 4-1-36 15,805,000 0 725,000 15,080,000 General Obligation Refunding 10,830,000 3 11-30-16 4-1-24 10,715,000 0 120,000 10,595,000 General Obligation Refunding 48,825,000 4 to 5 9-20-17 4-1-37 47,584,779 0 865,000 46,719,779 General Obligation Public Improvement 14,630,000 4 to 5 11-14-18 6-30-38 0 14,630,000 445,000 14,185,000 Total Payable through General Debt Service Fund $ 282,309,779 $ 14,630,000 $ 28,195,000 $ 268,744,779

Contributions Due by the Bi-County Solid Waste Management System to the General Debt Service Fund General Obligation Refunding and Improvement 1,240,000 2 to 5 11-5-15 4-1-25 $ 990,000 $ 0 $ 150,000 $ 840,000 General Obligation Refunding and Improvement 1,665,000 2.33 9-20-17 6-30-27 1,515,221 0 0 1,515,221 Total Contributions Due by the Bi-County Solid Waste Management System to the General Debt Service Fund $ 2,505,221 $ 0 $ 150,000 $ 2,355,221

Total Bonds Payable $ 284,815,000 $ 14,630,000 $ 28,345,000 $ 271,100,000

168

Exhibit L-2

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

YearEndingJune 30 Principal Interest Other Fees Total

2020 $ 1,507,569 $ 303,000 $ 21,246 $ 1,831,8152021 1,377,556 303,000 21,246 1,701,8022022 1,247,969 303,000 20,000 1,570,9692023 1,247,969 303,000 20,000 1,570,9692024 1,247,969 303,000 20,000 1,570,9692025 1,247,969 303,000 20,000 1,570,9692026 1,370,814 303,000 20,000 1,693,8142027 117,648 25,250 5,000 147,898

Total $ 9,365,463 $ 2,146,250 $ 147,492 $ 11,659,205

YearEndingJune 30 Principal Interest Total

2020 $ 2,141,140 $ 154,082 $ 2,295,2222021 2,085,044 98,478 2,183,5222022 935,892 43,111 979,003

Total $ 5,162,076 $ 295,671 $ 5,457,747

(Continued)

Other Loans

Capital Leases

169

Exhibit L-2

Montgomery County, TennesseeSchedule of Long-term Debt Requirements by Year (Cont.)

EndingJune 30 Principal Interest Total

2020 $ 29,860,000 $ 10,892,677 $ 40,752,6772021 31,070,000 9,787,601 40,857,6012022 27,830,000 8,375,001 36,205,0012023 27,580,000 7,251,988 34,831,9882024 27,630,000 6,065,726 33,695,7262025 24,250,000 5,009,950 29,259,9502026 22,300,000 4,050,063 26,350,0632027 15,150,000 3,173,787 18,323,7872028 14,730,000 2,542,875 17,272,8752029 9,560,000 1,908,125 11,468,1252030 5,920,000 1,546,599 7,466,5992031 5,415,000 1,306,063 6,721,0632032 5,215,000 1,114,087 6,329,0872033 5,390,000 925,281 6,315,2812034 5,645,000 728,437 6,373,4372035 5,835,000 520,537 6,355,5372036 3,710,000 305,537 4,015,5372037 2,945,000 160,400 3,105,4002038 1,065,000 42,600 1,107,600

Total $ 271,100,000 $ 65,707,334 $ 336,807,334

Bonds

170

Exhibit L-3

Montgomery County, TennesseeSchedule of TransfersDiscretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2019

From Fund To Fund Purpose Amount

DISCRETELY PRESENTED CLARKSVILLE-MONTGOMERY COUNTY SCHOOL SYSTEM

General Purpose School Education Capital Projects Relocation of signs at Rossview Complex $ 25,000 School Federal Projects General Purpose School Indirect costs 1,038,309 " School Transportation Salaries 1,291,137

Total Transfers Discretely Presented Clarksville-Montgomery County School System $ 2,354,446

171

Exhibit L-4

Montgomery County, TennesseeSchedule of Salaries and Official Bonds of Principal OfficialsPrimary Government and Discretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2019

SalaryPaid

DuringOfficial Authorization for Salary Period Bond Surety

County Mayor Section 8-24-102, TCA $ 166,752 (1) $ (6)Highway Supervisor Section 8-24-102, TCA 115,276 (1) (6)Director of Schools State Board of Education and

Local Board of Education 186,258 (2) 100,000 The Cincinnati Insurance CompanyTrustee: Brenda Radford (7-1-18 through 8-31-18) Section 8-24-102, TCA 17,466 9,637,421 Hartford Fire Insurance Company Kimberly Wiggins (9-1-18 through 6-30-19) Section 8-24-102, TCA 87,330 9,000,000 Hartford Fire Insurance CompanyAssessor of Property Section 8-24-102, TCA 104,796 (6)Director of Accounts and Budgets County Commission 104,616 (6)Purchasing Agent County Commission 86,276 (6)County Clerk Section 8-24-102, TCA 104,796 (3) (6)Circuit, General Sessions, and Juvenile Courts Clerk Section 8-24-102, TCA 104,796 (6)Clerk and Master Section 8-24-102, TCA, and

Chancery Judge 104,796 (4) (6)Register of Deeds Section 8-24-102, TCA 104,796 (6)Sheriff Section 8-24-102, TCA, and

County Commission 116,869 (5) (6)County Employees: Public Employees Blanket Bond 400,000 Local Government Insurance Pool

School Employees: Public Employees Blanket Bond 500,000 Travelers Casualty & Surety Company

(1) Does not include fringe benefits for the use of a county vehicle.(2) Includes a $5,400 transportation supplement, a $6,538 payment for unused vacation days, and a $4,337 reimbursement of employee paid retirement contributions, per employment contract; does not include a $1,000 CEO supplement.(3) Does not include a cell phone allowance of $600.(4) Does not include special commissioner fees totaling $45,376.(5) Does not include $7,500 as a workhouse superintendent.(6) Officials are covered by the employee insurance policy pursuant to Section 8-19-101, TCA .

172

Exhibit L-5

Montgomery County, TennesseeSchedule of Detailed Revenues -

All Governmental Fund TypesFor the Year Ended June 30, 2019

Constitu -tional Highway / General

Drug Officers - Public DebtGeneral Control Fees Works Service

Local TaxesCounty Property Taxes

Current Property Tax $ 43,360,088 $ 0 $ 0 $ 4,201,292 $ 36,079,301Trustee's Collections - Prior Year 727,760 0 0 70,335 610,758Trustee's Collections - Bankruptcy 44,987 0 0 4,352 37,377Circuit Clerk/Clerk and Master Collections - Prior Years 355,884 0 0 34,431 295,684Interest and Penalty 294,233 0 0 28,467 244,460Payments in-Lieu-of Taxes - T.V.A. 763 0 0 0 0Payments in-Lieu-of Taxes - Local Utilities 1,437,145 0 0 0 0Payments in-Lieu-of Taxes - Other 939,112 0 0 0 0

County Local Option TaxesLocal Option Sales Tax 0 0 0 0 391,759Hotel/Motel Tax 1,999,255 0 0 0 0Wheel Tax 0 0 0 0 0Litigation Tax - General 396,251 0 0 0 378,402Litigation Tax - Special Purpose 81,381 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 0 0 0 0 414,286Business Tax 1,551,716 0 0 133,769 133,769Mineral Severance Tax 0 0 0 359,682 0Adequate Facilities/Development Tax 0 0 0 0 1,875,500

Statutory Local TaxesBank Excise Tax 205,914 0 0 19,922 171,083Wholesale Beer Tax 376,558 0 0 0 0Interstate Telecommunications Tax 18,330 0 0 0 0

Total Local Taxes $ 51,789,377 $ 0 $ 0 $ 4,852,250 $ 40,632,379

(Continued)

Special Revenue FundsDebt Service

Fund

173

Exhibit L-5


All Governmental Fund Types (Cont.)



Licenses and PermitsLicenses

Animal Registration $ 192,506 $ 0 $ 0 $ 0 $ 0Animal Vaccination 6,365 0 0 0 0Cable TV Franchise 291,348 0 0 0 0

PermitsBuilding Permits 1,698,194 0 0 0 0Plumbing Permits 25,900 0 0 0 0Other Permits 676,146 0 0 0 0

Total Licenses and Permits $ 2,890,459 $ 0 $ 0 $ 0 $ 0

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 16,698 $ 0 $ 0 $ 0 $ 0Officers Costs 18,168 0 0 0 0Drug Court Fees 1,264 0 0 0 0Veterans Treatment Court Fees 836 0 0 0 0Data Entry Fee - Circuit Court 9,829 0 0 0 0Courtroom Security Fee 7,606 0 0 0 0Victims Assistance Assessments 3,528 0 0 0 0

General Sessions CourtFines 137,082 0 0 0 0Fines for Littering 166 0 0 0 0Officers Costs 245,193 0 0 0 0Game and Fish Fines 454 0 0 0 0Drug Court Fees 23,443 0 0 0 0Veterans Treatment Court Fees 16,029 0 0 0 0

(Continued)


Fund

174

Exhibit L-5





Fines, Forfeitures, and Penalties (Cont.)General Sessions Court (Cont.)

Jail Fees $ 257,945 $ 0 $ 0 $ 0 $ 0DUI Treatment Fines 21,312 0 0 0 0Data Entry Fee - General Sessions Court 58,327 0 0 0 0Victims Assistance Assessments 52,150 0 0 0 0

Juvenile CourtFines 572 0 0 0 0Officers Costs 20,407 0 0 0 0Jail Fees 61,564 0 0 0 0Data Entry Fee - Juvenile Court 9,413 0 0 0 0

Chancery CourtOfficers Costs 43,930 0 0 0 0Data Entry Fee - Chancery Court 6,470 0 0 0 0

Other Courts - In-countyFines 62 0 0 0 0Drug Control Fines 0 30,238 0 0 0Drug Court Fees 47,250 0 0 0 0

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 4,600 0 0 0 0Other Fines, Forfeitures, and Penalties 19,787 0 0 0 0

Total Fines, Forfeitures, and Penalties $ 1,084,085 $ 30,238 $ 0 $ 0 $ 0

Charges for Current ServicesGeneral Service Charges

Patient Charges $ 7,175,159 $ 0 $ 0 $ 0 $ 0Zoning Studies 5,000 0 0 0 0Other General Service Charges 57,294 0 0 0 0

(Continued)


Fund

175

Exhibit L-5





Charges for Current Services (Cont.)Fees

Recreation Fees $ 23,892 $ 0 $ 0 $ 0 $ 0Copy Fees 10,044 0 0 0 0Archives and Records Management Fee 463,287 0 0 0 0Greenbelt Late Application Fee 350 0 0 0 0Telephone Commissions 181,863 0 0 0 0Vending Machine Collections 112,421 0 0 0 0Special Commissioner Fees/Special Master Fees 0 0 45,376 0 0Data Processing Fee - Register 81,418 0 0 0 0Probation Fees 17,633 0 0 0 0Data Processing Fee - Sheriff 27,635 0 0 0 0Sexual Offender Registration Fee - Sheriff 19,000 0 0 0 0Data Processing Fee - County Clerk 26,223 0 0 0 0

Education ChargesOther Charges for Services 18,013 0 0 0 0

Total Charges for Current Services $ 8,219,232 $ 0 $ 45,376 $ 0 $ 0

Other Local RevenuesRecurring Items

Investment Income $ 2,086,953 $ 0 $ 0 $ 0 $ 1,479,933Lease/Rentals 615,790 0 0 0 0Sale of Gasoline 0 0 0 3,661 0Sale of Maps 1,681 0 0 0 0Sale of Recycled Materials 198 0 0 0 0Miscellaneous Refunds 324,006 0 0 12,506 0

(Continued)


Fund

176

Exhibit L-5





Other Local Revenues (Cont.)Nonrecurring Items

Sale of Equipment $ 24,808 $ 0 $ 0 $ 0 $ 0Contributions and Gifts 7,000 0 0 0 0

Other Local RevenuesOther Local Revenues 664,611 0 0 0 0

Total Other Local Revenues $ 3,725,047 $ 0 $ 0 $ 16,167 $ 1,479,933

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 1,775,294 $ 0 $ 0 $ 0 $ 0Circuit Court Clerk 659,798 0 0 0 0General Sessions Court Clerk 1,698,678 0 0 0 0Clerk and Master 519,668 0 0 0 0Juvenile Court Clerk 212,824 0 0 0 0Register 1,322,735 0 0 0 0Sheriff 80,131 0 0 0 0Trustee 3,774,210 0 0 0 0

Total Fees Received From County Officials $ 10,043,338 $ 0 $ 0 $ 0 $ 0

State of TennesseeGeneral Government Grants

Juvenile Services Program $ 574,431 $ 0 $ 0 $ 0 $ 0Other General Government Grants 0 0 0 0 0

Public Safety GrantsLaw Enforcement Training Programs 63,000 0 0 0 0

(Continued)


Fund

177

Exhibit L-5





State of Tennessee (Cont.)Health and Welfare Grants

Other Health and Welfare Grants $ 95,699 $ 0 $ 0 $ 0 $ 0Public Works Grants

State Aid Program 0 0 0 9,852 0Litter Program 85,427 0 0 0 0

Other State RevenuesBeer Tax 17,959 0 0 0 0Vehicle Certificate of Title Fees 25,577 0 0 0 0Alcoholic Beverage Tax 279,240 0 0 0 0State Revenue Sharing - T.V.A. 1,759,965 0 0 0 0State Revenue Sharing - Telecommunications 229,398 0 0 0 0Prisoner Transportation 7,828 0 0 0 0Contracted Prisoner Boarding 1,230,042 0 0 0 0Gasoline and Motor Fuel Tax 0 0 0 3,953,007 0Petroleum Special Tax 0 0 0 124,345 0Registrar's Salary Supplement 15,164 0 0 0 0Other State Grants 2,979,135 0 0 0 0Other State Revenues 206,769 0 0 0 0

Total State of Tennessee $ 7,569,634 $ 0 $ 0 $ 4,087,204 $ 0

Federal GovernmentFederal Through State

Homeland Security Grants $ 281,479 $ 0 $ 0 $ 0 $ 0Other Federal through State 115,274 0 0 0 0

Direct Federal RevenueAsset Forfeiture Funds 44,390 0 0 0 0

(Continued)


Fund

178

Exhibit L-5





Federal Government (Cont.)Direct Federal Revenue (Cont.)

Tax Credit Bond Rebate $ 0 $ 0 $ 0 $ 0 $ 90,807Other Direct Federal Revenue 33,398 0 0 0 0

Total Federal Government $ 474,541 $ 0 $ 0 $ 0 $ 90,807

Other Governments and Citizens GroupsOther Governments

Prisoner Board $ 17,060 $ 0 $ 0 $ 0 $ 0Contributions 187,327 0 0 0 3,103,785Contracted Services 100,000 0 0 0 0

Citizens GroupsDonations 19,860 0 0 0 0

Total Other Governments and Citizens Groups $ 324,247 $ 0 $ 0 $ 0 $ 3,103,785

Total $ 86,119,960 $ 30,238 $ 45,376 $ 8,955,621 $ 45,306,904

(Continued)


Fund

179

Exhibit L-5



GeneralCapitalProjects Total


Current Property Tax $ 2,380,910 $ 86,021,591Trustee's Collections - Prior Year 39,989 1,448,842Trustee's Collections - Bankruptcy 2,467 89,183Circuit Clerk/Clerk and Master Collections - Prior Years 19,514 705,513Interest and Penalty 16,134 583,294Payments in-Lieu-of Taxes - T.V.A. 0 763Payments in-Lieu-of Taxes - Local Utilities 0 1,437,145Payments in-Lieu-of Taxes - Other 0 939,112

County Local Option TaxesLocal Option Sales Tax 0 391,759Hotel/Motel Tax 1,353,514 3,352,769Wheel Tax 2,974,780 2,974,780Litigation Tax - General 0 774,653Litigation Tax - Special Purpose 0 81,381Litigation Tax - Jail, Workhouse, or Courthouse 0 414,286Business Tax 0 1,819,254Mineral Severance Tax 0 359,682Adequate Facilities/Development Tax 0 1,875,500

Statutory Local TaxesBank Excise Tax 11,291 408,210Wholesale Beer Tax 0 376,558Interstate Telecommunications Tax 0 18,330

Total Local Taxes $ 6,798,599 $ 104,072,605

(Continued)

Capital Projects Fund

180

Exhibit L-5




Licenses and PermitsLicenses

Animal Registration $ 0 $ 192,506Animal Vaccination 0 6,365Cable TV Franchise 0 291,348

PermitsBuilding Permits 0 1,698,194Plumbing Permits 0 25,900Other Permits 0 676,146

Total Licenses and Permits $ 0 $ 2,890,459

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 0 $ 16,698Officers Costs 0 18,168Drug Court Fees 0 1,264Veterans Treatment Court Fees 0 836Data Entry Fee - Circuit Court 0 9,829Courtroom Security Fee 0 7,606Victims Assistance Assessments 0 3,528

General Sessions CourtFines 0 137,082Fines for Littering 0 166Officers Costs 0 245,193Game and Fish Fines 0 454Drug Court Fees 0 23,443Veterans Treatment Court Fees 0 16,029

(Continued)


181

Exhibit L-5




Fines, Forfeitures, and Penalties (Cont.)General Sessions Court (Cont.)

Jail Fees $ 0 $ 257,945DUI Treatment Fines 0 21,312Data Entry Fee - General Sessions Court 0 58,327Victims Assistance Assessments 0 52,150

Juvenile CourtFines 0 572Officers Costs 0 20,407Jail Fees 0 61,564Data Entry Fee - Juvenile Court 0 9,413

Chancery CourtOfficers Costs 0 43,930Data Entry Fee - Chancery Court 0 6,470

Other Courts - In-countyFines 0 62Drug Control Fines 0 30,238Drug Court Fees 0 47,250

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 4,600Other Fines, Forfeitures, and Penalties 0 19,787

Total Fines, Forfeitures, and Penalties $ 0 $ 1,114,323

Charges for Current ServicesGeneral Service Charges

Patient Charges $ 0 $ 7,175,159Zoning Studies 0 5,000Other General Service Charges 0 57,294

(Continued)


182

Exhibit L-5




Charges for Current Services (Cont.)Fees

Recreation Fees $ 0 $ 23,892Copy Fees 0 10,044Archives and Records Management Fee 0 463,287Greenbelt Late Application Fee 0 350Telephone Commissions 0 181,863Vending Machine Collections 0 112,421Special Commissioner Fees/Special Master Fees 0 45,376Data Processing Fee - Register 0 81,418Probation Fees 0 17,633Data Processing Fee - Sheriff 0 27,635Sexual Offender Registration Fee - Sheriff 0 19,000Data Processing Fee - County Clerk 0 26,223

Education ChargesOther Charges for Services 0 18,013

Total Charges for Current Services $ 0 $ 8,264,608


Investment Income $ 55,636 $ 3,622,522Lease/Rentals 0 615,790Sale of Gasoline 0 3,661Sale of Maps 0 1,681Sale of Recycled Materials 0 198Miscellaneous Refunds 0 336,512

(Continued)


183

Exhibit L-5




Other Local Revenues (Cont.)Nonrecurring Items

Sale of Equipment $ 0 $ 24,808Contributions and Gifts 0 7,000

Other Local RevenuesOther Local Revenues 0 664,611

Total Other Local Revenues $ 55,636 $ 5,276,783

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 0 $ 1,775,294Circuit Court Clerk 0 659,798General Sessions Court Clerk 0 1,698,678Clerk and Master 0 519,668Juvenile Court Clerk 0 212,824Register 0 1,322,735Sheriff 0 80,131Trustee 0 3,774,210

Total Fees Received From County Officials $ 0 $ 10,043,338

State of TennesseeGeneral Government Grants

Juvenile Services Program $ 0 $ 574,431Other General Government Grants 91,059 91,059

Public Safety GrantsLaw Enforcement Training Programs 0 63,000

(Continued)


184

Exhibit L-5




State of Tennessee (Cont.)Health and Welfare Grants

Other Health and Welfare Grants $ 0 $ 95,699Public Works Grants

State Aid Program 0 9,852Litter Program 0 85,427

Other State RevenuesBeer Tax 0 17,959Vehicle Certificate of Title Fees 0 25,577Alcoholic Beverage Tax 0 279,240State Revenue Sharing - T.V.A. 0 1,759,965State Revenue Sharing - Telecommunications 0 229,398Prisoner Transportation 0 7,828Contracted Prisoner Boarding 0 1,230,042Gasoline and Motor Fuel Tax 0 3,953,007Petroleum Special Tax 0 124,345Registrar's Salary Supplement 0 15,164Other State Grants 20,000 2,999,135Other State Revenues 0 206,769

Total State of Tennessee $ 111,059 $ 11,767,897


Homeland Security Grants $ 0 $ 281,479Other Federal through State 49,037 164,311

Direct Federal RevenueAsset Forfeiture Funds 0 44,390

(Continued)


185

Exhibit L-5




Federal Government (Cont.)Direct Federal Revenue (Cont.)

Tax Credit Bond Rebate $ 0 $ 90,807Other Direct Federal Revenue 0 33,398

Total Federal Government $ 49,037 $ 614,385


Prisoner Board $ 0 $ 17,060Contributions 0 3,291,112Contracted Services 0 100,000

Citizens GroupsDonations 130,276 150,136

Total Other Governments and Citizens Groups $ 130,276 $ 3,558,308

Total $ 7,144,607 $ 147,602,706


186

Exhibit L-6


All Governmental Fund TypesDiscretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2019

General School School ExtendedPurpose Federal Central Transpor - SchoolSchool Projects Cafeteria tation Program


Current Property Tax $ 28,207,890 $ 0 $ 0 $ 2,036,249 $ 0Trustee's Collections - Prior Year 606,986 0 0 43,815 0Trustee's Collections - Bankruptcy 30,012 0 0 2,166 0Circuit Clerk/Clerk and Master Collections - Prior Years 237,423 0 0 17,138 0Interest and Penalty 196,294 0 0 14,169 0Payments in-Lieu-of Taxes - Local Utilities 643,126 0 0 46,422 0

County Local Option TaxesLocal Option Sales Tax 58,925,081 0 0 0 0Wheel Tax 4,980,990 0 0 0 0Business Tax 877,010 0 0 0 0Mixed Drink Tax 445,322 0 0 0 0

Statutory Local TaxesBank Excise Tax 137,373 0 0 9,916 0

Total Local Taxes $ 95,287,507 $ 0 $ 0 $ 2,169,875 $ 0

Charges for Current ServicesFees

Archives and Records Management Fee $ 7,803 $ 0 $ 0 $ 0 $ 0Education Charges

Tuition - Regular Day Students 5,000 0 0 0 0Tuition - Summer School 0 0 0 0 119,200Tuition - Other 0 0 0 0 12,800Lunch Payments - Children 0 0 3,353,717 0 0Lunch Payments - Adults 0 0 165,074 0 0

(Continued)


187

Exhibit L-6


All Governmental Fund TypesDiscretely Presented Clarksville-Montgomery County School System (Cont.)


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

Income from Breakfast $ 0 $ 0 $ 178,704 $ 0 $ 0A la Carte Sales 0 0 1,274,392 0 0School Based Health Services - FFS 105,049 0 0 0 0TBI Criminal Background Fee 39,300 0 0 0 0Other Charges for Services 300,100 0 47,454 0 0

Total Charges for Current Services $ 457,252 $ 0 $ 5,019,341 $ 0 $ 132,000


Investment Income $ 62,635 $ 0 $ 39,788 $ 0 $ 0Lease/Rentals 120,357 0 0 0 0Sale of Materials and Supplies 712 0 38,729 3,996 0Sale of Recycled Materials 3,827 0 0 139 0E-Rate Funding 356,193 0 0 0 0Miscellaneous Refunds 48,198 0 53 24,998 0

Nonrecurring ItemsSale of Equipment 200,832 0 36,355 35,638 0Damages Recovered from Individuals 156,731 0 0 854 0Contributions and Gifts 85,418 0 2 0 0

Other Local RevenuesOther Local Revenues 4,862 0 0 0 0

Total Other Local Revenues $ 1,039,765 $ 0 $ 114,927 $ 65,625 $ 0

(Continued)


188

Exhibit L-6




State of TennesseeHealth and Welfare Grants

Other Health and Welfare Grants $ 181,765 $ 0 $ 0 $ 0 $ 0State Education Funds

Basic Education Program 172,527,518 0 0 12,139,000 0Early Childhood Education 1,596,434 0 0 0 0School Food Service 0 0 153,431 0 0Other State Education Funds 39,704 1,037,139 0 0 0Career Ladder Program 409,548 0 0 0 0

Other State RevenuesIncome Tax 122,791 0 0 0 0

Total State of Tennessee $ 174,877,760 $ 1,037,139 $ 153,431 $ 12,139,000 $ 0


USDA School Lunch Program $ 0 $ 0 $ 8,354,510 $ 0 $ 0USDA - Commodities 0 0 1,207,560 0 0Breakfast 0 0 3,439,685 0 0USDA - Other 0 0 10,947 0 0Vocational Education - Basic Grants to States 0 442,102 0 0 0Title I Grants to Local Education Agencies 0 6,977,468 0 0 0Special Education - Grants to States 423,706 6,859,359 0 0 0Special Education Preschool Grants 0 79,653 0 0 0English Language Acquisition Grants 0 104,129 0 0 0Education for Homeless Children and Youth 0 50,117 0 0 0Eisenhower Professional Development State Grants 0 1,052,898 0 0 0Other Federal through State 106,071 490,384 0 0 0

(Continued)


189

Exhibit L-6




Federal Government (Cont.)Direct Federal Revenue

Public Law 874 - Maintenance and Operation $ 3,371,211 $ 0 $ 0 $ 0 $ 0ROTC Reimbursement 655,694 0 0 0 0Other Direct Federal Revenue 0 676,828 0 0 0

Total Federal Government $ 4,556,682 $ 16,732,938 $ 13,012,702 $ 0 $ 0


Contributions $ 4,860,413 $ 0 $ 0 $ 0 $ 0Contracted Services 28,355 0 0 0 0

OtherOther 30,000 0 0 0 0

Total Other Governments and Citizens Groups $ 4,918,768 $ 0 $ 0 $ 0 $ 0

Total $ 281,137,734 $ 17,770,077 $ 18,300,401 $ 14,374,500 $ 132,000

(Continued)


190

Exhibit L-6



EducationCapitalProjects Total


Current Property Tax $ 0 $ 30,244,139Trustee's Collections - Prior Year 0 650,801Trustee's Collections - Bankruptcy 0 32,178Circuit Clerk/Clerk and Master Collections - Prior Years 0 254,561Interest and Penalty 0 210,463Payments in-Lieu-of Taxes - Local Utilities 0 689,548

County Local Option TaxesLocal Option Sales Tax 0 58,925,081Wheel Tax 0 4,980,990Business Tax 0 877,010Mixed Drink Tax 0 445,322

Statutory Local TaxesBank Excise Tax 0 147,289

Total Local Taxes $ 0 $ 97,457,382

Charges for Current ServicesFees

Archives and Records Management Fee $ 0 $ 7,803Education Charges

Tuition - Regular Day Students 0 5,000Tuition - Summer School 0 119,200Tuition - Other 0 12,800Lunch Payments - Children 0 3,353,717Lunch Payments - Adults 0 165,074

(Continued)


191

Exhibit L-6




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

Income from Breakfast $ 0 $ 178,704A la Carte Sales 0 1,274,392School Based Health Services - FFS 0 105,049TBI Criminal Background Fee 0 39,300Other Charges for Services 0 347,554

Total Charges for Current Services $ 0 $ 5,608,593


Investment Income $ 0 $ 102,423Lease/Rentals 0 120,357Sale of Materials and Supplies 0 43,437Sale of Recycled Materials 0 3,966E-Rate Funding 0 356,193Miscellaneous Refunds 0 73,249

Nonrecurring ItemsSale of Equipment 0 272,825Damages Recovered from Individuals 0 157,585Contributions and Gifts 0 85,420

Other Local RevenuesOther Local Revenues 0 4,862

Total Other Local Revenues $ 0 $ 1,220,317

(Continued)


192

Exhibit L-6




State of TennesseeHealth and Welfare Grants

Other Health and Welfare Grants $ 0 $ 181,765State Education Funds

Basic Education Program 0 184,666,518Early Childhood Education 0 1,596,434School Food Service 0 153,431Other State Education Funds 0 1,076,843Career Ladder Program 0 409,548

Other State RevenuesIncome Tax 0 122,791

Total State of Tennessee $ 0 $ 188,207,330


USDA School Lunch Program $ 0 $ 8,354,510USDA - Commodities 0 1,207,560Breakfast 0 3,439,685USDA - Other 0 10,947Vocational Education - Basic Grants to States 0 442,102Title I Grants to Local Education Agencies 0 6,977,468Special Education - Grants to States 0 7,283,065Special Education Preschool Grants 0 79,653English Language Acquisition Grants 0 104,129Education for Homeless Children and Youth 0 50,117Eisenhower Professional Development State Grants 0 1,052,898Other Federal through State 0 596,455

(Continued)


193

Exhibit L-6




Federal Government (Cont.)Direct Federal Revenue

Public Law 874 - Maintenance and Operation $ 0 $ 3,371,211ROTC Reimbursement 0 655,694Other Direct Federal Revenue 0 676,828

Total Federal Government $ 0 $ 34,302,322


Contributions $ 16,483,860 $ 21,344,273Contracted Services 0 28,355

OtherOther 0 30,000

Total Other Governments and Citizens Groups $ 16,483,860 $ 21,402,628

Total $ 16,483,860 $ 348,198,572


194

Exhibit L-7

Montgomery County, TennesseeSchedule of Detailed Expenditures -

All Governmental Fund TypesFor the Year Ended June 30, 2019

General FundGeneral Government

County CommissionSecretary(ies) $ 55,627Board and Committee Members Fees 119,100Social Security 10,625Pensions 6,838Life Insurance 61Medical Insurance 11,592Employer Medicare 2,485Advertising 186Audit Services 121,786Legal Notices, Recording, and Court Costs 204Travel 14,098Tuition 6,200Other Contracted Services 19,317Food Supplies 495Office Supplies 384Other Supplies and Materials 1,113Other Equipment 340

Total County Commission $ 370,451

Beer BoardBoard and Committee Members Fees $ 2,100Social Security 129Employer Medicare 30Legal Notices, Recording, and Court Costs 1,181

Total Beer Board 3,440

Other Boards and CommitteesBoard and Committee Members Fees $ 3,525Social Security 219Employer Medicare 51

Total Other Boards and Committees 3,795

County Mayor/ExecutiveCounty Official/Administrative Officer $ 166,752Supervisor/Director 119,033Secretary(ies) 83,041Clerical Personnel 33,546Social Security 22,361Pensions 45,977Life Insurance 220Medical Insurance 31,022Employer Medicare 5,704Communication 2,142Dues and Memberships 380Licenses 13Maintenance and Repair Services - Vehicles 664Postal Charges 1,263

(Continued)

195

Exhibit L-7



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

County Mayor/Executive (Cont.)Printing, Stationery, and Forms $ 1,048Rentals 4,962Travel 4,831Tuition 3,715Other Contracted Services 8,224Custodial Supplies 102Food Supplies 984Gasoline 2,771Library Books/Media 362Office Supplies 1,588Periodicals 580Other Supplies and Materials 422Furniture and Fixtures 740

Total County Mayor/Executive $ 542,447

Personnel OfficeSupervisor/Director $ 92,337Accountants/Bookkeepers 58,924Clerical Personnel 89,414Overtime Pay 147Other Salaries and Wages 29,078Social Security 15,642Pensions 32,248Life Insurance 273Medical Insurance 63,238Employer Medicare 3,658Communication 1,326Dues and Memberships 1,030Evaluation and Testing 9,652Postal Charges 851Printing, Stationery, and Forms 237Rentals 2,692Travel 2,135Tuition 2,442Other Contracted Services 119,468Data Processing Supplies 297Duplicating Supplies 470Office Supplies 1,423Data Processing Equipment 1,502

Total Personnel Office 528,484

County AttorneyLegal Services $ 145,429

Total County Attorney 145,429

Election CommissionSupervisor/Director $ 96,413

(Continued)

196

Exhibit L-7




Election Commission (Cont.)Clerical Personnel $ 160,114Temporary Personnel 28,120Overtime Pay 35,190Election Commission 12,320Election Workers 247,761Social Security 23,122Pensions 31,930Life Insurance 284Medical Insurance 54,865Employer Medicare 5,546Communication 700Legal Notices, Recording, and Court Costs 35,534Maintenance and Repair Services - Office Equipment 23,645Postal Charges 18,000Printing, Stationery, and Forms 8,573Rentals 5,205Travel 3,719Tuition 2,845Other Contracted Services 61,578Equipment and Machinery Parts 285Office Supplies 6,752Other Supplies and Materials 4,835Data Processing Equipment 5,234

Total Election Commission $ 872,570

Register of DeedsCounty Official/Administrative Officer $ 104,796Deputy(ies) 218,264Social Security 19,098Pensions 38,894Life Insurance 370Medical Insurance 62,977Employer Medicare 4,466Data Processing Services 49,874Maintenance and Repair Services - Office Equipment 450Postal Charges 304Rentals 2,302Other Contracted Services 3,896Data Processing Supplies 1,144Duplicating Supplies 773Other Supplies and Materials 775Data Processing Equipment 14,784

Total Register of Deeds 523,167

PlanningContributions $ 411,849

Total Planning 411,849

(Continued)

197

Exhibit L-7




BuildingAssistant(s) $ 48,786Supervisor/Director 89,232Other Salaries and Wages 62,885Social Security 11,742Pensions 24,806Life Insurance 158Medical Insurance 47,847Employer Medicare 2,746Communication 1,255Dues and Memberships 794Licenses 959Maintenance and Repair Services - Vehicles 1,116Postal Charges 5Printing, Stationery, and Forms 148Rentals 2,179Travel 1,920Tuition 1,225Other Contracted Services 18,028Gasoline 1,159Office Supplies 253Other Supplies and Materials 325

Total Building $ 317,568

Codes ComplianceAssistant(s) $ 331,615Supervisor/Director 84,130Clerical Personnel 96,604Social Security 29,411Pensions 61,683Life Insurance 581Medical Insurance 127,373Employer Medicare 6,879Communication 7,398Contracts with Private Agencies 5,800Dues and Memberships 2,094Legal Notices, Recording, and Court Costs 2,743Licenses 22Maintenance and Repair Services - Office Equipment 1,007Maintenance and Repair Services - Vehicles 6,487Postal Charges 923Rentals 7,189Travel 589Tuition 2,258Permits 3,460Other Contracted Services 6,589Gasoline 11,466Library Books/Media 1,969

(Continued)

198

Exhibit L-7




Codes Compliance (Cont.)Office Supplies $ 2,387Uniforms 696Other Supplies and Materials 598Indirect Cost 2,731Motor Vehicles 22,042

Total Codes Compliance $ 826,724

Geographical Information SystemsContracts with Government Agencies $ 209,980

Total Geographical Information Systems 209,980

County BuildingsSupervisor/Director $ 45,270Maintenance Personnel 89,118Overtime Pay 7,017Social Security 8,031Pensions 16,367Life Insurance 202Medical Insurance 47,036Employer Medicare 1,878Communication 347Maintenance Agreements 30,309Maintenance and Repair Services - Buildings 6,053Maintenance and Repair Services - Equipment 5,041Maintenance and Repair Services - Vehicles 1,094Pest Control 620Rentals 8,318Other Contracted Services 14,013Custodial Supplies 6,293Drugs and Medical Supplies 1,445Electricity 64,753Equipment Parts - Light 11Gasoline 1,116Natural Gas 1,960Office Supplies 70Propane Gas 279Tires and Tubes 142Water and Sewer 3,285Other Supplies and Materials 11,817Furniture and Fixtures 7,910Maintenance Equipment 1,129Other Capital Outlay 2,435

Total County Buildings 383,359

Other FacilitiesAssistant(s) $ 30,373Supervisor/Director 137,392

(Continued)

199

Exhibit L-7




Other Facilities (Cont.)Secretary(ies) $ 48,352Custodial Personnel 327,225Maintenance Personnel 390,095Part-time Personnel 6,800Overtime Pay 5,354Social Security 54,766Pensions 111,587Life Insurance 1,382Medical Insurance 237,103Employer Medicare 12,833Communication 11,355Licenses 50Maintenance Agreements 183,547Maintenance and Repair Services - Buildings 23,877Maintenance and Repair Services - Equipment 104,358Maintenance and Repair Services - Vehicles 6,447Pest Control 4,928Rentals 2,662Travel 318Tuition 627Disposal Fees 6,585Other Contracted Services 55,504Custodial Supplies 40,705Electricity 529,109Food Supplies 1,251Gasoline 15,811Natural Gas 94,247Office Supplies 1,268Propane Gas 5,320Small Tools 3,413Uniforms 4,728Water and Sewer 70,593Other Supplies and Materials 54,559Building and Contents Insurance 2,740Indirect Cost 2,500Building Improvements 17,059Furniture and Fixtures 1,009Heating and Air Conditioning Equipment 22,660Maintenance Equipment 50,731Other Equipment 31,452Other Capital Outlay 250

Total Other Facilities $ 2,712,925

Other General AdministrationSupervisor/Director $ 60,555Clerical Personnel 43,169Social Security 6,151

(Continued)

200

Exhibit L-7




Other General Administration (Cont.)Pensions $ 11,207Life Insurance 106Medical Insurance 20,118Employer Medicare 1,439Communication 1,288Contracts with Other Public Agencies 687,081Contributions 2,732Legal Services 12,986Travel 1,862Tuition 695Other Contracted Services 223,469Other Supplies and Materials 12,855Communication Equipment 350Land 1,114,032Motor Vehicles 23,520

Total Other General Administration $ 2,223,615

Preservation of RecordsSupervisor/Director $ 57,661Clerical Personnel 77,575Board and Committee Members Fees 300Social Security 7,933Pensions 14,589Life Insurance 178Medical Insurance 28,045Employer Medicare 1,855Data Processing Services 13,000Dues and Memberships 265Maintenance and Repair Services - Office Equipment 1,900Rentals 4,915Travel 1,798Other Contracted Services 1,444Duplicating Supplies 169Library Books/Media 1,164Office Supplies 5,866Other Supplies and Materials 104Data Processing Equipment 1,146Furniture and Fixtures 4,432

Total Preservation of Records 224,339

FinanceAccounting and Budgeting

County Official/Administrative Officer $ 104,616Accountants/Bookkeepers 326,314Clerical Personnel 38,410Part-time Personnel 9,235Educational Incentive - Other County Employees 1,500

(Continued)

201

Exhibit L-7



General Fund (Cont.)Finance (Cont.)

Accounting and Budgeting (Cont.)Social Security $ 28,020Pensions 57,934Life Insurance 414Medical Insurance 83,913Employer Medicare 6,553Communication 3,386Data Processing Services 12,595Dues and Memberships 724Postal Charges 5,004Rentals 814Travel 3,161Tuition 3,580Other Contracted Services 34,331Data Processing Supplies 2,529Duplicating Supplies 29Food Supplies 155Office Supplies 1,758Periodicals 309Other Supplies and Materials 292Data Processing Equipment 870Furniture and Fixtures 280

Total Accounting and Budgeting $ 726,726

PurchasingCounty Official/Administrative Officer $ 86,276Purchasing Personnel 48,656Clerical Personnel 39,199Other Salaries and Wages 30,948Social Security 12,080Pensions 25,321Life Insurance 211Medical Insurance 40,235Employer Medicare 2,826Communication 600Dues and Memberships 512Maintenance and Repair Services - Equipment 5,538Maintenance and Repair Services - Vehicles 129Postal Charges 227Rentals 9,002Travel 662Other Contracted Services 50Custodial Supplies 85Duplicating Supplies 2,896Food Supplies 237Gasoline 1,452Office Supplies 1,702Periodicals 280Other Supplies and Materials 2,153

Total Purchasing 311,277

(Continued)

202

Exhibit L-7




Property Assessor's OfficeCounty Official/Administrative Officer $ 104,796Deputy(ies) 660,785Temporary Personnel 4,097Overtime Pay 24,576Social Security 47,155Pensions 91,064Life Insurance 912Medical Insurance 130,655Employer Medicare 11,028Audit Services 49,575Communication 2,317Data Processing Services 97,990Dues and Memberships 4,071Operating Lease Payments 9,690Legal Notices, Recording, and Court Costs 145Maintenance and Repair Services - Vehicles 834Postal Charges 30,976Printing, Stationery, and Forms 17,930Rentals 420Travel 10,466Tuition 5,245Other Contracted Services 1,170Duplicating Supplies 360Gasoline 2,589Library Books/Media 90Office Supplies 2,280Other Supplies and Materials 4,470Premiums on Corporate Surety Bonds 40Data Processing Equipment 420

Total Property Assessor's Office $ 1,316,146

County Trustee's OfficeCounty Official/Administrative Officer $ 104,796Supervisor/Director 50,921Deputy(ies) 186,133Accountants/Bookkeepers 44,913Overtime Pay 875Board and Committee Members Fees 675Social Security 23,090Pensions 42,090Life Insurance 453Medical Insurance 65,946Employer Medicare 5,400Bank Charges 21,878Communication 1,671Data Processing Services 24,982Dues and Memberships 1,327

(Continued)

203

Exhibit L-7




County Trustee's Office (Cont.)Legal Notices, Recording, and Court Costs $ 1,670Postal Charges 29,445Printing, Stationery, and Forms 3,004Rentals 6,856Travel 4,521Tuition 1,458Other Contracted Services 2,131Food Supplies 435Office Supplies 3,633Periodicals 280Premiums on Corporate Surety Bonds 6,396Data Processing Equipment 1,651Furniture and Fixtures 141Other Capital Outlay 16,645

Total County Trustee's Office $ 653,416

County Clerk's OfficeCounty Official/Administrative Officer $ 104,796Supervisor/Director 69,877Deputy(ies) 1,225,150Part-time Personnel 54,562Overtime Pay 11,760Social Security 83,344Pensions 169,187Life Insurance 1,984Medical Insurance 399,596Employer Medicare 19,540Communication 1,200Maintenance and Repair Services - Equipment 20,897Postal Charges 67,019Printing, Stationery, and Forms 527Rentals 9,064Travel 1,571Other Contracted Services 2,173Data Processing Supplies 16,193Duplicating Supplies 4,921Food Supplies 345Office Supplies 5,651Other Supplies and Materials 3,200Data Processing Equipment 960Furniture and Fixtures 1,150

Total County Clerk's Office 2,274,667

Data ProcessingSupervisor/Director $ 104,616Computer Programmer(s) 431,338Data Processing Personnel 377,363

(Continued)

204

Exhibit L-7




Data Processing (Cont.)Secretary(ies) $ 44,083Social Security 56,496Pensions 115,069Life Insurance 783Medical Insurance 160,623Employer Medicare 13,213Communication 98,430Data Processing Services 743,734Freight Expenses 49Licenses 61,846Maintenance and Repair Services - Vehicles 4,710Postal Charges 100Rentals 1,446Travel 7,541Tuition 4,293Other Contracted Services 29,232Custodial Supplies 17Data Processing Supplies 4,467Food Supplies 63Gasoline 1,303Office Supplies 327Other Supplies and Materials 1,719Communication Equipment 12,238Data Processing Equipment 295,381Other Equipment 45,491

Total Data Processing $ 2,615,971

Other FinanceLegal Notices, Recording, and Court Costs $ 17,359Postal Charges 16,593

Total Other Finance 33,952

Administration of JusticeCircuit Court

County Official/Administrative Officer $ 104,796Assistant(s) 137,424Supervisor/Director 199,018Deputy(ies) 1,461,114Accountants/Bookkeepers 87,750Overtime Pay 7,358Jury and Witness Expense 51,417Social Security 113,864Pensions 230,596Life Insurance 2,985Medical Insurance 584,364Employer Medicare 26,629Communication 2,236

(Continued)

205

Exhibit L-7



General Fund (Cont.)Administration of Justice (Cont.)

Circuit Court (Cont.)Data Processing Services $ 56,970Dues and Memberships 1,098Legal Notices, Recording, and Court Costs 1,725Maintenance and Repair Services - Office Equipment 288Postal Charges 25,492Printing, Stationery, and Forms 11,806Rentals 8,149Travel 1,018Tuition 1,255Other Contracted Services 6,815Custodial Supplies 351Data Processing Supplies 8,946Drugs and Medical Supplies 35Duplicating Supplies 4,906Food Supplies 863Library Books/Media 1,852Office Supplies 8,021Other Supplies and Materials 532Premiums on Corporate Surety Bonds 142Building Improvements 10,499Communication Equipment 1,324Data Processing Equipment 34,604Furniture and Fixtures 7,618Office Equipment 323,435

Total Circuit Court $ 3,527,295

General Sessions CourtJudge(s) $ 500,630Social Security 24,181Pensions 61,814Life Insurance 132Medical Insurance 44,341Employer Medicare 7,072

Total General Sessions Court 638,170

Drug CourtCommunication $ 572Contributions 500Dues and Memberships 399Travel 6,357Other Contracted Services 44,834Office Supplies 3,816Other Supplies and Materials 2,569

Total Drug Court 59,047

Chancery CourtCounty Official/Administrative Officer $ 104,796

(Continued)

206

Exhibit L-7




Chancery Court (Cont.)Deputy(ies) $ 339,247Overtime Pay 111Social Security 25,694Pensions 53,227Life Insurance 464Medical Insurance 90,182Employer Medicare 6,009Dues and Memberships 1,053Legal Notices, Recording, and Court Costs 1,860Maintenance and Repair Services - Office Equipment 528Postal Charges 4,315Rentals 5,441Travel 332Other Contracted Services 2,609Data Processing Supplies 2,651Duplicating Supplies 414Library Books/Media 1,217Office Supplies 6,153Data Processing Equipment 398Furniture and Fixtures 4,929

Total Chancery Court $ 651,630

Juvenile CourtJudge(s) $ 166,877Supervisor/Director 69,651Probation Officer(s) 131,239Youth Service Officer(s) 249,817Clerical Personnel 56,352Social Security 38,219Pensions 79,017Life Insurance 634Medical Insurance 92,196Employer Medicare 9,449Communication 5,698Dues and Memberships 3,299Operating Lease Payments 3,137Postal Charges 621Travel 8,539Tuition 1,760Other Contracted Services 276,228Library Books/Media 6,227Office Supplies 989Other Supplies and Materials 883Data Processing Equipment 420

Total Juvenile Court 1,201,252

(Continued)

207

Exhibit L-7




District Attorney GeneralDues and Memberships $ 300Legal Notices, Recording, and Court Costs 105Travel 50,102Other Contracted Services 5,137Custodial Supplies 1,201Duplicating Supplies 370Food Supplies 1,242Library Books/Media 420Office Supplies 841Other Supplies and Materials 912

Total District Attorney General $ 60,630

Office of Public DefenderCommunication $ 194Travel 3,893Tuition 295Other Contracted Services 2,707Other Supplies and Materials 91

Total Office of Public Defender 7,180

Judicial CommissionersPart-time Personnel $ 62,514Overtime Pay 2,203Other Salaries and Wages 132,209Social Security 11,992Pensions 16,487Life Insurance 185Medical Insurance 5,923Employer Medicare 2,805Communication 741Rentals 1,731Other Contracted Services 1,464Office Supplies 294

Total Judicial Commissioners 238,548

Probate CourtProbation Officer(s) $ 21,585Youth Service Officer(s) 66,525Secretary(ies) 46,232Clerical Personnel 22,960Social Security 9,454Pensions 16,971Life Insurance 202Medical Insurance 5,653Employer Medicare 2,211Communication 1,512Contributions 49,772

(Continued)

208

Exhibit L-7




Probate Court (Cont.)Operating Lease Payments $ 1,765Printing, Stationery, and Forms 201Travel 11,957Office Supplies 5,211Other Supplies and Materials 449

Total Probate Court $ 262,660

Other Administration of JusticeSupervisor/Director $ 68,001Social Security 4,115Pensions 8,396Life Insurance 53Medical Insurance 6,793Employer Medicare 962Communication 684Contracts with Private Agencies 422,082Dues and Memberships 660Postal Charges 197Travel 1,121Tuition 350Instructional Supplies and Materials 4,560Other Supplies and Materials 213

Total Other Administration of Justice 518,187

Probation ServicesAssistant(s) $ 24,361Supervisor/Director 84,130Probation Officer(s) 220,894Clerical Personnel 23,680Other Salaries and Wages 232,781Social Security 34,401Pensions 64,694Life Insurance 717Medical Insurance 103,395Employer Medicare 8,045Communication 572Dues and Memberships 400Evaluation and Testing 16,856Licenses 810Postal Charges 406Printing, Stationery, and Forms 1,100Rentals 1,578Travel 2,037Tuition 2,587Other Contracted Services 13,247Duplicating Supplies 1,701Instructional Supplies and Materials 11,192

(Continued)

209

Exhibit L-7




Probation Services (Cont.)Office Supplies $ 422Other Supplies and Materials 4,061

Total Probation Services $ 854,067

Public SafetySheriff's Department

County Official/Administrative Officer $ 116,869Assistant(s) 136,797Supervisor/Director 53,957Deputy(ies) 3,382,755Investigator(s) 848,829Captain(s) 230,721Lieutenant(s) 282,838Sergeant(s) 799,544Secretary(ies) 30,855Clerical Personnel 454,158Part-time Personnel 14,184Overtime Pay 392,901In-service Training 63,000Social Security 398,471Pensions 927,904Life Insurance 7,134Medical Insurance 1,436,059Employer Medicare 93,331Communication 77,489Contracts with Government Agencies 2,680Contracts with Private Agencies 28,800Data Processing Services 7,490Dues and Memberships 5,999Evaluation and Testing 12,904Licenses 666Maintenance Agreements 22,496Maintenance and Repair Services - Equipment 4,847Maintenance and Repair Services - Vehicles 97,345Postal Charges 5,616Printing, Stationery, and Forms 5,039Rentals 13,867Towing Services 4,725Transportation - Other than Students 12,471Travel 50,355Tuition 63,447Veterinary Services 753Other Contracted Services 4,857Animal Food and Supplies 1,210Custodial Supplies 1,434Data Processing Supplies 4,294Drugs and Medical Supplies 754

(Continued)

210

Exhibit L-7



General Fund (Cont.)Public Safety (Cont.)

Sheriff's Department (Cont.)Duplicating Supplies $ 2,428Food Supplies 1,903Gasoline 215,349Law Enforcement Supplies 30,310Library Books/Media 454Office Supplies 8,040Tires and Tubes 44,809Uniforms 53,327Vehicle Parts 3,155Other Supplies and Materials 6,243Indirect Cost 44,675Premiums on Corporate Surety Bonds 40Workers' Compensation Insurance 9,446Communication Equipment 11,322Data Processing Equipment 65,717Law Enforcement Equipment 107,552Motor Vehicles 666,124Other Equipment 8,914Other Capital Outlay 2,325

Total Sheriff's Department $ 11,381,978

Special PatrolsDeputy(ies) $ 1,401,136Lieutenant(s) 74,755Sergeant(s) 250,171Social Security 102,602Pensions 229,721Life Insurance 1,797Medical Insurance 261,483Employer Medicare 23,996Communication 1,071Evaluation and Testing 7,167Maintenance and Repair Services - Equipment 1,705Maintenance and Repair Services - Vehicles 24,457Travel 21,287Tuition 7,195Other Contracted Services 27Gasoline 35,188Law Enforcement Supplies 4,645Tires and Tubes 6,721Uniforms 26,967Vehicle Parts 411Other Supplies and Materials 623Communication Equipment 6,448Law Enforcement Equipment 17,534

Total Special Patrols 2,507,107

(Continued)

211

Exhibit L-7




Administration of the Sexual Offender RegistryOvertime Pay $ 5,746Communication 779Travel 1,990Tuition 1,979

Total Administration of the Sexual Offender Registry $ 10,494

JailAssistant(s) $ 82,976Supervisor/Director 57,840Deputy(ies) 4,508,407Captain(s) 74,342Lieutenant(s) 136,925Sergeant(s) 588,763Accountants/Bookkeepers 5,802Clerical Personnel 718,614Maintenance Personnel 162,562Overtime Pay 607,445Board and Committee Members Fees 1,050Social Security 406,810Pensions 763,332Life Insurance 8,456Medical Insurance 1,332,454Employer Medicare 95,322Communication 10,720Evaluation and Testing 38,376Laundry Service 3,956Operating Lease Payments 450Licenses 1,983Maintenance Agreements 52,118Maintenance and Repair Services - Buildings 23,896Maintenance and Repair Services - Equipment 26,544Maintenance and Repair Services - Vehicles 2,443Medical and Dental Services 4,483,407Pest Control 2,550Printing, Stationery, and Forms 1,214Rentals 6,794Travel 9,146Tuition 4,796Disposal Fees 9,941Other Contracted Services 770,643Custodial Supplies 21,612Data Processing Supplies 2,090Duplicating Supplies 2,330Electricity 324,480Equipment and Machinery Parts 6,719Food Preparation Supplies 100Gasoline 20,678

(Continued)

212

Exhibit L-7




Jail (Cont.)Law Enforcement Supplies $ 23,572Library Books/Media 84Natural Gas 55,577Office Supplies 2,357Prisoners Clothing 74,305Tires and Tubes 1,142Uniforms 39,432Water and Sewer 128,044Other Supplies and Materials 43,171Building and Contents Insurance 145,235Liability Insurance 121,639Communication Equipment 2,328Law Enforcement Equipment 8,589Other Equipment 14,254

Total Jail $ 16,037,815

WorkhouseCounty Official/Administrative Officer $ 7,500Deputy(ies) 794,948Lieutenant(s) 1,336Sergeant(s) 58,364Overtime Pay 31,844Social Security 51,577Pensions 105,146Life Insurance 987Medical Insurance 165,711Employer Medicare 12,062Communication 3,725Laundry Service 1,570Maintenance Agreements 3,349Maintenance and Repair Services - Equipment 2,277Maintenance and Repair Services - Vehicles 1,466Medical and Dental Services 417,294Pest Control 456Rentals 2,158Other Contracted Services 70,898Custodial Supplies 7,560Diesel Fuel 3,340Electricity 26,438Equipment and Machinery Parts 117Gasoline 1,457Law Enforcement Supplies 2,470Natural Gas 5,340Prisoners Clothing 16,070Uniforms 2,907Water and Sewer 22,346Other Supplies and Materials 6,350

(Continued)

213

Exhibit L-7




Workhouse (Cont.)Building and Contents Insurance $ 12,149Liability Insurance 9,216

Total Workhouse $ 1,848,428

Correctional Incentive Program ImprovementsSupervisor/Director $ 56,748Probation Officer(s) 204,590Secretary(ies) 13,720Social Security 15,984Pensions 30,763Life Insurance 449Medical Insurance 59,934Employer Medicare 3,738Communication 4,628Maintenance and Repair Services - Vehicles 333Postal Charges 207Printing, Stationery, and Forms 1,429Rentals 39,244Travel 7,493Other Contracted Services 14,487Custodial Supplies 266Duplicating Supplies 214Electricity 1,461Food Supplies 101Gasoline 2,584Office Supplies 3,124Other Supplies and Materials 4,460Liability Insurance 1,700Vehicle and Equipment Insurance 1,800Motor Vehicles 23,192

Total Correctional Incentive Program Improvements 492,649

Juvenile ServicesSupervisor/Director $ 58,924Probation Officer(s) 43,169Medical Personnel 76,699Social Security 9,991Pensions 18,551Life Insurance 207Medical Insurance 50,788Employer Medicare 2,337Communication 1,294Data Processing Services 3,205Dues and Memberships 800Travel 7,717Tuition 190Other Contracted Services 5,022

(Continued)

214

Exhibit L-7




Juvenile Services (Cont.)Food Supplies $ 19Office Supplies 159Other Supplies and Materials 5,150

Total Juvenile Services $ 284,222

Fire Prevention and ControlOther Salaries and Wages $ 35,060Board and Committee Members Fees 3,450Other Per Diem and Fees 223,440Social Security 16,025Pensions 4,329Life Insurance 44Medical Insurance 13,383Employer Medicare 3,748Communication 24,024Licenses 450Maintenance and Repair Services - Buildings 105Maintenance and Repair Services - Equipment 10,060Maintenance and Repair Services - Vehicles 34,054Postal Charges 26Travel 2,401Other Contracted Services 11,468Diesel Fuel 18,333Equipment and Machinery Parts 1,428Food Preparation Supplies 66Food Supplies 330Gasoline 3,567Instructional Supplies and Materials 1,040Uniforms 7,827Utilities 30,380Chemicals 805Other Supplies and Materials 9,841Liability Insurance 6,927Data Processing Equipment 1,556Other Equipment 71,536

Total Fire Prevention and Control 535,703

Civil DefenseSupervisor/Director $ 75,554Secretary(ies) 57,661Other Salaries and Wages 103,683Social Security 14,004Pensions 29,250Life Insurance 211Medical Insurance 36,066Employer Medicare 3,275Communication 4,736

(Continued)

215

Exhibit L-7




Civil Defense (Cont.)Contracts with Private Agencies $ 3,876Maintenance and Repair Services - Vehicles 459Rentals 79,764Travel 682Other Contracted Services 43,067Gasoline 6,655Utilities 33,070Other Supplies and Materials 2,889Other Equipment 14,846

Total Civil Defense $ 509,748

Other Emergency ManagementTravel $ 486Other Contracted Services 23,057Other Supplies and Materials 889Communication Equipment 5,246Data Processing Equipment 1,700Furniture and Fixtures 6,937Other Equipment 168,814

Total Other Emergency Management 207,129

County Coroner/Medical ExaminerMedical and Dental Services $ 316,610Other Contracted Services 19,785

Total County Coroner/Medical Examiner 336,395

Public Health and WelfareLocal Health Center

Medical Personnel $ 118,450Social Security 7,089Pensions 14,568Life Insurance 106Medical Insurance 18,407Employer Medicare 1,658Communication 9,804Dues and Memberships 200Laundry Service 312Rentals 1,904Travel 624Tuition 250Other Contracted Services 1,390Electricity 44,605Instructional Supplies and Materials 104Natural Gas 4,669Office Supplies 99Water and Sewer 3,245Other Supplies and Materials 1,170Premiums on Corporate Surety Bonds 69

Total Local Health Center 228,723

(Continued)

216

Exhibit L-7



General Fund (Cont.)Public Health and Welfare (Cont.)

Rabies and Animal ControlSupervisor/Director $ 69,651Clerical Personnel 83,962Custodial Personnel 16,009Part-time Personnel 89,344Overtime Pay 25,788Other Salaries and Wages 234,622Board and Committee Members Fees 2,700Social Security 31,009Pensions 43,519Life Insurance 579Medical Insurance 75,171Employer Medicare 7,252Communication 10,452Maintenance and Repair Services - Buildings 2,112Maintenance and Repair Services - Equipment 426Maintenance and Repair Services - Vehicles 7,018Printing, Stationery, and Forms 1,762Rentals 2,507Travel 6,339Tuition 4,701Veterinary Services 45,354Other Contracted Services 11,408Animal Food and Supplies 7,225Custodial Supplies 7,919Drugs and Medical Supplies 30,070Gasoline 17,063Office Supplies 1,365Uniforms 8,090Other Supplies and Materials 7,993Indirect Cost 1,059Data Processing Equipment 123Heating and Air Conditioning Equipment 575Motor Vehicles 33,608Other Equipment 250

Total Rabies and Animal Control $ 887,025

Ambulance/Emergency Medical ServicesAssistant(s) $ 163,374Supervisor/Director 120,153Captain(s) 204,603Lieutenant(s) 662,904Accountants/Bookkeepers 159,280Medical Personnel 4,743,634Part-time Personnel 58,723Overtime Pay 124,569Board and Committee Members Fees 3,300Social Security 362,520

(Continued)

217

Exhibit L-7




Ambulance/Emergency Medical Services (Cont.)Pensions $ 713,782Life Insurance 6,244Medical Insurance 1,289,346Employer Medicare 84,969Communication 36,482Contracts with Private Agencies 320,482Contributions 33,197Data Processing Services 23,668Debt Collection Services 52,496Dues and Memberships 1,075Janitorial Services 4,496Laundry Service 4,620Licenses 7,885Maintenance and Repair Services - Buildings 7,509Maintenance and Repair Services - Equipment 50,114Maintenance and Repair Services - Vehicles 89,632Medical and Dental Services 4,445Pest Control 2,500Postal Charges 1,456Printing, Stationery, and Forms 482Rentals 7,562Travel 5,149Tuition 36,825Disposal Fees 4,791Other Contracted Services 24,338Custodial Supplies 9,793Data Processing Supplies 60Diesel Fuel 46,363Drugs and Medical Supplies 550,283Duplicating Supplies 608Electricity 70,867Food Supplies 1,128Gasoline 186,079Instructional Supplies and Materials 9,293Natural Gas 17,163Office Supplies 1,860Propane Gas 4,466Tires and Tubes 23,479Uniforms 49,600Vehicle Parts 16,216Water and Sewer 10,750Other Supplies and Materials 8,926Indirect Cost 10,956Premiums on Corporate Surety Bonds 40Other Charges 71,179Communication Equipment 20,126Furniture and Fixtures 15,261

(Continued)

218

Exhibit L-7




Ambulance/Emergency Medical Services (Cont.)Health Equipment $ 101,532Other Equipment 18,353

Total Ambulance/Emergency Medical Services $ 10,660,986

Other Local Health ServicesSocial Workers $ 424,502Medical Personnel 504,525Clerical Personnel 660,609Educational Assistants 29,589Social Security 92,087Pensions 181,771Life Insurance 2,336Medical Insurance 405,626Employer Medicare 21,983Advertising 46,995Communication 6,940Janitorial Services 12,500Travel 15,735Electricity 11,151Natural Gas 1,167Water and Sewer 811Liability Insurance 33,791

Total Other Local Health Services 2,452,118

Appropriation to StateContributions $ 219,146

Total Appropriation to State 219,146

Other Local Welfare ServicesPauper Burials $ 9,000Other Contracted Services 150

Total Other Local Welfare Services 9,150

Other Public Health and WelfareMedical and Dental Services $ 23,750

Total Other Public Health and Welfare 23,750

Social, Cultural, and Recreational ServicesLibraries

Contributions $ 2,064,386Total Libraries 2,064,386

Parks and Fair BoardsAssistant(s) $ 72,386Supervisor/Director 72,176Clerical Personnel 35,473Maintenance Personnel 297,372

(Continued)

219

Exhibit L-7



General Fund (Cont.)Social, Cultural, and Recreational Services (Cont.)

Parks and Fair Boards (Cont.)Part-time Personnel $ 4,017Social Security 28,379Pensions 51,504Life Insurance 620Medical Insurance 109,423Employer Medicare 6,637Communication 11,198Dues and Memberships 2,954Maintenance and Repair Services - Vehicles 5,110Postal Charges 2Rentals 2,211Travel 12,961Tuition 6,749Disposal Fees 3,861Other Contracted Services 20,529Custodial Supplies 8,456Electricity 71,670Fertilizer, Lime, and Seed 43,965Gasoline 21,059Office Supplies 156Propane Gas 724Road Signs 956Sand 7,386Uniforms 1,346Water and Sewer 22,993Gravel and Chert 3,527Top Soil 6,999Fencing 1,500Other Supplies and Materials 58,618Indirect Cost 230Communication Equipment 470Furniture and Fixtures 3,500Maintenance Equipment 79,444Other Construction 4,893

Total Parks and Fair Boards $ 1,081,454

Other Social, Cultural, and RecreationalPostal Charges $ 29Gasoline 4,508Office Supplies 141Vehicle and Equipment Insurance 2,000

Total Other Social, Cultural, and Recreational 6,678

Agriculture and Natural ResourcesAgricultural Extension Service

Board and Committee Members Fees $ 1,575Social Security 97

(Continued)

220

Exhibit L-7



General Fund (Cont.)Agriculture and Natural Resources (Cont.)

Agricultural Extension Service (Cont.)Employer Medicare $ 23Contributions 309,087Maintenance and Repair Services - Vehicles 1,338Rentals 5,323Travel 4,000Other Contracted Services 18,000Gasoline 1,722Office Supplies 1,520

Total Agricultural Extension Service $ 342,685

Forest ServiceContributions $ 2,000

Total Forest Service 2,000

Soil ConservationSecretary(ies) $ 29,878Social Security 1,832Pensions 2,580Life Insurance 53Medical Insurance 1,338Employer Medicare 428Other Contracted Services 1,187Other Supplies and Materials 493

Total Soil Conservation 37,789

Storm Water ManagementOther Contracted Services $ 334,628

Total Storm Water Management 334,628

Other OperationsTourism

Contracts with Government Agencies $ 462,852Contracts with Other Public Agencies 1,388,555Contributions 46,000

Total Tourism 1,897,407

Industrial DevelopmentContributions $ 640,404Other Contracted Services 598,553

Total Industrial Development 1,238,957

AirportContributions $ 261,208

Total Airport 261,208

Veterans' ServicesAssistant(s) $ 220,143

(Continued)

221

Exhibit L-7



General Fund (Cont.)Other Operations (Cont.)

Veterans' Services (Cont.)Supervisor/Director $ 51,558Secretary(ies) 64,041Board and Committee Members Fees 1,425Social Security 20,025Pensions 38,280Life Insurance 440Medical Insurance 42,204Employer Medicare 4,684Communication 768Data Processing Services 586Postal Charges 2,230Printing, Stationery, and Forms 365Rentals 2,579Travel 5,027Other Contracted Services 7,852Food Supplies 412Library Books/Media 509Other Supplies and Materials 1,674Data Processing Equipment 781

Total Veterans' Services $ 465,583

Other ChargesContributions $ 67,917Building and Contents Insurance 327,246Liability Insurance 26,390Trustee's Commission 1,128,344Workers' Compensation Insurance 654,440Other Charges 25,428

Total Other Charges 2,229,765

Contributions to Other AgenciesContracts with Other Public Agencies $ 299,103Contributions 289,295Dues and Memberships 37,298

Total Contributions to Other Agencies 625,696

Employee BenefitsHandling Charges and Administrative Costs $ 39,636Medical Insurance 233,389Disability Insurance 196,075Unemployment Compensation 16,739Other Fringe Benefits 22,406

Total Employee Benefits 508,245

MiscellaneousTravel $ 390Other Contracted Services 12,544Other Supplies and Materials 1,564

Total Miscellaneous 14,498

(Continued)

222

Exhibit L-7



General Fund (Cont.)Highways

Litter and Trash CollectionDeputy(ies) $ 92,907Social Security 5,205Pensions 11,472Life Insurance 105Medical Insurance 29,179Employer Medicare 1,217Other Supplies and Materials 25,050

Total Litter and Trash Collection $ 165,135

Total General Fund $ 86,159,643

Drug Control FundPublic Safety

Sheriff's DepartmentContributions $ 1,000Dues and Memberships 200Travel 1,572Veterinary Services 1,911Other Contracted Services 1,574Animal Food and Supplies 2,500Law Enforcement Supplies 1,512Other Supplies and Materials 1,712Trustee's Commission 95Law Enforcement Equipment 688Other Capital Outlay 13,500

Total Sheriff's Department $ 26,264

Total Drug Control Fund 26,264

Constitutional Officers - Fees FundAdministration of Justice

Chancery CourtSpecial Commissioner Fees/Special Master Fees $ 45,376

Total Chancery Court $ 45,376

Total Constitutional Officers - Fees Fund 45,376

Highway/Public Works FundHighways

AdministrationCounty Official/Administrative Officer $ 115,276Assistant(s) 82,271Accountants/Bookkeepers 46,765Secretary(ies) 38,510Clerical Personnel 38,410Overtime Pay 503Board and Committee Members Fees 3,600

(Continued)

223

Exhibit L-7



Highway/Public Works Fund (Cont.)Highways (Cont.)

Administration (Cont.)Social Security $ 19,263Pensions 39,485Life Insurance 264Medical Insurance 60,091Employer Medicare 4,505Dues and Memberships 5,614Legal Services 4,200Printing, Stationery, and Forms 555Rentals 3,604Other Contracted Services 6,373Drugs and Medical Supplies 1,878Office Supplies 2,575Other Supplies and Materials 2,554

Total Administration $ 476,296

Highway and Bridge MaintenanceForemen $ 545,967Mechanic(s) 119,414Equipment Operators - Heavy 539,161Equipment Operators - Light 159,898Truck Drivers 460,486Laborers 104,011Temporary Personnel 52,614Overtime Pay 14,755Social Security 114,246Pensions 227,368Life Insurance 2,565Medical Insurance 500,546Employer Medicare 27,131Rentals 395Other Contracted Services 32,907Asphalt - Hot Mix 1,926,988Asphalt - Liquid 38,009Concrete 2,206Crushed Stone 54,247Fertilizer, Lime, and Seed 172Pipe - Metal 38,424Salt 42,952Structural Steel 6,890Other Supplies and Materials 6,608

Total Highway and Bridge Maintenance 5,017,960

Operation and Maintenance of EquipmentForemen $ 66,722Mechanic(s) 210,385Truck Drivers 30,327Clerical Personnel 36,241

(Continued)

224

Exhibit L-7




Operation and Maintenance of Equipment (Cont.)Overtime Pay $ 2,399Social Security 19,545Pensions 40,193Life Insurance 422Medical Insurance 104,031Employer Medicare 4,571Operating Lease Payments 1,400Maintenance and Repair Services - Equipment 2,838Maintenance and Repair Services - Vehicles 5,516Other Contracted Services 8,015Diesel Fuel 130,538Equipment and Machinery Parts 214,452Garage Supplies 2,615Gasoline 76,171Lubricants 23,267Small Tools 15,243Tires and Tubes 53,239Vehicle Parts 57,213Other Supplies and Materials 21,241

Total Operation and Maintenance of Equipment $ 1,126,584

Traffic ControlForemen $ 67,547Equipment Operators - Heavy 70,861Laborers 52,767Overtime Pay 783Social Security 11,323Pensions 23,702Life Insurance 264Medical Insurance 36,268Employer Medicare 2,648Operating Lease Payments 470Other Contracted Services 2,612Electricity 21,630Road Signs 38,671Small Tools 566Uniforms 2,621Other Supplies and Materials 19,517

Total Traffic Control 352,250

Other ChargesCommunication $ 9,267Licenses 1,705Other Contracted Services 215Electricity 22,798Natural Gas 2,929Water and Sewer 2,677

(Continued)

225

Exhibit L-7




Other Charges (Cont.)Building and Contents Insurance $ 200,000Indirect Cost 21,105Trustee's Commission 132,721Workers' Compensation Insurance 132,671Liability Claims 2,500

Total Other Charges $ 528,588

Employee BenefitsMedical Insurance $ 51,983Unemployment Compensation 2,329

Total Employee Benefits 54,312

Capital OutlayEngineering Services $ 96,742Bridge Construction 18,450Data Processing Equipment 395Furniture and Fixtures 625Heating and Air Conditioning Equipment 569Highway Construction 28,232Highway Equipment 332,235Motor Vehicles 55,301State Aid Projects 219Other Equipment 23,997

Total Capital Outlay 556,765

Total Highway/Public Works Fund $ 8,112,755

General Debt Service FundPrincipal on Debt

General GovernmentPrincipal on Bonds $ 11,473,895

Total General Government $ 11,473,895

EducationPrincipal on Bonds $ 16,871,105Principal on Capital Leases 2,250,992Principal on Other Loans 1,403,571

Total Education 20,525,668

Interest on DebtGeneral Government

Interest on Bonds $ 4,743,204Total General Government 4,743,204

EducationInterest on Bonds $ 6,771,516Interest on Capital Leases 44,231Interest on Other Loans 277,750

Total Education 7,093,497

(Continued)

226

Exhibit L-7



General Debt Service Fund (Cont.)Other Debt Service

General GovernmentTrustee's Commission $ 311,689Other Debt Service 2,670

Total General Government $ 314,359

EducationTrustee's Commission $ 467,534Other Debt Service 22,759

Total Education 490,293

Total General Debt Service Fund $ 44,640,916

General Capital Projects FundOther Debt Service

General GovernmentUnderwriter's Discount $ 25,058Other Debt Issuance Charges 48,138

Total General Government $ 73,196

EducationUnderwriter's Discount $ 10,738Other Debt Issuance Charges 20,631

Total Education 31,369

Capital ProjectsGeneral Administration Projects

Architects $ 7,250Trustee's Commission 90,209Building Improvements 82,781Data Processing Equipment 10,707Other Equipment 22,164Other Construction 24,856Other Capital Outlay 7,955

Total General Administration Projects 245,922

Administration of Justice ProjectsOther Capital Outlay $ 101,177

Total Administration of Justice Projects 101,177

Public Safety ProjectsConsultants $ 9,143Engineering Services 189,950Building Improvements 71,606Data Processing Equipment 2,500Motor Vehicles 926,669Other Equipment 13,005

Total Public Safety Projects 1,212,873

(Continued)

227

Exhibit L-7



General Capital Projects Fund (Cont.)Capital Projects (Cont.)

Public Health and Welfare ProjectsArchitects $ 41,580Building Construction 1,060,347Building Improvements 51,797Motor Vehicles 1,079,481Other Equipment 119,655Other Capital Outlay 4,639

Total Public Health and Welfare Projects $ 2,357,499

Social, Cultural, and Recreation ProjectsArchitects $ 303,882Building Construction 422Building Improvements 321,779Land 945,532Site Development 195,026Building Purchases 1,006,202Other Construction 6,552,221Other Capital Outlay 87,161

Total Social, Cultural, and Recreation Projects 9,412,225

Other General Government ProjectsContributions $ 88,420Airport Improvement 24,264

Total Other General Government Projects 112,684

Highway and Street Capital ProjectsHighway Construction $ 29,246Right-of-Way 980

Total Highway and Street Capital Projects 30,226

Education Capital ProjectsContributions $ 16,483,860

Total Education Capital Projects 16,483,860

Total General Capital Projects Fund $ 30,061,031

Education Capital Projects FundCapital Projects

Education Capital ProjectsContributions $ 4,836,049

Total Education Capital Projects $ 4,836,049

Total Education Capital Projects Fund 4,836,049

Total Governmental Funds - Primary Government $ 173,882,034

228

Exhibit L-8


All Governmental Fund TypesDiscretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2019

General Purpose School FundInstruction

Regular Instruction ProgramTeachers $ 92,287,833Career Ladder Program 168,436Homebound Teachers 133,065Salary Supplements 552,086Educational Assistants 1,507,939Overtime Pay 91Certified Substitute Teachers 645,853Non-certified Substitute Teachers 939,166Social Security 5,683,410Pensions 8,731,186Life Insurance 75,486Medical Insurance 16,672,567Employer Medicare 1,333,205Retirement - Hybrid Stabilization 17,746Operating Lease Payments 3,124,316Maintenance and Repair Services - Equipment 12,600Travel 18,173Tuition 256,853Other Contracted Services 474,218Basic Skills Materials 38,947Instructional Supplies and Materials 1,957,555Textbooks - Electronic 1,144,224Textbooks - Bound 1,077,189Fee Waivers 251,249Other Charges 992Regular Instruction Equipment 32,984

Total Regular Instruction Program $ 137,137,369

Alternative Instruction ProgramTeachers $ 742,170Career Ladder Program 1,000Educational Assistants 45,155Other Salaries and Wages 22,870Certified Substitute Teachers 224Non-certified Substitute Teachers 72Social Security 46,941Pensions 69,673Life Insurance 644Medical Insurance 188,919Employer Medicare 10,978Rentals 954Instructional Supplies and Materials 2,639

Total Alternative Instruction Program 1,132,239

Special Education ProgramTeachers $ 15,609,449

(Continued)

229

Exhibit L-8



General Purpose School Fund (Cont.)Instruction (Cont.)

Special Education Program (Cont.)Career Ladder Program $ 33,532Homebound Teachers 211,857Educational Assistants 3,551,988Temporary Personnel 494,490Speech Pathologist 1,454,467Overtime Pay 48Certified Substitute Teachers 94,666Non-certified Substitute Teachers 146,191Social Security 1,264,755Pensions 1,938,170Life Insurance 19,313Medical Insurance 3,998,487Employer Medicare 296,303Travel 1,931Other Contracted Services 51,659Instructional Supplies and Materials 83,842Special Education Equipment 8,753

Total Special Education Program $ 29,259,901

Career and Technical Education ProgramTeachers $ 3,992,226Career Ladder Program 5,000Salary Supplements 45,624Certified Substitute Teachers 28,244Non-certified Substitute Teachers 35,282Social Security 243,128Pensions 372,077Life Insurance 3,001Medical Insurance 711,775Employer Medicare 56,911Maintenance and Repair Services - Equipment 1,019Travel 656Instructional Supplies and Materials 162,537T&I Construction Materials 255,000Vocational Instruction Equipment 78,578

Total Career and Technical Education Program 5,991,058

Support ServicesAttendance

Supervisor/Director $ 193,694Career Ladder Program 5,000Pupil Personnel 444,985Secretary(ies) 32,614Social Security 40,591Pensions 71,643Life Insurance 420

(Continued)

230

Exhibit L-8



General Purpose School Fund (Cont.)Support Services (Cont.)

Attendance (Cont.)Medical Insurance $ 94,201Employer Medicare 9,493Travel 5,040Office Supplies 4,052Other Supplies and Materials 4,080In Service/Staff Development 8,307

Total Attendance $ 914,120

Health ServicesMedical Personnel $ 1,119,523Temporary Personnel 94,677Overtime Pay 14Social Security 70,480Pensions 112,844Life Insurance 1,195Medical Insurance 244,579Employer Medicare 16,483Other Contracted Services 275Other Supplies and Materials 28,526Health Equipment 6,931

Total Health Services 1,695,527

Other Student SupportCareer Ladder Program $ 8,000Guidance Personnel 4,844,964Social Workers 244,700Salary Supplements 1,555,385Clerical Personnel 397,745Educational Assistants 156,502Overtime Pay 9Other Salaries and Wages 26,541Social Security 427,789Pensions 670,803Life Insurance 4,745Medical Insurance 1,138,022Employer Medicare 100,239Evaluation and Testing 178,361Other Contracted Services 48,933Food Supplies 102Instructional Supplies and Materials 1,061Office Supplies 268In Service/Staff Development 3,874Other Charges 1,152

Total Other Student Support 9,809,195

(Continued)

231

Exhibit L-8




Regular Instruction ProgramSupervisor/Director $ 1,617,931Career Ladder Program 33,374Librarians 2,654,117Instructional Computer Personnel 2,471,444Salary Supplements 431,340Secretary(ies) 113,256Clerical Personnel 39,624Educational Assistants 841,103Overtime Pay 64Other Salaries and Wages 1,478,663In-service Training 13,725Social Security 573,726Pensions 1,014,094Life Insurance 6,426Medical Insurance 1,508,714Employer Medicare 134,651Dues and Memberships 3,350Travel 13,469Other Contracted Services 144,109Gasoline 328Library Books/Media 367,651Office Supplies 13,020Periodicals 38,000Other Supplies and Materials 603,715In Service/Staff Development 248,374Other Charges 18,267Regular Instruction Equipment 6,787Other Equipment 20,413


Alternative Instruction ProgramClerical Personnel $ 19,532Social Security 1,211Pensions 1,246Life Insurance 28Employer Medicare 283

Total Alternative Instruction Program 22,300

Special Education ProgramSupervisor/Director $ 106,015Career Ladder Program 3,917Psychological Personnel 1,009,308Secretary(ies) 62,337Clerical Personnel 53,138Other Salaries and Wages 1,156,350Social Security 141,923

(Continued)

232

Exhibit L-8




Special Education Program (Cont.)Pensions $ 224,088Life Insurance 1,491Medical Insurance 361,939Employer Medicare 33,192Bank Charges 52Dues and Memberships 394Travel 20,151Other Contracted Services 93,148Office Supplies 5,547Other Supplies and Materials 68,853In Service/Staff Development 17,191

Total Special Education Program $ 3,359,034

Career and Technical Education ProgramSupervisor/Director $ 81,578Secretary(ies) 17,844Social Security 5,923Pensions 10,828Life Insurance 62Medical Insurance 13,412Employer Medicare 1,385Office Supplies 152In Service/Staff Development 1,978

Total Career and Technical Education Program 133,162

TechnologySupervisor/Director $ 536,184Computer Programmer(s) 319,408Salary Supplements 5,640Secretary(ies) 40,971Temporary Personnel 21,968Overtime Pay 122Other Salaries and Wages 151,362Social Security 63,916Pensions 132,929Life Insurance 557Medical Insurance 126,097Employer Medicare 15,139Dues and Memberships 1,240Internet Connectivity 655,439Travel 36,682Other Contracted Services 1,047,112Data Processing Supplies 834,279Equipment and Machinery Parts 115,495Food Supplies 856Office Supplies 1,460

(Continued)

233

Exhibit L-8




Technology (Cont.)Cabling $ 400,040Software 1,473,025Other Supplies and Materials 71,502In Service/Staff Development 34,123Data Processing Equipment 460,169Other Equipment 5,639,874

Total Technology $ 12,185,589

Adult ProgramsSupervisor/Director $ 88,501Career Ladder Program 1,000Guidance Personnel 26,340Other Salaries and Wages 105,537Social Security 13,676Pensions 18,981Life Insurance 121Medical Insurance 11,361Employer Medicare 3,198

Total Adult Programs 268,715

Board of EducationSecretary to Board $ 24,525Board and Committee Members Fees 36,675Social Security 2,950Pensions 3,154Life Insurance 16Medical Insurance 6,706Disability Insurance 569,195Unemployment Compensation 25,509Employer Medicare 849Other Fringe Benefits 648,574Audit Services 80,000Dues and Memberships 29,994Legal Services 151,769Liability Insurance 233,094Premiums on Corporate Surety Bonds 3,882Trustee's Commission 1,297,742Workers' Compensation Insurance 402,102Liability Claims 525,934Other Self-insured Claims 265,274In Service/Staff Development 18,997Criminal Investigation of Applicants - TBI 63,395Other Charges 128,501

Total Board of Education 4,518,837

(Continued)

234

Exhibit L-8




Director of SchoolsCounty Official/Administrative Officer $ 186,258Assistant(s) 115,555Career Ladder Program 1,000Education Media Personnel 126,453Secretary(ies) 78,684Clerical Personnel 206,144Temporary Personnel 1,835Other Salaries and Wages 291,960Social Security 56,674Pensions 99,218Life Insurance 500Medical Insurance 149,446Employer Medicare 14,013Advertising 500Dues and Memberships 10,835Postal Charges 39,448Travel 1,259Other Contracted Services 75,966Duplicating Supplies 34,322Food Supplies 3,322Office Supplies 4,545Periodicals 342Other Supplies and Materials 3,209In Service/Staff Development 32,256Other Charges 258Other Equipment 10,325

Total Director of Schools $ 1,544,327

Office of the PrincipalPrincipals $ 4,024,703Career Ladder Program 22,916Accountants/Bookkeepers 1,792,458Assistant Principals 5,547,965Clerical Personnel 2,523,182Overtime Pay 313Social Security 819,960Pensions 1,523,859Life Insurance 9,192Medical Insurance 2,819,170Employer Medicare 191,765Dues and Memberships 9,000Other Contracted Services 19,570In Service/Staff Development 39,000Administration Equipment 14,140

Total Office of the Principal 19,357,193

(Continued)

235

Exhibit L-8




Fiscal ServicesSupervisor/Director $ 524,818Accountants/Bookkeepers 950,011Temporary Personnel 10,723Overtime Pay 8Other Salaries and Wages 524,254Social Security 116,505Pensions 245,625Life Insurance 1,153Medical Insurance 382,137Employer Medicare 27,474Advertising 208Bank Charges 9,835Dues and Memberships 1,363Laundry Service 1,891Travel 1,998Other Contracted Services 16,751Food Supplies 153Gasoline 10,219Office Supplies 14,541Other Supplies and Materials 1,253In Service/Staff Development 19,580Administration Equipment 4,717

Total Fiscal Services $ 2,865,217

Human Services/PersonnelSupervisor/Director $ 607,158Secretary(ies) 728,360Overtime Pay 6,132Other Salaries and Wages 137,454Other Per Diem and Fees 477,475Social Security 115,232Pensions 217,245Life Insurance 774Medical Insurance 261,510Employer Medicare 27,246Advertising 2,299Dues and Memberships 3,032Travel 19,270Other Contracted Services 61,489Office Supplies 13,593Other Supplies and Materials 29,843In Service/Staff Development 24,420Administration Equipment 630Other Equipment 179,358

Total Human Services/Personnel 2,912,520

(Continued)

236

Exhibit L-8




Operation of PlantSupervisor/Director $ 326,076Salary Supplements 34,627Foremen 45,480Secretary(ies) 34,528Custodial Personnel 5,152,638Overtime Pay 26,942Social Security 323,885Pensions 628,408Life Insurance 5,889Medical Insurance 1,699,763Employer Medicare 75,747Evaluation and Testing 8,400Laundry Service 36,034Licenses 4,578Disposal Fees 117,741Other Contracted Services 613,361Custodial Supplies 389,965Electricity 5,771,595Fertilizer, Lime, and Seed 70,000Food Supplies 1,000Fuel Oil 21,246Natural Gas 459,108Office Supplies 4,938Water and Sewer 804,388Gravel and Chert 27,520Other Supplies and Materials 12,315Building and Contents Insurance 445,502In Service/Staff Development 3,032Furniture and Fixtures 240,569Plant Operation Equipment 22,349

Total Operation of Plant $ 17,407,624

Maintenance of PlantSupervisor/Director $ 86,571Foremen 75,706Secretary(ies) 81,723Maintenance Personnel 2,563,925Temporary Personnel 6,500Social Security 163,501Pensions 326,925Life Insurance 1,988Medical Insurance 713,804Employer Medicare 38,238Communication 585,230Dues and Memberships 170Laundry Service 11,203

(Continued)

237

Exhibit L-8




Maintenance of Plant (Cont.)Maintenance and Repair Services - Buildings $ 116,469Maintenance and Repair Services - Equipment 272,445Maintenance and Repair Services - Vehicles 4,489Rentals 8,628Other Contracted Services 585,961Gasoline 159,577Lubricants 3,122Office Supplies 2,998Tires and Tubes 11,781Vehicle Parts 62,730Chemicals 49,039Other Supplies and Materials 969,863Vehicle and Equipment Insurance 63,016In Service/Staff Development 8,723Communication Equipment 17,097Maintenance Equipment 95,039

Total Maintenance of Plant $ 7,086,461

Operation of Non-Instructional ServicesEarly Childhood Education

Teachers $ 896,491Educational Assistants 338,770Other Salaries and Wages 186,318Certified Substitute Teachers 15,930Non-certified Substitute Teachers 18,039Social Security 85,035Pensions 145,913Life Insurance 1,413Medical Insurance 347,676Employer Medicare 19,925Travel 769Other Contracted Services 35Instructional Supplies and Materials 4,582In Service/Staff Development 7,887

Total Early Childhood Education 2,068,783

Other Debt ServiceEducation

Debt Service Contribution to Primary Government $ 2,844,114Total Education 2,844,114

Total General Purpose School Fund $ 276,923,020

(Continued)

238

Exhibit L-8



School Federal Projects FundInstruction

Regular Instruction ProgramTeachers $ 1,629,046Salary Supplements 602,696Educational Assistants 408,960Overtime Pay 16Other Salaries and Wages 98,180Certified Substitute Teachers 53,432Non-certified Substitute Teachers 148,012Social Security 172,795Pensions 259,675Life Insurance 1,854Medical Insurance 434,583Employer Medicare 40,857Other Contracted Services 5,532Instructional Supplies and Materials 362,317Textbooks - Bound 1,178Software 460Other Supplies and Materials 609Other Charges 14,152Regular Instruction Equipment 61,736


Special Education ProgramTeachers $ 260,852Educational Assistants 1,957,210Speech Pathologist 63,265Certified Substitute Teachers 725Non-certified Substitute Teachers 2,678Social Security 129,227Pensions 241,259Life Insurance 3,549Medical Insurance 586,361Employer Medicare 30,224Contracts with Other Public Agencies 550Contracts with Private Agencies 174,156Other Contracted Services 3,368Instructional Supplies and Materials 17,902Other Supplies and Materials 38,081Other Charges 2,850Special Education Equipment 19,407

Total Special Education Program 3,531,664

Career and Technical Education ProgramMaintenance and Repair Services - Equipment $ 766Instructional Supplies and Materials 19,803Other Supplies and Materials 5,869Other Charges 3,124Vocational Instruction Equipment 220,064


(Continued)

239

Exhibit L-8



School Federal Projects Fund (Cont.)Support Services

Health ServicesSupervisor/Director $ 53,286Social Security 3,036Pensions 6,853Life Insurance 31Medical Insurance 16,059Employer Medicare 710Travel 208Other Supplies and Materials 412In Service/Staff Development 2,908Other Charges 1,000Health Equipment 70,066

Total Health Services $ 154,569

Other Student SupportGuidance Personnel $ 66,802Social Workers 25,002Clerical Personnel 14,229Other Salaries and Wages 38,730Social Security 8,208Pensions 14,440Life Insurance 116Medical Insurance 30,218Employer Medicare 1,929Communication 697Contributions 43,609Evaluation and Testing 1,006Travel 50,307Other Contracted Services 18,753Other Supplies and Materials 34,543In Service/Staff Development 46,774Other Charges 44,425

Total Other Student Support 439,788

Regular Instruction ProgramSupervisor/Director $ 221,875Salary Supplements 90,645Secretary(ies) 17,844Temporary Personnel 3,105Other Salaries and Wages 2,778,442Social Security 185,779Pensions 321,045Life Insurance 1,928Medical Insurance 484,859Employer Medicare 43,493Consultants 3,850Travel 604

(Continued)

240

Exhibit L-8



School Federal Projects Fund (Cont.)Support Services (Cont.)

Regular Instruction Program (Cont.)Other Contracted Services $ 543,297Food Supplies 2,880Periodicals 536Other Supplies and Materials 23,887In Service/Staff Development 225,709Other Charges 200Other Equipment 184,665


Special Education ProgramPsychological Personnel $ 529,897Secretary(ies) 46,405Other Salaries and Wages 674,342Social Security 74,835Pensions 122,166Life Insurance 729Medical Insurance 188,094Employer Medicare 17,502Travel 774Other Supplies and Materials 22,929In Service/Staff Development 19,523Other Charges 674

Total Special Education Program 1,697,870

Career and Technical Education ProgramTravel $ 218In Service/Staff Development 3,335


Maintenance of PlantOther Contracted Services $ 351,782Other Equipment 183,298

Total Maintenance of Plant 535,080

TransportationBus Drivers $ 62,297Social Security 3,759Pensions 6,272Employer Medicare 879Contracts with Parents 1,257Other Contracted Services 4,990Other Charges 1,720

Total Transportation 81,174

Total School Federal Projects Fund $ 16,124,057

(Continued)

241

Exhibit L-8



Central Cafeteria FundOperation of Non-Instructional Services

Food ServiceSupervisor/Director $ 247,649Salary Supplements 2,800Truck Drivers 111,999Secretary(ies) 141,465Cafeteria Personnel 3,950,928Custodial Personnel 230,161Overtime Pay 37,008Other Salaries and Wages 543,404Social Security 301,293Pensions 609,844Life Insurance 7,091Medical Insurance 1,491,270Employer Medicare 70,570Bank Charges 273Communication 6,772Dues and Memberships 11,559Laundry Service 66,455Licenses 3,040Travel 12,055Other Contracted Services 1,097,874Equipment and Machinery Parts 113,939Food Supplies 6,635,732Gasoline 11,234Lubricants 128Office Supplies 28,716Tires and Tubes 208Uniforms 4,070Utilities 349,667Vehicle Parts 3,685USDA - Commodities 1,207,560Software 25,025Other Supplies and Materials 636,054Workers' Compensation Insurance 6,877In Service/Staff Development 47,211Other Charges 7,081Administration Equipment 11,074Food Service Equipment 572,104

Total Food Service $ 18,603,875

Total Central Cafeteria Fund $ 18,603,875

School Transportation FundSupport Services

Board of EducationTrustee's Commission $ 43,316

Total Board of Education $ 43,316

(Continued)

242

Exhibit L-8



School Transportation Fund (Cont.)Support Services (Cont.)

TransportationSupervisor/Director $ 228,500Salary Supplements 88,600Mechanic(s) 737,855Bus Drivers 5,284,262Dispatchers/Radio Operators 133,942Secretary(ies) 183,087Temporary Personnel 77,373Overtime Pay 124,891Other Salaries and Wages 1,316,887Social Security 471,485Pensions 916,804Life Insurance 10,976Medical Insurance 2,086,961Employer Medicare 111,089Communication 42,430Dues and Memberships 45Laundry Service 5,337Licenses 2,854Maintenance and Repair Services - Equipment 22,038Maintenance and Repair Services - Vehicles 1,468Medical and Dental Services 46,367Transportation - Other than Students 195,800Other Contracted Services 44,450Food Supplies 1,926Fuel Oil 102,726Garage Supplies 9,947Gasoline 780,013Lubricants 20,407Office Supplies 14,161Tires and Tubes 92,629Vehicle Parts 395,689Other Supplies and Materials 23,123Vehicle and Equipment Insurance 147,416In Service/Staff Development 23,631Communication Equipment 6,931Transportation Equipment 52,306

Total Transportation $ 13,804,406

Total School Transportation Fund $ 13,847,722

Extended School Program FundInstruction

Regular Instruction ProgramTeachers $ 71,100Social Security 4,408Pensions 7,003

(Continued)

243

Exhibit L-8



Extended School Program Fund (Cont.)Instruction (Cont.)

Regular Instruction Program (Cont.)Employer Medicare $ 1,031Other Contracted Services 30,470

Total Regular Instruction Program $ 114,012

Support ServicesBoard of Education

Trustee's Commission $ 393Total Board of Education 393

Office of the PrincipalAssistant Principals $ 12,500Social Security 775Pensions 1,329Employer Medicare 181

Total Office of the Principal 14,785

Total Extended School Program Fund $ 129,190

Education Capital Projects FundCapital Projects

Education Capital ProjectsArchitects $ 129,353Building Improvements 13,294,132Data Processing Equipment 319,998Plant Operation Equipment 373,573Site Development 397,216Other Capital Outlay 120,385

Total Education Capital Projects $ 14,634,657

Total Education Capital Projects Fund 14,634,657

Total Governmental Funds - Clarksville-Montgomery County School System $ 340,262,521

244

Exhibit L-9

Montgomery County, TennesseeSchedule of Detailed Revenues and ExpensesAll Proprietary FundsFor the Year Ended June 30, 2019


Revenues Operating Revenues Charges for Current Services Self-Insurance Premiums/Contributions $ 56,776,949 $ 787,111 $ 45,881 $ 57,609,941 Other Employee Benefit Charges 3,428,639 0 0 3,428,639 Other Charges for Services 79,115 0 0 79,115 Retirees' Insurance Payments 1,930,543 0 0 1,930,543 Total Operating Revenues $ 62,215,246 $ 787,111 $ 45,881 $ 63,048,238

Nonoperating Revenues Investment Income $ 232,622 $ 0 $ 0 $ 232,622 Miscellaneous Refunds 3,075,755 0 0 3,075,755 Total Nonoperating Revenues $ 3,308,377 $ 0 $ 0 $ 3,308,377

Total Revenues $ 65,523,623 $ 787,111 $ 45,881 $ 66,356,615

Expenses Operating Expenses Codes Compliance Medical and Dental Services $ 0 $ 937 $ 0 $ 937 Total Codes Compliance $ 0 $ 937 $ 0 $ 937

Other Facilities Unemployment Compensation $ 0 $ 0 $ 2,475 $ 2,475 Medical and Dental Services 0 466 0 466 Total Other Facilities $ 0 $ 466 $ 2,475 $ 2,941

Risk Management Supervisor/Director $ 0 $ 60,555 $ 0 $ 60,555 Clerical Personnel 0 48,322 0 48,322 Social Security 0 6,001 0 6,001 Pensions 0 14,002 0 14,002 Life Insurance 0 132 0 132 Medical Insurance 0 38,560 0 38,560 Employer Medicare 0 1,403 0 1,403 Communication 0 402 0 402 Consultants 0 4,000 0 4,000 Contracts with Private Agencies 0 116,629 0 116,629 Dues and Memberships 0 480 0 480 Postal Charges 0 108 0 108 Travel 0 5,857 0 5,857 Tuition 0 2,475 0 2,475 Other Contracted Services 0 1,202 0 1,202 Data Processing Supplies 0 135 0 135 Drug and Medical Supplies 0 1,829 0 1,829 Library Books/Media 0 55 0 55 Office Supplies 0 226 0 226 Other Supplies and Materials 0 1,813 0 1,813 Total Risk Management $ 0 $ 304,186 $ 0 $ 304,186

(Continued)


245

Exhibit L-9

Montgomery County, TennesseeSchedule of Detailed Revenues and ExpensesAll Proprietary Funds (Cont.)


Expenses (Cont.) County Trustee's Office Unemployment Compensation $ 0 $ 0 $ 3,973 $ 3,973 Total County Trustee's Office $ 0 $ 0 $ 3,973 $ 3,973

Circuit Court Unemployment Compensation $ 0 $ 0 $ 1,007 $ 1,007 Medical and Dental Services 0 333 0 333 Drugs and Medical Supplies 0 33 0 33 Total Circuit Court $ 0 $ 366 $ 1,007 $ 1,373

Probation Services Unemployment Compensation $ 0 $ 0 $ 44 $ 44 Total Probation Services $ 0 $ 0 $ 44 $ 44

Sheriff's Department Unemployment Compensation $ 0 $ 0 $ 9,075 $ 9,075 Medical and Dental Services 0 72,872 0 72,872 Drugs and Medical Supplies 0 2,586 0 2,586 Total Sheriff's Department $ 0 $ 75,458 $ 9,075 $ 84,533

Jail Unemployment Compensation $ 0 $ 0 $ 118 $ 118 Medical and Dental Services 0 77,347 0 77,347 Drugs and Medical Supplies 0 1,115 0 1,115 Total Jail $ 0 $ 78,462 $ 118 $ 78,580

Civil Defense Medical and Dental Services $ 0 $ 3,345 $ 0 $ 3,345 Total Civil Defense $ 0 $ 3,345 $ 0 $ 3,345

Rabies and Animal Control Medical and Dental Services $ 0 $ 6,197 $ 0 $ 6,197 Drugs and Medical Supplies 0 71 0 71 Total Rabies and Animal Control $ 0 $ 6,268 $ 0 $ 6,268

Ambulance/Emergency Medical Services Medical and Dental Services $ 0 $ 37,090 $ 0 $ 37,090 Drugs and Medical Supplies 0 2,413 0 2,413 Total Ambulance/Emergency Medical Services $ 0 $ 39,503 $ 0 $ 39,503

Landfill Operation and Maintenance Medical and Dental Services $ 0 $ 4,217 $ 0 $ 4,217 Drugs and Medical Supplies 0 111 0 111 Total Landfill Operation and Maintenance $ 0 $ 4,328 $ 0 $ 4,328

(Continued)


246

Exhibit L-9

Montgomery County, TennesseeSchedule of Detailed Revenues and ExpensesAll Proprietary Funds (Cont.)


Parks and Fair Boards Medical and Dental Services $ 0 $ 1,207 $ 0 $ 1,207 Total Parks and Fair Boards $ 0 $ 1,207 $ 0 $ 1,207

Highway and Bridge Maintenance Unemployment Compensation $ 0 $ 0 $ 621 $ 621 Medical and Dental Services 0 2,759 0 2,759 Total Highway and Bridge Maintenance $ 0 $ 2,759 $ 621 $ 3,380

Other Charges Medical Personnel $ 834,998 $ 0 $ 0 $ 834,998 Clerical Personnel 156,710 0 0 156,710 Overtime Pay 928 0 0 928 Other Salaries and Wages 48,173 0 0 48,173 Social Security 61,347 0 0 61,347 Pensions 83,941 0 0 83,941 Life Insurance 495 0 0 495 Medical Insurance 149,091 0 0 149,091 Employer Medicare 14,412 0 0 14,412 Retirement - Hybrid Stabilization 9,503 0 0 9,503 Dues and Memberships 2,713 0 0 2,713 Travel 371 0 0 371 Other Contracted Services 231,802 0 0 231,802 Other Supplies and Materials 209,899 0 0 209,899 Liability Insurance 23,771 0 0 23,771 Depreciation 991 0 0 991 In-Service/Staff Development 8,451 0 0 8,451 Other Charges 12,119 0 0 12,119 Data Processing Equipment 11,795 0 0 11,795 Total Other Charges $ 1,861,510 $ 0 $ 0 $ 1,861,510

Employee Benefits Life Insurance $ 229,343 $ 0 $ 0 $ 229,343 Unemployment Compensation 0 0 1,708 1,708 Contracts with Private Agencies 2,533,116 0 0 2,533,116 Medical and Dental Services 2,484,202 0 0 2,484,202 Other Contracted Services 728,830 0 0 728,830 Drugs and Medical Supplies 129,629 0 0 129,629 Medical Claims 56,588,556 0 0 56,588,556 Other Charges 210,803 0 0 210,803 Total Employee Benefits $ 62,904,479 $ 0 $ 1,708 $ 62,906,187

Other Unemployment Compensation $ 0 $ 0 $ 26,860 $ 26,860 Total Other $ 0 $ 0 $ 26,860 $ 26,860

Total Expenses $ 64,765,989 $ 517,285 $ 45,881 $ 65,329,155


247

Exhibit L-10

Montgomery County, TennesseeSchedule of Detailed Receipts, Disbursements, and Changes in Cash Balances - City Agency FundFor the Year Ended June 30, 2019

Cities -Sales Tax

Fund

Cash Receipts Local Option Sales Tax $ 18,957,691Total Cash Receipts $ 18,957,691

Cash Disbursements Remittance of Revenues Collected $ 18,768,114 Trustee's Commission 189,577Total Cash Disbursements $ 18,957,691

Excess of Cash Receipts Over (Under) Cash Disbursements $ 0Cash Balance, July 1, 2018 0

Cash Balance, June 30, 2019 $ 0

248

SINGLE AUDIT SECTION

249

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

Montgomery County Mayor and Board of County Commissioners Montgomery County, Tennessee


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 Montgomery County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise Montgomery County’s basic financial statements as listed in the table of contents, and have issued our report thereon dated February 17, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Montgomery 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 Montgomery County’s internal control. Accordingly, we do not express an opinion on the effectiveness of Montgomery 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.

250

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 that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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 Montgomery 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and are described in the accompanying Schedule of Findings and Questioned Costs as items: 2019-001 and 2019-002.

Montgomery County’s Response to the Findings

Montgomery County’s responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. Montgomery County’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Montgomery County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Very truly yours,


February 17, 2020

JPW/tg

251

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

Montgomery County Mayor and Board of County Commissioners Montgomery, Tennessee


Report on Compliance for Each Major Federal Program

We have audited Montgomery 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 Montgomery County’s major federal programs for the year ended June 30, 2019. Montgomery 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 Montgomery 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 Montgomery County’s compliance with

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those requirements and performing such other procedures as we considered necessary in the circumstances.

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 Montgomery County’s compliance.

Opinion on Each Major Federal Program

In our opinion, Montgomery 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 Montgomery 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 Montgomery 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 Montgomery 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.

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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 Montgomery County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise Montgomery County’s basic financial statements. We issued our report thereon dated February 17, 2020, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Very truly yours,


February 17, 2020

JPW/tg

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Montgomery County, Tennessee, and the Clarksville-Montgomery County School SystemSchedule of Expenditures of Federal Awards and State Grants (1) (2)For the Year Ended June 30, 2019

Pass-throughFederal Entity

Federal/Pass-through Agency/State CFDA 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 (3) $ 1,207,560 (5) Passed-through State Department of Education: Child Nutrition Cluster: (4) School Breakfast Program 10.553 (3) 3,439,685 National School Lunch Program 10.555 (3) 8,354,510 (5) Child Nutrition Discretionary Grants Limited Availability 10.579 (3) 10,947Total U.S. Department of Agriculture $ 13,012,702

U.S. Department of Defense: Direct Program: Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools 12.556 N/A $ 276,829 Army Youth Programs in Your Neighborhood 12.U01 N/A 1,081,771 Passed-through State Department of General Services: Section 1033 Excess Property Program (Noncash Assistance) 12.U02 (3) 32,047Total U.S. Department of Defense $ 1,390,647

U.S. Department of Housing and Urban Development: Passed-through State Department of Housing and Urban Development: Home Investment Partnerships Program 14.239 (3) $ 24,857Total U.S. Department of Housing and Urban Development $ 24,857

U.S. Department of Justice: Direct Program: State Criminal Alien Assistance Program 16.606 N/A $ 31,548 Passed-through State Commission on Children and Youth: Juvenile Justice and Delinquency Prevention 16.540 (3) 10,980 Passed-through State Department of Finance and Administration: Crime Victim Assistance 16.575 (3) 42,846 Passed-through the City of Clarksville: Edward Byrne Memorial Justice Assistance Grant Program 16.738 (3) 22,591Total U.S. Department of Justice $ 107,965

U.S. Department of Transportation: Passed-through State Department of Transportation: Highway Planning and Construction Cluster: (4) Highway Planning and Construction 20.205 (3) $ 24,180 Passed-through State Department of Safety and Homeland Security: Highway Safety Cluster: (4) State and Community Highway Safety 20.600 (3) 38,857Total U.S. Department of Transportation $ 63,037

U.S. Department of Education: Direct Program: Impact Aid 84.041 N/A $ 3,371,211 Passed-through State Department of Education: Title I Grants to Local Educational Agencies 84.010 N/A 6,978,633 Special Education Cluster: (4) Special Education - Grants to States 84.027 N/A 7,283,066 Special Education - Preschool Grants 84.173 N/A 79,653 Career and Technical Education - Basic Grants to States 84.048 N/A 443,726 Education for Homeless Children and Youth 84.196 (3) 50,117 English Language Acquisition State Grants 84.365 N/A 104,032 Supporting Effective Instruction State Grants 84.367 N/A 1,051,927 Student Support and Academic Enrichment Program 84.424 N/A 449,838 Disaster Recovery Assistance for Education 84.938 N/A 106,071Total U.S. Department of Education $ 19,918,274

(Continued)

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Montgomery County, Tennessee, and the Clarksville-Montgomery County School SystemSchedule of Expenditures of Federal Awards and State Grants (1) (2) (Cont.)

Pass-throughFederal Entity

Federal/Pass-through Agency/State CFDA IdentifyingGrantor Program Title Number Number Expenditures

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) $ 40,449Total U.S. Department of Health and Human Services $ 40,449

U.S. Department of Homeland Security: Passed-through State Department of Military: Emergency Management Performance Grants 97.042 (3) $ 74,350 Homeland Security Grant Program 97.067 (3) 207,129Total U.S. Department of Homeland Security $ 281,479

Total Federal Awards $ 34,839,410

ContractNumber

State Grants

Early Childhood Education - State Department of Education N/A (3) $ 1,596,434Forensic Child Interviews - State Department of Children's Services N/A (3) 35,000Veterans Treatment Court Initiative - State Department of Mental Health and Substance Abuse Services N/A (3) 95,699Juvenile Justice States Supplemental Funds - State Commission on Children and Youth N/A (3) 9,000Coordinated School Health - State Department of Education N/A (3) 154,569Safe Schools Act - State Department of Education N/A (3) 873,518Court Security Grant - State Administrative Office of the Courts N/A (3) 91,059Ready to Read - State Department of Education N/A (3) 9,615Healthy Built Environment - State Department of Health N/A (3) 20,000Child Advocacy Center - State Department of Children's Services N/A (3) 52,000Child and Family Intervention Services - State Department of Children's Services N/A (3) 65,349Litter Program - State Department of Transportation N/A (3) 85,427Rural Local Health Services - State Department of Health N/A (3) 2,459,668Community Correction Grant - State Department of Correction N/A (3) 451,593School to Work Transition Grant - State Department of Human Services N/A (3) 181,765Drug Court Program - State Department of Mental Health and Substance Abuse Services N/A (3) 58,874Teen Learning Center - State Department of Children's Services N/A (3) 422,082Work-based Learning Grant Program - State Department of Economic and Community Development N/A (3) 9,083

Total State Grants $ 6,670,735

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) Montgomery 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 $13,001,755; Highway Planning and Construction Cluster total $24,180; Highway Safety Cluster

total $38,857; Special Education Cluster total $7,362,719; CCDF Cluster total $40,449.(5) Total for CFDA No. 10.555 is $9,562,070.

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Montgomery County, TennesseeSummary Schedule of Prior-year FindingsFor the Year Ended June 30, 2019

Fiscal Page Finding CFDAYear Number Number Number

OFFICE OF DIRECTOR OF SCHOOLS

2018 252 2018-001 N/A

There were no prior-year federal award findings to report.

Prior-year Federal Awards Findings

Title of Finding Current Status

Government Auditing Standards require auditors to report the status of uncorrected findings from prior audits.In addition, OMB's Uniform Guidance requires auditees to report the status of all prior-year findings whethercorrected or not. Presented below are financial statement findings along with their current status from theAnnual Financial Report for Montgomery County, Tennessee, for the year ended June 30, 2019.

Prior-year Financial Statement Findings

An Investigation in the Clarksville-Montgomery County School System disclosed a Misappropriation of $1,750

Corrected

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Financial Statements:

1. Our report on the financial statements of Montgomery County is unmodified.

2. Internal Control Over Financial Reporting:

* Material weakness identified? NO

* Significant deficiency identified? NONE REPORTED

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 Number 12.U01 Army Youth Programs in YourNeighborhood

* CFDA Numbers: 84.027 and 84.173 Special Education Cluster: SpecialEducation - Grants to States and Special Education - Preschool Grants

* CFDA Number 84.367 Supporting Effective InstructionState Grants

8. Dollar threshold used to distinguish between Type A and Type B Programs. $1,045,182

9. Auditee qualified as low-risk auditee? YES

MONTGOMERY COUNTY, TENNESSEE

SCHEDULE OF FINDINGS AND QUESTIONED COSTS


PART I, SUMMARY OF AUDITOR'S RESULTS

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PART II, FINDINGS RELATING TO THE FINANCIAL STATEMENTS Findings and recommendations, as a result of our audit, are presented below. We reviewed these findings and recommendations with management to provide an opportunity for their response. Written responses for all findings are paraphrased and presented following each finding and recommendation. Management’s corrective action plan, whether related to the financial statements or federal awards, is presented separately in the Management’s Corrective Action Plan in the Single Audit Section of this report. Findings relating specifically to the audit of federal awards, if any, are separately presented under Part III, Findings and Questioned Costs for Federal Awards.

OFFICE OF COUNTY MAYOR AND DIRECTOR OF ACCOUNTS AND BUDGETS FINDING 2019-001 CAPITAL ASSET RECORDS WERE NOT COMPLETED IN

A TIMELY MANNER (Noncompliance Under Government Auditing Standards)

Capital asset records for the year ended June 30, 2019, were not completed and available for audit until January 15, 2020. Section 9-2-102, Tennessee Code Annotated, requires officials to close their official accounting records and to have those records available for audit no later than two months after the end of the fiscal year; therefore, these records should have been completed by August 31, 2019. This deficiency was the result of a lack of management oversight. RECOMMENDATION The office should complete capital asset records and have those records available for audit by August 31st of each year as required by state statute. MANAGEMENT’S RESPONSE – DIRECTOR OF ACCOUNTS AND BUDGETS We concur with the finding as shown above.

___________________________ FINDING 2019-002 THE OFFICE DID NOT FILE REPORTS ON DEBT

OBLIGATIONS WITH THE STATE COMPTROLLER’S OFFICE (Noncompliance Under Government Auditing Standards)

The office did not file a Report on Debt Obligation with the state Comptroller’s Office for separate lease purchase agreements entered into on May 15, 2019 (school system IT equipment) and June 1, 2019 (school system student laptops) totaling $3,341,000 and $226,997, respectively. Section 9-21-151, Tennessee Code Annotated, requires that within 45 days following the issuance of debt, a county must provide to the state Comptroller’s Office certain information, such as a description of the purchase for which the debt is issued, a description of the debt obligation, and an itemized description of the cost of issuance. This deficiency was the result of a lack of management oversight.

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RECOMMENDATION The office should file a Report on Debt Obligation with the state Comptroller’s Office for each debt issuance as required by state statute. MANAGEMENT’S RESPONSE – DIRECTOR OF ACCOUNTS AND BUDGETS We concur with the finding as shown above.

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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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FindingNumber

OFFICES OF COUNTY MAYOR AND DIRECTOR OF ACCOUNTS AND BUDGETS

2019-001 263

2019-002 263

Montgomery County, TennesseeManagement's Corrective Action Plan


Title of Finding

The office did not file reports on debt obligations with the state comptroller's office

Capital asset records were not completed in a timely manner

Corrective ActionPlan Page Number

We reviewed the financial statement and federal award findings and recommendations with management toprovide an opportunity for their response as required by the auditee requirements within Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Management’s corrective action plans for all financial statement findingsand federal award findings are presented in this section and have been indexed below. The corrective action planswere prepared by management and have been presented as they were submitted.

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FINDING:

'T • N N a a a ■ ■

ACCOUNTS AND BUDGETS

Corrective Action Plan

CAPITAL ASSETS RECORDS WERE NOT COMPLETED IN A TIMELY MANNER (Noncompliance Under Government Auditing Standards)

Response and Corrective Action Plan Prepared by: Jeff Taylor, Director of Accounts and Budgets

Person Responsible for Implementing the Corrective Action: Shannon Holt, Assistant Director of Accounts and Budgets and Kyla Young,

Fixed Asset Manager

Anticipated Completion Date of Corrective Action: 06/30/2020

Repeat Finding: No

Planned Corrective Action: Capital assets will be completed no later than 60 days after the close of the fiscal year.

FINDING: THE OFFICE DID NOT FILE REPORTS ON DEBT OBLIGATIONS WITH THE STATE COMPTROLLER'S OFFICE (Noncompliance Under Government Auditing Standards)

Response and Corrective Action Plan Prepared by: Jeff Taylor, Director of Accounts and Budgets

Person Responsible for Implementing the Corrective Action: Shannon Holt, Assistant Director of Accounts and Budgets

Anticipated Completion Date of Corrective Action: Date: Immediately

Repeat Finding: No

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Planned Corrective Action:

When resolutions are approved authorizing leases by the school system, coordination will begin with the school system to verify when debt is issued and the appropriate Report on Debt Obligation filed within 45 days of issuance. Notification will be sent to the Director of Accounts & Budgets and the Assistant Director to ensure information will be provided to the county legislative body.

Signature: fjj«g

LL 1:Jl

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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 Montgomery County.

MONTGOMERY COUNTY SHOULD ADOPT A CENTRAL SYSTEM OF ACCOUNTING, BUDGETING, AND PURCHASING

Montgomery 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 Montgomery 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

MONTGOMERY COUNTY TENNESSEE - TN …...JUSTIN P. WILSON DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE Director JEFF BAILEY, CPA, CGFM, CFE Audit Manager KATIE ARMSTRONG, CPA,