SEVIER COUNTY TENNESSEE - TN Comptroller Audit Manager AMY MOORE, CGFM ANGIE COLLINS, CPA, CFE, CGFM

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Text of SEVIER COUNTY TENNESSEE - TN Comptroller Audit Manager AMY MOORE, CGFM ANGIE COLLINS, CPA, CFE, CGFM

  • ANNUAL FINANCIAL REPORT

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

    DIVISION OF LOCAL GOVERNMENT AUDIT

  • ANNUAL FINANCIAL REPORT

    SEVIER 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

    MARK TREECE, CPA, CGFM Audit Manager AMY MOORE, CGFM

    ANGIE COLLINS, CPA, CFE, CGFM AMY SOSVILLE, CPA DOUG SANDIDGE, CISA, CFE Senior Auditor State Auditors

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

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  • Exhibit Page(s)

    Summary of Audit Findings 6

    INTRODUCTORY SECTION 7

    Sevier County Officials 8

    FINANCIAL SECTION 9

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

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

    Fund Financial Statements: Governmental Funds:

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

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

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

    and Changes in Fund Balances of Governmental Funds to the Statement of Activities C-4 24-25

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

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

    Proprietary Funds: Statement of Net Position D-1 31-32 Statement of Revenues, Expenses, and Changes in Net Position D-2 33-34 Statement of Cash Flows D-3 35

    Fiduciary Funds: Statement of Fiduciary Assets and Liabilities E 36

    Index and Notes to the Financial Statements 37-115 REQUIRED SUPPLEMENTARY INFORMATION: 116

    Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRS – Primary Government F-1 117

    Schedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRS – Primary Government F-2 118

    Schedule of Contributions Based on Participation in the Teacher Pension Plan of TCRS – Discretely Presented Sevier County School Department F-3 119

    TABLE OF CONTENTS SEVIER COUNTY, TENNESSEE

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  • Exhibit Page(s)

    Schedule of Contributions Based on Participation in the Teacher Legacy Pension Plan of TCRS – Discretely Presented Sevier County School Department F-4 120

    Schedule of Proportionate Share of the Net Pension Liability (Asset) in the Teacher Pension Plan of TCRS – Discretely Presented Sevier County School Department F-5 121

    Schedule of Proportionate Share of the Net Pension Liability (Asset) in the Teacher Legacy Pension Plan of TCRS – Discretely Presented Sevier County School Department F-6 122

    Schedule of Changes in the Total OPEB Liability and Related Ratios - Sevier County Plan F-7 123

    Schedule of Changes in the Total OPEB Liability and Related Ratios - Tennessee Plan - Medicare F-8 124

    Schedule of Changes in the Total OPEB Liability and Related Ratios - Local Education Plan - Discretely Presented Sevier County School Department F-9 125

    Schedule of Changes in the Total OPEB Liability and Related Ratios - Tennessee Plan - Medicare - Discretely Presented Sevier County School Department F-10 126

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

    STATEMENTS AND SCHEDULES: 128 Nonmajor Governmental Funds: 129

    Combining Balance Sheet G-1 130-133 Combining Statement of Revenues, Expenditures, and Changes

    in Fund Balances G-2 134-137 Schedules of Revenues, Expenditures, and Changes in Fund

    Balances – Actual (Budgetary Basis) and Budget: Courthouse and Jail Maintenance Fund G-3 138 Law Library Fund G-4 139 Solid Waste/Sanitation Fund G-5 140 Special Purpose Fund G-6 141 Drug Control Fund G-7 142 Other Special Revenue Fund G-8 143

    Major Governmental Fund: 144 Schedule of Revenues, Expenditures, and Changes in Fund

    Balance – Actual and Budget: General Debt Service Fund H 145

    Proprietary Funds: 146 Combining Statement of Net Position - Internal Service Funds I-1 147 Combining Statement of Revenues, Expenses, and Changes in

    Net Position - Internal Service Funds I-2 148 Combining Statement of Cash Flows - Internal Service Funds I-3 149

    Fiduciary Funds: 150 Combining Statement of Fiduciary Assets and Liabilities J-1 151 Combining Statement of Changes in Assets and Liabilities –

    All Agency Funds J-2 152-153 Component Unit:

    Discretely Presented Sevier County School Department: 154 Statement of Activities K-1 155 Balance Sheet – Governmental Funds K-2 156

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  • Exhibit Page(s)

    Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position K-3 157

    Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds K-4 158

    Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities K-5 159

    Combining Balance Sheet – Nonmajor Governmental Funds K-6 160 Combining Statement of Revenues, Expenditures, and Changes

    in Fund Balances – Nonmajor Governmental Funds K-7 161 Schedules of Revenues, Expenditures, and Changes in Fund

    Balances – Actual (Budgetary Basis) and Budget: General Purpose School Fund K-8 162-163 School Federal Projects Fund K-9 164 Central Cafeteria Fund K-10 165

    Miscellaneous Schedules: 166 Schedule of Changes in Long-term Other Loans and Bonds L-1 167 Schedule of Long-term Debt Requirements by Year L-2 168-169 Schedule of Transfers L-3 170 Schedule of Salaries and Official Bonds of Principal Officials –

    Primary Government and Discretely Presented Sevier County School Department L-4 171

    Schedule of Detailed Revenues – All Governmental Fund Types L-5 172-192 Schedule of Detailed Revenues – All Governmental Fund Types –

    Discretely Presented Sevier County School Department L-6 193-196 Schedule of Detailed Expenditures – All Governmental Fund Types L-7 197-225 Schedule of Detailed Expenditures – All Governmental Fund Types –

    Discretely Presented Sevier County School Department L-8 226-238 Schedule of Detailed Receipts, Disbursements, and Changes in

    Cash Balance – City Agency Fund L-9 239

    STATUTORY SECTION Table 240

    Operating Information - Public Utility Fund: Schedule of Utility Rates 1 241 Schedule of Unaccounted for Water 2 242-243

    SINGLE AUDIT SECTION 244

    Auditor's 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 245-246

    Auditor's 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 Uniform Guidance 247-249

    Schedule of Expenditures of Federal Awards and State Grants 250-252 Summary Schedule of Prior-year Findings 253 Schedule of Findings and Questioned Costs 254-257 Management's Corrective Action Plan 258-259 Best Practice 260

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  • Summary of Audit Findings Annual Financial Report Sevier County, Tennessee

    For the Year Ended June 30, 2019

    Scope

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

    Results

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

    Our audit resulted in one finding and recommendation, which we have reviewed with Sevier County management. The detailed finding, recommendation, and management’s response are included in the Single Audit section of this report.

    Findings

    The following is a summary of the audit finding:

    OFFICE OF COUNTY MAYOR

    ♦ The Internal Revenue Service assessed the county interest and penalty totaling $43,734.34.

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  • INTRODUCTORY SECTION

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  • Sevier County Officials June 30, 2019 Officials Larry Waters, County Mayor Jonas Smelcer, Road Superintendent Jack Parton, Director of Schools Greg Patterson, Trustee Thomas King, Assessor of Property Karen Cotter, County Clerk Rita Ellison, Circuit Court Clerk Connie Holt, General Sessions and Juvenile Courts Clerk Carolyn McMahan, Clerk and Master Cyndi Pickel, Register of Deeds Ronald Seals, Sheriff Board of County Commissioners Larry Waters, County Mayor, Chairman Ronnie Allen Warren Hurst Fred Atchley Phil King Mike Chambers Michael Maddron Ben Clabo David Norton Gary Cole Ray Ogle Mary Davis Frank Parton Bryan Delius Harold Pitner Aaron Foster Carroll Rauhuff Chuck Godfrey Tommy Watts Greg Haggard Keith Whaley Dale Hill Ronnie Whaley Mike Hillard Kent Woods Todd Humble Board of Education Charles Temple, Chairman Mark Strange John McClure Kevin Townsend Mike Oakley Audit Committee Kent Woods, Chairman Warren Hurst Ronnie Whaley Ben Clabo Fred Atchley David Norton Gary Cole

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  • FINANCIAL SECTION

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  • Independent Auditor's Report

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