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ANNUAL FINANCIAL REPORT

MONTGOMERY COUNTY, TENNESSEE FOR THE YEAR ENDED JUNE 30, 2018

DIVISION OF LOCAL GOVERNMENT AUDIT

ANNUAL FINANCIAL REPORT

MONTGOMERY COUNTY, TENNESSEE

FOR THE YEAR ENDED JUNE 30, 2018

COMPTROLLER OF THE TREASURY JUSTIN P. WILSON

DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE

Director

JEFF BAILEY, CPA, CGFM, CFE Audit Manager CARRIE SABIN TYLER ENSMINGER KATIE ARMSTRONG, CPA, CGFM, CFE BETHANY GRAVES 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

Montgomery County Officials 8

FINANCIAL SECTION 9

Independent Auditor's Report 10-13BASIC FINANCIAL STATEMENTS: 14

Government-wide Financial Statements:Statement of Net Position A 15-17Statement of Activities B 18-19

Fund Financial Statements:Governmental Funds:

Balance Sheet C-1 20-22Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position C-2 23Statement of Revenues, Expenditures, and Changes in

Fund Balances C-3 24-25Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities C-4 26

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

General Fund C-5 27-30Proprietary Funds:

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

Fiduciary Funds:Statement of Fiduciary Assets and Liabilities E 34

Index and Notes to the Financial Statements 35-109REQUIRED SUPPLEMENTARY INFORMATION: 110

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-1 111

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Planof TCRS – Primary Government F-2 112

Schedule of Contributions Based on Participation in the Public EmployeeLegacy Pension Plan of TCRS – Primary Government F-3 113

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Primary Government F-4 114

Schedule of Contributions Based on Participation in the Public EmployeePOST Certified Legacy Pension Plan of TCRS – Primary Government F-5 115

Schedule of Contributions Based on Participation in the Public EmployeePOST Certified Pension Plan of TCRS – Primary Government F-6 116

Schedule of Contributions Based on Participation in the TeacherRetirement Plan of TCRS – Discretely Presented Clarksville-MontgomeryCounty School System F-7 117

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-8 118

Schedule of Proportionate Share of the Net Pension Asset in theTeacher Pension Plan of TCRS – Discretely PresentedClarksville-Montgomery County School System F-9 119

Schedule of Proportionate Share of the Net Pension Asset in theTeacher Legacy Pension Plan of TCRS – Discretely PresentedClarksville-Montgomery County School System F-10 120

Schedule of Changes in the Total OPEB Liability and RelatedRatios - Commercial Plan - Primary Government F-11 121

Schedule of Changes in the Total OPEB Liability and RelatedRatios - Commercial Plan - Discretely Presented Clarksville-Montgomery County School System F-12 122

Notes to the Required Supplementary Information 123-124COMBINING AND INDIVIDUAL FUND FINANCIAL

STATEMENTS AND SCHEDULES: 125Nonmajor Governmental Funds: 126

Combining Balance Sheet G-1 127-128Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances G-2 129Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual (Budgetary Basis) and Budget:Drug Control Fund G-3 130Highway/Public Works Fund G-4 131

Major Governmental Fund: 132Schedule of Revenues, Expenditures, and Changes in Fund

Balance – Actual and Budget:General Debt Service Fund H 133

Proprietary Funds: 134Combining Statement of Net Position I-1 135Combining Statement of Revenues, Expenses, and Changes in

Net Position I-2 136Combining Statement of Cash Flows I-3 137-138

Fiduciary Funds: 139Combining Statement of Fiduciary Assets and Liabilities J-1 140Combining Statement of Changes in Assets and Liabilities –

All Agency Funds J-2 141-142Component Unit:

Discretely Presented Clarksville-Montgomery County School System: 143Statement of Activities K-1 144Balance Sheet – Governmental Funds K-2 145-146Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position K-3 147Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds K-4 148-149Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities K-5 150

Combining Balance Sheet – Nonmajor Governmental Funds K-6 151-152Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances – Nonmajor Governmental Funds K-7 153

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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-8 154-155School Federal Projects Fund K-9 156Central Cafeteria Fund K-10 157School Transportation Fund K-11 158Extended School Program Fund K-12 159

Miscellaneous Schedules: 160Schedule of Changes in Long-term Notes, Other Loans, Capital Leases, and Bonds L-1 161Schedule of Long-term Debt Requirements by Year L-2 162-163Schedule of Transfers – Primary Government and Discretely

Presented Clarksville-Montgomery County School System L-3 164Schedule of Salaries and Official Bonds of Principal Officials –

Primary Government and Discretely Presented Clarksville-Montgomery County School System L-4 165

Schedule of Detailed Revenues – All Governmental Fund Types L-5 166-179Schedule of Detailed Revenues – All Governmental Fund Types –

Discretely Presented Clarksville-Montgomery County SchoolSystem L-6 180-187

Schedule of Detailed Expenditures – All Governmental Fund Types L-7 188-221Schedule of Detailed Expenditures – All Governmental Fund Types –

Discretely Presented Clarksville-Montgomery County SchoolSystem L-8 222-237

Schedule of Detailed Revenues and Expenses – All Proprietary Funds L-9 238-240Schedule of Detailed Receipts, Disbursements, and Changes in

Cash Balances – City Agency Fund L-10 241

SINGLE AUDIT SECTION 242

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 243-244

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 245-247

Schedule of Expenditures of Federal Awards and State Grants 248-249Summary Schedule of Prior-year Findings 250Schedule of Findings and Questioned CostsManagement's Corrective Action PlanBest Practice

251-253 254-256

257

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Summary of Audit Findings Annual Financial Report

Montgomery County, Tennessee For the Year Ended June 30, 2018

Scope We have audited the basic financial statements of Montgomery County as of and for the year ended June 30, 2018.

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

Finding The following is a summary of the audit finding: OFFICE OF DIRECTOR OF SCHOOLS ♦ An investigation in the Clarksville-Montgomery County School System disclosed a mis-

appropriation of $1,750.

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INTRODUCTORY SECTION

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Montgomery County OfficialsJune 30, 2018

Officials

Jim Durrett, County MayorMike Frost, Highway SupervisorMillard House II, Director of SchoolsBrenda Radford, 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 Martha BrockmanJohn Gannon, Sr. Joe CreekArnold Hodges David HarperEdward Baggett Wallace ReddJoe Weyant Robert NicholsJohn Genis Tommy VallejosRobert Gibbs, Jr. Jason HodgesBrandon Butts Monroe GildersleeveAudrey Tooley Garland JohnsonRonald Sokol Larry RocconiCharles Keene Jerry Allbert

Highway Commission

Mike Frost, Highway Supervisor, ChairmanEdgar Ray GrovesOrville Lewis

Board of Education

Charlie Patterson, Chairperson Margaret PaceWillie Freeman Anne MurthaJimmie Garland Josh BaggettGeorge Giles

Audit Committee

David Harper, Chairman Arnold HodgesBrandon Butts Monroe GildersleeveAudrey Tooley

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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, 2018, 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 estimates made by management, as well as evaluating the overall presentation of the financial statements.

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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, 2018, 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.

Change in Accounting Principle

As described in Note V.B., Montgomery County has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Our opinion is not modified with respect to this matter.

Emphasis of Matter

We draw attention to Note I.D.9. to the financial statements, which describes restatements reducing the beginning Governmental Activities net position of the Primary Government by $9,112,938 and the discretely presented School System’s net position by $13,061,887 on the Government-wide Statement of Activities. These restatements were necessary because of the transitional requirements of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Our opinion is not modified with respect to these matters.

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, and schedule of school’s proportionate share of the net pension liability, and schedule of changes in the primary government’s and school’s total OPEB liabilities and related ratios on pages 111-124 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

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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 Fund, 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 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is also presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service Fund, 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, 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 has 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 it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 7, 2018, 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

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other matters. The purpose of that report is 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

December 7, 2018

JPW/yu

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BASIC FINANCIAL STATEMENTS

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Exhibit A

Montgomery County, TennesseeStatement of Net PositionJune 30, 2018

Component UnitClarksville-

Primary MontgomeryGovernment County

Governmental SchoolActivities System

ASSETS

Cash $ 70,665 $ 717,456Equity in Pooled Cash and Investments 119,832,110 47,890,291Inventories 83,097 549,258Accounts Receivable 14,452,970 307,094Allowance for Uncollectibles (8,801,604) 0Due from Other Governments 2,652,479 19,737,737Due from Component Units 5,085,840 0Property Taxes Receivable 88,998,236 31,019,866Allowance for Uncollectible Property Taxes (1,596,259) (574,823)Prepaid Items 64,669 2,140,276Net Pension Asset - Public Employee Pension Plan 1,603 1,583Net Pension Asset - Public Employee Legacy Pension Plan 1,403,709 1,459,835Net Pension Asset - Teacher Retirement Plan 0 1,086,727Net Pension Asset - Teacher Legacy Pension Plan 0 975,235Capital Assets: Assets Not Depreciated: Land 12,362,641 14,065,154 Construction in Progress 11,861,017 3,550,033 Assets Net of Accumulated Depreciation: Buildings and Improvements 102,988,723 271,073,956 Other Capital Assets 6,690,932 19,834,215 Intangibles 1,670,957 0 Infrastructure 36,484,756 0Total Assets $ 394,306,541 $ 413,833,893

(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 $ 9,790,766 $ 0Pension Changes in Experience 237,236 872,748Pension Changes in Assumptions 2,235,579 10,680,108Pension Contributions After Measurement Date 4,895,462 16,231,836Pension Changes in Investment Earnings 0 148,038Pension Changes in Proportionate Share 0 811,198Other Postemployment Benefits Paid After Measurement Date 0 117,188Total Deferred Outflows of Resources $ 17,159,043 $ 28,861,116

LIABILITIES

Accounts Payable $ 2,281,847 $ 2,741,315Accrued Payroll 0 16,006,491Payroll Deductions Payable 300,770 9,136,554Accrued Interest Payable 2,312,223 0Due to Primary Government 0 2,580,619Due to Litigants, Heirs, and Others 12,132 0Other Current Liabilities 16,853 0Customer Deposits Payable 187,583 186,858Noncurrent Liabilities: Due Within One Year 35,083,192 1,904,387 Due in More Than One Year 312,281,385 25,127,440Total Liabilities $ 352,475,985 $ 57,683,664

DEFERRED INFLOWS OF RESOURCES

Deferred Current Property Taxes $ 85,377,710 $ 29,690,887Pension Changes in Experience 2,061,578 22,359,746Pension Changes in Investment Earnings 46,212 106,510Pension Changes in Proportionate Share 0 512,856Other Postemployment Benefits Changes in Experience 0 90,301Total Deferred Inflows of Resources $ 87,485,500 $ 52,760,300

(Continued)

Component Unit

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Exhibit A

Montgomery County, TennesseeStatement of Net Position (Cont.)

Clarksville-Primary Montgomery

Government CountyGovernmental School

Activities System

NET POSITION

Net Investment in Capital Assets $ 45,653,266 $ 308,523,358Restricted for: Capital Projects 2,904,938 456,515 Debt Service 40,400,232 0 Highways 5,486,946 0 General Government 454,583 0 Finance 1,556,483 0 Administration of Justice 1,256,186 0 Public Safety 200,218 0 Public Health and Welfare 106,573 0 Social, Cultural, and Recreational Services 2,697 0 Central Cafeteria 0 7,048,415 School Transportation 0 1,855,345 School Federal Projects 0 721,862 Pensions 1,405,312 3,523,380Unrestricted (127,923,335) 10,122,170

Total Net Position $ (28,495,901) $ 332,251,045

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, 2018


Operating Capital MontgomeryCharges Grants Grants County

for and and SchoolFunctions/Programs Expenses Services Contributions Contributions System

Primary Government: Governmental Activities: General Government $ 26,089,687 $ 4,752,290 $ 45,131 $ 69,192 $ (21,223,074) $ 0 Finance 7,597,026 5,574,801 0 0 (2,022,225) 0 Administration of Justice 239,781 5,324,437 713,201 0 5,797,857 0 Public Safety 30,997,315 1,846,344 1,025,662 0 (28,125,309) 0 Public Health and Welfare 16,434,814 10,200,138 2,364,183 967,000 (2,903,493) 0 Social, Cultural, and Recreational Services 3,916,539 335,551 0 0 (3,580,988) 0 Agriculture and Natural Resources 390,672 0 0 0 (390,672) 0 Highways/Public Works 8,794,495 9,270 3,944,078 1,466,716 (3,374,431) 0 Education 48,107,520 44,476,056 0 0 (3,631,464) 0 Interest on Long-term Debt 13,997,530 0 0 0 (13,997,530) 0

Total Primary Government $ 156,565,379 $ 72,518,887 $ 8,092,255 $ 2,502,908 $ (73,451,329) $ 0

Component Unit: Clarksville-Montgomery County School System $ 304,821,636 $ 5,558,815 $ 26,441,582 $ 129,258 $ 0 $ (272,691,981)

Total Component Unit $ 304,821,636 $ 5,558,815 $ 26,441,582 $ 129,258 $ 0 $ (272,691,981)

(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 $ 51,136,486 $ 31,509,027 Property Taxes Levied for Debt Service 35,401,178 0 Local Option Sales Tax 228,877 51,929,103 Hotel/Motel Tax 2,124,496 0 Wheel Tax 2,370,945 4,824,272 Business Tax 1,623,599 785,234 Mixed Drink Tax 0 405,879 Adequate Facilities/Development Tax 1,791,500 0 Litigation Tax 1,414,899 0 Wholesale Beer Tax 377,873 0 Mineral Severance Tax 280,858 0 Interstate Telecommunications Tax 19,886 0 Grants and Contributions Not Restricted to Specific Programs 6,028,953 185,050,559 Interest Income 2,356,763 31,303 Miscellaneous 6,472,717 271,384Total General Revenues $ 111,629,030 $ 274,806,761

Change in Net Position $ 38,177,701 $ 2,114,780Net Position, July 1, 2017 (57,560,664) 343,198,152Restatement - See Note I.D.9. (9,112,938) (13,061,887)

Net Position, June 30, 2018 $ (28,495,901) $ 332,251,045


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, 2018

OtherGeneral General Govern- Total

Debt Capital mental GovernmentalGeneral Service Projects Funds Funds

ASSETS

Cash $ 9,915 $ 0 $ 0 $ 10,750 $ 20,665Equity in Pooled Cash and Investments 34,245,035 29,420,523 28,149,813 5,147,663 96,963,034Inventories 83,097 0 0 0 83,097Accounts Receivable 13,147,843 425,854 258,103 5,928 13,837,728Allowance for Uncollectibles (8,801,604) 0 0 0 (8,801,604)Due from Other Governments 1,390,766 46,763 10,556 1,204,394 2,652,479Property Taxes Receivable 44,917,605 37,271,955 2,462,326 4,346,350 88,998,236Allowance for Uncollectible Property Taxes (811,969) (661,214) (44,341) (78,735) (1,596,259)Prepaid Items 64,669 0 0 0 64,669Advances to Other Funds 0 2,200,000 0 0 2,200,000

Total Assets $ 84,245,357 $ 68,703,881 $ 30,836,457 $ 10,636,350 $ 194,422,045

LIABILITIES

Accounts Payable $ 1,324,347 $ 0 $ 828,172 $ 63,155 $ 2,215,674Payroll Deductions Payable 283,350 0 0 15,836 299,186Due to Litigants, Heirs, and Others 120 0 0 12,012 12,132Advances Payable to Other Funds 0 0 2,200,000 0 2,200,000Other Current Liabilities 0 0 0 16,853 16,853Current Liabilities Payable From Restricted Assets 3,563 0 0 184,020 187,583Total Liabilities $ 1,611,380 $ 0 $ 3,028,172 $ 291,876 $ 4,931,428


Deferred Current Property Taxes $ 43,067,302 $ 35,782,192 $ 2,361,511 $ 4,166,705 $ 85,377,710

(Continued)

Major FundsNonmajor

Funds

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Exhibit C-1

Montgomery County, TennesseeBalance SheetGovernmental Funds (Cont.)



DEFERRED INFLOWS OF RESOURCES (Cont.)

Deferred Delinquent Property Taxes $ 856,258 $ 683,251 $ 46,571 $ 83,216 $ 1,669,296Other Deferred/Unavailable Revenue 3,637,134 23,287 0 344,821 4,005,242Total Deferred Inflows of Resources $ 47,560,694 $ 36,488,730 $ 2,408,082 $ 4,594,742 $ 91,052,248

FUND BALANCES

Nonspendable:Inventory $ 83,097 $ 0 $ 0 $ 0 $ 83,097Prepaid Items 64,669 0 0 0 64,669

Restricted:Restricted for General Government 454,583 0 0 0 454,583Restricted for Finance 1,556,483 0 0 0 1,556,483Restricted for Administration of Justice 1,256,186 0 0 0 1,256,186Restricted for Public Safety 154,031 0 0 46,187 200,218Restricted for Public Health and Welfare 106,573 0 0 0 106,573Restricted for Social, Cultural, and Recreational Services 2,697 0 0 0 2,697Restricted for Highways/Public Works 0 0 0 5,259,843 5,259,843Restricted for Debt Service 0 32,215,151 0 0 32,215,151Restricted for Capital Projects 0 0 25,400,203 0 25,400,203

Committed:Committed for General Government 300,940 0 0 0 300,940Committed for Public Safety 77,982 0 0 0 77,982

Assigned:Assigned for General Government 271,326 0 0 0 271,326Assigned for Finance 493,132 0 0 0 493,132Assigned for Highways/Public Works 0 0 0 443,702 443,702

(Continued)

Major FundsNonmajor

Funds

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Exhibit C-1

Montgomery County, TennesseeBalance SheetGovernmental Funds (Cont.)



FUND BALANCES (Cont.)

Unassigned $ 30,251,584 $ 0 $ 0 $ 0 $ 30,251,584Total Fund Balances $ 35,073,283 $ 32,215,151 $ 25,400,203 $ 5,749,732 $ 98,438,369

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 84,245,357 $ 68,703,881 $ 30,836,457 $ 10,636,350 $ 194,422,045


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, 2018

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) $ 98,438,369

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 12,362,641 Add: construction in progress 11,861,017 Add: buildings and improvements net of accumulated depreciation 102,988,723 Add: other capital assets net of accumulated depreciation 6,690,932 Add: intangibles net of accumulated depreciation 1,670,957 Add: infrastructure net of accumulated depreciation 36,484,756 Less: capital assets of internal service funds, which are included below in item (2) (13,297) 172,045,729

(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. 18,961,427

(3) Long-term liabilities are not due and payable in the currentperiod and therefore are not reported in the governmental funds. Less: bonds payable $ (284,815,000) Less: other loans payable (10,769,034) Less: capital leases payable (2,577,019) Add: debt to be contributed by component units 5,082,240 Add: deferred amount on refunding 9,790,766 Less: unamortized premium on debt (26,056,013) Less: accrued interest on bonds and other loans (2,312,223) Less: other postemployment benefits liability (15,197,250) Less: compensated absences payable (3,428,230) (330,281,763)

(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 $ 7,368,277 Less: deferred inflows of resources related to pensions (2,107,790) 5,260,487

(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 - agent plan $ 1,603 Add: net pension asset - agent legacy plan 1,403,709 1,405,312

(6) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 5,674,538

Net position of governmental activities (Exhibit A) $ (28,495,901)


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Exhibit C-3

Montgomery County, TennesseeStatement of Revenues, Expenditures,

and Changes in Fund BalancesGovernmental FundsFor the Year Ended June 30, 2018



RevenuesLocal Taxes $ 51,408,024 $ 38,581,865 $ 4,796,276 $ 4,734,086 $ 99,520,251Licenses and Permits 2,393,357 0 0 0 2,393,357Fines, Forfeitures, and Penalties 1,197,314 0 0 24,004 1,221,318Charges for Current Services 7,686,906 0 0 21,513 7,708,419Other Local Revenues 2,803,569 1,152,457 50,233 21,794 4,028,053Fees Received From County Officials 10,361,991 0 0 0 10,361,991State of Tennessee 7,546,167 0 0 4,831,924 12,378,091Federal Government 373,026 90,615 111,825 0 575,466Other Governments and Citizens Groups 160,235 1,879,461 517,500 0 2,557,196

Total Revenues $ 83,930,589 $ 41,704,398 $ 5,475,834 $ 9,633,321 $ 140,744,142

ExpendituresCurrent:

General Government $ 8,327,468 $ 0 $ 0 $ 0 $ 8,327,468Finance 7,474,905 0 0 0 7,474,905Administration of Justice 7,295,021 0 0 21,513 7,316,534Public Safety 30,548,278 0 0 63,143 30,611,421Public Health and Welfare 14,161,809 0 0 0 14,161,809Social, Cultural, and Recreational Services 2,976,828 0 0 0 2,976,828Agriculture and Natural Resources 351,048 0 0 0 351,048Other Operations 7,113,016 0 0 0 7,113,016Highways 158,984 0 0 8,128,651 8,287,635

Debt Service:Principal on Debt 0 29,917,776 0 0 29,917,776Interest on Debt 0 11,446,924 0 0 11,446,924Other Debt Service 0 921,219 148,102 0 1,069,321

(Continued)

Major FundsNonmajor

Funds

24

Exhibit C-3


and Changes in Fund BalancesGovernmental Funds (Cont.)



Expenditures (Cont.)Capital Projects $ 0 $ 0 $ 24,034,524 $ 3,168,309 $ 27,202,833

Total Expenditures $ 78,407,357 $ 42,285,919 $ 24,182,626 $ 11,381,616 $ 156,257,518

Excess (Deficiency) of RevenuesOver Expenditures $ 5,523,232 $ (581,521) $ (18,706,792) $ (1,748,295) $ (15,513,376)

Other Financing Sources (Uses)Bonds Issued $ 0 $ 0 $ 26,710,000 $ 0 $ 26,710,000Capital Leases Issued 0 0 0 3,168,309 3,168,309Refunding Debt Issued 0 23,780,000 0 0 23,780,000Premiums on Debt Sold 0 6,158,155 3,962,273 0 10,120,428Insurance Recovery 84,426 0 33,090 25,175 142,691Transfers In 0 0 1,101,600 0 1,101,600Transfers Out (881,000) 0 0 (220,600) (1,101,600)Payments to Refunded Debt Escrow Agent 0 (29,783,417) 0 0 (29,783,417)

Total Other Financing Sources (Uses) $ (796,574) $ 154,738 $ 31,806,963 $ 2,972,884 $ 34,138,011

Net Change in Fund Balances $ 4,726,658 $ (426,783) $ 13,100,171 $ 1,224,589 $ 18,624,635Fund Balance, July 1, 2017 30,346,625 32,641,934 12,300,032 4,525,143 79,813,734

Fund Balance, June 30, 2018 $ 35,073,283 $ 32,215,151 $ 25,400,203 $ 5,749,732 $ 98,438,369


Major FundsNonmajor

Funds

25

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, 2018

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) $ 18,624,635

(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 $ 19,777,139 Less: current-year depreciation expense (5,741,365) Add: current-year depreciation expense in internal service fund 991 14,036,765

(2) The net effect of various miscellaneous transactions involving capitalassets (sales, trade-ins, and donations) is to increase net position. Add: capital assets donated $ 1,386,213 Less: book value of capital assets disposed (18,182) 1,368,031

(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, 2017 $ (3,434,561) Add: deferred delinquent property taxes and other deferred June 30, 2018 5,674,538 2,239,977

(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 $ (50,490,000) Less: capital lease proceeds (3,168,309) Add: bonds refunded 25,900,000 Add: bond proceeds for component unit - bi-county 1,665,000 Add: capital lease proceeds for component unit - school system 3,168,309 Add: principal payments on notes 20,000 Add: principal payments on bonds 27,475,000 Add: principal payments on other loans 1,507,569 Add: principal payments on capital leases 915,207 Less: contributions from school system - component unit for capital leases (915,207) Less: contributions from bi-county component unit for bonds (299,779) Add: change in deferred amount on refunding debt 1,581,551 Less: change in unamortized premium on debt issuances (7,764,806) (405,465)

(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 $ (248,740) Change in other postemployment benefits liability, net of restatement (1,523,698) Change in compensated absences payable 36,949 Change in net pension asset - agent plan 1,603 Change in net pension asset - agent legacy plan 3,509,229 Change in deferred outflows of resources related to pensions (1,848,955) Change in deferred inflows of resources related to pensions 345,002 271,390

(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. 2,042,368

Change in net position of governmental activities (Exhibit B) $ 38,177,701


26

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, 2018

Actual VarianceRevenues/ with Final

Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2017 6/30/2018 Basis) Original Final (Negative)

RevenuesLocal Taxes $ 51,408,024 $ 0 $ 0 $ 51,408,024 $ 51,153,002 $ 51,153,002 $ 255,022Licenses and Permits 2,393,357 0 0 2,393,357 1,012,000 1,012,000 1,381,357Fines, Forfeitures, and Penalties 1,197,314 0 0 1,197,314 981,800 981,800 215,514Charges for Current Services 7,686,906 0 0 7,686,906 7,003,400 7,690,400 (3,494)Other Local Revenues 2,803,569 0 0 2,803,569 1,837,407 1,838,532 965,037Fees Received From County Officials 10,361,991 0 0 10,361,991 9,267,134 9,267,134 1,094,857State of Tennessee 7,546,167 0 0 7,546,167 7,642,521 8,016,971 (470,804)Federal Government 373,026 0 0 373,026 157,988 769,303 (396,277)Other Governments and Citizens Groups 160,235 0 0 160,235 346,860 384,360 (224,125)

Total Revenues $ 83,930,589 $ 0 $ 0 $ 83,930,589 $ 79,402,112 $ 81,113,502 $ 2,817,087

ExpendituresGeneral Government

County Commission $ 394,149 $ 0 $ 4,124 $ 398,273 $ 354,316 $ 406,038 $ 7,765Board of Equalization 797 0 0 797 3,227 3,227 2,430Beer Board 1,615 0 0 1,615 2,020 2,020 405Other Boards and Committees 2,987 0 0 2,987 5,168 5,168 2,181County Mayor/Executive 489,051 0 0 489,051 514,565 514,565 25,514Personnel Office 380,606 0 0 380,606 398,535 398,535 17,929County Attorney 93,949 0 0 93,949 75,000 100,000 6,051Election Commission 593,040 0 0 593,040 648,789 666,279 73,239Register of Deeds 489,363 0 0 489,363 509,001 509,001 19,638Planning 314,592 0 0 314,592 314,592 314,592 0Building 321,114 0 28 321,142 341,540 341,540 20,398Codes Compliance 811,822 0 36,427 848,249 893,762 893,762 45,513Geographical Information Systems 312,855 0 0 312,855 221,740 314,740 1,885County Buildings 356,756 0 4,790 361,546 397,729 416,529 54,983Other Facilities 2,600,165 0 3,744 2,603,909 2,636,216 2,677,975 74,066Other General Administration 971,108 0 140 971,248 1,113,248 1,231,126 259,878

(Continued)

Budgeted Amounts

27

Exhibit C-5


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



Expenditures (Cont.)General Government (Cont.)

Preservation of Records $ 193,499 $ 0 $ 0 $ 193,499 $ 207,853 $ 218,653 $ 25,154Finance

Accounting and Budgeting 674,497 0 15,000 689,497 698,464 718,979 29,482Purchasing 295,783 0 0 295,783 310,906 310,906 15,123Property Assessor's Office 1,205,484 0 0 1,205,484 1,316,194 1,316,194 110,710County Trustee's Office 662,456 0 0 662,456 707,531 707,531 45,075County Clerk's Office 2,271,323 0 1,150 2,272,473 2,353,161 2,353,161 80,688Data Processing 2,334,722 0 32,144 2,366,866 2,363,534 2,416,091 49,225Other Finance 30,640 0 0 30,640 61,300 61,300 30,660

Administration of JusticeCircuit Court 3,042,327 0 0 3,042,327 3,159,322 3,189,322 146,995General Sessions Court 677,699 0 0 677,699 704,311 704,311 26,612Drug Court 70,474 0 0 70,474 70,000 70,000 (474)Chancery Court 609,580 (2,064) 0 607,516 624,668 627,892 20,376Juvenile Court 1,356,038 0 0 1,356,038 1,385,941 1,555,655 199,617District Attorney General 34,697 0 0 34,697 59,750 59,750 25,053Office of Public Defender 7,066 0 0 7,066 7,313 7,313 247Judicial Commissioners 238,092 0 0 238,092 253,195 253,195 15,103Other Administration of Justice 516,485 0 0 516,485 517,630 517,630 1,145Probation Services 742,563 0 0 742,563 1,072,784 1,072,784 330,221

Public SafetySheriff's Department 10,826,929 (75,907) 59,012 10,810,034 10,935,387 11,182,684 372,650Special Patrols 2,218,462 0 0 2,218,462 2,324,993 2,324,993 106,531Administration of the Sexual Offender Registry 14,755 0 0 14,755 16,125 16,855 2,100Jail 13,485,862 0 20,198 13,506,060 13,458,193 14,053,841 547,781Workhouse 1,888,905 0 0 1,888,905 1,919,715 1,919,715 30,810Correctional Incentive Program Improvements 466,906 0 0 466,906 489,802 493,802 26,896Juvenile Services 271,432 0 0 271,432 280,665 284,523 13,091Fire Prevention and Control 419,889 (1,500) 1,002 419,391 443,845 462,560 43,169

(Continued)

Budgeted Amounts

28

Exhibit C-5





Expenditures (Cont.)Public Safety (Cont.)

Civil Defense $ 482,208 $ 0 $ 0 $ 482,208 $ 520,498 $ 520,498 $ 38,290Other Emergency Management 132,098 (3,665) 0 128,433 0 459,579 331,146County Coroner/Medical Examiner 340,832 0 0 340,832 224,700 399,700 58,868

Public Health and WelfareLocal Health Center 285,380 0 667 286,047 286,419 409,104 123,057Rabies and Animal Control 873,747 (34,695) 0 839,052 912,441 996,965 157,913Ambulance/Emergency Medical Services 10,432,275 0 13,139 10,445,414 11,099,860 11,239,860 794,446Other Local Health Services 2,363,182 0 0 2,363,182 2,874,600 3,054,400 691,218Appropriation to State 184,975 0 0 184,975 218,887 218,887 33,912Other Local Welfare Services 9,050 0 0 9,050 20,825 20,825 11,775Other Public Health and Welfare 13,200 0 0 13,200 2,500 12,500 (700)

Social, Cultural, and Recreational ServicesLibraries 2,017,694 0 0 2,017,694 2,017,694 2,017,694 0Parks and Fair Boards 952,837 0 794 953,631 1,009,837 1,024,837 71,206Other Social, Cultural, and Recreational 6,297 0 0 6,297 9,688 9,688 3,391

Agriculture and Natural ResourcesAgricultural Extension Service 320,683 0 0 320,683 373,775 373,775 53,092Forest Service 2,000 0 0 2,000 2,000 2,000 0Soil Conservation 28,365 0 0 28,365 33,346 33,346 4,981

Other OperationsTourism 1,682,601 0 0 1,682,601 1,566,650 1,566,650 (115,951)Industrial Development 1,238,956 0 0 1,238,956 1,368,807 1,368,807 129,851Airport 262,842 0 0 262,842 234,125 325,557 62,715Veterans' Services 508,223 0 0 508,223 537,738 537,738 29,515Other Charges 2,182,656 0 14,022 2,196,678 2,316,406 2,321,906 125,228Contributions to Other Agencies 781,592 0 63,753 845,345 697,000 847,000 1,655Employee Benefits 439,704 0 0 439,704 457,900 457,900 18,196Miscellaneous 16,442 0 1,192 17,634 20,500 20,500 2,866

(Continued)

Budgeted Amounts

29

Exhibit C-5





Expenditures (Cont.)Highways

Litter and Trash Collection $ 158,984 $ 0 $ 0 $ 158,984 $ 123,477 $ 134,527 $ (24,457)Total Expenditures $ 78,407,357 $ (117,831) $ 271,326 $ 78,560,852 $ 81,101,703 $ 84,068,980 $ 5,508,128

Excess (Deficiency) of RevenuesOver Expenditures $ 5,523,232 $ 117,831 $ (271,326) $ 5,369,737 $ (1,699,591) $ (2,955,478) $ 8,325,215

Other Financing Sources (Uses)Insurance Recovery $ 84,426 $ 0 $ 0 $ 84,426 $ 0 $ 79,234 $ 5,192Transfers In 0 0 0 0 141,456 306,982 (306,982)Transfers Out (881,000) 0 0 (881,000) (500,000) (881,000) 0

Total Other Financing Sources $ (796,574) $ 0 $ 0 $ (796,574) $ (358,544) $ (494,784) $ (301,790)

Net Change in Fund Balance $ 4,726,658 $ 117,831 $ (271,326) $ 4,573,163 $ (2,058,135) $ (3,450,262) $ 8,023,425Fund Balance, July 1, 2017 30,346,625 (117,831) 0 30,228,794 24,504,554 30,346,625 (117,831)

Fund Balance, June 30, 2018 $ 35,073,283 $ 0 $ (271,326) $ 34,801,957 $ 22,446,419 $ 26,896,363 $ 7,905,594


Budgeted Amounts

30

Exhibit D-1Montgomery County, TennesseeStatement of Net PositionProprietary FundsJune 30, 2018

ASSETS

Current Assets: Equity in Pooled Cash and Investments $ 22,869,076 Cash with Paying Agents 50,000 Accounts Receivable 615,242 Due from Component Units 3,600Total Current Assets $ 23,537,918

Noncurrent Assets: Capital Assets: Buildings and Improvements $ 24,803 Accumulated Depreciation - Buildings and Improvements (11,506)Total Noncurrent Assets $ 13,297Total Assets $ 23,551,215

LIABILITIES

Current Liabilities: Accounts Payable $ 66,173 Payroll Deductions Payable 1,584 Claims and Judgments Payable 2,261,016Total Current Liabilities $ 2,328,773

Noncurrent Liabilities: Claims and Judgments Payable $ 2,261,015Total Noncurrent Liabilities $ 2,261,015

Total Liabilities $ 4,589,788

NET POSITION

Unrestricted $ 18,961,427

Total Net Position $ 18,961,427


Funds

GovernmentalActivities -

InternalService

31

Exhibit D-2

Montgomery County, TennesseeStatement of Revenues, Expenses, and Changes in Net PositionProprietary FundsFor the Year Ended June 30, 2018

Operating Revenues Charges for Current Services $ 56,708,997Total Operating Revenues $ 56,708,997

Operating Expenses Election Commission $ 330 Other Facilities 448 Risk Management 253,132 Property Assessor's Office 134 County Clerk's Office 700 Juvenile Court 60 Circuit Court 3,762 Sheriff's Department 18,767 Jail 8,675 Civil Defense 39,126 Rabies and Animal Control 1,280 Emergency Medical Services 18,996 Waste Pickup 1,925 Landfill Operation and Maintenance 16,699 Libraries 188 Parks and Fair Boards 1,028 Depreciation 991 Other Charges 1,763,412 Employee Benefits 55,713,456 Highway and Bridge Maintenance 30,077 Other 42,498Total Operating Expenses $ 57,915,684Operating Income (Loss) $ (1,206,687)

Nonoperating Revenues (Expenses) Investment Income $ 119,458 Miscellaneous Refunds 3,122,097 Insurance Recovery 7,500Total Nonoperating Revenues (Expenses) $ 3,249,055

Changes in Net Position $ 2,042,368Net Position, July 1, 2017 16,919,059

Net Position, June 30, 2018 $ 18,961,427



InternalServiceFunds

32

Exhibit D-3

Montgomery County, TennesseeStatement of Cash FlowsProprietary FundsFor the Year Ended June 30, 2018


InternalServiceFunds

Cash Flows from Operating Activities Receipts from Interfund Services Provided $ 56,459,754 Other Self-Insured Claims (58,116,559) Other Receipts (Payments) 3,129,597Net Cash Provided By (Used In) Operating Activities $ 1,472,792

Cash Flows from Investing Activities Investment Income $ 119,458Net Cash Provided By (Used In) Investing Activities $ 119,458

Net Increase (Decrease) in Cash $ 1,592,250Cash, July 1, 2017 21,326,826

Cash, June 30, 2018 $ 22,919,076

Reconciliation of Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ (1,206,687) Miscellaneous Refunds 3,122,097 Insurance Recovery 7,500 Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Depreciation Expense 991 (Increase) Decrease in Accounts Receivable (254,410) (Increase) Decrease in Due from Component Units 5,167 Increase (Decrease) in Accounts Payable (32,086) Increase (Decrease) in Payroll Deductions Payable (2,678) Increase (Decrease) in Claims and Judgments Payable (167,102)

Net Cash Provided By (Used In) Operating Activities $ 1,472,792


33

Exhibit EMontgomery County, TennesseeStatement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2018

ASSETS

Cash $ 8,628,685Equity in Pooled Cash and Investments 564,991Accounts Receivable 2,407Due from Other Governments 3,077,444

Total Assets $ 12,273,527

LIABILITIES

Accounts Payable $ 11,122Due to Other Taxing Units 3,076,683Due to Litigants, Heirs, and Others 8,763,280Due to Joint Ventures 398,684Other Current Liabilities 23,758

Total Liabilities $ 12,273,527


AgencyFunds

34

Note Page(s)

I. Summary of Significant Accounting PoliciesA. Reporting Entity 37B. Government-wide and Fund Financial Statements 39C. Measurement Focus, Basis of Accounting, and Financial

Statement Presentation 40D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and

Net Position/Fund Balance1. Deposits and Investments 432. Receivables and Payables 443. Inventories and Prepaid Items 454. Capital Assets 455. Deferred Outflows/Inflows of Resources 466. Compensated Absences 477. Long-term Obligations 478. Net Position and Fund Balance 489. Restatement 49

E. Pension Plans 50F. OPEB Plans 50

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 51B. Explanation of Certain Differences Between the Governmental Fund

Statement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 51

III. Stewardship, Compliance, and AccountabilityA. Budgetary Information 51B. Expenditures Exceeded Appropriations 52

IV. Detailed Notes on All FundsA. Deposits and Investments 53B. Capital Assets 56C. Construction Commitments 59D. Interfund Receivables, Payables, and Transfers 59E. Capital Leases 60F. Long-term Obligations 61G. Short-term Debt 67

MONTGOMERY COUNTY, TENNESSEEIndex of Notes to the Financial Statements

(Continued)

35

Note Page(s)

V. Other InformationA. Risk Management 67B. Accounting Changes 71C. Contingent Liabilities 72D. Landfill Closure/Postclosure Care Costs 72E. Landfill Closure/Postclosure Care Costs 72F. Joint Ventures 72G. Jointly Governed Organization 74H. Retirement Commitments 75I. Other Postemployment Benefits (OPEB) 99J. Office of Central Accounting, Budgeting, and Purchasing 108K. Purchasing Laws 108L. Subsequent Events 109

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

36

MONTGOMERY COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended June 30, 2018 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

37

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

38

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

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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 $5,524,111 were contributed by the county to the School System during the year ended June 30, 2018. 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. Montgomery County reports the following major governmental funds:

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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.

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.

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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 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

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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. Advances between funds, as reported in the General Debt Service and General Capital Projects funds financial statements are included in restricted fund balance. 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 ($3,563) and road construction ($184,020) and in the school system represent prepaid meal plans for students ($186,858). Claims and Judgments Payable totaling $4,522,031 for the primary government and $191,100 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. 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.

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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

5. Deferred Outflows/Inflows of Resources

In addition to assets, the Statement of Net Position will sometimesreport a separate section for deferred outflows of resources. Thisseparate financial statement element, deferred outflows of resources,represents a consumption of net position that applies to a futureperiod(s) and so will not be recognized as an outflow of resources(expense/expenditure) until then. The government has items thatqualify for reporting in this category. Accordingly, the items arereported in the government-wide Statement of Net Position and thegovernmental funds balance sheet. These items are for deferredcharge on refunding, pension changes in experience, pension changesin proportionate share, pension changes in investment earnings,pension changes in assumptions, employer contributions made to thepension plan after the measurement date, and other postemploymentbenefits paid after the measurement date.

In addition to liabilities, the Statement of Net Position will sometimesreport a separate section for deferred inflows of resources. Thisseparate financial statement element, deferred inflows of resources,represents an acquisition of net position that applies to a futureperiod(s) and so will not be recognized as an inflow of resources(revenue) until that time. The government has items that qualify forreporting in this category. Accordingly, the items are reported in thegovernment-wide Statement of Net Position and the governmentalfunds 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

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proportionate share, other postemployment benefits changes in experience, and various receivables for revenues, which do not meet the availability criteria in governmental funds. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

6. 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.

7. 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 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, pension liabilities, and other postemployment benefits, are recognized

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to the extent that the liabilities have matured (come due for payment) each period.

8. 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, 2018, Montgomery County had $160,855,512 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 unrestricted net position with no corresponding increase in the county’s capital assets.

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

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

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

Restricted Fund Balance – includes amounts that have constraints placed on the use of the resources that are either (a) externally imposed by creditors, grantors, contributors or laws and regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.

Committed Fund Balance – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal resolutions of the County Commission, the county’s highest level of decision-making authority and the Board of Education, the School 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 to specific purposes within the General and General Purpose School funds.

9. Restatement In prior years, the government was required to recognize a liability for its other postemployment benefits plans under Governmental Accounting Standards Board (GASB) Statement No. 45. As of July 1, 2017, Montgomery County has adopted the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Restatements reducing the beginning net position of the Governmental Activities of the Primary Government and the Discretely Presented Clarksville-Montgomery County School System totaling $9,112,938 and $13,061,887, respectively, have been recognized to account for the transitional requirements.

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E. Pension Plans

Primary Government For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of 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 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

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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

A. 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 capital projects funds, which adopt project length budgets. All annual appropriations lapse at fiscal year-end.

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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, 2018, Montgomery County had outstanding encumbrances in budget funds as follows:

Fund Amount

Primary Government: General $ 271,326 Nonmajor Governmental 444,390Total $ 715,716

Discretely Presented School System: General Purpose School $ 958,626 Nonmajor Governmental 376,600Total $ 1,335,226

B. Expenditures Exceeded Appropriations

Expenditures exceeded appropriations approved by the county commission in several major appropriation categories (the legal level of control) of the following funds:

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AmountFund/Major Appropriation Category Overspent

Primary Government: General: Drug Court $ 474 Other Public Health and Welfare 700 Tourism 115,951 Litter and Trash Collection 24,457

School System: General Purpose School: Interest on Debt - Education 1,200

Expenditures that exceed appropriations are a violation of state statutes. These expenditures in excess of appropriations were funded by available fund balance.

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 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

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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 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, 2018, 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.

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Weighted FairAverage Value or Maturity Amortized

Investment (days) Maturities Cost

Investments at Amortized Cost: State Treasurer's Investment Pool 2 to 113 N/A $ 47,416

Investments at Fair Value: Federal Farm Credit Banks N/A various 1,990,355 Federal Home Loan Bank System N/A various 7,218,128 Federal Home Loan Mortgage N/A various 1,788,526 US Treasury Note N/A various 3,132,751

Total $ 14,177,176

QuotedPrices in

ActiveMarkets Significant

for Other SignificantIdentical Observable Unobservable

Fair Value Assets Inputs InputsInvestment by fair value level 6-30-18 (Level 1) (Level 2) (Level 3)

Federal Farm Credit Banks $ 1,990,355 $ 1,990,355 $ 0 $ 0Federal Home Loan Bank System 7,218,128 7,218,128 0 0Federal Home Loan Mortgage 1,788,526 1,788,526 0 0US Treasury Note 3,132,751 3,132,751 0 0

Total $ 14,129,760 $ 14,129,760 $ 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 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.

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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. 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, 2018, 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 14.04 percent, 50.91 percent, and 12.62 percent, respectively, of the county’s total investments.

B. Capital Assets Capital assets activity for the year ended June 30, 2018, was as follows:

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Primary Government (Includes Internal Service Fund) Governmental Activities:

Balance Balance7-1-17 Increases Decreases 6-30-18

Capital Assets Not Depreciated:Land $ 9,575,865 $ 2,786,776 $ 0 $ 12,362,641Construction in Progress 6,511,365 16,047,013 (10,697,361) 11,861,017Total Capital Assets Not Depreciated $ 16,087,230 $ 18,833,789 $ (10,697,361) $ 24,223,658

Capital Assets Depreciated:Buildings and Improvements $ 135,307,633 $ 10,533,026 $ 0 $ 145,840,659Other Capital Assets 18,478,566 1,729,660 (181,822) 20,026,404Intangibles 9,732,887 160,100 0 9,892,987Infrastructure 55,509,183 604,138 0 56,113,321Total Capital Assets Depreciated $ 219,028,269 $ 13,026,924 $ (181,822) $ 231,873,371

Less Accumulated Depreciation For:Buildings and Improvements $ 39,131,407 $ 3,720,529 $ 0 $ 42,851,936Other Capital Assets 12,082,950 1,416,162 (163,640) 13,335,472Intangibles 8,111,660 110,370 0 8,222,030Infrastructure 19,134,261 494,304 0 19,628,565Total Accumulated Depreciation $ 78,460,278 $ 5,741,365 $ (163,640) $ 84,038,003

Total Capital Assets Depreciated, Net $ 140,567,991 $ 7,285,559 $ (18,182) $ 147,835,368

Governmental Activities Capital Assets, Net $ 156,655,221 $ 26,119,348 $ (10,715,543) $ 172,059,026

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

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Governmental Activities:

General Government $ 1,087,261 Finance 273,382 Administration of Justice 615,743 Public Safety 1,624,173 Public Health and Welfare 702,243 Social, Cultural, and Recreational Services 680,052 Agriculture and Natural Resources 41,310 Highway/Public Works 717,201

Total Depreciation Expense - Governmental Activities $ 5,741,365

Discretely Presented Clarksville-Montgomery County School System Governmental Activities:

Balance Balance7-1-17 Increases Decreases 6-30-18

Capital Assets Not Depreciated:Land $ 13,887,378 $ 177,776 $ 0 $ 14,065,154Construction in Progress 1,135,173 4,414,570 (1,999,710) 3,550,033Total Capital Assets Not Depreciated $ 15,022,551 $ 4,592,346 $ (1,999,710) $ 17,615,187

Capital Assets Depreciated:Buildings and Improvements $ 402,529,055 $ 3,355,071 $ 0 $ 405,884,126Other Capital Assets 40,831,832 2,805,194 (2,279,670) 41,357,356Total Capital Assets Depreciated $ 443,360,887 $ 6,160,265 $ (2,279,670) $ 447,241,482

Less Accumulated Depreciation For:Buildings and Improvements $ 125,469,770 $ 9,340,400 $ 0 $ 134,810,170Other Capital Assets 21,358,137 2,424,630 (2,259,626) 21,523,141Total Accumulated Depreciation $ 146,827,907 $ 11,765,030 $ (2,259,626) $ 156,333,311

Total Capital Assets Depreciated, Net $ 296,532,980 $ (5,604,765) $ (20,044) $ 290,908,171

Governmental Activities Capital Assets, Net $ 311,555,531 $ (1,012,419) $ (2,019,754) $ 308,523,358

Depreciation expense was charged to functions of the discretely presented School System as follows:

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Governmental Activities:

Instruction $ 117,684Support Services 11,336,319Operation of Non-instructional Services 311,027

Total Depreciation Expense - Governmental Activities $ 11,765,030

C. Construction Commitments At June 30, 2018, the General Capital Projects Fund had uncompleted construction contracts of approximately $10,141,078 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, 2018, was as follows:

Due to/from Other Funds:

Receivable Fund Payable Fund Amount

School System Component Unit: General Purpose School Nonmajor governmental $ 577,292 Nonmajor governmental General Purpose School 77,196

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. Due to/from Primary Government and Component Unit:


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

Government-wide $ 2,577,019 " Bi-County Solid Waste

Management System 2,505,221 School System:

Internal Service - Self-Insurance Nonmajor Governmental 3,600

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Advances due to/from Other Funds:


General Debt Service General Capital Projects $ 2,200,000

This balance resulted from funds borrowed for improvements to Civitan Park. This balance will be repaid from a future debt issuance.

Interfund Transfers:

Interfund transfers for the year ended June 30, 2018, consisted of the following amounts:

Primary Government:

GeneralCapital Projects

Transfers Out Fund Purpose

General $ 881,000 Renovations and EquipmentNonmajor governmental funds 220,600 Road projectTotal $ 1,101,600

Transfers In

Discretely Presented Clarksville-Montgomery County School System:

GeneralPurpose NonmajorSchool Governmental

Transfers Out Fund Funds

General Purpose School Fund $ 0 $ 250,500Nonmajor governmental funds 320,131 1,291,137

$ 320,131 $ 1,541,637

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.

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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. 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. Future minimum lease payments and the net present value of these minimum lease payments as of June 30, 2018, were as follows:

Year Ending GovernmentalJune 30 Funds

2019 $ 925,2632020 925,2622021 813,562Total Minimum Lease Payments $ 2,664,087Less: Amount Representing Interest (87,068)

Present Value of Minimum Lease Payments $ 2,577,019

F. Long-term Obligations

Primary Government General Obligation Bonds, Notes, and Other Loans Montgomery County issues general obligation bonds and other loans to provide funds for the acquisition and construction of major capital facilities

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for the primary government and the discretely presented School System. In addition, general obligation bonds have been issued to refund other general obligation bonds. Capital outlay notes are also issued to fund facilities and other capital outlay purchases, such as equipment. General obligation bonds, capital outlay notes, and other loans are direct obligations and pledge the full faith and credit of the government. General obligation bonds, capital outlay notes, and other loans outstanding were issued for original terms of up to 20 years for bonds, and up to 17 years for other loans. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. All bonds and other loans included in long-term debt as of June 30, 2018, will be retired from the General Debt Service Fund. General obligation bonds, other loans, and capital leases outstanding as of June 30, 2018, for governmental activities are as follows:

OriginalInterest Final Amount Balance

Type Rate Maturity of Issue 6-30-18

General Obligation Bonds 2 to 5.625 % 4-1-36 $ 135,045,000 $ 81,100,000General Obligation Bonds - Refunding .2 to 5 4-1-37 289,990,000 203,715,000Other Loans 0 to 1.515 7-1-26 23,763,987 10,769,034Capital Leases 1.703 10-12-20 3,603,309 2,577,019

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, capital outlay notes, and other loans outstanding as of June 30, 2018, including interest payments and other loan fees, are presented in the following tables:

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Year EndingJune 30 Total

2019 $ 27,900,000 $ 11,264,752 $ 39,164,7522020 29,390,000 10,258,077 39,648,0772021 30,570,000 9,176,501 39,746,5012022 27,305,000 7,788,901 35,093,9012023 27,030,000 6,692,138 33,722,1382024-2028 100,885,000 18,482,401 119,367,4012029-2033 27,465,000 5,292,654 32,757,6542034-2037 14,270,000 1,150,311 15,420,311

Total $ 284,815,000 $ 70,105,735 $ 354,920,735

InterestPrincipalBonds

Year EndingJune 30 Principal Interest Other Fees Total

2019 $ 1,403,572 $ 277,750 $ 19,579 $ 1,700,9012020 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 1,570,9692024-2027 3,984,399 934,250 65,000 4,983,649

Total $ 10,769,034 $ 2,424,000 $ 167,071 $ 13,360,105

Other Loans

There is $32,215,151 available in the General Debt Service Fund to service long-term debt. Bonded debt per capita totaled $1,653, based on the 2010 federal census. Total debt per capita, including bonds, other loans, capital leases, and unamortized debt premiums, totaled $1,881, 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 Indebtedness 6-30-18

Capital Leases Contributions from the General Purpose School Fund Teacher Laptops $ 217,777 Student Laptops 1,489,275 Computers 869,967

Bonds Payable Contributions from the Bi-County Solid Waste Management System General Obligation Refunding and Improvement 990,000 General Obligation Refunding and Improvement 1,515,221

Total $ 5,082,240

Changes in Long-term Obligations Long-term obligations activity for the year ended June 30, 2018, was as follows: Primary Government

Governmental Activities: OtherBonds Notes Loans

Balance, July 1, 2017 $ 287,700,000 $ 20,000 $ 12,276,603Additions 50,490,000 0 0Reductions (53,375,000) (20,000) (1,507,569)

Balance, June 30, 2018 $ 284,815,000 $ 0 $ 10,769,034

Balance Due Within One Year $ 27,900,000 $ 0 $ 1,403,572

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OtherCapital Compensated PostemploymentLeases Absences Benefits^

Balance, July 1, 2017 $ 323,917 $ 3,465,179 $ 13,903,728Additions 3,168,309 3,863,887 1,523,698Reductions (915,207) (3,900,836) (230,176)

Balance, June 30, 2018 $ 2,577,019 $ 3,428,230 $ 15,197,250

Balance Due Within One Year $ 881,032 $ 2,637,572 $ 0

^OPEB balance at July 1, 2017 was restated. See Note I.D.9. Internal

Net Pension ServiceLiability - Claims and

Agent Plan* Judgments

Balance, July 1, 2017 $ 2,105,520 $ 4,689,133Additions 5,492,654 52,342,638Reductions (9,001,883) (52,509,740)

Balance, June 30, 2018 $ (1,403,709) $ 4,522,031

Balance Due Within One Year $ 0 $ 2,261,016

*At June 30, 2018, the legacy plan has a net pension asset.

Analysis of Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2018 $ 321,308,564Less: Due Within One Year (35,083,192)Add: Unamortized Premium on Debt 26,056,013

Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 312,281,385

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. Advance Refunding On September 20, 2017, Montgomery County advance refunded a portion of a general obligation bond issue with a separate general obligation bond issue. The county issued $23,780,000 of general obligation refunding bonds to provide resources to purchase U.S. government securities that were placed in an irrevocable trust to generate resources for all future debt service payments of the refunded debt. As a result, the refunded bonds are

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considered defeased, and the liability has been removed from the county’s long-term debt. As a result of the advance refunding, total debt service payments over the next eleven years will be reduced by $2,920,669, and an economic gain (difference between the present value of the debt service payments of the refunded and refunding bonds) of $2,478,489 was obtained. 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, 2018, the following outstanding bonds are considered defeased:

Amount

2008 General Obligation Industrial Park Bond $ 10,450,000

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, 2018, was as follows:

OtherPostemployment Compensated Claims and

Benefits^ Absences Judgments

Balance, July 1, 2017 $ 23,119,369 $ 1,677,060 $ 198,500Additions 3,447,592 1,970,261 317,558Reductions (1,565,190) (1,808,365) (324,958)

Balance, June 30, 2018 $ 25,001,771 $ 1,838,956 $ 191,100

Balance Due Within One Year $ 0 $ 1,783,787 $ 120,600

^OPEB balance at July 1, 2017 was restated. See Note I.D.9.

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Net Pension Net PensionLiability - Liability -

Agent Plan* Legacy Plan*

Balance, July 1, 2017 $ 2,003,614 $ 18,580,408Additions 5,712,270 10,619,519Reductions (9,175,719) (30,175,162)

Balance, June 30, 2018 $ (1,459,835) $ (975,235)

Balance Due Within One Year $ 0 $ 0

*At June 30, 2018, the agent and legacy plans have net pension assets.

Analysis of Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2018 $ 27,031,827Less: Due Within One Year (1,904,387)

Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 25,127,440

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.

G. Short-term Debt

Montgomery County issued revenue anticipation notes in advance of revenue collections and deposited the proceeds in the School Federal Projects Fund. These notes were necessary because funds were not available to meet obligations coming due before current revenue collections. Short-term debt activity for the year ended June 30, 2018, was as follows: Balance Balance

7-1-17 Issued Paid 6-30-18

Revenue Anticipation Notes $ 0 $ 1,000,000 $ (1,000,000) $ 0

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

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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 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:

2016-17 $ 3,830,858 $ 51,679,764 $ (51,110,332) $ 4,400,2902017-18 4,400,290 52,130,704 (52,289,863) 4,241,131

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

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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:

2016-17 $ 41,866 $ 19,575 $ (39,150) $ 22,2912017-18 22,291 206,972 (6,263) 223,000

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:

2016-17 $ 266,552 $ 473,675 $ (473,675) $ 266,5522017-18 266,552 4,962 (213,614) 57,900

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

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to the LGPCF for its general liability, property, and casualty insurance coverage. The creation of the LGPCF provides for it to be self-sustaining through member premiums. The LGPCF reinsures through commercial insurance companies. 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:

2016-17 $ 117,000 $ 62,288 $ (30,288) $ 149,0002017-18 149,000 31,675 (39,675) 141,000

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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2016-17 $ 35,800 $ 170,766 $ (157,066) $ 49,5002017-18 49,500 285,883 (285,283) 50,100

Payments



Liability


Estimates

B. Accounting Changes

Provisions of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions; Statement No. 81, Irrevocable Split-Interest Agreements; Statement No. 85, Omnibus 2017; and Statement No. 86, Certain Debt Extinguishment Issues became effective for the year ended June 30, 2018. GASB Statement No. 75, establishes accounting and reporting requirements for postemployment benefits other than pensions (other postemployment benefits or OPEB), which are included in the general purpose financial reports of state and local governmental OPEB plans. This statement replaces GASB Statements No. 45 and No. 57. The scope of this statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, this statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed. GASB Statement No. 81, establishes accounting and financial reporting guidance for irrevocable split-interest agreements in which a government is a beneficiary. GASB Statement No. 85, addresses practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). GASB Statement No. 86, establishes guidance for transactions in which cash and other monetary assets acquired with only existing resources—resources other than the proceeds of refunding debt—are placed in an irrevocable trust for the sole purpose of extinguishing debt. This statement also provides guidance for accounting and financial reporting for prepaid insurance on debt

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that is extinguished and notes to financial statements for debt that is defeased in substance.

C. Contingent Liabilities The county is involved in several pending lawsuits. The county attorney estimates that the potential claims against the county not covered by insurance resulting from such litigation would not materially affect the county’s financial statements.

D. Change in Administration On July 1, 2017, Dr. B.J. Worthington left the Office of Director of Schools and was succeeded by Millard House II.

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 $262,842 for the operations of the airport and $314,592 for the operations of the planning commission during the year ended June 30, 2018. The Joint Economic and Community Development Board is a joint venture between Montgomery County and the City of Clarksville. The board

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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 2017-18 year. 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 2017-18 year. The Clarksville Central Business Improvement District Management Corporation of 1999, doing business as Two Rivers Company (TRC), is a joint venture between Montgomery County and the City of Clarksville. The 13- member board is comprised of the county mayor, city mayor, President of Austin Peay State University, Executive Director of the Economic Development Council, and nine appointed members. The purpose of TRC is to adopt and implement a comprehensive plan for the redevelopment of the Clarksville Central Business Improvement and Redevelopment District. The county and city will provide equal funding for each fiscal year. Montgomery County contributed $300,000 to TRC for the year ended June 30, 2018.

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:

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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 Council25 Jefferson Street Suite 300Clarksville, TN 37040

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

Two Rivers Company1 Millenium Plaza, Suite 104Clarksville, TN 37040

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.

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H. Retirement Commitments 1. Tennessee Consolidated Retirement System (TCRS)

Primary Government General Information About the Pension Plans 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 and the Public Employee POST-certified Legacy Pension Plan, agent multiple-employer pension plans administered by the TCRS. The Public Employee Legacy Pension Plan and Public Employee POST-certified Legacy Pension Plan are 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 legally separate plans, referred to as the Public Employee Retirement Plan and the Public Employee POST-Certified Retirement Plan, agent multiple-employer pension plans 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/tcrs. Public Employee Legacy Pension Plan and Public Employee POST-Certified 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 and the Public Employee POST-Certified Legacy Pension Plan, agent multiple-employer pension plans administered by the TCRS. The Public Employee Legacy Pension Plan and Public Employee POST-Certified Legacy Pension Plan were closed to new membership on December 31, 2016, but will continue providing benefits to existing members and retirees. The primary government employees comprised 49.02 percent and the non-certified employees of the discretely presented School System comprised 50.98 percent of the Public Employee Legacy Pension Plan based on contribution data. All POST-certified employees of the primary government hired prior to January 1, 2017, are accounted for in the

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http://www.treasury.tn.gov/tcrs

Public Employee POST-Certified Legacy Pension Plan. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with five years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. Reduced benefits for early retirement are available to vested members at age 55. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions plus any accumulated interest. Employees Covered by Benefit Terms. At the measurement date of June 30, 2017, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 1,115Inactive Employees Entitled to But Not Yet Receiving Benefits 1,267Active Employees 2,473

Total 4,855

Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Montgomery County employees are noncontributory. 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, 2018, the employer

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contribution for Montgomery County was $8,795,963 for the Public Employee Legacy Pension Plan based on a rate of 12.86 percent of covered payroll and $756,184 for the Public Employee POST-Certified Legacy Pension Plan based on a rate of 16.36 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, 2017, and the total pension liability (asset) used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability as of the June 30, 2017, 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 3.46% 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, 2017, 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

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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:

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. Changes of Assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3.0 percent to 2.5 percent; decreased the investment rate of return from 7.5 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.5 to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4 percent; and modified the mortality assumptions. 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

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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, 2016 $ 226,133,313 $ 222,024,179 $ 4,109,134

Changes for the Year: Service Cost $ 6,572,627 $ 0 $ 6,572,627 Interest 17,141,116 0 17,141,116 Differences Between Expected and Actual Experience (451,308) 0 (451,308) Changes in Assumptions 5,472,654 0 5,472,654 Contributions-Employer 0 10,597,843 (10,597,843) Contributions-Employees 0 28,082 (28,082) Net Investment Income 0 25,280,451 (25,280,451) Benefit Payments, Including Refunds of Employee Contributions (8,315,453) (8,315,453) 0 Administrative Expense 0 (206,927) 206,927 Other Changes 0 8,318 (8,318)Net Changes $ 20,419,636 $ 27,392,314 $ (6,972,678)

Balance, June 30, 2017 $ 246,552,949 $ 249,416,493 $ (2,863,544)

Increase (Decrease)

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

Plan NetTotal Fiduciary Pension

Pension Net LiabilityLiability Position (Asset)

Primary Government 49.02% $ 120,860,256 $ 122,263,965 $ (1,403,709)

School System 50.98% 125,692,693 127,152,528 (1,459,835)

Total $ 246,552,949 $ 249,416,493 $ (2,863,544)

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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:

Current1% Discount 1%

Decrease Rate Increase6.25% 7.25% 8.25%

Net Pension Liability $ 31,100,166 $ (2,863,544) $ (31,036,777)

Pension Expense (Income) and Deferred Outflows of Resources and Deferred Inflows of Resources to Pensions Pension Expense or Negative Pension Expense. For the year ended June 30, 2018, Montgomery County recognized pension expense of $6,224,414. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2018, 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 $ 483,958 $ 4,205,586Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 93,279Changes in Assumptions 4,560,545 0Contributions Subsequent to the Measurement Date of June 30, 2017 (1) 9,552,147 N/A

Total $ 14,596,650 $ 4,298,865

(1) The amount shown above for “Contributions Subsequent to the Measurement Date of June 30, 2017,” 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 $ 7,218,181 $ 2,107,303

School System 7,378,469 2,191,562

Total $ 14,596,650 $ 4,298,865

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

2019 $ (928,848)2020 2,248,4072021 419,5522022 (1,830,373)2023 836,891Thereafter 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 and Public Employee POST-Certified 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 and the Public Employee POST-Certified Hybrid Retirement 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 50.33 percent and the non-certified employees of the discretely presented School System comprise 49.67 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, 2017, 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 10Active Employees 146

Total 156

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, 2018, to the Public Employee Hybrid Retirement Plan were $310,237, which is four percent of covered payroll and employer contributions to the Public Employee POST-Certified Hybrid Retirement Plan were $18,781, which is 4.85 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 to Pensions Pension Liabilities (Assets). Montgomery County’s net pension liability (asset) was measured at June 30, 2017, 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, 2017, 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 performed for the period July 1, 2012, through June 30, 2016. The

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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. Changes of Assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3.0 percent to 2.5 percent; decreased the investment rate of return from 7.5 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.5 to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4 percent; and modified the mortality assumptions.

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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. Changes in the Net Pension Liability (Asset)

Total Plan Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)

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

Balance, July 1, 2016 $ 0 $ 0 $ 0

Changes for the Year: Service Cost $ 0 $ 0 $ 0 Interest 0 0 0 Changes in Benefit Terms 63,548 0 63,548 Differences Between Expected and Actual Experience 0 0 0 Changes in Assumptions 0 0 0 Contributions-Employer 0 31,282 (31,282) Contributions-Employees 0 39,103 (39,103) Net Investment Income 0 3,578 (3,578) Benefit Payments, Including Refunds of Employee Contributions 0 0 0 Administrative Expense 0 (7,229) 7,229 Other Changes 0 0 0Net Changes $ 63,548 $ 66,734 $ (3,186)

Balance, June 30, 2017 $ 63,548 $ 66,734 $ (3,186)

Increase (Decrease)

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

Plan NetTotal Fiduciary Pension

Pension Net LiabilityLiability Position (Asset)

Primary Government 50.33% $ 31,984 $ 33,587 $ (1,603)

School Department 49.67% 31,564 33,147 (1,583)

Total $ 63,548 $ 66,734 $ (3,186)

Changes in Benefit Terms. The June 30, 2017, valuation is the first valuation for the plan. Changes of benefit terms reflect the initial establishment of the plan’s benefit terms. 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 $ 14,883 $ (3,186) $ (16,322)

Pension Expense (Income) and Deferred Outflows of Resources and Deferred Inflows of Resources to Pensions Pension Expense or Negative Pension Expense. For the year ended June 30, 2018, Montgomery County recognized pension expense of $29,064. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2018, Montgomery County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

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Difference Between Expected and Actual Experience $ 0 $ 0Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 968Changes in Assumptions 0 0Contributions Subsequent to the Measurement Date of June 30, 2017 (1) 329,018 N/A

Total $ 329,018 $ 968

(1) The amount shown above for “Contributions Subsequent to the Measurement Date of June 30, 2017,” will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period.

Allocation of Agent Plan Deferred Outflows of Resources and Deferred Inflows of Resources

Deferred DeferredOutflows of Inflows ofResources Resources

Primary Government $ 150,096 $ 487

School System 178,922 481

Total $ 329,018 $ 968

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:

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2019 $ (242)2020 (242)2021 (242)2022 (242)2023 0Thereafter 0

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 comprised 49.02 percent and the non-certified employees of the discretely presented School System comprised 50.98 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

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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/tcrs. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members are eligible to retire with an unreduced benefit at age 65 with five years of service credit or pursuant to the rule of 90 in which the member’s age and service credit total 90. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 60 or pursuant to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted 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, 2018, to the Teacher

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Retirement Plan were $1,585,307, which is four 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 Liabilities (Assets). At June 30, 2018, the School System reported a liability (asset) of ($1,086,727) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2017, and the total pension liability (asset) used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. The School Department’s proportion of the net pension liability (asset) was based on the School Department’s share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2017, the School System’s proportion was 4.118983 percent. The proportion as of June 30, 2016, was 4.164263 percent. Pension Expense. For the year ended June 30, 2018, the School System recognized pension expense of $491,823. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2018, 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 $ 38,086 $ 81,731Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 58,475Changes in Assumptions 95,474 0Changes in Proportion of Net Pension Liability (Asset) 5,013 10,704LEA's Contributions Subsequent to the Measurement Date of June 30, 2017 (1) 1,585,307 N/A

Total $ 1,723,880 $ 150,910

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The School System’s employer contributions of $1,585,307, 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, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:


2019 $ (6,289)2020 (6,289)2021 (9,638)2022 (24,678)2023 2,895Thereafter 31,664

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, 2017, 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, 2017, 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

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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. Changes of Assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3.0 percent to 2.5 percent; decreased the investment rate of return from 7.5 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.5 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.0 percent; and modified the mortality assumptions. 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

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to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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

School System'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 $ 216,816 $ (1,086,727) $ (2,042,904)

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

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TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/tcrs.

Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible to retire with an unreduced benefit at age 60 with five years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 55. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of 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, 2018, to the Teacher Legacy Pension Plan were $9,660,826, which is 9.08 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.

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Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

Pension Liability (Assets). At June 30, 2018, the School System reported a liability (asset) of ($975,235) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2017, 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, 2017, the School System’s proportion was 2.980699 percent. The proportion measured at June 30, 2016, was 2.973129 percent.

Pension Expense. For the year ended June 30, 2018, the School System recognized pension expense of $230,416.

Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2018, 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 $ 587,940 $ 20,134,007Changes in Assumptions 8,259,668 0Net Difference Between Projected and Actual Earnings on Pension Plan Investments 148,038 0Changes in Proportion of Net Pension Liability (Asset) 806,185 502,152LEA's Contributions Subsequent to the Measurement Date of June 30, 2017 9,660,826 N/A

Total $ 19,462,657 $ 20,636,159

The School System’s employer contributions of $9,660,826 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, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources

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related to pensions will be recognized in pension expense as follows:


2019 $ (6,759,161)2020 3,217,6722021 (2,294,169)2022 (4,998,669)2023 0Thereafter 0

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, 2017, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:





Mortality rates are based actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2017, 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

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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. Changes of Assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3.0 percent to 2.5 percent; decreased the investment rate of return from 7.5 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.5 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.0 percent; and modified the mortality assumptions. 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

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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:

School System'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 $ 87,506,324 $ (975,235) $ (74,111,074)

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 compensationplans, one established pursuant to IRC Section 457 and the otherpursuant to IRC Section 401(k). All costs of administering and fundingthese programs are the responsibility of plan participants. The Section401(k) and Section 457 plan assets remain the property of thecontributing employees and are not presented in the accompanyingfinancial statements. IRC Sections 401(k) and 457 establishparticipation, contribution, and withdrawal provisions for the plans.

Employees hired after January 1, 2017, by the primary governmentare required to participate in a hybrid pension plan consisting of adefined benefit portion, which is detailed in the pensions footnoteabove and is managed by the Tennessee Consolidated RetirementSystem, and a defined contribution portion which is placed into thestate’s 401 (K) plan and is managed by the employee. The definedcontribution portion of the plan requires that the primary governmentcontribute five percent of each employee’s salary into their deferredcompensation plan. In addition, employees are required to contributetwo percent of their salaries into this deferred compensation plan,unless they opt out of the employee portion. During the year theprimary government contributed $3,669,818 to this deferredcompensation pension plan.

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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. 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 $2,210,058 and teachers and non-certified employees contributed $725,761 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

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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 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% of the plan premium if the retiree is within 120 months of medicare eligibility, 80% of the plan premium if the retiree is 121-132 months from medicare eligibility, 75% if the retiree is 133-144 months from medicare eligibility, 70% if the retiree is 145-156 months from medicare eligibility, 65% if the retiree is 157-168 months from medicare eligibility, and 60% 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% of the plan premium for the first 24 months after retirement, 70% of the plan premium for 25 to 60 months after retirement, 50% of the plan premium for 61 to 120 months after retirement, and 0% 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

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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% 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: 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, 2018, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and Methods. The total OPEB liability in the June 30, 2018, 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, 2018, 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, 2017 $ 13,903,728 $ 1,643,534 $ 505,506Changes for the Year: Service Cost $ 1,083,925 $ 118,664 $ 26,024 Interest 439,773 51,518 15,131

Benefit Payments/Refunds (230,176) (33,402) (23,771)Net Changes $ 1,293,522 $ 136,780 $ 17,384

Balance June 30, 2018 $ 15,197,250 $ 1,780,314 $ 522,890

Share of Collective Liability

PlanningCommission E-911 Total

Balance July 1, 2017 $ 573,681 $ 1,292,460 $ 17,918,909Changes for the Year: Service Cost $ 19,090 $ 39,012 $ 1,286,715 Interest 16,181 36,924 559,527

Benefit Payments/Refunds (49,794) (92,420) (429,563)Net Changes $ (14,523) $ (16,484) $ 1,416,679

Balance June 30, 2018 $ 559,158 $ 1,275,976 $ 19,335,588

Share of Collective Liability

During the year, the plan member’s proportionate share of the collective OPEB liability was as follows: Primary Government 78.60%, Bi-county Solid Waste Management System 9.21%, Clarksville-Montgomery County Public Library 2.70%, Clarksville-Montgomery County Regional Planning Commission 2.89%, and Emergency Communications District of Montgomery County 6.60%.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2018, the plan recognized OPEB expense of $1,846,242, which was allocated as follows: Primary Government $1,523,698, Bi-county Solid Waste Management System $170,182, Clarksville-Montgomery County Public Library $41,155, Clarksville-Montgomery County Regional Planning Commission $35,271, and Emergency Communications District of Montgomery County $75,936. There were no deferred inflows and outflows reported at June 30, 2018.

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

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what the OPEB liability would be if it was calculated using a discount rate 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 $ 16,649,339 $ 15,197,250 $ 13,867,521




Bi-County Solid Waste Management System



Total OPEB Liability $ 572,851 $ 522,890 $ 477,138

Clarksville-Montgomery County Public Library




Clarksville-Montgomery County Regional Planning

Commission




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% decreasing to 5% over 10 years, as well as what the OPEB liability

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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

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

Public Library




Clarksville-Montgomery County Regional Planning

Commission

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


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 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 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% 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% 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, 2017, the following employees were covered by the benefit terms: Active Employees in Medical Plan 2,720Active Employees in Life Plan 699Retirees in Medical Plan 138Retirees in Life Plan 574Total 4,131

Total OPEB Liability The discretely presented school system’s total OPEB liability was measured as of June 30, 2017, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and Methods. The total OPEB liability in the June 30, 2017, 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 3.17%Inflation Rate No factor was included for inflationSalary Increases 3.00%Healthcare Cost Trend Rate 8% grades down to 5% over 10 yearsFututre 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 adjusted to base year 2006 using improvement scale MP 2014 and projected forward generationally using improvement scale MP 2016. The actuarial assumptions used in the June 30, 2017, 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, 2016 $ 23,119,369Changes for the Year: Service Cost $ 2,676,305 Interest 771,287 Difference between actual and expected (100,334)

Contributions - Employer (1,464,856)Net Changes $ 1,882,402

Balance June 30, 2017 $ 25,001,771

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2018, the school system recognized OPEB expense of $3,437,559. At June 30, 2018, 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 $ 0 $ 90,301Benefits Paid After Measurement Date 117,188 0

Total $ 117,188 $ 90,301

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:


2019 $ (10,033)2020 (10,033)2021 (10,033)2022 (10,033)2023 (10,033)Thereafter (40,136)

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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 3.17 percent, as well as what the OPEB liability would be if it was calculated using a discount rate that is one percentage point lower (2.17%) or one percentage point higher (4.17%) than the current rate:



Total OPEB Liability $ 26,911,469 $ 25,001,771 $ 23,289,249 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 8% decreasing to 5% over 10 years, 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:




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

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5-14-101 et seq., Tennessee Code Annotated (TCA). Purchases for theHighway Department are also governed by the Uniform Road Law, Section54-7-113, TCA. Section 5-14-101 et seq., TCA, provides for a purchasingagent, appointed by the county mayor and approved by the MontgomeryCounty Commission, to make all purchases. This statute also provides for aCounty Purchasing Commission to assist the purchasing agent in thedetermination of overall purchasing policies. These statutes, along with TCASection 12-3-1212, require all purchases exceeding $25,000 to be made on thebasis 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

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

On August 1, 2018, Montgomery County issued a capital lease in the amount of $1,359,841 for laptops for the discretely presented Clarksville-Montgomery County School System.

On November 14, 2018, Montgomery County issued a general obligation public improvement bond in the amount of $14,630,000 for various county and school improvement projects.

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REQUIRED SUPPLEMENTARY INFORMATION

110

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

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

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

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

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

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

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

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

Note: data presented includes primary government and non-certified employees of the discretely presented School System.

111

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

Total Pension Liability Changes of Benefit Terms $ 63,548Net Change in Total Pension Liability $ 63,548Total Pension Liability, Beginning 0

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

Plan Fiduciary Net PositionContributions - Employer $ 31,282Contributions - Employee 39,103Net Investment Income 3,578Administrative Expense (7,229)Net Change in Plan Fiduciary Net Position $ 66,734Plan Fiduciary Net Position, Beginning 0

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

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

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


Note: data presented includes primary government and non-certified employees of the discretely presented School System.

112

Exhibit F-3Montgomery 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

Actuarially Determined Contribution $ 9,861,110 $ 9,884,158 $ 10,115,859 $ 10,597,843 $ 8,795,963Less Contributions in Relation to the Actuarially Determined Contribution (9,861,110) (9,884,158) (10,115,859) (10,597,843) (8,795,963)

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

Covered Payroll $ 68,814,466 $ 71,520,680 $ 73,260,275 $ 76,319,231 $ 68,397,862

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


Note: data presented includes primary government and non-certified employees of the discretely presented School System hired prior to January 1, 2017.

113

Exhibit F-4Montgomery County, TennesseeSchedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRSPrimary GovernmentFor the Fiscal Year Ended June 30

2017 2018

Actuarially Determined Contribution $ 31,282 $ 310,237Less Contributions in Relation to the Actuarially Determined Contribution (31,282) (310,237)

Contribution Deficiency (Excess) $ 0 $ 0

Covered Payroll $ 782,476 $ 7,770,291

Contributions as a Percentage of Covered Payroll 4.00% 4.00%


Note: data presented includes primary government and non-certified employees of the discretely presented School System hired after January 1, 2017.

114

Exhibit F-5Montgomery County, TennesseeSchedule of Contributions Based on Participation in the Public Employee POST-Certified Legacy Pension Plan of TCRSPrimary GovernmentFor the Fiscal Year Ended June 30

2018

Actuarially Determined Contribution $ 756,184Less Contributions in Relation to the Actuarially Determined Contribution (756,184)

Contribution Deficiency (Excess) $ 0

Covered Payroll $ 4,622,154

Contributions as a Percentage of Covered Payroll 16.36%


Note: data presented includes primary government employees that are POST certified and were hired prior to January 1, 2017.

115

Exhibit F-6Montgomery County, TennesseeSchedule of Contributions Based on Participation in the Public Employee POST-Certified Pension Plan of TCRSPrimary GovernmentFor the Fiscal Year Ended June 30

2018

Actuarially Determined Contribution $ 18,781Less Contributions in Relation to the Actuarially Determined Contribution (18,781)

Contribution Deficiency (Excess) $ 0

Covered Payroll $ 386,936

Contributions as a Percentage of Covered Payroll 4.85%


Note: data presented includes primary government employees that are POST certified and were hired after January 1, 2017.

116

Exhibit F-7Montgomery 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

Contractually Required Contribution $ 318,055 $ 732,918 $ 1,081,379 $ 1,585,307Less Contributions in Relation to the Contractually Required Contribution (318,055) (732,918) (1,081,379) (1,585,307)

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

Covered Payroll $ 7,951,405 $ 18,323,029 $ 28,106,731 $ 39,639,857

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


117

Exhibit F-8

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

Contractually Required Contribution $ 10,592,992 $ 10,341,505 $ 9,702,087 $ 9,525,105 $ 9,660,826Less Contributions in Relation to the Contractually Required Contribution (10,592,992) (10,341,505) (9,702,087) (9,525,105) (9,660,826)

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

Covered Payroll $ 119,290,487 $ 114,397,283 $ 107,324,025 $ 105,366,326 $ 104,179,087

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


118

Exhibit F-9Montgomery 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 *

2016 2017 2018

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

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

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

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

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

* The amounts presented were determined as of June 30 of the prior fiscal year.


119

Exhibit F-10

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 *

2015 2016 2017 2018

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

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

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

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)%

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

* The amounts presented were determined as of June 30 of the prior fiscal year.


120

Exhibit F-11

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

2018Total OPEB Liability Service Cost $ 1,083,925 Interest 439,773 Changes in Benefit Terms 0Differences Between Actual and Expected Experience 0Changes of Assumptions 0Benefit Payments /Refunds (230,176) Net Change in Total OPEB Liability $ 1,293,522 Total OPEB Liability, Beginning 13,903,728

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

Plan Fiduciary Net PositionContributions - Employer $ 230,176 Contributions - Employee 0Net Investment Income 0Benefit Payments/Refunds (230,176) Administrative Expenses 0Other 0Net Change in Plan Fiduciary Net Position $ 0Plan Fiduciary Net Position, Beginning 0

Plan Fiduciary Net Position, Ending (b) $ 0

Net OPEB Liability (Asset), Ending (a - b) $ 15,197,250

Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 0.00%Covered Employee Payroll 28,888,228 Net OPEB Liability (Asset) as a Percentage of Covered Employee Payroll 52.61%

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

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

121

Exhibit F-12

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 *

2017Total OPEB Liability Service Cost $ 2,676,305 Interest 771,287 Changes in Benefit Terms 0Differences Between Actual and Expected Experience (100,334)Changes of Assumptions 0Benefit Payments /Refunds (1,464,856) Net Change in Total OPEB Liability $ 1,882,402 Total OPEB Liability, Beginning 23,119,369

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

Plan Fiduciary Net PositionContributions - Employer $ 1,464,856 Contributions - Employee 0Net Investment Income 0Benefit Payments/Refunds (1,464,856) Administrative Expenses 0Other 0Net Change in Plan Fiduciary Net Position $ 0Plan Fiduciary Net Position, Beginning 0

Plan Fiduciary Net Position, Ending (b) $ 0

Net OPEB Liability (Asset), Ending (a - b) $ 25,001,771

Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 0.00%Covered Employee Payroll 158,826,770 Net OPEB Liability (Asset) as a Percentage of Covered Employee Payroll 15.70%

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.

122

MONTGOMERY COUNTY, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

For the Year Ended June 30, 2018

TENNESSEE CONSOLIDATED RETIREMENT SYSTEM Valuation Date: Actuarially determined contribution rates for fiscal year 2017 were calculated based on the June 30, 2016, actuarial valuation. Methods and assumptions used to determine contribution rates: Public Employee Legacy Pension Plan:

Actuarial Cost Method Entry Age NormalAmortization Method Level DollarRemaining Amortization Period Varies by yearAsset Valuation Fair Market ValueInflation 2.5%Salary Increases Graded Salary Ranges from 8.27% to

3.46% 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 Projection of Mortality Improvement Using Scale MP-2016 (Static Projection to 6 Years Beyond the Valuation Date)


123

Public Employee Pension Plan:

Actuarial Cost Method Entry Age NormalAmortization Method Level DollarRemaining Amortization Period Varies by yearAsset Valuation Fair Market ValueInflation 2.5%Salary Increases Graded Salary Ranges from 8.72% to

3.46% 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 Projection of Mortality Improvement Using Scale MP-2016 (Generational Projection)


124

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

125

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 Funds _____________________________

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

_____________________________ 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.

126

Exhibit G-1

Montgomery County, TennesseeCombining Balance SheetNonmajor Governmental FundsJune 30, 2018

Constitu - Totaltional Highway / Nonmajor

Drug Officers - Public GovernmentalControl Fees Works Funds

ASSETS

Cash $ 0 $ 10,700 $ 50 $ 10,750Equity in Pooled Cash and Investments 60,270 0 5,087,393 5,147,663Accounts Receivable 2,770 1,312 1,846 5,928Due from Other Governments 0 0 1,204,394 1,204,394Property Taxes Receivable 0 0 4,346,350 4,346,350Allowance for Uncollectible Property Taxes 0 0 (78,735) (78,735)

Total Assets $ 63,040 $ 12,012 $ 10,561,298 $ 10,636,350

LIABILITIES

Accounts Payable $ 0 $ 0 $ 63,155 $ 63,155Payroll Deductions Payable 0 0 15,836 15,836Due to Litigants, Heirs, and Others 0 12,012 0 12,012Other Current Liabilities 16,853 0 0 16,853Current Liabilities Payable From Restricted Assets 0 0 184,020 184,020Total Liabilities $ 16,853 $ 12,012 $ 263,011 $ 291,876


Deferred Current Property Taxes $ 0 $ 0 $ 4,166,705 $ 4,166,705Deferred Delinquent Property Taxes 0 0 83,216 83,216Other Deferred/Unavailable Revenue 0 0 344,821 344,821Total Deferred Inflows of Resources $ 0 $ 0 $ 4,594,742 $ 4,594,742

(Continued)

Special Revenue Funds

127

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 $ 46,187 $ 0 $ 0 $ 46,187Restricted for Highways/Public Works 0 0 5,259,843 5,259,843

Assigned:Assigned for Highways/Public Works 0 0 443,702 443,702

Total Fund Balances $ 46,187 $ 0 $ 5,703,545 $ 5,749,732

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 63,040 $ 12,012 $ 10,561,298 $ 10,636,350


128

Exhibit G-2

Montgomery County, TennesseeCombining Statement of Revenues, Expenditures,

and Changes in Fund BalancesNonmajor Governmental FundsFor the Year Ended June 30, 2018

Constitu - Totaltional Highway / Education Nonmajor

Drug Officers - Public Capital GovernmentalControl Fees Works Total Projects Funds

RevenuesLocal Taxes $ 0 $ 0 $ 4,734,086 $ 4,734,086 $ 0 $ 4,734,086Fines, Forfeitures, and Penalties 24,004 0 0 24,004 0 24,004Charges for Current Services 0 21,513 0 21,513 0 21,513Other Local Revenues 0 0 21,794 21,794 0 21,794State of Tennessee 0 0 4,831,924 4,831,924 0 4,831,924

Total Revenues $ 24,004 $ 21,513 $ 9,587,804 $ 9,633,321 $ 0 $ 9,633,321


Administration of Justice $ 0 $ 21,513 $ 0 $ 21,513 $ 0 $ 21,513Public Safety 63,143 0 0 63,143 0 63,143Highways 0 0 8,128,651 8,128,651 0 8,128,651

Capital Projects 0 0 0 0 3,168,309 3,168,309Total Expenditures $ 63,143 $ 21,513 $ 8,128,651 $ 8,213,307 $ 3,168,309 $ 11,381,616

Excess (Deficiency) of RevenuesOver Expenditures $ (39,139) $ 0 $ 1,459,153 $ 1,420,014 $ (3,168,309) $ (1,748,295)

Other Financing Sources (Uses)Capital Leases Issued $ 0 $ 0 $ 0 $ 0 $ 3,168,309 $ 3,168,309Insurance Recovery 0 0 25,175 25,175 0 25,175Transfers Out 0 0 (220,600) (220,600) 0 (220,600)

Total Other Financing Sources (Uses) $ 0 $ 0 $ (195,425) $ (195,425) $ 3,168,309 $ 2,972,884

Net Change in Fund Balances $ (39,139) $ 0 $ 1,263,728 $ 1,224,589 $ 0 $ 1,224,589Fund Balance, July 1, 2017 85,326 0 4,439,817 4,525,143 0 4,525,143

Fund Balance, June 30, 2018 $ 46,187 $ 0 $ 5,703,545 $ 5,749,732 $ 0 $ 5,749,732


Capital Projects

Fund

129

Exhibit G-3Montgomery County, TennesseeSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Actual (Budgetary Basis) and BudgetDrug Control FundFor the Year Ended June 30, 2018


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

RevenuesFines, Forfeitures, and Penalties $ 24,004 $ 0 $ 24,004 $ 25,000 $ 25,000 $ (996)

Total Revenues $ 24,004 $ 0 $ 24,004 $ 25,000 $ 25,000 $ (996)

ExpendituresPublic Safety

Sheriff's Department $ 63,143 $ 688 $ 63,831 $ 112,878 $ 106,878 $ 43,047Total Expenditures $ 63,143 $ 688 $ 63,831 $ 112,878 $ 106,878 $ 43,047

Excess (Deficiency) of RevenuesOver Expenditures $ (39,139) $ (688) $ (39,827) $ (87,878) $ (81,878) $ 42,051

Net Change in Fund Balance $ (39,139) $ (688) $ (39,827) $ (87,878) $ (81,878) $ 42,051Fund Balance, July 1, 2017 85,326 0 85,326 89,199 85,326 0

Fund Balance, June 30, 2018 $ 46,187 $ (688) $ 45,499 $ 1,321 $ 3,448 $ 42,051

Budgeted Amounts

130

Exhibit G-4

Montgomery County, TennesseeSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Actual (Budgetary Basis) and BudgetHighway/Public Works FundFor the Year Ended June 30, 2018



RevenuesLocal Taxes $ 4,734,086 $ 0 $ 0 $ 4,734,086 $ 4,658,034 $ 4,658,034 $ 76,052Other Local Revenues 21,794 0 0 21,794 48,100 48,100 (26,306)State of Tennessee 4,831,924 0 0 4,831,924 4,189,110 4,357,495 474,429Other Governments and Citizens Groups 0 0 0 0 25,000 25,000 (25,000)

Total Revenues $ 9,587,804 $ 0 $ 0 $ 9,587,804 $ 8,920,244 $ 9,088,629 $ 499,175

ExpendituresHighways

Administration $ 459,538 $ 0 $ 0 $ 459,538 $ 464,224 $ 465,399 $ 5,861Highway and Bridge Maintenance 4,278,834 0 90,865 4,369,699 4,786,794 4,786,794 417,095Operation and Maintenance of Equipment 1,146,648 0 56,076 1,202,724 1,276,239 1,270,064 67,340Traffic Control 416,099 0 0 416,099 512,319 512,319 96,220Other Charges 519,574 0 0 519,574 560,171 560,171 40,597Employee Benefits 38,972 0 0 38,972 35,000 40,000 1,028Capital Outlay 1,268,986 (19,601) 296,761 1,546,146 2,089,000 2,336,987 790,841

Total Expenditures $ 8,128,651 $ (19,601) $ 443,702 $ 8,552,752 $ 9,723,747 $ 9,971,734 $ 1,418,982

Excess (Deficiency) of RevenuesOver Expenditures $ 1,459,153 $ 19,601 $ (443,702) $ 1,035,052 $ (803,503) $ (883,105) $ 1,918,157

Other Financing Sources (Uses)Insurance Recovery $ 25,175 $ 0 $ 0 $ 25,175 $ 0 $ 0 $ 25,175Transfers Out (220,600) 0 0 (220,600) (220,600) (220,600) 0

Total Other Financing Sources $ (195,425) $ 0 $ 0 $ (195,425) $ (220,600) $ (220,600) $ 25,175

Net Change in Fund Balance $ 1,263,728 $ 19,601 $ (443,702) $ 839,627 $ (1,024,103) $ (1,103,705) $ 1,943,332Fund Balance, July 1, 2017 4,439,817 (19,601) 0 4,420,216 3,153,621 4,502,681 (82,465)


Budgeted Amounts

131

Major Governmental Fund

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.

____________________________

132

Exhibit H


in Fund Balance - Actual and BudgetGeneral Debt Service FundFor the Year Ended June 30, 2018

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesLocal Taxes $ 38,581,865 $ 37,177,375 $ 37,952,375 $ 629,490Other Local Revenues 1,152,457 300,000 930,000 222,457Federal Government 90,615 90,000 289,750 (199,135)Other Governments and Citizens Groups 1,879,461 0 925,263 954,198

Total Revenues $ 41,704,398 $ 37,567,375 $ 40,097,388 $ 1,607,010

ExpendituresPrincipal on Debt

General Government $ 11,040,517 $ 10,085,170 $ 11,040,517 $ 0Education 18,877,259 17,527,399 18,981,257 103,998

Interest on DebtGeneral Government 4,132,477 3,435,229 4,132,477 0Education 7,314,447 7,931,304 7,966,880 652,433

Other Debt ServiceGeneral Government 364,824 268,500 425,500 60,676Education 556,395 678,000 679,667 123,272

Total Expenditures $ 42,285,919 $ 39,925,602 $ 43,226,298 $ 940,379

Excess (Deficiency) of RevenuesOver Expenditures $ (581,521) $ (2,358,227) $ (3,128,910) $ 2,547,389

Other Financing Sources (Uses)Refunding Debt Issued $ 23,780,000 $ 0 $ 23,780,000 $ 0Premiums on Debt Sold 6,158,155 0 6,187,667 (29,512)Payments to Refunded Debt Escrow Agent (29,783,417) 0 (29,967,667) 184,250

Total Other Financing Sources $ 154,738 $ 0 $ 0 $ 154,738

Net Change in Fund Balance $ (426,783) $ (2,358,227) $ (3,128,910) $ 2,702,127Fund Balance, July 1, 2017 32,641,934 32,021,159 32,641,934 0

Fund Balance, June 30, 2018 $ 32,215,151 $ 29,662,932 $ 29,513,024 $ 2,702,127

Budgeted Amounts

133

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.

134

Exhibit I-1

Montgomery County, TennesseeCombining Statement of Net PositionProprietary FundsJune 30, 2018

Self- Workers' UnemploymentInsurance Compensation Compensation Total

ASSETS

Current Assets: Equity in Pooled Cash and Investments $ 21,730,484 $ 1,100,317 $ 38,275 $ 22,869,076 Cash with Paying Agents 0 50,000 0 50,000 Accounts Receivable 615,242 0 0 615,242 Due from Component Units 3,600 0 0 3,600Total Current Assets $ 22,349,326 $ 1,150,317 $ 38,275 $ 23,537,918

Noncurrent Assets: Capital Assets: Buildings and Improvements $ 24,803 $ 0 $ 0 $ 24,803 Accumulated Depreciation - Buildings and Improvements (11,506) 0 0 (11,506)Total Noncurrent Assets $ 13,297 $ 0 $ 0 $ 13,297Total Assets $ 22,362,623 $ 1,150,317 $ 38,275 $ 23,551,215

LIABILITIES

Current Liabilities: Accounts Payable $ 51,935 $ 14,238 $ 0 $ 66,173 Payroll Deductions Payable 0 1,584 0 1,584 Claims and Judgments Payable 2,120,566 140,450 0 2,261,016Total Current Liabilities $ 2,172,501 $ 156,272 $ 0 $ 2,328,773

Noncurrent Liabilities: Claims and Judgments Payable $ 2,120,565 $ 140,450 $ 0 $ 2,261,015Total Noncurrent Liabilities $ 2,120,565 $ 140,450 $ 0 $ 2,261,015Total Liabilities $ 4,293,066 $ 296,722 $ 0 $ 4,589,788

NET POSITION

Unrestricted $ 18,069,557 $ 853,595 $ 38,275 $ 18,961,427

Total Net Position $ 18,069,557 $ 853,595 $ 38,275 $ 18,961,427

Internal Service Funds

135

Exhibit I-2

Montgomery County, TennesseeCombining Statement of Revenues, Expenses, and Changes in Net PositionProprietary FundsFor the Year Ended June 30, 2018


Operating Revenues Charges for Current Services $ 55,873,755 $ 787,117 $ 48,125 $ 56,708,997Total Operating Revenues $ 55,873,755 $ 787,117 $ 48,125 $ 56,708,997

Operating Expenses Election Commission $ 0 $ 330 $ 0 $ 330 Other Facilities 0 448 0 448 Risk Management 0 253,132 0 253,132 Property Assessor's Office 0 134 0 134 County Clerk's Office 0 700 0 700 Data Processing 0 60 0 60 Circuit Court 0 60 3,702 3,762 Probation Services 0 18,767 0 18,767 Jail 0 8,675 0 8,675 Civil Defense 0 39,126 0 39,126 Rabies and Animal Control 0 1,280 0 1,280 Emergency Medical Services 0 18,996 0 18,996 Waste Pickup 0 0 1,925 1,925 Landfill Operation and Maintenance 0 16,699 0 16,699 Libraries 0 188 0 188 Parks and Fair Boards 0 1,028 0 1,028 Depreciation 991 0 0 991 Other Charges 1,763,412 0 0 1,763,412 Employee Benefits 55,713,456 0 0 55,713,456 Highway and Bridge Maintenance 0 30,077 0 30,077 Instruction 0 0 42,498 42,498Total Operating Expenses $ 57,477,859 $ 389,700 $ 48,125 $ 57,915,684Operating Income (Loss) $ (1,604,104) $ 397,417 $ 0 $ (1,206,687)

Nonoperating Revenues (Expenses) Investment Income $ 119,458 $ 0 $ 0 $ 119,458 Miscellaneous Refunds 3,122,097 0 0 3,122,097 Insurance Recovery 0 7,500 0 7,500Total Nonoperating Revenues (Expenses) $ 3,241,555 $ 7,500 $ 0 $ 3,249,055

Changes in Net Position $ 1,637,451 $ 404,917 $ 0 $ 2,042,368Net Position, July 1, 2017 16,432,106 448,678 38,275 16,919,059

Net Position, June 30, 2018 $ 18,069,557 $ 853,595 $ 38,275 $ 18,961,427


136

Exhibit I-3Montgomery County, TennesseeCombining Statement of Cash FlowsProprietary FundsFor the Year Ended June 30, 2018


Cash Flows from Operating Activities Receipts from Interfund Services Provided $ 55,624,512 $ 787,117 $ 48,125 $ 56,459,754 Other Self-Insured Claims (57,667,377) (401,057) (48,125) (58,116,559) Other Receipts (Payments) 3,122,097 7,500 0 3,129,597Net Cash Provided By (Used In) Operating Activities $ 1,079,232 $ 393,560 $ 0 $ 1,472,792

Cash Flows from Investing Activities Investment Income $ 119,458 $ 0 $ 0 $ 119,458Net Cash Provided By (Used In) Investing Activities $ 119,458 $ 0 $ 0 $ 119,458

Net Increase (Decrease) in Cash $ 1,198,690 $ 393,560 $ 0 $ 1,592,250Cash, July 1, 2017 20,531,794 756,757 38,275 21,326,826

Cash, June 30, 2018 $ 21,730,484 $ 1,150,317 $ 38,275 $ 22,919,076

(Continued)


137

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) $ (1,604,104) $ 397,417 $ 0 $ (1,206,687) Miscellaneous Refunds 3,122,097 0 0 3,122,097 Insurance Recovery 0 7,500 0 7,500 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 (254,410) 0 0 (254,410) (Increase) Decrease in Due from Component Units 5,167 0 0 5,167 Increase (Decrease) in Accounts Payable (31,350) (736) 0 (32,086) Increase (Decrease) in Payroll Deductions Payable 0 (2,678) 0 (2,678) Increase (Decrease) in Claims and Judgments Payable (159,159) (7,943) 0 (167,102)

Net Cash Provided By (Used In) Operating Activities $ 1,079,232 $ 393,560 $ 0 $ 1,472,792


138

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.

139

Exhibit J-1

Montgomery County, TennesseeCombining Statement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2018

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

ASSETS

Cash $ 0 $ 8,621,687 $ 6,998 $ 0 $ 0 $ 8,628,685Equity in Pooled Cash and Investments 0 0 425,804 89,187 50,000 564,991Accounts Receivable 0 1,208 317 882 0 2,407Due from Other Governments 3,076,683 0 0 761 0 3,077,444

Total Assets $ 3,076,683 $ 8,622,895 $ 433,119 $ 90,830 $ 50,000 $ 12,273,527

LIABILITIES

Accounts Payable $ 0 $ 0 $ 10,677 $ 445 $ 0 $ 11,122Due to Other Taxing Units 3,076,683 0 0 0 0 3,076,683Due to Litigants, Heirs, and Others 0 8,622,895 0 90,385 50,000 8,763,280Due to Joint Ventures 0 0 398,684 0 0 398,684Other Current Liabilities 0 0 23,758 0 0 23,758

Total Liabilities $ 3,076,683 $ 8,622,895 $ 433,119 $ 90,830 $ 50,000 $ 12,273,527

Agency Funds

140

Exhibit J-2

Montgomery County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency FundsFor the Year Ended June 30, 2018

Beginning EndingBalance Additions Deductions Balance

Cities - Sales Tax Fund Assets Equity in Pooled Cash and Investments $ 0 $ 17,437,002 $ 17,437,002 $ 0 Due from Other Governments 2,878,427 3,076,683 2,878,427 3,076,683

Total Assets $ 2,878,427 $ 20,513,685 $ 20,315,429 $ 3,076,683

Liabilities Due to Other Taxing Units $ 2,878,427 $ 20,513,685 $ 20,315,429 $ 3,076,683

Total Liabilities $ 2,878,427 $ 20,513,685 $ 20,315,429 $ 3,076,683

Constitutional Officers - Agency Fund Assets Cash $ 7,793,341 $ 48,949,694 $ 48,121,348 $ 8,621,687 Accounts Receivable 1,153 1,208 1,153 1,208

Total Assets $ 7,794,494 $ 48,950,902 $ 48,122,501 $ 8,622,895

Liabilities Due to Litigants, Heirs, and Others $ 7,794,494 $ 48,950,902 $ 48,122,501 $ 8,622,895


Judicial District Drug Fund Assets Cash $ 4,526 $ 6,998 $ 4,526 $ 6,998 Equity in Pooled Cash and Investments 301,179 313,722 189,097 425,804 Accounts Receivable 48 317 48 317 Due from Other Governments 3,723 0 3,723 0

Total Assets $ 309,476 $ 321,037 $ 197,394 $ 433,119

Liabilities Accounts Payable $ 3,141 $ 10,677 $ 3,141 $ 10,677 Due to Joint Ventures 293,688 247,405 142,409 398,684 Other Current Liabilities 12,647 62,955 51,844 23,758

Total Liabilities $ 309,476 $ 321,037 $ 197,394 $ 433,119

(Continued)

141

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 $ 74,172 $ 48,083 $ 33,068 $ 89,187 Accounts Receivable 689 882 689 882 Due from Other Governments 118 761 118 761

Total Assets $ 74,979 $ 49,726 $ 33,875 $ 90,830

Liabilities Accounts Payable $ 3,572 $ 445 $ 3,572 $ 445 Due to Litigants, Heirs, and Others 71,407 49,281 30,303 90,385

Total Liabilities $ 74,979 $ 49,726 $ 33,875 $ 90,830

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 $ 7,797,867 $ 48,956,692 $ 48,125,874 $ 8,628,685 Equity in Pooled Cash and Investments 425,351 17,798,807 17,659,167 564,991 Accounts Receivable 1,890 2,407 1,890 2,407 Due from Other Governments 2,882,268 3,077,444 2,882,268 3,077,444

Total Assets $ 11,107,376 $ 69,835,350 $ 68,669,199 $ 12,273,527

Liabilities Accounts Payable $ 6,713 $ 11,122 $ 6,713 $ 11,122 Due to Other Taxing Units 2,878,427 20,513,685 20,315,429 3,076,683 Due to Litigants, Heirs, and Others 7,915,901 49,000,183 48,152,804 8,763,280 Due to Joint Ventures 293,688 247,405 142,409 398,684 Other Current Liabilities 12,647 62,955 51,844 23,758


142

Clarksville-Montgomery County School 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.

143

Exhibit K-1

Montgomery County, TennesseeStatement of ActivitiesDiscretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2018

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 $ 163,134,389 $ 509,402 $ 10,124,994 $ 0 $ (152,499,993) Support Services 123,052,102 293,883 3,888,652 129,258 (118,740,309) Operation of Non-instructional Services 18,609,570 4,755,530 12,427,936 0 (1,426,104) Interest on Long-term Debt 25,575 0 0 0 (25,575)

Total Governmental Activities $ 304,821,636 $ 5,558,815 $ 26,441,582 $ 129,258 $ (272,691,981)

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 31,509,027 Local Option Sales Tax 51,929,103 Wheel Tax 4,824,272 Business Tax 785,234 Mixed Drink Tax 405,879 Grants and Contributions Not Restricted to Specific Programs 185,050,559 Unrestricted Investment Earnings 31,303 Miscellaneous 271,384Total General Revenues $ 274,806,761

Change in Net Position $ 2,114,780Net Position, July 1, 2017 343,198,152Restatement - See Note I.D.9. (13,061,887)

Net Position, June 30, 2018 $ 332,251,045

Program Revenues

144

Exhibit K-2

Montgomery County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Clarksville-Montgomery County School SystemJune 30, 2018

OtherGeneral Education Govern- TotalPurpose Capital mental GovernmentalSchool Projects Funds Funds

ASSETS

Cash $ 200,367 $ 0 $ 517,089 $ 717,456Equity in Pooled Cash and Investments 36,800,672 1,524,840 9,564,779 47,890,291Inventories 200,439 0 348,819 549,258Accounts Receivable 114,258 0 192,836 307,094Due from Other Governments 17,038,722 0 2,699,015 19,737,737Due from Other Funds 577,292 0 77,196 654,488Property Taxes Receivable 28,983,999 0 2,035,867 31,019,866Allowance for Uncollectible Property Taxes (537,059) 0 (37,764) (574,823)Prepaid Items 2,140,276 0 0 2,140,276

Total Assets $ 85,518,966 $ 1,524,840 $ 15,397,837 $ 102,441,643

LIABILITIES

Accounts Payable $ 1,564,031 $ 1,068,325 $ 108,959 $ 2,741,315Accrued Payroll 15,330,825 0 675,666 16,006,491Payroll Deductions Payable 8,768,410 0 368,144 9,136,554Due to Other Funds 77,196 0 577,292 654,488Due to Primary Government 0 0 3,600 3,600Current Liabilities Payable From Restricted Assets 0 0 186,858 186,858Total Liabilities $ 25,740,462 $ 1,068,325 $ 1,920,519 $ 28,729,306


Deferred Current Property Taxes $ 27,742,379 $ 0 $ 1,948,508 $ 29,690,887Deferred Delinquent Property Taxes 610,266 0 42,958 653,224

(Continued)

Nonmajor Funds

Major Funds

145

Exhibit K-2

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



Other Deferred/Unavailable Revenue $ 4,821,169 $ 0 $ 0 $ 4,821,169Total Deferred Inflows of Resources $ 33,173,814 $ 0 $ 1,991,466 $ 35,165,280

FUND BALANCES

Nonspendable:Inventory $ 200,439 $ 0 $ 348,819 $ 549,258Prepaid Items 2,140,276 0 0 2,140,276

Restricted:Restricted for Education 0 0 9,957,543 9,957,543Restricted for Capital Projects 0 456,515 0 456,515

Committed:Committed for Education 8,424,972 0 1,179,490 9,604,462

Assigned:Assigned for Education 7,811,994 0 0 7,811,994

Unassigned 8,027,009 0 0 8,027,009Total Fund Balances $ 26,604,690 $ 456,515 $ 11,485,852 $ 38,547,057

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 85,518,966 $ 1,524,840 $ 15,397,837 $ 102,441,643

Nonmajor Funds

Major Funds

146

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, 2018

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) $ 38,547,057

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 14,065,154 Add: construction in progress 3,550,033 Add: buildings and improvements net of accumulated depreciation 271,073,956 Add: other capital assets net of accumulated depreciation 19,834,215 308,523,358

(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 lease $ (2,577,019) Less: claims and judgments payable (191,100) Less: other postemployment benefits liability (25,001,771) Less: compensated absences payable (1,838,956) (29,608,846)

(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 $ 28,743,928 Less: deferred inflows of resources related to pensions (22,979,112) Add: deferred outflows of resources related to other postemployment benefits 117,188 Less: deferred inflows of resources related to other postemployment benefits (90,301) 5,791,703

(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 - agent plan $ 1,583 Add: net pension asset - agent legacy plan 1,459,835 Add: net pension asset - teacher retirement plan 1,086,727 Add: net pension asset - teacher legacy retirement plan 975,235 3,523,380

(5) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 5,474,393

Net position of governmental activities (Exhibit A) $ 332,251,045

147

Exhibit K-4


and Changes in Fund Balances - Governmental Funds

Discretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2018


RevenuesLocal Taxes $ 87,798,247 $ 0 $ 2,127,910 $ 89,926,157Charges for Current Services 345,294 0 4,976,904 5,322,198Other Local Revenues 1,557,957 0 137,840 1,695,797State of Tennessee 163,040,805 0 11,456,534 174,497,339Federal Government 2,537,352 0 30,213,169 32,750,521Other Governments and Citizens Groups 3,199,438 2,355,802 0 5,555,240

Total Revenues $ 258,479,093 $ 2,355,802 $ 48,912,357 $ 309,747,252


Instruction $ 159,918,189 $ 0 $ 8,849,680 $ 168,767,869Support Services 95,494,621 0 22,402,554 117,897,175Operation of Non-Instructional Services 2,040,472 0 16,960,866 19,001,338

Debt Service:Interest on Debt 25,575 0 0 25,575Other Debt Service 1,491,138 0 0 1,491,138

Capital Projects 0 4,726,766 0 4,726,766Total Expenditures $ 258,969,995 $ 4,726,766 $ 48,213,100 $ 311,909,861

Excess (Deficiency) of RevenuesOver Expenditures $ (490,902) $ (2,370,964) $ 699,257 $ (2,162,609)

Other Financing Sources (Uses)Insurance Recovery $ 174,260 $ 0 $ 0 $ 174,260Transfers In 320,131 0 1,541,637 1,861,768

(Continued)

Nonmajor Funds

Major Funds

148

Exhibit K-4


and Changes in Fund Balances - Governmental Funds

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


Other Financing Sources (Uses) (Cont.)Transfers Out $ (250,500) $ 0 $ (1,611,268) $ (1,861,768)

Total Other Financing Sources (Uses) $ 243,891 $ 0 $ (69,631) $ 174,260

Net Change in Fund Balances $ (247,011) $ (2,370,964) $ 629,626 $ (1,988,349)Fund Balance, July 1, 2017 26,851,701 2,827,479 10,856,226 40,535,406

Fund Balance, June 30, 2018 $ 26,604,690 $ 456,515 $ 11,485,852 $ 38,547,057

Nonmajor Funds

Major Funds

149

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, 2018

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) $ (1,988,349)

(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 $ 8,752,901 Less: current-year depreciation expense (11,765,030) (3,012,129)

(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 (20,044)

(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, 2017 $ (5,112,494) Add: deferred delinquent property taxes and other deferred June 30, 2018 5,474,393 361,899

(4) The contributions of long-term debt (e.g., notes, bonds, leases) by the primary government provide current financial resources to governmental funds, while the contributions by the School Department of the principal of long-term debt consumethe current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Add: principal contributions on leases to primary government $ 915,207 Less: lease proceeds contributed from primary government (3,168,309) (2,253,102)

(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/liability - Public Employee Legacy Agent Pension Plan $ 3,463,449 Change in net pension asset/liability - Teacher Legacy Pension Plan 19,555,643 Change in net pension asset/liability - Teacher Retirement Plan 653,214 Change in net pension asset - Public Employee Retirement Plan 1,583 Change in deferred outflows of resources related to pensions (13,711,552) Change in deferred inflows of resources related to pensions 2,539,035 Change in claims and judgments payable 7,400 Change in other postemployment benefits liability, net of restatement (1,882,402) Change in deferred outflows of resources related to other postemployment benefits, net of restatement (1,347,668) Change in deferred inflows of resources related to other postemployment benefits (90,301) Change in compensated absences payable (161,896) 9,026,505

Change in net position of governmental activities (Exhibit B) $ 2,114,780

150

Exhibit K-6

Montgomery County, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Clarksville-Montgomery County School SystemJune 30, 2018

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

ASSETS

Cash $ 0 $ 517,089 $ 0 $ 0 $ 517,089Equity in Pooled Cash and Investments 1,547,332 5,896,875 1,927,907 192,665 9,564,779Inventories 0 348,819 0 0 348,819Accounts Receivable 45 36,610 65,056 91,125 192,836Due from Other Governments 1,783,141 915,874 0 0 2,699,015Due from Other Funds 1,251 62,772 13,173 0 77,196Property Taxes Receivable 0 0 2,035,867 0 2,035,867Allowance for Uncollectible Property Taxes 0 0 (37,764) 0 (37,764)

Total Assets $ 3,331,769 $ 7,778,039 $ 4,004,239 $ 283,790 $ 15,397,837

LIABILITIES

Accounts Payable $ 54,758 $ 25,984 $ 28,217 $ 0 $ 108,959Accrued Payroll 615,631 0 1,499 58,536 675,666Payroll Deductions Payable 321,618 0 762 45,764 368,144Due to Other Funds 500,830 76,233 229 0 577,292Due to Primary Government 0 0 3,600 0 3,600Current Liabilities Payable From Restricted Assets 0 186,858 0 0 186,858Total Liabilities $ 1,492,837 $ 289,075 $ 34,307 $ 104,300 $ 1,920,519


Deferred Current Property Taxes $ 0 $ 0 $ 1,948,508 $ 0 $ 1,948,508

(Continued)


151

Exhibit K-6

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



Deferred Delinquent Property Taxes $ 0 $ 0 $ 42,958 $ 0 $ 42,958Total Deferred Inflows of Resources $ 0 $ 0 $ 1,991,466 $ 0 $ 1,991,466

FUND BALANCES

Nonspendable:Inventory $ 0 $ 348,819 $ 0 $ 0 $ 348,819

Restricted:Restricted for Education 838,932 7,140,145 1,978,466 0 9,957,543

Committed:Committed for Education 1,000,000 0 0 179,490 1,179,490

Total Fund Balances $ 1,838,932 $ 7,488,964 $ 1,978,466 $ 179,490 $ 11,485,852

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 3,331,769 $ 7,778,039 $ 4,004,239 $ 283,790 $ 15,397,837


152

Exhibit K-7

Montgomery County, TennesseeCombining Statement of Revenues, Expenditures,

and Changes in Fund Balances - Nonmajor Governmental Funds

Discretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2018


RevenuesLocal Taxes $ 0 $ 0 $ 2,127,910 $ 0 $ 2,127,910Charges for Current Services 0 4,699,454 0 277,450 4,976,904Other Local Revenues 0 81,555 56,285 0 137,840State of Tennessee 352,386 149,148 10,955,000 0 11,456,534Federal Government 17,879,781 12,278,788 54,600 0 30,213,169

Total Revenues $ 18,232,167 $ 17,208,945 $ 13,193,795 $ 277,450 $ 48,912,357


Instruction $ 8,623,939 $ 0 $ 0 $ 225,741 $ 8,849,680Support Services 7,419,652 0 14,935,217 47,685 22,402,554Operation of Non-Instructional Services 0 16,960,866 0 0 16,960,866

Total Expenditures $ 16,043,591 $ 16,960,866 $ 14,935,217 $ 273,426 $ 48,213,100

Excess (Deficiency) of RevenuesOver Expenditures $ 2,188,576 $ 248,079 $ (1,741,422) $ 4,024 $ 699,257

Other Financing Sources (Uses)Transfers In $ 0 $ 0 $ 1,541,637 $ 0 $ 1,541,637Transfers Out (1,611,268) 0 0 0 (1,611,268)

Total Other Financing Sources (Uses) $ (1,611,268) $ 0 $ 1,541,637 $ 0 $ (69,631)

Net Change in Fund Balances $ 577,308 $ 248,079 $ (199,785) $ 4,024 $ 629,626Fund Balance, July 1, 2017 1,261,624 7,240,885 2,178,251 175,466 10,856,226

Fund Balance, June 30, 2018 $ 1,838,932 $ 7,488,964 $ 1,978,466 $ 179,490 $ 11,485,852


153

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, 2018



RevenuesLocal Taxes $ 87,798,247 $ 0 $ 0 $ 87,798,247 $ 86,234,120 $ 86,699,076 $ 1,099,171Charges for Current Services 345,294 0 0 345,294 211,420 388,875 (43,581)Other Local Revenues 1,557,957 0 0 1,557,957 191,653 1,577,065 (19,108)State of Tennessee 163,040,805 0 0 163,040,805 157,702,047 162,136,023 904,782Federal Government 2,537,352 0 0 2,537,352 3,303,906 2,539,739 (2,387)Other Governments and Citizens Groups 3,199,438 0 0 3,199,438 31,494 3,199,803 (365)

Total Revenues $ 258,479,093 $ 0 $ 0 $ 258,479,093 $ 247,674,640 $ 256,540,581 $ 1,938,512

ExpendituresInstruction

Regular Instruction Program $ 126,021,190 $ (65,860) $ 12,311 $ 125,967,641 $ 127,438,176 $ 128,363,809 $ 2,396,168Alternative Instruction Program 1,217,413 0 0 1,217,413 1,248,060 1,273,361 55,948Special Education Program 26,986,558 (979) 2,950 26,988,529 27,731,824 27,991,956 1,003,427Career and Technical Education Program 5,693,028 (35,790) 0 5,657,238 5,769,342 5,795,255 138,017

Support ServicesAttendance 869,692 (3,850) 7 865,849 879,941 881,795 15,946Health Services 1,604,898 0 0 1,604,898 1,667,532 1,732,192 127,294Other Student Support 8,513,156 0 0 8,513,156 8,696,750 8,773,861 260,705Regular Instruction Program 13,735,732 (357) 0 13,735,375 14,274,211 14,615,031 879,656Alternative Instruction Program 27,776 0 0 27,776 30,326 30,326 2,550Special Education Program 3,289,508 0 0 3,289,508 3,309,266 3,466,415 176,907Career and Technical Education Program 129,027 0 0 129,027 130,165 130,170 1,143Technology 14,200,290 (199,805) 283,966 14,284,451 12,567,596 15,009,309 724,858Adult Programs 287,796 0 0 287,796 211,003 292,754 4,958Board of Education 4,264,545 0 248,165 4,512,710 3,623,492 4,867,878 355,168Director of Schools 1,274,716 (15,105) 13,026 1,272,637 1,358,297 1,374,416 101,779Office of the Principal 18,221,222 0 3,428 18,224,650 18,328,020 18,428,204 203,554Fiscal Services 2,783,043 (9,863) 7,073 2,780,253 2,911,840 2,956,026 175,773Human Services/Personnel 2,667,053 0 5,250 2,672,303 2,654,119 2,821,898 149,595

(Continued)

Budgeted Amounts

154

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 $ 16,812,062 $ (37,021) $ 238,758 $ 17,013,799 $ 17,416,310 $ 18,013,296 $ 999,497Maintenance of Plant 6,814,105 (332,468) 137,792 6,619,429 6,697,528 6,956,639 337,210

Operation of Non-Instructional ServicesEarly Childhood Education 2,040,472 0 5,900 2,046,372 2,154,464 2,218,603 172,231

Principal on DebtEducation 0 0 0 0 625,263 0 0

Interest on DebtEducation 25,575 0 0 25,575 24,375 24,375 (1,200)

Other Debt ServiceEducation 1,491,138 0 0 1,491,138 0 1,491,139 1

Total Expenditures $ 258,969,995 $ (701,098) $ 958,626 $ 259,227,523 $ 259,747,900 $ 267,508,708 $ 8,281,185

Excess (Deficiency) of RevenuesOver Expenditures $ (490,902) $ 701,098 $ (958,626) $ (748,430) $ (12,073,260) $ (10,968,127) $ 10,219,697

Other Financing Sources (Uses)Capital Leases Issued $ 0 $ 0 $ 0 $ 0 $ 2,000,000 $ 0 $ 0Insurance Recovery 174,260 0 0 174,260 1,000 801,000 (626,740)Transfers In 320,131 0 0 320,131 182,800 182,800 137,331Transfers Out (250,500) 0 0 (250,500) (862,757) (296,882) 46,382

Total Other Financing Sources $ 243,891 $ 0 $ 0 $ 243,891 $ 1,321,043 $ 686,918 $ (443,027)

Net Change in Fund Balance $ (247,011) $ 701,098 $ (958,626) $ (504,539) $ (10,752,217) $ (10,281,209) $ 9,776,670Fund Balance, July 1, 2017 26,851,701 (701,098) 0 26,150,603 26,660,560 26,150,604 (1)


Budgeted Amounts

155

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, 2018


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

RevenuesState of Tennessee $ 352,386 $ 0 $ 352,386 $ 324,757 $ 499,878 $ (147,492)Federal Government 17,879,781 0 17,879,781 19,289,639 20,804,037 (2,924,256)

Total Revenues $ 18,232,167 $ 0 $ 18,232,167 $ 19,614,396 $ 21,303,915 $ (3,071,748)


Regular Instruction Program $ 4,846,141 $ 0 $ 4,846,141 $ 5,700,940 $ 6,089,238 $ 1,243,097Special Education Program 3,369,377 0 3,369,377 3,491,839 3,881,693 512,316Career and Technical Education Program 408,421 1,624 410,045 279,498 432,597 22,552

Support ServicesHealth Services 154,968 0 154,968 155,000 154,999 31Other Student Support 534,188 0 534,188 675,662 637,846 103,658Regular Instruction Program 4,942,691 0 4,942,691 5,619,853 6,540,970 1,598,279Special Education Program 1,672,414 0 1,672,414 2,096,537 2,028,549 356,135Career and Technical Education Program 4,058 0 4,058 5,000 4,700 642Transportation 111,333 0 111,333 1,339,383 139,010 27,677

Total Expenditures $ 16,043,591 $ 1,624 $ 16,045,215 $ 19,363,712 $ 19,909,602 $ 3,864,387

Excess (Deficiency) of RevenuesOver Expenditures $ 2,188,576 $ (1,624) $ 2,186,952 $ 250,684 $ 1,394,313 $ 792,639

Other Financing Sources (Uses)Transfers In $ 0 $ 0 $ 0 $ 1,000,000 $ 0 $ 0Transfers Out (1,611,268) 0 (1,611,268) (1,250,684) (1,652,112) 40,844

Total Other Financing Sources $ (1,611,268) $ 0 $ (1,611,268) $ (250,684) $ (1,652,112) $ 40,844

Net Change in Fund Balance $ 577,308 $ (1,624) $ 575,684 $ 0 $ (257,799) $ 833,483Fund Balance, July 1, 2017 1,261,624 0 1,261,624 1,000,000 1,000,000 261,624

Fund Balance, June 30, 2018 $ 1,838,932 $ (1,624) $ 1,837,308 $ 1,000,000 $ 742,201 $ 1,095,107

Budgeted Amounts

156

Exhibit K-10


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Clarksville-Montgomery County School SystemCentral Cafeteria FundFor the Year Ended June 30, 2018



RevenuesCharges for Current Services $ 4,699,454 $ 0 $ 0 $ 4,699,454 $ 4,754,428 $ 4,685,715 $ 13,739Other Local Revenues 81,555 0 0 81,555 70,031 85,087 (3,532)State of Tennessee 149,148 0 0 149,148 142,484 149,148 0Federal Government 12,278,788 0 0 12,278,788 12,106,454 12,105,287 173,501

Total Revenues $ 17,208,945 $ 0 $ 0 $ 17,208,945 $ 17,073,397 $ 17,025,237 $ 183,708

ExpendituresOperation of Non-Instructional Services

Food Service $ 16,960,866 $ (12,000) $ 374,976 $ 17,323,842 $ 17,928,430 $ 18,823,530 $ 1,499,688Total Expenditures $ 16,960,866 $ (12,000) $ 374,976 $ 17,323,842 $ 17,928,430 $ 18,823,530 $ 1,499,688

Excess (Deficiency) of RevenuesOver Expenditures $ 248,079 $ 12,000 $ (374,976) $ (114,897) $ (855,033) $ (1,798,293) $ 1,683,396

Net Change in Fund Balance $ 248,079 $ 12,000 $ (374,976) $ (114,897) $ (855,033) $ (1,798,293) $ 1,683,396Fund Balance, July 1, 2017 7,240,885 (12,000) 0 7,228,885 5,772,836 7,228,886 (1)


Budgeted Amounts

157

Exhibit K-11


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Clarksville-Montgomery County School SystemSchool Transportation FundFor the Year Ended June 30, 2018


Actual Less: Expenditures Budget -(GAAP Encumbrances (Budgetary PositiveBasis) 7/1/2017 Basis) Original Final (Negative)

RevenuesLocal Taxes $ 2,127,910 $ 0 $ 2,127,910 $ 2,053,875 $ 2,053,875 $ 74,035Other Local Revenues 56,285 0 56,285 55,700 55,700 585State of Tennessee 10,955,000 0 10,955,000 10,955,000 11,009,600 (54,600)Federal Government 54,600 0 54,600 1,282,915 0 54,600

Total Revenues $ 13,193,795 $ 0 $ 13,193,795 $ 14,347,490 $ 13,119,175 $ 74,620

ExpendituresSupport Services

Board of Education $ 42,494 $ 0 $ 42,494 $ 41,500 $ 43,000 $ 506Transportation 14,892,723 (1,283) 14,891,440 15,775,004 16,089,435 1,197,995

Total Expenditures $ 14,935,217 $ (1,283) $ 14,933,934 $ 15,816,504 $ 16,132,435 $ 1,198,501

Excess (Deficiency) of RevenuesOver Expenditures $ (1,741,422) $ 1,283 $ (1,740,139) $ (1,469,014) $ (3,013,260) $ 1,273,121

Other Financing Sources (Uses)Transfers In $ 1,541,637 $ 0 $ 1,541,637 $ 250,500 $ 1,541,637 $ 0

Total Other Financing Sources $ 1,541,637 $ 0 $ 1,541,637 $ 250,500 $ 1,541,637 $ 0

Net Change in Fund Balance $ (199,785) $ 1,283 $ (198,502) $ (1,218,514) $ (1,471,623) $ 1,273,121Fund Balance, July 1, 2017 2,178,251 (1,283) 2,176,968 1,694,115 2,176,968 0

Fund Balance, June 30, 2018 $ 1,978,466 $ 0 $ 1,978,466 $ 475,601 $ 705,345 $ 1,273,121

Budgeted Amounts

158

Exhibit K-12


in Fund Balance - Actual and BudgetDiscretely Presented Clarksville-Montgomery County School SystemExtended School Program FundFor the Year Ended June 30, 2018

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesCharges for Current Services $ 277,450 $ 97,500 $ 350,525 $ (73,075)

Total Revenues $ 277,450 $ 97,500 $ 350,525 $ (73,075)


Regular Instruction Program $ 225,741 $ 102,138 $ 320,905 $ 95,164Support Services

Board of Education 451 600 600 149Office of the Principal 47,234 10,970 71,448 24,214

Total Expenditures $ 273,426 $ 113,708 $ 392,953 $ 119,527

Excess (Deficiency) of RevenuesOver Expenditures $ 4,024 $ (16,208) $ (42,428) $ 46,452

Net Change in Fund Balance $ 4,024 $ (16,208) $ (42,428) $ 46,452Fund Balance, July 1, 2017 175,466 188,728 172,525 2,941

Fund Balance, June 30, 2018 $ 179,490 $ 172,520 $ 130,097 $ 49,393

Budgeted Amounts

159

MISCELLANEOUS SCHEDULES

160

Exhibit L-1

Montgomery County, TennesseeSchedule of Changes in Long-term Notes, Other Loans, Capital Leases, and BondsFor the Year Ended June 30, 2018

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

Description of Indebtedness of Issue Rate Issue Date 7-1-17 Period Period Refunded 6-30-18

NOTES PAYABLE Payable through General Debt Service Fund Promissory Note - Land for EMS Building $ 80,000 3 % 7-1-14 3-2-18 $ 20,000 $ 0 $ 20,000 $ 0 $ 0

Total Notes Payable $ 20,000 $ 0 $ 20,000 $ 0 $ 0

OTHER LOANS PAYABLE Payable through General Debt Service Fund Qualified Zone Academy Bonds 3,763,987 0 5-22-06 12-1-20 $ 908,387 $ 0 $ 259,600 $ 0 $ 648,787 Qualified School Construction Bonds 20,000,000 1.515 12-1-09 7-1-26 11,368,216 0 1,247,969 0 10,120,247

Total Other Loans Payable $ 12,276,603 $ 0 $ 1,507,569 $ 0 $ 10,769,034

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 $ 323,917 $ 0 $ 106,140 $ 0 $ 217,777 Student Laptops 2,000,000 1.703 7-1-17 8-1-20 0 2,000,000 510,725 0 1,489,275 Computers 1,168,309 1.703 9-12-17 10-12-20 0 1,168,309 298,342 0 869,967

Total Capital Lease Payable $ 323,917 $ 3,168,309 $ 915,207 $ 0 $ 2,577,019

BONDS PAYABLE Payable through General Debt Service Fund General Obligation Industrial Park 18,450,000 5 to 5.625 8-28-08 5-1-20 $ 2,500,000 $ 0 $ 1,000,000 $ 0 $ 1,500,000 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 0 5,400,000 General Obligation Refunding 74,155,000 2 to 5 4-1-10 4-1-24 53,855,000 0 2,280,000 0 51,575,000 General Obligation School and Public Improvement 62,335,000 2 to 5 7-28-11 4-1-29 57,335,000 0 1,500,000 25,900,000 29,935,000 General Obligation Refunding 19,465,000 2 to 5 4-25-12 4-1-25 10,625,000 0 2,870,000 0 7,755,000 General Obligation Public Improvement and Refunding 27,415,000 2 to 5 10-11-12 4-1-29 20,455,000 0 1,650,000 0 18,805,000 General Obligation Refunding 37,120,000 .20 to 1.65 5-17-13 5-1-20 18,965,000 0 6,230,000 0 12,735,000 General Obligation Public Improvement 13,200,000 3 to 5 8-29-13 4-1-28 11,200,000 0 500,000 0 10,700,000 General Obligation Refunding 50,155,000 2.5 to 5 5-15-14 4-1-26 41,955,000 0 8,115,000 0 33,840,000 General Obligation Schools 18,060,000 2 to 5 5-15-15 4-1-35 17,860,000 0 100,000 0 17,760,000 General Obligation Refunding and Improvement 19,120,000 2 to 5 11-5-15 4-1-35 19,070,000 0 870,000 0 18,200,000 General Obligation Public Improvement 17,600,000 3 to 4 11-30-16 4-1-36 16,510,000 0 705,000 0 15,805,000 General Obligation Refunding 10,830,000 3 11-30-16 4-1-24 10,830,000 0 115,000 0 10,715,000 General Obligation Refunding 48,825,000 4 to 5 9-20-17 4-1-37 0 48,825,000 1,240,221 0 47,584,779 Total Payable through General Debt Service Fund $ 286,560,000 $ 48,825,000 $ 27,175,221 $ 25,900,000 $ 282,309,779

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 $ 1,140,000 $ 0 $ 150,000 $ 0 $ 990,000 General Obligation Refunding and Improvement 1,665,000 2.33 9-20-17 6-30-27 0 1,665,000 149,779 0 1,515,221 Total Contributions Due by the Bi-County Solid Waste Management System to the General Debt Service Fund $ 1,140,000 $ 1,665,000 $ 299,779 $ 0 $ 2,505,221

Total Bonds Payable $ 287,700,000 $ 50,490,000 $ 27,475,000 $ 25,900,000 $ 284,815,000

161

Exhibit L-2

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

YearEndingJune 30 Principal Interest Other Fees Total

2019 $ 1,403,572 $ 277,750 $ 19,579 $ 1,700,9012020 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 117,647 25,250 5,000 147,897

Total $ 10,769,034 $ 2,424,000 $ 167,071 $ 13,360,105

YearEndingJune 30 Principal Interest Total

2019 $ 27,900,000 $ 11,264,752 $ 39,164,7522020 29,390,000 10,258,077 39,648,0772021 30,570,000 9,176,501 39,746,5012022 27,305,000 7,788,901 35,093,901

(Continued)

Other Loans

Bonds

162

Exhibit L-2

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


2023 $ 27,030,000 $ 6,692,138 $ 33,722,1382024 27,055,000 5,533,376 32,588,3762025 23,650,000 4,506,350 28,156,3502026 21,665,000 3,576,463 25,241,4632027 14,485,000 2,731,937 17,216,9372028 14,030,000 2,134,275 16,164,2752029 8,830,000 1,534,525 10,364,5252030 5,150,000 1,209,499 6,359,4992031 4,600,000 1,007,462 5,607,4622032 4,370,000 848,087 5,218,0872033 4,515,000 693,081 5,208,0812034 4,735,000 531,237 5,266,2372035 4,890,000 359,737 5,249,7372036 2,725,000 182,537 2,907,5372037 1,920,000 76,800 1,996,800

Total $ 284,815,000 $ 70,105,735 $ 354,920,735


2019 $ 881,032 $ 44,231 $ 925,2632020 896,153 29,109 925,2622021 799,834 13,728 813,562

Total $ 2,577,019 $ 87,068 $ 2,664,087

Bonds (Cont.)

Capital Leases

163

Exhibit L-3

Montgomery County, TennesseeSchedule of TransfersPrimary Government and Discretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2018

From Fund To Fund Purpose Amount

PRIMARY GOVERNMENT

General General Capital Projects Renovations and Equipment $ 881,000 Highway/Public Works " Road project 220,600

Total Transfers Primary Government $ 1,101,600

DISCRETELY PRESENTED CLARKSVILLE-MONTGOMERY COUNTY SCHOOL SYSTEM

General Purpose School School Transportation School buses $ 250,500 School Federal Projects General Purpose School Indirect costs 320,131 " School Transportation Salaries 1,291,137

Total Transfers Discretely Presented Clarksville-Montgomery County School System $ 1,861,768

164

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, 2018

SalaryPaid

DuringOfficial Authorization for Salary Period Bond Surety

County Mayor Section 8-24-102, TCA $ 159,327 (1) $ 100,000 (6) RLI Insurance CompanyHighway Supervisor Section 8-24-102, TCA 110,143 (1) (7)Director of Schools State Board of Education and

Local Board of Education 178,842 (2) 100,000 The Cincinnati Insurance CompanyTrustee Section 8-24-102, TCA 100,130 9,637,421 Hartford Fire Insurance CompanyAssessor of Property Section 8-24-102, TCA 100,130 (7)Director of Accounts and Budgets County Commission 99,948 100,000 (6) RLI Insurance CompanyPurchasing Agent County Commission 84,613 100,000 (6) "County Clerk Section 8-24-102, TCA 100,130 (3) 100,000 (6) "Circuit, General Sessions, and Juvenile Courts Clerk Section 8-24-102, TCA 100,130 100,000 (6) "Clerk and Master Section 8-24-102, TCA, and

Chancery Judge 100,130 (4) (7)Register of Deeds Section 8-24-102, TCA 100,130 100,000 (6) RLI Insurance CompanySheriff Section 8-24-102, TCA, and

County Commission 111,327 (5) 100,000 (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 $6,346 payment for unused vacation days, and $4,000 in pre-employment services for work prior to his start date, 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 $21,513.(5) Does not include $7,500 as a workhouse superintendent.(6) Officials are additionally covered by the employee insurance policy pursuant to Section 8-19-101, TCA .(7) Officials are covered by the employee insurance policy pursuant to Section 8-19-101, TCA .

165

Exhibit L-5

Montgomery County, TennesseeSchedule of Detailed Revenues -

All Governmental Fund TypesFor the Year Ended June 30, 2018

Constitu -tional Highway / General

Drug Officers - Public DebtGeneral Control Fees Works Service

Local TaxesCounty Property Taxes

Current Property Tax $ 42,466,768 $ 0 $ 0 $ 4,127,123 $ 33,886,887Trustee's Collections - Prior Year 911,319 0 0 88,455 722,157Trustee's Collections - Bankruptcy 29,937 0 0 2,910 23,889Circuit Clerk/Clerk and Master Collections - Prior Years 593,559 0 0 57,685 473,636Interest and Penalty 402,859 0 0 39,233 322,134Payments in-Lieu-of Taxes - T.V.A. 3,133 0 0 0 0Payments in-Lieu-of Taxes - Local Utilities 1,426,016 0 0 0 0Payments in-Lieu-of Taxes - Other 935,841 0 0 0 0

County Local Option TaxesLocal Option Sales Tax 0 0 0 0 217,717Hotel/Motel Tax 2,124,496 0 0 0 0Wheel Tax 0 0 0 0 0Litigation Tax - General 451,886 0 0 0 418,692Litigation Tax - Special Purpose 89,879 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 0 0 0 0 454,442Business Tax 1,384,821 0 0 119,381 119,397Mineral Severance Tax 0 0 0 280,858 0Adequate Facilities/Development Tax 0 0 0 0 1,791,500

Statutory Local TaxesBank Excise Tax 189,751 0 0 18,441 151,414Wholesale Beer Tax 377,873 0 0 0 0Interstate Telecommunications Tax 19,886 0 0 0 0

Total Local Taxes $ 51,408,024 $ 0 $ 0 $ 4,734,086 $ 38,581,865

(Continued)

Special Revenue FundsDebt Service

Fund

166

Exhibit L-5


All Governmental Fund Types (Cont.)



Licenses and PermitsLicenses

Animal Registration $ 113,811 $ 0 $ 0 $ 0 $ 0Animal Vaccination 6,501 0 0 0 0Cable TV Franchise 290,250 0 0 0 0

PermitsBuilding Permits 1,438,667 0 0 0 0Plumbing Permits 26,300 0 0 0 0Other Permits 517,828 0 0 0 0

Total Licenses and Permits $ 2,393,357 $ 0 $ 0 $ 0 $ 0

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 3,306 $ 0 $ 0 $ 0 $ 0Officers Costs 26,957 0 0 0 0Drug Court Fees 1,632 0 0 0 0Veterans Treatment Court Fees 687 0 0 0 0Data Entry Fee - Circuit Court 10,446 0 0 0 0Courtroom Security Fee 8,964 0 0 0 0Victims Assistance Assessments 3,538 0 0 0 0

General Sessions CourtFines 169,414 0 0 0 0Fines for Littering 270 0 0 0 0Officers Costs 271,672 0 0 0 0Game and Fish Fines 190 0 0 0 0Drug Court Fees 32,875 0 0 0 0Veterans Treatment Court Fees 20,610 0 0 0 0

(Continued)


Fund

167

Exhibit L-5





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

Jail Fees $ 286,448 $ 0 $ 0 $ 0 $ 0DUI Treatment Fines 17,900 0 0 0 0Data Entry Fee - General Sessions Court 64,470 0 0 0 0Victims Assistance Assessments 64,379 0 0 0 0

Juvenile CourtFines 4,708 0 0 0 0Officers Costs 17,462 0 0 0 0Jail Fees 64,572 0 0 0 0Data Entry Fee - Juvenile Court 8,318 0 0 0 0

Chancery CourtOfficers Costs 41,761 0 0 0 0Data Entry Fee - Chancery Court 6,066 0 0 0 0

Other Courts - In-countyFines 856 0 0 0 0Drug Control Fines 0 21,227 0 0 0Drug Court Fees 42,175 0 0 0 0

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 136 2,777 0 0 0Other Fines, Forfeitures, and Penalties 27,502 0 0 0 0

Total Fines, Forfeitures, and Penalties $ 1,197,314 $ 24,004 $ 0 $ 0 $ 0

Charges for Current ServicesGeneral Service Charges

Patient Charges $ 6,745,874 $ 0 $ 0 $ 0 $ 0Zoning Studies 4,250 0 0 0 0Other General Service Charges 48,907 0 0 0 0

(Continued)


Fund

168

Exhibit L-5





Charges for Current Services (Cont.)Fees

Recreation Fees $ 19,012 $ 0 $ 0 $ 0 $ 0Copy Fees 12,306 0 0 0 0Archives and Records Management Fee 467,047 0 0 0 0Greenbelt Late Application Fee 850 0 0 0 0Telephone Commissions 107,932 0 0 0 0Vending Machine Collections 95,953 0 0 0 0Special Commissioner Fees/Special Master Fees 0 0 21,513 0 0Data Processing Fee - Register 80,884 0 0 0 0Probation Fees 15,542 0 0 0 0Data Processing Fee - Sheriff 32,039 0 0 0 0Sexual Offender Registration Fee - Sheriff 15,950 0 0 0 0Data Processing Fee - County Clerk 18,084 0 0 0 0

Education ChargesOther Charges for Services 22,276 0 0 0 0

Total Charges for Current Services $ 7,686,906 $ 0 $ 21,513 $ 0 $ 0

Other Local RevenuesRecurring Items

Investment Income $ 1,149,965 $ 0 $ 0 $ 0 $ 1,042,665Lease/Rentals 627,296 0 0 0 0Sale of Gasoline 0 0 0 9,270 0Sale of Maps 1,465 0 0 0 0Sale of Recycled Materials 2,014 0 0 0 0Miscellaneous Refunds 346,954 0 0 12,524 0

(Continued)


Fund

169

Exhibit L-5





Other Local Revenues (Cont.)Nonrecurring Items

Sale of Equipment $ 32,730 $ 0 $ 0 $ 0 $ 0Contributions and Gifts 5,000 0 0 0 0

Other Local RevenuesOther Local Revenues 638,145 0 0 0 109,792

Total Other Local Revenues $ 2,803,569 $ 0 $ 0 $ 21,794 $ 1,152,457

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 1,947,010 $ 0 $ 0 $ 0 $ 0Circuit Court Clerk 726,888 0 0 0 0General Sessions Court Clerk 2,053,889 0 0 0 0Clerk and Master 477,312 0 0 0 0Juvenile Court Clerk 227,384 0 0 0 0Register 1,288,019 0 0 0 0Sheriff 70,374 0 0 0 0Trustee 3,571,115 0 0 0 0

Total Fees Received From County Officials $ 10,361,991 $ 0 $ 0 $ 0 $ 0

State of TennesseeGeneral Government Grants

Juvenile Services Program $ 572,515 $ 0 $ 0 $ 0 $ 0Public Safety Grants

Law Enforcement Training Programs 62,400 0 0 0 0Health and Welfare Grants

Other Health and Welfare Grants 81,899 0 0 0 0

(Continued)


Fund

170

Exhibit L-5





State of Tennessee (Cont.)Public Works Grants

State Aid Program $ 0 $ 0 $ 0 $ 1,018,175 $ 0Litter Program 83,346 0 0 0 0

Other State RevenuesBeer Tax 17,839 0 0 0 0Vehicle Certificate of Title Fees 27,776 0 0 0 0Alcoholic Beverage Tax 262,497 0 0 0 0State Revenue Sharing - T.V.A. 1,661,232 0 0 0 0State Revenue Sharing - Telecommunications 248,409 0 0 0 0Board of Jurors 2,987 0 0 0 0Prisoner Transportation 17,576 0 0 0 0Contracted Prisoner Boarding 1,559,797 0 0 0 0Gasoline and Motor Fuel Tax 0 0 0 3,689,404 0Petroleum Special Tax 0 0 0 124,345 0Registrar's Salary Supplement 15,164 0 0 0 0Other State Grants 2,892,763 0 0 0 0Other State Revenues 39,967 0 0 0 0

Total State of Tennessee $ 7,546,167 $ 0 $ 0 $ 4,831,924 $ 0

Federal GovernmentFederal Through State

Homeland Security Grants $ 207,573 $ 0 $ 0 $ 0 $ 0Other Federal through State 162,187 0 0 0 0

Direct Federal RevenueTax Credit Bond Rebate 0 0 0 0 90,615Other Direct Federal Revenue 3,266 0 0 0 0

Total Federal Government $ 373,026 $ 0 $ 0 $ 0 $ 90,615

(Continued)


Fund

171

Exhibit L-5





Other Governments and Citizens GroupsOther Governments

Prisoner Board $ 314 $ 0 $ 0 $ 0 $ 0Contributions 108,908 0 0 0 1,879,461

Citizens GroupsDonations 51,013 0 0 0 0

Total Other Governments and Citizens Groups $ 160,235 $ 0 $ 0 $ 0 $ 1,879,461

Total $ 83,930,589 $ 24,004 $ 21,513 $ 9,587,804 $ 41,704,398

(Continued)


Fund

172

Exhibit L-5



GeneralCapitalProjects Total


Current Property Tax $ 2,309,714 $ 82,790,492Trustee's Collections - Prior Year 49,430 1,771,361Trustee's Collections - Bankruptcy 1,628 58,364Circuit Clerk/Clerk and Master Collections - Prior Years 32,283 1,157,163Interest and Penalty 21,956 786,182Payments in-Lieu-of Taxes - T.V.A. 0 3,133Payments in-Lieu-of Taxes - Local Utilities 0 1,426,016Payments in-Lieu-of Taxes - Other 0 935,841

County Local Option TaxesLocal Option Sales Tax 0 217,717Hotel/Motel Tax 0 2,124,496Wheel Tax 2,370,945 2,370,945Litigation Tax - General 0 870,578Litigation Tax - Special Purpose 0 89,879Litigation Tax - Jail, Workhouse, or Courthouse 0 454,442Business Tax 0 1,623,599Mineral Severance Tax 0 280,858Adequate Facilities/Development Tax 0 1,791,500

Statutory Local TaxesBank Excise Tax 10,320 369,926Wholesale Beer Tax 0 377,873Interstate Telecommunications Tax 0 19,886

Total Local Taxes $ 4,796,276 $ 99,520,251

(Continued)

Capital Projects Fund

173

Exhibit L-5




Licenses and PermitsLicenses

Animal Registration $ 0 $ 113,811Animal Vaccination 0 6,501Cable TV Franchise 0 290,250

PermitsBuilding Permits 0 1,438,667Plumbing Permits 0 26,300Other Permits 0 517,828

Total Licenses and Permits $ 0 $ 2,393,357

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 0 $ 3,306Officers Costs 0 26,957Drug Court Fees 0 1,632Veterans Treatment Court Fees 0 687Data Entry Fee - Circuit Court 0 10,446Courtroom Security Fee 0 8,964Victims Assistance Assessments 0 3,538

General Sessions CourtFines 0 169,414Fines for Littering 0 270Officers Costs 0 271,672Game and Fish Fines 0 190Drug Court Fees 0 32,875Veterans Treatment Court Fees 0 20,610

(Continued)


174

Exhibit L-5




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

Jail Fees $ 0 $ 286,448DUI Treatment Fines 0 17,900Data Entry Fee - General Sessions Court 0 64,470Victims Assistance Assessments 0 64,379

Juvenile CourtFines 0 4,708Officers Costs 0 17,462Jail Fees 0 64,572Data Entry Fee - Juvenile Court 0 8,318

Chancery CourtOfficers Costs 0 41,761Data Entry Fee - Chancery Court 0 6,066

Other Courts - In-countyFines 0 856Drug Control Fines 0 21,227Drug Court Fees 0 42,175

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 2,913Other Fines, Forfeitures, and Penalties 0 27,502

Total Fines, Forfeitures, and Penalties $ 0 $ 1,221,318

Charges for Current ServicesGeneral Service Charges

Patient Charges $ 0 $ 6,745,874Zoning Studies 0 4,250Other General Service Charges 0 48,907

(Continued)


175

Exhibit L-5




Charges for Current Services (Cont.)Fees

Recreation Fees $ 0 $ 19,012Copy Fees 0 12,306Archives and Records Management Fee 0 467,047Greenbelt Late Application Fee 0 850Telephone Commissions 0 107,932Vending Machine Collections 0 95,953Special Commissioner Fees/Special Master Fees 0 21,513Data Processing Fee - Register 0 80,884Probation Fees 0 15,542Data Processing Fee - Sheriff 0 32,039Sexual Offender Registration Fee - Sheriff 0 15,950Data Processing Fee - County Clerk 0 18,084

Education ChargesOther Charges for Services 0 22,276

Total Charges for Current Services $ 0 $ 7,708,419


Investment Income $ 44,675 $ 2,237,305Lease/Rentals 0 627,296Sale of Gasoline 0 9,270Sale of Maps 0 1,465Sale of Recycled Materials 0 2,014Miscellaneous Refunds 0 359,478

(Continued)


176

Exhibit L-5




Other Local Revenues (Cont.)Nonrecurring Items

Sale of Equipment $ 5,558 $ 38,288Contributions and Gifts 0 5,000

Other Local RevenuesOther Local Revenues 0 747,937

Total Other Local Revenues $ 50,233 $ 4,028,053

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 0 $ 1,947,010Circuit Court Clerk 0 726,888General Sessions Court Clerk 0 2,053,889Clerk and Master 0 477,312Juvenile Court Clerk 0 227,384Register 0 1,288,019Sheriff 0 70,374Trustee 0 3,571,115

Total Fees Received From County Officials $ 0 $ 10,361,991

State of TennesseeGeneral Government Grants

Juvenile Services Program $ 0 $ 572,515Public Safety Grants

Law Enforcement Training Programs 0 62,400Health and Welfare Grants

Other Health and Welfare Grants 0 81,899

(Continued)


177

Exhibit L-5




State of Tennessee (Cont.)Public Works Grants

State Aid Program $ 0 $ 1,018,175Litter Program 0 83,346

Other State RevenuesBeer Tax 0 17,839Vehicle Certificate of Title Fees 0 27,776Alcoholic Beverage Tax 0 262,497State Revenue Sharing - T.V.A. 0 1,661,232State Revenue Sharing - Telecommunications 0 248,409Board of Jurors 0 2,987Prisoner Transportation 0 17,576Contracted Prisoner Boarding 0 1,559,797Gasoline and Motor Fuel Tax 0 3,689,404Petroleum Special Tax 0 124,345Registrar's Salary Supplement 0 15,164Other State Grants 0 2,892,763Other State Revenues 0 39,967

Total State of Tennessee $ 0 $ 12,378,091


Homeland Security Grants $ 0 $ 207,573Other Federal through State 111,825 274,012

Direct Federal RevenueTax Credit Bond Rebate 0 90,615Other Direct Federal Revenue 0 3,266

Total Federal Government $ 111,825 $ 575,466

(Continued)


178

Exhibit L-5





Prisoner Board $ 0 $ 314Contributions 0 1,988,369

Citizens GroupsDonations 517,500 568,513

Total Other Governments and Citizens Groups $ 517,500 $ 2,557,196

Total $ 5,475,834 $ 140,744,142


179

Exhibit L-6


All Governmental Fund TypesDiscretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2018

General School School ExtendedPurpose Federal Central Transpor - SchoolSchool Projects Cafeteria tation Program


Current Property Tax $ 27,942,292 $ 0 $ 0 $ 1,966,913 $ 0Trustee's Collections - Prior Year 799,205 0 0 56,166 0Trustee's Collections - Bankruptcy 20,314 0 0 1,430 0Circuit Clerk/Clerk and Master Collections - Prior Years 402,759 0 0 28,351 0Interest and Penalty 273,928 0 0 19,282 0Payments in-Lieu-of Taxes - Local Utilities 663,506 0 0 46,705 0

County Local Option TaxesLocal Option Sales Tax 51,552,103 0 0 0 0Wheel Tax 4,824,272 0 0 0 0Business Tax 785,234 0 0 0 0Mixed Drink Tax 405,879 0 0 0 0

Statutory Local TaxesBank Excise Tax 128,755 0 0 9,063 0

Total Local Taxes $ 87,798,247 $ 0 $ 0 $ 2,127,910 $ 0

Charges for Current ServicesFees

Archives and Records Management Fee $ 7,362 $ 0 $ 0 $ 0 $ 0Education Charges

Tuition - Regular Day Students 26,962 0 0 0 0Tuition - Summer School 0 0 0 0 260,550Tuition - Other 0 0 0 0 16,900Lunch Payments - Children 0 0 3,126,191 0 0Lunch Payments - Adults 0 0 161,005 0 0

(Continued)


180

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 $ 156,846 $ 0 $ 0A la Carte Sales 0 0 1,212,157 0 0School Based Health Services - FFS 51,587 0 0 0 0TBI Criminal Background Fee 35,313 0 0 0 0Other Charges for Services 224,070 0 43,255 0 0

Total Charges for Current Services $ 345,294 $ 0 $ 4,699,454 $ 0 $ 277,450


Investment Income $ 724 $ 0 $ 30,579 $ 0 $ 0Lease/Rentals 23,078 0 0 0 0Sale of Materials and Supplies 2,386 0 39,384 3,211 0Sale of Recycled Materials 4,986 0 0 438 0E-Rate Funding 139,367 0 0 0 0Miscellaneous Refunds 38,250 0 160 23,806 0

Nonrecurring ItemsSale of Equipment 506,638 0 11,432 28,192 0Sale of Property 150,050 0 0 0 0Damages Recovered from Individuals 55,544 0 0 638 0Contributions and Gifts 636,934 0 0 0 0

Total Other Local Revenues $ 1,557,957 $ 0 $ 81,555 $ 56,285 $ 0

(Continued)


181

Exhibit L-6




State of TennesseeHealth and Welfare Grants

Other Health and Welfare Grants $ 175,193 $ 0 $ 0 $ 0 $ 0State Education Funds

Basic Education Program 160,602,019 0 0 10,955,000 0Early Childhood Education 1,621,852 0 0 0 0School Food Service 0 0 149,148 0 0Other State Education Funds 126,328 352,386 0 0 0Career Ladder Program 364,044 0 0 0 0

Other State RevenuesIncome Tax 151,369 0 0 0 0

Total State of Tennessee $ 163,040,805 $ 352,386 $ 149,148 $ 10,955,000 $ 0


USDA School Lunch Program $ 0 $ 0 $ 7,870,007 $ 0 $ 0USDA - Commodities 0 0 1,208,257 0 0Breakfast 0 0 3,200,524 0 0Vocational Education - Basic Grants to States 0 465,836 0 0 0Title I Grants to Local Education Agencies 0 7,190,999 0 0 0Special Education - Grants to States 142,128 6,306,018 0 0 0Special Education Preschool Grants 0 115,402 0 0 0English Language Acquisition Grants 0 97,834 0 0 0Education for Homeless Children and Youth 0 39,435 0 0 0Eisenhower Professional Development State Grants 0 733,407 0 0 0Other Federal through State 0 74,658 0 54,600 0

(Continued)


182

Exhibit L-6




Federal Government (Cont.)Direct Federal Revenue

Public Law 874 - Maintenance and Operation $ 1,777,633 $ 0 $ 0 $ 0 $ 0ROTC Reimbursement 617,591 0 0 0 0Other Direct Federal Revenue 0 2,856,192 0 0 0

Total Federal Government $ 2,537,352 $ 17,879,781 $ 12,278,788 $ 54,600 $ 0


Contributions $ 3,168,309 $ 0 $ 0 $ 0 $ 0Contracted Services 31,129 0 0 0 0

Total Other Governments and Citizens Groups $ 3,199,438 $ 0 $ 0 $ 0 $ 0

Total $ 258,479,093 $ 18,232,167 $ 17,208,945 $ 13,193,795 $ 277,450

(Continued)


183

Exhibit L-6



EducationCapitalProjects Total


Current Property Tax $ 0 $ 29,909,205Trustee's Collections - Prior Year 0 855,371Trustee's Collections - Bankruptcy 0 21,744Circuit Clerk/Clerk and Master Collections - Prior Years 0 431,110Interest and Penalty 0 293,210Payments in-Lieu-of Taxes - Local Utilities 0 710,211

County Local Option TaxesLocal Option Sales Tax 0 51,552,103Wheel Tax 0 4,824,272Business Tax 0 785,234Mixed Drink Tax 0 405,879

Statutory Local TaxesBank Excise Tax 0 137,818

Total Local Taxes $ 0 $ 89,926,157

Charges for Current ServicesFees

Archives and Records Management Fee $ 0 $ 7,362Education Charges

Tuition - Regular Day Students 0 26,962Tuition - Summer School 0 260,550Tuition - Other 0 16,900Lunch Payments - Children 0 3,126,191Lunch Payments - Adults 0 161,005

(Continued)


184

Exhibit L-6




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

Income from Breakfast $ 0 $ 156,846A la Carte Sales 0 1,212,157School Based Health Services - FFS 0 51,587TBI Criminal Background Fee 0 35,313Other Charges for Services 0 267,325

Total Charges for Current Services $ 0 $ 5,322,198


Investment Income $ 0 $ 31,303Lease/Rentals 0 23,078Sale of Materials and Supplies 0 44,981Sale of Recycled Materials 0 5,424E-Rate Funding 0 139,367Miscellaneous Refunds 0 62,216

Nonrecurring ItemsSale of Equipment 0 546,262Sale of Property 0 150,050Damages Recovered from Individuals 0 56,182Contributions and Gifts 0 636,934

Total Other Local Revenues $ 0 $ 1,695,797

(Continued)


185

Exhibit L-6




State of TennesseeHealth and Welfare Grants

Other Health and Welfare Grants $ 0 $ 175,193State Education Funds

Basic Education Program 0 171,557,019Early Childhood Education 0 1,621,852School Food Service 0 149,148Other State Education Funds 0 478,714Career Ladder Program 0 364,044

Other State RevenuesIncome Tax 0 151,369

Total State of Tennessee $ 0 $ 174,497,339


USDA School Lunch Program $ 0 $ 7,870,007USDA - Commodities 0 1,208,257Breakfast 0 3,200,524Vocational Education - Basic Grants to States 0 465,836Title I Grants to Local Education Agencies 0 7,190,999Special Education - Grants to States 0 6,448,146Special Education Preschool Grants 0 115,402English Language Acquisition Grants 0 97,834Education for Homeless Children and Youth 0 39,435Eisenhower Professional Development State Grants 0 733,407Other Federal through State 0 129,258

(Continued)


186

Exhibit L-6




Federal Government (Cont.)Direct Federal Revenue

Public Law 874 - Maintenance and Operation $ 0 $ 1,777,633ROTC Reimbursement 0 617,591Other Direct Federal Revenue 0 2,856,192

Total Federal Government $ 0 $ 32,750,521


Contributions $ 2,355,802 $ 5,524,111Contracted Services 0 31,129

Total Other Governments and Citizens Groups $ 2,355,802 $ 5,555,240

Total $ 2,355,802 $ 309,747,252


187

Exhibit L-7

Montgomery County, TennesseeSchedule of Detailed Expenditures -

All Governmental Fund TypesFor the Year Ended June 30, 2018

General FundGeneral Government

County CommissionSecretary(ies) $ 49,007Board and Committee Members Fees 119,600Social Security 10,289Pensions 6,302Life Insurance 53Medical Insurance 12,250Employer Medicare 2,406Audit Services 118,762Legal Notices, Recording, and Court Costs 1,630Travel 15,484Tuition 4,145Other Contracted Services 53,531Food Supplies 211Office Supplies 202Other Supplies and Materials 277

Total County Commission $ 394,149

Board of EqualizationBoard and Committee Members Fees $ 740Social Security 46Employer Medicare 11

Total Board of Equalization 797

Beer BoardBoard and Committee Members Fees $ 1,500Social Security 93Employer Medicare 22

Total Beer Board 1,615

Other Boards and CommitteesBoard and Committee Members Fees $ 2,775Social Security 172Employer Medicare 40

Total Other Boards and Committees 2,987

County Mayor/ExecutiveCounty Official/Administrative Officer $ 159,327Supervisor/Director 99,948Secretary(ies) 61,677Clerical Personnel 32,893Social Security 19,706Pensions 45,504Life Insurance 211Medical Insurance 27,882Employer Medicare 4,993Communication 2,804Dues and Memberships 300

(Continued)

188

Exhibit L-7



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

County Mayor/Executive (Cont.)Maintenance and Repair Services - Vehicles $ 1,243Postal Charges 906Printing, Stationery, and Forms 1,264Rentals 4,526Travel 7,461Tuition 1,950Other Contracted Services 9,302Custodial Supplies 112Food Supplies 1,418Gasoline 2,519Library Books/Media 448Office Supplies 1,465Periodicals 454Other Supplies and Materials 38Communication Equipment 700

Total County Mayor/Executive $ 489,051

Personnel OfficeSupervisor/Director $ 90,560Accountants/Bookkeepers 57,789Clerical Personnel 86,549Overtime Pay 166Social Security 13,615Pensions 30,229Life Insurance 238Medical Insurance 54,423Employer Medicare 3,184Communication 1,075Dues and Memberships 612Evaluation and Testing 10,957Postal Charges 739Printing, Stationery, and Forms 162Rentals 2,692Travel 1,461Tuition 1,678Other Contracted Services 22,941Data Processing Supplies 266Duplicating Supplies 405Office Supplies 865

Total Personnel Office 380,606

County AttorneyLegal Services $ 93,949

Total County Attorney 93,949

Election CommissionSupervisor/Director $ 92,120

(Continued)

189

Exhibit L-7




Election Commission (Cont.)Clerical Personnel $ 149,943Temporary Personnel 8,286Overtime Pay 6,930Election Commission 10,070Election Workers 64,017Social Security 16,843Pensions 31,538Life Insurance 260Medical Insurance 57,014Employer Medicare 4,012Communication 611Legal Notices, Recording, and Court Costs 18,942Maintenance and Repair Services - Office Equipment 23,554Postal Charges 14,000Printing, Stationery, and Forms 3,917Rentals 5,814Travel 3,948Tuition 2,400Other Contracted Services 11,310Equipment and Machinery Parts 195Office Supplies 4,886Other Supplies and Materials 6,195Data Processing Equipment 56,235

Total Election Commission $ 593,040

Register of DeedsCounty Official/Administrative Officer $ 100,130Deputy(ies) 207,669Social Security 18,204Pensions 38,759Life Insurance 361Medical Insurance 56,886Employer Medicare 4,257Data Processing Services 53,434Postal Charges 393Rentals 2,838Other Contracted Services 3,420Data Processing Supplies 1,449Duplicating Supplies 826Other Supplies and Materials 737

Total Register of Deeds 489,363

PlanningContributions $ 314,592

Total Planning 314,592

(Continued)

190

Exhibit L-7




BuildingAssistant(s) $ 47,120Supervisor/Director 87,516Other Salaries and Wages 61,675Social Security 11,493Pensions 25,246Life Insurance 158Medical Insurance 43,992Employer Medicare 2,688Communication 1,209Dues and Memberships 759Licenses 959Maintenance and Repair Services - Vehicles 1,983Postal Charges 6Rentals 2,017Travel 45Tuition 423Other Contracted Services 22,883Gasoline 1,038Library Books/Media 124Office Supplies 701Other Supplies and Materials 47Communication Equipment 284Furniture and Fixtures 8,520Other Capital Outlay 228

Total Building $ 321,114

Codes ComplianceAssistant(s) $ 321,958Supervisor/Director 82,511Clerical Personnel 94,167Social Security 28,607Pensions 63,501Life Insurance 572Medical Insurance 122,578Employer Medicare 6,690Communication 7,832Contracts with Private Agencies 300Dues and Memberships 1,374Legal Notices, Recording, and Court Costs 1,704Maintenance and Repair Services - Office Equipment 1,072Maintenance and Repair Services - Vehicles 2,768Postal Charges 876Rentals 6,804Travel 1,166Tuition 2,094Permits 3,460Other Contracted Services 44,508

(Continued)

191

Exhibit L-7




Codes Compliance (Cont.)Data Processing Supplies $ 144Gasoline 11,181Library Books/Media 1,441Office Supplies 1,544Uniforms 1,645Other Supplies and Materials 1,325

Total Codes Compliance $ 811,822

Geographical Information SystemsContracts with Government Agencies $ 312,855

Total Geographical Information Systems 312,855

County BuildingsSupervisor/Director $ 46,217Maintenance Personnel 114,788Overtime Pay 1,712Social Security 9,293Pensions 19,864Life Insurance 251Medical Insurance 50,406Employer Medicare 2,173Communication 618Maintenance and Repair Services - Buildings 3,742Maintenance and Repair Services - Equipment 9,409Maintenance and Repair Services - Vehicles 273Pest Control 570Rentals 3,780Other Contracted Services 8,168Custodial Supplies 9,331Drugs and Medical Supplies 1,730Electricity 53,763Equipment Parts - Light 574Gasoline 1,144Natural Gas 350Office Supplies 324Tires and Tubes 542Water and Sewer 1,838Other Supplies and Materials 7,662Furniture and Fixtures 6,634Other Capital Outlay 1,600

Total County Buildings 356,756

Other FacilitiesAssistant(s) $ 29,345Supervisor/Director 133,930Secretary(ies) 47,422Custodial Personnel 309,232

(Continued)

192

Exhibit L-7




Other Facilities (Cont.)Maintenance Personnel $ 410,839Part-time Personnel 6,621Overtime Pay 10,730Social Security 55,062Pensions 119,599Life Insurance 1,390Medical Insurance 230,442Employer Medicare 12,878Communication 10,745Licenses 90Maintenance Agreements 171,888Maintenance and Repair Services - Buildings 79,409Maintenance and Repair Services - Equipment 75,852Maintenance and Repair Services - Vehicles 4,874Pest Control 4,728Rentals 3,755Tuition 438Disposal Fees 6,420Other Contracted Services 46,291Custodial Supplies 36,844Electricity 466,885Food Supplies 1,323Gasoline 15,516Natural Gas 78,717Office Supplies 644Propane Gas 6,880Salt 585Small Tools 3,356Uniforms 3,588Water and Sewer 54,377Other Supplies and Materials 49,795Building and Contents Insurance 2,740Indirect Cost 2,362Building Improvements 7,755Communication Equipment 100Furniture and Fixtures 950Maintenance Equipment 7,826Motor Vehicles 36,000Other Equipment 41,955Other Capital Outlay 9,987

Total Other Facilities $ 2,600,165

Other General AdministrationSupervisor/Director $ 59,133Clerical Personnel 36,652Social Security 5,687Pensions 10,903

(Continued)

193

Exhibit L-7




Other General Administration (Cont.)Life Insurance $ 97Medical Insurance 18,988Employer Medicare 1,330Communication 1,828Contracts with Other Public Agencies 672,106Travel 1,849Tuition 1,175Other Contracted Services 153,841Other Supplies and Materials 3,360Data Processing Equipment 45Other Equipment 1,000Other Capital Outlay 3,114

Total Other General Administration $ 971,108

Preservation of RecordsSupervisor/Director $ 56,552Clerical Personnel 63,555Board and Committee Members Fees 450Social Security 7,190Pensions 13,486Life Insurance 172Medical Insurance 17,036Employer Medicare 1,682Data Processing Services 9,500Dues and Memberships 261Maintenance and Repair Services - Office Equipment 1,900Rentals 4,231Travel 1,659Other Contracted Services 151Duplicating Supplies 233Library Books/Media 1,724Office Supplies 10,503Other Supplies and Materials 297Furniture and Fixtures 1,165Other Equipment 1,752

Total Preservation of Records 193,499

FinanceAccounting and Budgeting

County Official/Administrative Officer $ 99,948Accountants/Bookkeepers 304,904Clerical Personnel 37,202Part-time Personnel 7,271Social Security 27,083Pensions 58,388Life Insurance 420Medical Insurance 77,152

(Continued)

194

Exhibit L-7



General Fund (Cont.)Finance (Cont.)

Accounting and Budgeting (Cont.)Employer Medicare $ 6,334Communication 3,786Data Processing Services 8,763Dues and Memberships 649Postal Charges 4,773Rentals 651Travel 3,109Tuition 2,825Other Contracted Services 21,156Data Processing Supplies 2,648Duplicating Supplies 360Food Supplies 125Library Books/Media 124Office Supplies 2,060Periodicals 241Other Supplies and Materials 188Premiums on Corporate Surety Bonds 59Other Charges 299Data Processing Equipment 3,612Furniture and Fixtures 367

Total Accounting and Budgeting $ 674,497

PurchasingCounty Official/Administrative Officer $ 84,613Purchasing Personnel 47,718Clerical Personnel 37,690Other Salaries and Wages 29,932Social Security 11,798Pensions 25,714Life Insurance 211Medical Insurance 36,993Employer Medicare 2,759Communication 600Dues and Memberships 393Maintenance and Repair Services - Vehicles 88Postal Charges 301Rentals 9,042Travel 658Tuition 75Custodial Supplies 3Duplicating Supplies 670Food Supplies 214Gasoline 1,320Office Supplies 636Periodicals 308Other Supplies and Materials 4,047

Total Purchasing 295,783

(Continued)

195

Exhibit L-7




Property Assessor's OfficeCounty Official/Administrative Officer $ 100,130Deputy(ies) 631,784Temporary Personnel 4,402Overtime Pay 13,637Social Security 44,328Pensions 89,988Life Insurance 893Medical Insurance 136,316Employer Medicare 10,368Audit Services 40,775Communication 2,945Data Processing Services 70,536Dues and Memberships 4,142Operating Lease Payments 12,716Legal Notices, Recording, and Court Costs 184Maintenance and Repair Services - Vehicles 961Postal Charges 6,401Printing, Stationery, and Forms 7,898Rentals 275Travel 12,993Tuition 3,520Other Contracted Services 2,122Data Processing Supplies 50Duplicating Supplies 688Food Supplies 472Gasoline 1,813Library Books/Media 111Office Supplies 2,054Other Supplies and Materials 1,261Communication Equipment 1,299Data Processing Equipment 422

Total Property Assessor's Office $ 1,205,484

County Trustee's OfficeCounty Official/Administrative Officer $ 100,130Supervisor/Director 66,246Deputy(ies) 165,071Accountants/Bookkeepers 51,595Overtime Pay 6,121Board and Committee Members Fees 675Social Security 22,773Pensions 49,151Life Insurance 427Medical Insurance 79,914Employer Medicare 5,326Bank Charges 21,368Communication 1,605

(Continued)

196

Exhibit L-7




County Trustee's Office (Cont.)Data Processing Services $ 27,322Dues and Memberships 1,109Legal Notices, Recording, and Court Costs 2,833Postal Charges 31,819Printing, Stationery, and Forms 4,088Rentals 6,680Travel 2,143Tuition 150Other Contracted Services 938Food Supplies 174Office Supplies 3,109Periodicals 719Indirect Cost 2,500Premiums on Corporate Surety Bonds 6,775Other Capital Outlay 1,695

Total County Trustee's Office $ 662,456

County Clerk's OfficeCounty Official/Administrative Officer $ 100,130Supervisor/Director 68,533Deputy(ies) 1,187,778Part-time Personnel 46,305Overtime Pay 6,262Social Security 79,756Pensions 173,373Life Insurance 1,922Medical Insurance 365,947Employer Medicare 18,776Communication 1,200Maintenance and Repair Services - Equipment 19,108Postal Charges 57,528Printing, Stationery, and Forms 1,725Rentals 8,919Travel 1,627Other Contracted Services 5,720Data Processing Supplies 14,553Duplicating Supplies 6,059Food Supplies 426Office Supplies 7,883Other Supplies and Materials 1,491Premiums on Corporate Surety Bonds 80Communication Equipment 1,021Data Processing Equipment 85,537Furniture and Fixtures 7,830Other Capital Outlay 1,834

Total County Clerk's Office 2,271,323

(Continued)

197

Exhibit L-7




Data ProcessingSupervisor/Director $ 99,948Computer Programmer(s) 414,698Data Processing Personnel 302,011Secretary(ies) 43,126Social Security 50,938Pensions 110,101Life Insurance 695Medical Insurance 131,615Employer Medicare 11,913Communication 85,936Data Processing Services 610,207Freight Expenses 101Licenses 69,205Maintenance and Repair Services - Vehicles 302Postal Charges 2Rentals 851Travel 6,085Tuition 3,729Other Contracted Services 35,924Custodial Supplies 91Data Processing Supplies 6,014Food Supplies 100Gasoline 1,721Office Supplies 342Other Supplies and Materials 846Communication Equipment 21,398Data Processing Equipment 317,063Other Capital Outlay 9,760

Total Data Processing $ 2,334,722

Other FinanceLegal Notices, Recording, and Court Costs $ 17,387Postal Charges 13,253

Total Other Finance 30,640

Administration of JusticeCircuit Court

County Official/Administrative Officer $ 100,130Assistant(s) 134,385Supervisor/Director 198,224Deputy(ies) 1,387,365Accountants/Bookkeepers 85,707Overtime Pay 15,239Jury and Witness Expense 49,486Social Security 109,939Pensions 240,942Life Insurance 2,854

(Continued)

198

Exhibit L-7



General Fund (Cont.)Administration of Justice (Cont.)

Circuit Court (Cont.)Medical Insurance $ 513,507Employer Medicare 25,711Communication 2,804Data Processing Services 40,896Dues and Memberships 904Legal Notices, Recording, and Court Costs 1,610Postal Charges 22,545Printing, Stationery, and Forms 12,239Rentals 7,715Travel 2,138Tuition 550Other Contracted Services 7,239Custodial Supplies 264Data Processing Supplies 10,194Duplicating Supplies 6,224Food Supplies 1,251Library Books/Media 1,854Office Supplies 6,019Other Supplies and Materials 500Premiums on Corporate Surety Bonds 186Communication Equipment 5,131Data Processing Equipment 7,647Food Service Equipment 259Furniture and Fixtures 37,871Office Equipment 2,798

Total Circuit Court $ 3,042,327

General Sessions CourtJudge(s) $ 490,334Secretary(ies) 36,328Social Security 25,889Pensions 67,468Life Insurance 163Medical Insurance 50,103Employer Medicare 7,414

Total General Sessions Court 677,699

Drug CourtProbation Officer(s) $ 32,536Social Security 2,300Pensions 3,585Life Insurance 55Employer Medicare 535Communication 598Dues and Memberships 260Travel 3,037Other Contracted Services 25,675

(Continued)

199

Exhibit L-7




Drug Court (Cont.)Office Supplies $ 569Other Supplies and Materials 1,324

Total Drug Court $ 70,474

Chancery CourtCounty Official/Administrative Officer $ 100,130Deputy(ies) 317,745Social Security 24,078Pensions 52,834Life Insurance 497Medical Insurance 86,072Employer Medicare 5,631Communication 122Dues and Memberships 754Legal Notices, Recording, and Court Costs 514Maintenance and Repair Services - Office Equipment 357Postal Charges 3,509Rentals 5,331Other Contracted Services 2,630Data Processing Supplies 1,964Duplicating Supplies 1,350Library Books/Media 1,473Office Supplies 2,013Premiums on Corporate Surety Bonds 59Data Processing Equipment 1,290Furniture and Fixtures 1,227

Total Chancery Court 609,580

Juvenile CourtJudge(s) $ 163,445Supervisor/Director 72,736Probation Officer(s) 160,978Youth Service Officer(s) 296,535Clerical Personnel 71,431Social Security 43,817Pensions 94,890Life Insurance 760Medical Insurance 85,482Employer Medicare 10,736Communication 5,928Contributions 41,050Dues and Memberships 3,250Operating Lease Payments 1,731Postal Charges 690Travel 22,737Tuition 959Other Contracted Services 225,879

(Continued)

200

Exhibit L-7




Juvenile Court (Cont.)Drugs and Medical Supplies $ 275Library Books/Media 3,509Office Supplies 11,803Other Supplies and Materials 7,084Data Processing Equipment 790Furniture and Fixtures 25,216Other Capital Outlay 4,327

Total Juvenile Court $ 1,356,038

District Attorney GeneralCommunication $ 38Dues and Memberships 815Legal Notices, Recording, and Court Costs 95Travel 26,718Other Contracted Services 586Custodial Supplies 1,516Duplicating Supplies 380Food Supplies 1,129Library Books/Media 1,199Office Supplies 791Other Supplies and Materials 1,430

Total District Attorney General 34,697

Office of Public DefenderCommunication $ 226Travel 5,233Tuition 410Other Contracted Services 905Other Supplies and Materials 292

Total Office of Public Defender 7,066

Judicial CommissionersPart-time Personnel $ 57,037Overtime Pay 9,732Other Salaries and Wages 128,485Social Security 11,840Pensions 17,726Life Insurance 185Medical Insurance 6,246Employer Medicare 2,769Communication 997Rentals 2,006Other Contracted Services 901Office Supplies 168

Total Judicial Commissioners 238,092

(Continued)

201

Exhibit L-7




Other Administration of JusticeSupervisor/Director $ 66,693Social Security 4,040Pensions 8,577Life Insurance 53Medical Insurance 6,246Employer Medicare 945Communication 705Contracts with Private Agencies 422,082Dues and Memberships 570Postal Charges 346Printing, Stationery, and Forms 264Travel 533Tuition 400Duplicating Supplies 18Instructional Supplies and Materials 4,959Office Supplies 54

Total Other Administration of Justice $ 516,485

Probation ServicesAssistant(s) $ 22,456Supervisor/Director 81,460Probation Officer(s) 158,433Clerical Personnel 19,432Other Salaries and Wages 199,189Social Security 27,917Pensions 59,385Life Insurance 590Medical Insurance 86,284Employer Medicare 6,532Communication 720Dues and Memberships 519Evaluation and Testing 26,584Licenses 810Postal Charges 396Printing, Stationery, and Forms 1,338Rentals 1,509Travel 3,520Tuition 2,830Other Contracted Services 20,966Duplicating Supplies 1,174Instructional Supplies and Materials 14,864Office Supplies 2,813Other Supplies and Materials 1,695Data Processing Equipment 618Furniture and Fixtures 529

Total Probation Services 742,563

(Continued)

202

Exhibit L-7



General Fund (Cont.)Public Safety

Sheriff's DepartmentCounty Official/Administrative Officer $ 111,327Assistant(s) 134,165Deputy(ies) 3,253,248Investigator(s) 892,977Captain(s) 201,261Lieutenant(s) 303,167Sergeant(s) 702,463Secretary(ies) 40,181Clerical Personnel 455,634Part-time Personnel 26,988Overtime Pay 338,823In-service Training 62,400Social Security 381,709Pensions 930,804Life Insurance 7,072Medical Insurance 1,287,505Employer Medicare 89,599Communication 92,123Contracts with Government Agencies 3,350Contracts with Private Agencies 28,800Data Processing Services 11,763Dues and Memberships 5,512Evaluation and Testing 7,427Legal Services 42,584Licenses 701Maintenance Agreements 22,724Maintenance and Repair Services - Equipment 16,462Maintenance and Repair Services - Vehicles 90,627Pest Control 228Postal Charges 5,591Printing, Stationery, and Forms 4,057Rentals 13,365Towing Services 2,600Transportation - Other than Students 5,645Travel 31,896Tuition 34,727Veterinary Services 1,550Other Contracted Services 3,348Animal Food and Supplies 997Custodial Supplies 1,170Data Processing Supplies 2,655Diesel Fuel 86Drugs and Medical Supplies 757Duplicating Supplies 2,453Electricity 5,709Food Supplies 1,452Gasoline 219,520

(Continued)

203

Exhibit L-7



General Fund (Cont.)Public Safety (Cont.)

Sheriff's Department (Cont.)Law Enforcement Supplies $ 34,260Library Books/Media 227Natural Gas 1,106Office Supplies 3,598Tires and Tubes 33,402Uniforms 26,052Vehicle Parts 2,188Water and Sewer 224Other Supplies and Materials 5,638Premiums on Corporate Surety Bonds 200Workers' Compensation Insurance 9,679Communication Equipment 25,917Data Processing Equipment 13,454Law Enforcement Equipment 96,059Motor Vehicles 690,633Other Capital Outlay 5,090

Total Sheriff's Department $ 10,826,929

Special PatrolsDeputy(ies) $ 1,252,536Lieutenant(s) 70,828Sergeant(s) 221,795Social Security 92,227Pensions 229,655Life Insurance 1,692Medical Insurance 214,828Employer Medicare 21,570Communication 1,269Evaluation and Testing 2,908Maintenance and Repair Services - Equipment 781Maintenance and Repair Services - Vehicles 14,440Travel 19,432Tuition 10,791Gasoline 32,139Law Enforcement Supplies 3,942Tires and Tubes 6,892Uniforms 9,449Vehicle Parts 355Other Supplies and Materials 4,281Law Enforcement Equipment 6,202Other Capital Outlay 450

Total Special Patrols 2,218,462

Administration of the Sexual Offender RegistryOvertime Pay $ 8,196Communication 1,128Travel 1,378

(Continued)

204

Exhibit L-7




Administration of the Sexual Offender Registry (Cont.)Tuition $ 1,189Other Supplies and Materials 1,384Other Capital Outlay 1,480

Total Administration of the Sexual Offender Registry $ 14,755

JailAssistant(s) $ 81,379Supervisor/Director 56,727Deputy(ies) 4,319,211Captain(s) 47,891Lieutenant(s) 115,882Sergeant(s) 557,328Clerical Personnel 690,749Maintenance Personnel 186,489Overtime Pay 553,154Board and Committee Members Fees 975Social Security 387,868Pensions 790,650Life Insurance 8,105Medical Insurance 1,156,503Employer Medicare 90,886Communication 7,680Evaluation and Testing 29,315Laundry Service 4,223Operating Lease Payments 600Licenses 1,140Maintenance Agreements 53,843Maintenance and Repair Services - Buildings 11,097Maintenance and Repair Services - Equipment 50,209Maintenance and Repair Services - Vehicles 2,727Medical and Dental Services 2,638,322Pest Control 3,329Printing, Stationery, and Forms 2,435Rentals 6,379Travel 8,225Tuition 4,644Disposal Fees 8,877Other Contracted Services 569,511Custodial Supplies 18,101Data Processing Supplies 4,806Duplicating Supplies 2,971Electricity 316,927Equipment and Machinery Parts 17,569Food Preparation Supplies 600Gasoline 17,416Law Enforcement Supplies 23,635Library Books/Media 386

(Continued)

205

Exhibit L-7




Jail (Cont.)Natural Gas $ 49,836Office Supplies 2,328Prisoners Clothing 75,040Tires and Tubes 990Uniforms 30,131Water and Sewer 126,719Other Supplies and Materials 42,190Building and Contents Insurance 145,235Indirect Cost 11,621Liability Insurance 121,639Data Processing Equipment 1,728Maintenance Equipment 6,502Other Equipment 9,854Other Capital Outlay 13,285

Total Jail $ 13,485,862

WorkhouseCounty Official/Administrative Officer $ 7,500Deputy(ies) 768,642Lieutenant(s) 34,720Sergeant(s) 56,840Overtime Pay 45,247Social Security 52,436Pensions 115,374Life Insurance 1,075Medical Insurance 190,112Employer Medicare 12,263Communication 2,716Laundry Service 1,622Maintenance Agreements 3,511Maintenance and Repair Services - Buildings 1,079Maintenance and Repair Services - Equipment 1,638Maintenance and Repair Services - Vehicles 1,005Medical and Dental Services 405,140Pest Control 513Rentals 2,048Other Contracted Services 57,576Custodial Supplies 6,066Diesel Fuel 2,698Electricity 25,470Equipment and Machinery Parts 1,125Gasoline 1,604Law Enforcement Supplies 2,484Natural Gas 6,925Prisoners Clothing 15,995Tires and Tubes 524Uniforms 2,987

(Continued)

206

Exhibit L-7




Workhouse (Cont.)Water and Sewer $ 26,096Other Supplies and Materials 6,310Building and Contents Insurance 12,149Liability Insurance 9,216Office Equipment 646Other Equipment 7,553

Total Workhouse $ 1,888,905

Correctional Incentive Program ImprovementsSupervisor/Director $ 57,448Probation Officer(s) 201,925Secretary(ies) 15,490Social Security 16,222Pensions 32,793Life Insurance 418Medical Insurance 46,177Employer Medicare 3,794Accounting Services 12,000Communication 4,413Maintenance and Repair Services - Vehicles 627Postal Charges 308Printing, Stationery, and Forms 881Rentals 35,944Travel 4,812Other Contracted Services 18,585Custodial Supplies 258Duplicating Supplies 343Electricity 1,474Food Supplies 379Gasoline 1,573Office Supplies 2,568Other Supplies and Materials 4,974Liability Insurance 1,700Vehicle and Equipment Insurance 1,800

Total Correctional Incentive Program Improvements 466,906

Juvenile ServicesSupervisor/Director $ 57,789Probation Officer(s) 36,615Medical Personnel 76,479Social Security 9,678Pensions 20,562Life Insurance 205Medical Insurance 38,944Employer Medicare 2,264Communication 1,271Data Processing Services 7,225

(Continued)

207

Exhibit L-7




Juvenile Services (Cont.)Dues and Memberships $ 500Travel 3,015Tuition 971Other Contracted Services 2,000Food Supplies 122Office Supplies 206Other Supplies and Materials 13,586

Total Juvenile Services $ 271,432

Fire Prevention and ControlBoard and Committee Members Fees $ 4,200Other Per Diem and Fees 224,896Social Security 14,204Employer Medicare 3,322Communication 20,608Licenses 430Maintenance and Repair Services - Buildings 74Maintenance and Repair Services - Equipment 8,970Maintenance and Repair Services - Vehicles 18,607Medical and Dental Services 30Postal Charges 53Travel 1,779Other Contracted Services 10,569Diesel Fuel 12,037Equipment and Machinery Parts 2,459Food Preparation Supplies 107Food Supplies 117Gasoline 3,823Instructional Supplies and Materials 487Uniforms 9,685Utilities 31,669Chemicals 1,974Other Supplies and Materials 8,428Liability Insurance 6,927Other Equipment 34,434

Total Fire Prevention and Control 419,889

Civil DefenseAssistant(s) $ 45,240Supervisor/Director 72,786Secretary(ies) 56,552Other Salaries and Wages 75,887Social Security 14,831Pensions 30,946Life Insurance 222Medical Insurance 37,957Employer Medicare 3,469

(Continued)

208

Exhibit L-7




Civil Defense (Cont.)Communication $ 3,064Contracts with Private Agencies 1,176Maintenance and Repair Services - Vehicles 273Rentals 79,764Travel 360Other Contracted Services 3,849Gasoline 5,154Utilities 44,531Other Supplies and Materials 3,349Communication Equipment 800Other Equipment 1,998

Total Civil Defense $ 482,208

Other Emergency ManagementOther Contracted Services $ 7,720Other Supplies and Materials 1,499Communication Equipment 13,997Other Equipment 108,882

Total Other Emergency Management 132,098

County Coroner/Medical ExaminerMedical and Dental Services $ 323,072Other Contracted Services 17,760

Total County Coroner/Medical Examiner 340,832

Public Health and WelfareLocal Health Center

Medical Personnel $ 98,314Social Security 5,865Pensions 12,643Life Insurance 91Medical Insurance 16,310Employer Medicare 1,372Advertising 36,800Communication 9,752Dues and Memberships 200Laundry Service 342Licenses 60Rentals 1,735Travel 393Tuition 26,880Other Contracted Services 4,800Electricity 43,618Instructional Supplies and Materials 894Natural Gas 4,581Water and Sewer 4,927Other Supplies and Materials 5,654

(Continued)

209

Exhibit L-7



General Fund (Cont.)Public Health and Welfare (Cont.)

Local Health Center (Cont.)Communication Equipment $ 7,739Furniture and Fixtures 2,410

Total Local Health Center $ 285,380

Rabies and Animal ControlSupervisor/Director $ 63,220Clerical Personnel 56,960Custodial Personnel 15,582Part-time Personnel 98,476Overtime Pay 30,867Other Salaries and Wages 222,402Board and Committee Members Fees 2,700Social Security 29,276Pensions 46,926Life Insurance 541Medical Insurance 61,656Employer Medicare 6,847Communication 10,821Maintenance and Repair Services - Vehicles 8,716Printing, Stationery, and Forms 1,495Rentals 2,644Travel 9,625Tuition 3,791Veterinary Services 46,062Other Contracted Services 11,709Animal Food and Supplies 9,719Custodial Supplies 9,528Drugs and Medical Supplies 17,056Electricity 21,154Gasoline 15,745Natural Gas 5,281Office Supplies 914Uniforms 3,779Water and Sewer 5,625Other Supplies and Materials 9,965Indirect Cost 2,417Other Equipment 756Other Capital Outlay 41,492

Total Rabies and Animal Control 873,747

Ambulance/Emergency Medical ServicesAssistant(s) $ 156,425Supervisor/Director 103,378Captain(s) 222,055Lieutenant(s) 596,627Accountants/Bookkeepers 154,908Medical Personnel 4,864,933

(Continued)

210

Exhibit L-7




Ambulance/Emergency Medical Services (Cont.)Part-time Personnel $ 23,807Overtime Pay 46,568Board and Committee Members Fees 4,125Social Security 358,973Pensions 753,360Life Insurance 6,631Medical Insurance 1,207,628Employer Medicare 84,130Communication 36,483Contracts with Private Agencies 313,863Contributions 35,883Data Processing Services 19,027Debt Collection Services 57,908Dues and Memberships 895Janitorial Services 4,250Laundry Service 4,611Licenses 8,090Maintenance and Repair Services - Buildings 6,412Maintenance and Repair Services - Equipment 52,224Maintenance and Repair Services - Vehicles 138,688Medical and Dental Services 5,315Pest Control 2,380Postal Charges 1,577Rentals 5,486Travel 3,740Tuition 20,635Disposal Fees 4,600Other Contracted Services 14,761Custodial Supplies 7,315Diesel Fuel 99,350Drugs and Medical Supplies 506,350Duplicating Supplies 498Electricity 67,229Food Supplies 733Gasoline 94,008Instructional Supplies and Materials 10,685Natural Gas 14,727Office Supplies 1,000Propane Gas 6,200Tires and Tubes 25,834Uniforms 31,153Vehicle Parts 7,449Water and Sewer 11,283Other Supplies and Materials 6,994Indirect Cost 5,725Premiums on Corporate Surety Bonds 40Other Charges 130,800

(Continued)

211

Exhibit L-7




Ambulance/Emergency Medical Services (Cont.)Communication Equipment $ 4,896Furniture and Fixtures 10,965Heating and Air Conditioning Equipment 2,273Health Equipment 34,852Other Equipment 31,540

Total Ambulance/Emergency Medical Services $ 10,432,275

Other Local Health ServicesSocial Workers $ 339,319Medical Personnel 540,924Clerical Personnel 635,215Educational Assistants 28,627Part-time Personnel 42,298Social Security 91,501Pensions 191,120Life Insurance 2,342Medical Insurance 387,163Employer Medicare 21,465Communication 6,929Janitorial Services 12,500Travel 17,231Electricity 10,905Natural Gas 1,145Water and Sewer 1,232Liability Insurance 33,266

Total Other Local Health Services 2,363,182

Appropriation to StateContributions $ 184,975

Total Appropriation to State 184,975

Other Local Welfare ServicesPauper Burials $ 9,000Other Contracted Services 50

Total Other Local Welfare Services 9,050

Other Public Health and WelfareMedical and Dental Services $ 13,200

Total Other Public Health and Welfare 13,200

Social, Cultural, and Recreational ServicesLibraries

Contributions $ 2,017,694Total Libraries 2,017,694

Parks and Fair BoardsAssistant(s) $ 73,773

(Continued)

212

Exhibit L-7



General Fund (Cont.)Social, Cultural, and Recreational Services (Cont.)

Parks and Fair Boards (Cont.)Supervisor/Director $ 70,787Clerical Personnel 29,702Maintenance Personnel 233,671Part-time Personnel 25,756Social Security 25,494Pensions 49,146Life Insurance 568Medical Insurance 96,062Employer Medicare 5,962Communication 11,454Dues and Memberships 954Maintenance and Repair Services - Vehicles 5,243Postal Charges 3Rentals 2,183Travel 7,513Tuition 3,756Disposal Fees 4,113Other Contracted Services 12,485Custodial Supplies 6,898Electricity 81,984Fertilizer, Lime, and Seed 42,302Gasoline 17,693Office Supplies 268Propane Gas 1,334Road Signs 2,215Sand 13,273Uniforms 1,009Water and Sewer 28,588Gravel and Chert 4,637Top Soil 6,990Fencing 1,497Other Supplies and Materials 40,824Indirect Cost 2,500Furniture and Fixtures 3,431Motor Vehicles 31,799Other Equipment 6,970

Total Parks and Fair Boards $ 952,837

Other Social, Cultural, and RecreationalPostal Charges $ 33Gasoline 4,028Office Supplies 236Vehicle and Equipment Insurance 2,000

Total Other Social, Cultural, and Recreational 6,297

(Continued)

213

Exhibit L-7



General Fund (Cont.)Agriculture and Natural Resources

Agricultural Extension ServiceBoard and Committee Members Fees $ 975Social Security 60Employer Medicare 14Communication 135Contributions 289,528Maintenance and Repair Services - Vehicles 269Rentals 4,913Travel 4,000Other Contracted Services 18,000Gasoline 1,860Office Supplies 929

Total Agricultural Extension Service $ 320,683

Forest ServiceContributions $ 2,000

Total Forest Service 2,000

Soil ConservationSecretary(ies) $ 22,368Social Security 1,387Pensions 2,552Life Insurance 40Employer Medicare 324Other Contracted Services 1,265Other Supplies and Materials 429

Total Soil Conservation 28,365

Other OperationsTourism

Contracts with Government Agencies $ 420,650Contracts with Other Public Agencies 1,261,951

Total Tourism 1,682,601

Industrial DevelopmentContributions $ 640,403Other Contracted Services 598,553

Total Industrial Development 1,238,956

AirportContributions $ 262,842

Total Airport 262,842

Veterans' ServicesAssistant(s) $ 217,794Supervisor/Director 69,828Secretary(ies) 62,664Board and Committee Members Fees 975

(Continued)

214

Exhibit L-7



General Fund (Cont.)Other Operations (Cont.)

Veterans' Services (Cont.)Social Security $ 20,496Pensions 44,166Life Insurance 458Medical Insurance 68,085Employer Medicare 4,793Communication 1,060Postal Charges 1,638Printing, Stationery, and Forms 690Rentals 2,584Travel 3,406Other Contracted Services 4,176Food Supplies 238Library Books/Media 570Other Supplies and Materials 3,595Furniture and Fixtures 1,007

Total Veterans' Services $ 508,223

Other ChargesContributions $ 79,492Building and Contents Insurance 315,444Liability Insurance 22,631Trustee's Commission 1,107,402Workers' Compensation Insurance 654,440Other Charges 3,247

Total Other Charges 2,182,656

Contributions to Other AgenciesContracts with Other Public Agencies $ 298,268Contributions 446,800Dues and Memberships 36,524

Total Contributions to Other Agencies 781,592

Employee BenefitsHandling Charges and Administrative Costs $ 6,082Medical Insurance 227,574Disability Insurance 188,673Unemployment Compensation 3,427Other Fringe Benefits 13,948

Total Employee Benefits 439,704

MiscellaneousTravel $ 1,299Other Contracted Services 13,690Other Supplies and Materials 1,453

Total Miscellaneous 16,442

(Continued)

215

Exhibit L-7



General Fund (Cont.)Highways

Litter and Trash CollectionDeputy(ies) $ 90,372Social Security 5,098Pensions 11,622Life Insurance 104Medical Insurance 25,608Unemployment Compensation 42Employer Medicare 1,192Other Supplies and Materials 24,946

Total Litter and Trash Collection $ 158,984

Total General Fund $ 78,407,357

Drug Control FundPublic Safety

Sheriff's DepartmentContributions $ 1,000Dues and Memberships 200Travel 1,726Tuition 500Veterinary Services 2,691Animal Food and Supplies 2,759Law Enforcement Supplies 5,923Trustee's Commission 71Law Enforcement Equipment 19,335Motor Vehicles 28,938

Total Sheriff's Department $ 63,143

Total Drug Control Fund 63,143

Constitutional Officers - Fees FundAdministration of Justice

Chancery CourtSpecial Commissioner Fees/Special Master Fees $ 21,513

Total Chancery Court $ 21,513

Total Constitutional Officers - Fees Fund 21,513

Highway/Public Works FundHighways

AdministrationCounty Official/Administrative Officer $ 110,143Assistant(s) 80,688Accountants/Bookkeepers 45,889Secretary(ies) 37,856Clerical Personnel 37,675Overtime Pay 1,369Board and Committee Members Fees 3,600

(Continued)

216

Exhibit L-7



Highway/Public Works Fund (Cont.)Highways (Cont.)

Administration (Cont.)Social Security $ 18,831Pensions 40,332Life Insurance 264Medical Insurance 55,248Employer Medicare 4,404Dues and Memberships 4,011Legal Services 4,200Printing, Stationery, and Forms 329Rentals 3,530Other Contracted Services 4,266Drugs and Medical Supplies 1,870Office Supplies 2,684Other Supplies and Materials 2,349

Total Administration $ 459,538

Highway and Bridge MaintenanceForemen $ 533,492Mechanic(s) 84,753Equipment Operators - Heavy 531,815Equipment Operators - Light 168,348Truck Drivers 469,521Laborers 101,049Temporary Personnel 45,985Overtime Pay 54,382Social Security 114,448Pensions 240,519Life Insurance 2,586Medical Insurance 452,364Employer Medicare 27,185Rentals 7,418Other Contracted Services 42,857Asphalt - Hot Mix 913,024Asphalt - Liquid 90,974Concrete 2,787Crushed Stone 71,220Fertilizer, Lime, and Seed 1,376Pipe - Metal 40,289Salt 271,766Structural Steel 4,840Other Supplies and Materials 5,836

Total Highway and Bridge Maintenance 4,278,834

Operation and Maintenance of EquipmentForemen $ 63,961Mechanic(s) 191,029Truck Drivers 27,499Clerical Personnel 35,752

(Continued)

217

Exhibit L-7




Operation and Maintenance of Equipment (Cont.)Overtime Pay $ 12,316Social Security 18,887Pensions 40,517Life Insurance 396Medical Insurance 92,570Employer Medicare 4,417Operating Lease Payments 1,384Maintenance and Repair Services - Equipment 5,754Maintenance and Repair Services - Vehicles 19,474Other Contracted Services 11,259Diesel Fuel 152,102Equipment and Machinery Parts 195,943Garage Supplies 289Gasoline 77,767Lubricants 23,789Small Tools 15,679Tires and Tubes 49,197Vehicle Parts 82,059Other Supplies and Materials 24,608

Total Operation and Maintenance of Equipment $ 1,146,648

Traffic ControlForemen $ 66,247Equipment Operators - Heavy 69,519Laborers 53,308Overtime Pay 3,359Social Security 11,441Pensions 24,503Life Insurance 246Medical Insurance 30,747Employer Medicare 2,676Operating Lease Payments 340Other Contracted Services 15,364Electricity 21,116Road Signs 37,453Small Tools 1,148Other Supplies and Materials 78,632

Total Traffic Control 416,099

Other ChargesCommunication $ 8,749Licenses 4,671Other Contracted Services 197Electricity 23,905Natural Gas 2,432Water and Sewer 5,973Building and Contents Insurance 200,000

(Continued)

218

Exhibit L-7




Other Charges (Cont.)Indirect Cost $ 13,591Trustee's Commission 127,385Workers' Compensation Insurance 132,671

Total Other Charges $ 519,574

Employee BenefitsMedical Insurance $ 38,972

Total Employee Benefits 38,972

Capital OutlayBridge Construction $ 5,552Building Improvements 15,768Data Processing Equipment 1,143Furniture and Fixtures 1,715Highway Construction 19,950Motor Vehicles 139,834State Aid Projects 1,066,169Other Equipment 18,855

Total Capital Outlay 1,268,986

Total Highway/Public Works Fund $ 8,128,651

General Debt Service FundPrincipal on Debt

General GovernmentPrincipal on Bonds $ 11,020,517Principal on Notes 20,000

Total General Government $ 11,040,517

EducationPrincipal on Bonds $ 16,454,483Principal on Capital Leases 915,207Principal on Other Loans 1,507,569

Total Education 18,877,259

Interest on DebtGeneral Government

Interest on Bonds $ 4,131,877Interest on Notes 600

Total General Government 4,132,477

EducationInterest on Bonds $ 7,001,391Interest on Capital Leases 10,056Interest on Other Loans 303,000

Total Education 7,314,447

(Continued)

219

Exhibit L-7



General Debt Service Fund (Cont.)Other Debt Service

General GovernmentTrustee's Commission $ 207,140Underwriter's Discount 55,854Other Debt Issuance Charges 100,983Other Debt Service 847

Total General Government $ 364,824

EducationTrustee's Commission $ 532,645Other Debt Service 23,750

Total Education 556,395

Total General Debt Service Fund $ 42,285,919

General Capital Projects FundOther Debt Service

General GovernmentUnderwriter's Discount $ 62,736Other Debt Issuance Charges 83,267Other Debt Service 2,099

Total General Government $ 148,102

Capital ProjectsGeneral Administration Projects

Architects $ 24,390Other Contracted Services 42Trustee's Commission 69,547Building Improvements 7,726,490Data Processing Equipment 332,319Heating and Air Conditioning Equipment 8,317Other Construction 69,192Other Capital Outlay 652,887

Total General Administration Projects 8,883,184

Public Safety ProjectsConsultants $ 7,500Building Improvements 153,034Data Processing Equipment 48,949Land 1,900,000Motor Vehicles 265,915

Total Public Safety Projects 2,375,398

Public Health and Welfare ProjectsArchitects $ 153,399Contributions 1,900,000Building Construction 2,786,029Data Processing Equipment 103,547Motor Vehicles 805,431Other Equipment 40,019

Total Public Health and Welfare Projects 5,788,425

(Continued)

220

Exhibit L-7



General Capital Projects Fund (Cont.)Capital Projects (Cont.)

Social, Cultural, and Recreation ProjectsArchitects $ 217,242Site Development 125,113Other Construction 4,219,177Other Capital Outlay 12,440

Total Social, Cultural, and Recreation Projects $ 4,573,972

Other General Government ProjectsOther Capital Outlay $ 5,000

Total Other General Government Projects 5,000

Highway and Street Capital ProjectsEngineering Services $ 140Highway Construction 52,603

Total Highway and Street Capital Projects 52,743

Education Capital ProjectsContributions $ 2,355,802

Total Education Capital Projects 2,355,802

Total General Capital Projects Fund $ 24,182,626

Education Capital Projects FundCapital Projects

Education Capital ProjectsContributions $ 3,168,309

Total Education Capital Projects $ 3,168,309

Total Education Capital Projects Fund 3,168,309

Total Governmental Funds - Primary Government $ 156,257,518

221

Exhibit L-8


All Governmental Fund TypesDiscretely Presented Clarksville-Montgomery County School SystemFor the Year Ended June 30, 2018

General Purpose School FundInstruction

Regular Instruction ProgramTeachers $ 88,220,422Career Ladder Program 197,800Homebound Teachers 138,149Salary Supplements 158,474Educational Assistants 1,390,478Overtime Pay 32Certified Substitute Teachers 669,793Non-certified Substitute Teachers 801,989Social Security 5,427,451Pensions 8,350,471Life Insurance 73,574Medical Insurance 14,904,263Employer Medicare 1,272,778Maintenance and Repair Services - Equipment 13,000Travel 18,383Tuition 297,029Other Contracted Services 266,770Basic Skills Materials 38,930Instructional Supplies and Materials 1,878,277Textbooks - Electronic 1,456,290Textbooks - Bound 287,806Fee Waivers 126,868Regular Instruction Equipment 32,163

Total Regular Instruction Program $ 126,021,190

Alternative Instruction ProgramTeachers $ 830,655Career Ladder Program 3,000Educational Assistants 45,880Other Salaries and Wages 21,403Certified Substitute Teachers 332Non-certified Substitute Teachers 1,292Social Security 52,921Pensions 82,013Life Insurance 702Medical Insurance 159,712Employer Medicare 12,377Rentals 4,127Instructional Supplies and Materials 2,999

Total Alternative Instruction Program 1,217,413

Special Education ProgramTeachers $ 14,526,651Career Ladder Program 41,016Homebound Teachers 202,280Educational Assistants 3,193,058

(Continued)

222

Exhibit L-8



General Purpose School Fund (Cont.)Instruction (Cont.)

Special Education Program (Cont.)Temporary Personnel $ 399,230Speech Pathologist 1,449,887Overtime Pay 56Certified Substitute Teachers 151,146Non-certified Substitute Teachers 170,475Social Security 1,185,965Pensions 1,881,519Life Insurance 18,374Medical Insurance 3,445,476Employer Medicare 277,888Travel 1,898Other Contracted Services 1,813Instructional Supplies and Materials 37,746Special Education Equipment 2,080

Total Special Education Program $ 26,986,558

Career and Technical Education ProgramTeachers $ 3,749,799Career Ladder Program 5,000Salary Supplements 41,748Certified Substitute Teachers 38,071Non-certified Substitute Teachers 38,377Social Security 229,663Pensions 349,770Life Insurance 2,898Medical Insurance 637,619Employer Medicare 53,762Maintenance and Repair Services - Equipment 938Travel 497Instructional Supplies and Materials 174,584T&I Construction Materials 199,000Vocational Instruction Equipment 171,302

Total Career and Technical Education Program 5,693,028

Support ServicesAttendance

Supervisor/Director $ 188,016Career Ladder Program 5,000Pupil Personnel 423,403Secretary(ies) 31,599Social Security 38,566Pensions 61,020Life Insurance 420Medical Insurance 90,652Employer Medicare 9,019Travel 5,822

(Continued)

223

Exhibit L-8



General Purpose School Fund (Cont.)Support Services (Cont.)

Attendance (Cont.)Office Supplies $ 4,284Other Supplies and Materials 8,168In Service/Staff Development 3,723

Total Attendance $ 869,692

Health ServicesMedical Personnel $ 1,068,881Temporary Personnel 86,954Overtime Pay 317Social Security 67,622Pensions 118,482Life Insurance 1,176Medical Insurance 212,749Employer Medicare 15,795Other Contracted Services 2,220Other Supplies and Materials 28,767Health Equipment 1,935

Total Health Services 1,604,898

Other Student SupportCareer Ladder Program $ 9,000Guidance Personnel 4,033,743Social Workers 257,763Salary Supplements 1,486,013Clerical Personnel 307,989Educational Assistants 156,018Overtime Pay 2Other Salaries and Wages 15,209Social Security 372,248Pensions 569,532Life Insurance 4,100Medical Insurance 888,563Employer Medicare 87,265Contributions 30,000Evaluation and Testing 276,836Other Contracted Services 17,006Food Supplies 127Instructional Supplies and Materials 441In Service/Staff Development 35Other Charges 1,266

Total Other Student Support 8,513,156

Regular Instruction ProgramSupervisor/Director $ 1,720,965Career Ladder Program 35,529Librarians 2,598,226

(Continued)

224

Exhibit L-8




Regular Instruction Program (Cont.)Instructional Computer Personnel $ 2,368,024Salary Supplements 414,439Secretary(ies) 135,397Clerical Personnel 38,418Educational Assistants 777,287Overtime Pay 382Other Salaries and Wages 1,239,039In-service Training 12,782Social Security 555,885Pensions 932,651Life Insurance 6,110Medical Insurance 1,365,965Employer Medicare 130,161Dues and Memberships 1,850Travel 13,354Other Contracted Services 83,458Gasoline 906Library Books/Media 362,734Office Supplies 13,907Periodicals 38,000Other Supplies and Materials 597,444In Service/Staff Development 270,768Other Charges 18,692Regular Instruction Equipment 3,359


Alternative Instruction ProgramClerical Personnel $ 18,849Social Security 1,053Pensions 1,696Life Insurance 25Medical Insurance 5,907Employer Medicare 246

Total Alternative Instruction Program 27,776

Special Education ProgramSupervisor/Director $ 102,907Career Ladder Program 4,000Psychological Personnel 980,722Secretary(ies) 60,436Clerical Personnel 50,423Other Salaries and Wages 1,128,985Social Security 138,896Pensions 217,938Life Insurance 1,446Medical Insurance 335,413

(Continued)

225

Exhibit L-8




Special Education Program (Cont.)Employer Medicare $ 32,484Bank Charges 1,093Dues and Memberships 1,011Travel 21,126Other Contracted Services 129,738Office Supplies 4,760Other Supplies and Materials 62,957In Service/Staff Development 15,173

Total Special Education Program $ 3,289,508

Career and Technical Education ProgramSupervisor/Director $ 79,186Secretary(ies) 18,543Social Security 5,874Pensions 9,575Life Insurance 59Medical Insurance 12,305Employer Medicare 1,374Office Supplies 113In Service/Staff Development 1,998

Total Career and Technical Education Program 129,027

TechnologySupervisor/Director $ 475,071Computer Programmer(s) 326,529Salary Supplements 5,611Secretary(ies) 42,968Temporary Personnel 19,019Other Salaries and Wages 146,931Social Security 60,791Pensions 127,932Life Insurance 539Medical Insurance 105,186Employer Medicare 14,336Dues and Memberships 1,240Operating Lease Payments 4,342,376Internet Connectivity 454,332Travel 36,763Other Contracted Services 834,672Data Processing Supplies 283,757Equipment and Machinery Parts 197,800Food Supplies 575Office Supplies 1,088Cabling 311,811Software 1,720,427Other Supplies and Materials 71,210

(Continued)

226

Exhibit L-8




Technology (Cont.)In Service/Staff Development $ 12,728Data Processing Equipment 600,913Other Equipment 4,005,685

Total Technology $ 14,200,290

Adult ProgramsSupervisor/Director $ 85,907Career Ladder Program 1,000Guidance Personnel 28,917Other Salaries and Wages 120,276Social Security 14,379Pensions 19,091Life Insurance 130Medical Insurance 14,733Employer Medicare 3,363

Total Adult Programs 287,796

Board of EducationSecretary to Board $ 23,847Board and Committee Members Fees 39,275Social Security 3,047Pensions 3,067Life Insurance 16Medical Insurance 6,152Disability Insurance 542,567Unemployment Compensation 44,615Employer Medicare 880Other Fringe Benefits 562,427Audit Services 76,750Dues and Memberships 29,629Legal Services 123,015Other Contracted Services 90Liability Insurance 229,542Premiums on Corporate Surety Bonds 3,254Trustee's Commission 1,212,551Workers' Compensation Insurance 319,045Liability Claims 815,921Other Self-insured Claims 111,798In Service/Staff Development 20,223Criminal Investigation of Applicants - TBI 46,069Other Charges 50,765

Total Board of Education 4,264,545

Director of SchoolsCounty Official/Administrative Officer $ 178,842Career Ladder Program 1,000

(Continued)

227

Exhibit L-8




Director of Schools (Cont.)Education Media Personnel $ 123,069Secretary(ies) 71,878Clerical Personnel 191,546Temporary Personnel 2,782Other Salaries and Wages 203,484Social Security 45,611Pensions 87,439Life Insurance 406Medical Insurance 148,826Employer Medicare 10,667Advertising 500Dues and Memberships 12,556Postal Charges 50,481Travel 844Other Contracted Services 61,905Duplicating Supplies 36,363Food Supplies 2,810Office Supplies 3,436Periodicals 546Other Supplies and Materials 1,582In Service/Staff Development 24,352Other Equipment 13,791

Total Director of Schools $ 1,274,716

Office of the PrincipalPrincipals $ 3,894,636Career Ladder Program 23,999Accountants/Bookkeepers 1,718,769Assistant Principals 5,085,470Clerical Personnel 2,467,025Temporary Personnel 12,095Overtime Pay 2,235Social Security 778,195Pensions 1,352,448Life Insurance 8,970Medical Insurance 2,598,130Employer Medicare 182,173Dues and Memberships 9,000Other Contracted Services 27,505In Service/Staff Development 39,000Administration Equipment 21,572

Total Office of the Principal 18,221,222

Fiscal ServicesSupervisor/Director $ 509,436Accountants/Bookkeepers 904,632

(Continued)

228

Exhibit L-8




Fiscal Services (Cont.)Temporary Personnel $ 8,632Overtime Pay 655Other Salaries and Wages 507,868Social Security 113,078Pensions 242,764Life Insurance 1,139Medical Insurance 309,638Employer Medicare 26,607Advertising 208Bank Charges 6,007Dues and Memberships 1,333Laundry Service 2,097Maintenance and Repair Services - Equipment 1,484Travel 1,029Other Contracted Services 87,298Food Supplies 294Gasoline 9,515Office Supplies 13,183Other Supplies and Materials 1,252In Service/Staff Development 34,894

Total Fiscal Services $ 2,783,043

Human Services/PersonnelSupervisor/Director $ 589,649Secretary(ies) 673,287Overtime Pay 1,833Other Salaries and Wages 129,471Other Per Diem and Fees 425,520Social Security 107,968Pensions 204,659Life Insurance 742Medical Insurance 224,935Employer Medicare 25,401Advertising 8,234Dues and Memberships 3,164Travel 19,204Other Contracted Services 28,150Office Supplies 12,767Other Supplies and Materials 22,364In Service/Staff Development 19,979Administration Equipment 262Other Equipment 169,464

Total Human Services/Personnel 2,667,053

Operation of PlantSupervisor/Director $ 316,367

(Continued)

229

Exhibit L-8




Operation of Plant (Cont.)Salary Supplements $ 35,000Foremen 45,811Secretary(ies) 33,530Custodial Personnel 5,052,913Overtime Pay 10,441Social Security 318,642Pensions 672,723Life Insurance 5,887Medical Insurance 1,554,224Employer Medicare 74,520Evaluation and Testing 8,952Laundry Service 35,723Licenses 5,293Disposal Fees 109,892Other Contracted Services 360,683Custodial Supplies 388,330Electricity 5,832,568Fertilizer, Lime, and Seed 35,740Food Supplies 898Fuel Oil 10,335Natural Gas 455,343Office Supplies 4,918Water and Sewer 759,910Gravel and Chert 32,440Other Supplies and Materials 20,556Building and Contents Insurance 452,270In Service/Staff Development 3,728Furniture and Fixtures 160,692Plant Operation Equipment 13,733

Total Operation of Plant $ 16,812,062

Maintenance of PlantSupervisor/Director $ 84,033Foremen 78,389Secretary(ies) 79,310Maintenance Personnel 2,388,304Temporary Personnel 10,250Overtime Pay 421Social Security 154,524Pensions 327,668Life Insurance 1,921Medical Insurance 604,882Employer Medicare 36,139Communication 509,071Dues and Memberships 50Laundry Service 10,813

(Continued)

230

Exhibit L-8




Maintenance of Plant (Cont.)Maintenance and Repair Services - Equipment $ 260,942Maintenance and Repair Services - Vehicles 3,765Rentals 4,289Other Contracted Services 991,333Food Supplies 793Gasoline 135,345Lubricants 2,835Office Supplies 2,985Tires and Tubes 12,595Vehicle Parts 58,461Chemicals 43,782Other Supplies and Materials 898,167Vehicle and Equipment Insurance 65,428In Service/Staff Development 7,422Maintenance Equipment 40,188

Total Maintenance of Plant $ 6,814,105

Operation of Non-Instructional ServicesEarly Childhood Education

Teachers $ 950,883Educational Assistants 324,931Temporary Personnel 5,964Other Salaries and Wages 100,367Certified Substitute Teachers 5,629Non-certified Substitute Teachers 14,757Social Security 81,933Pensions 138,868Life Insurance 1,371Medical Insurance 334,530Employer Medicare 19,199Travel 49Other Contracted Services 1,077Instructional Supplies and Materials 57,227In Service/Staff Development 3,687

Total Early Childhood Education 2,040,472

Interest on DebtEducation

Interest on Notes $ 25,575Total Education 25,575

Other Debt ServiceEducation

Debt Service Contribution to Primary Government $ 1,491,138Total Education 1,491,138

Total General Purpose School Fund $ 258,969,995

(Continued)

231

Exhibit L-8



School Federal Projects FundInstruction

Regular Instruction ProgramTeachers $ 1,659,893Salary Supplements 1,043,348Educational Assistants 387,570Other Salaries and Wages 89,218Certified Substitute Teachers 47,561Non-certified Substitute Teachers 121,045Social Security 197,105Pensions 299,615Life Insurance 1,944Medical Insurance 424,643Employer Medicare 46,707Other Contracted Services 7,429Instructional Supplies and Materials 362,968Other Supplies and Materials 12,578Regular Instruction Equipment 144,517


Special Education ProgramTeachers $ 245,622Educational Assistants 1,869,515Speech Pathologist 61,768Certified Substitute Teachers 444Non-certified Substitute Teachers 1,554Social Security 124,925Pensions 254,969Life Insurance 3,412Medical Insurance 480,257Employer Medicare 29,211Contracts with Other Public Agencies 74,530Other Contracted Services 49,695Instructional Supplies and Materials 38,058Other Supplies and Materials 84,318Other Charges 4,160Special Education Equipment 46,939

Total Special Education Program 3,369,377

Career and Technical Education ProgramMaintenance and Repair Services - Equipment $ 479Instructional Supplies and Materials 14,854Other Supplies and Materials 6,650Other Charges 1,143Vocational Instruction Equipment 385,295


(Continued)

232

Exhibit L-8



School Federal Projects Fund (Cont.)Support Services

Health ServicesSupervisor/Director $ 53,664Social Security 3,109Pensions 6,901Life Insurance 31Medical Insurance 14,733Employer Medicare 727Travel 112Other Supplies and Materials 970In Service/Staff Development 4,489Other Charges 2,270Health Equipment 67,962

Total Health Services $ 154,968

Other Student SupportGuidance Personnel $ 54,738Clerical Personnel 20,616Other Salaries and Wages 158,358Social Security 10,216Pensions 19,159Life Insurance 166Medical Insurance 61,071Employer Medicare 3,124Communication 697Travel 47,984Other Contracted Services 32,716Other Supplies and Materials 56,282In Service/Staff Development 39,660Other Charges 29,002Other Equipment 399

Total Other Student Support 534,188

Regular Instruction ProgramSupervisor/Director $ 256,953Salary Supplements 129,900Secretary(ies) 18,543Temporary Personnel 2,880Other Salaries and Wages 2,508,311Social Security 174,139Pensions 271,167Life Insurance 1,840Medical Insurance 449,222Employer Medicare 40,830Communication 697Consultants 39,241Contributions 211,998Travel 2,655

(Continued)

233

Exhibit L-8



School Federal Projects Fund (Cont.)Support Services (Cont.)

Regular Instruction Program (Cont.)Other Contracted Services $ 588,092Library Books/Media 6,558Other Supplies and Materials 29,575In Service/Staff Development 155,640Other Equipment 54,450


Special Education ProgramPsychological Personnel $ 465,798Secretary(ies) 45,032Other Salaries and Wages 697,829Social Security 72,600Pensions 112,007Life Insurance 708Medical Insurance 164,143Employer Medicare 16,979Travel 1,403Other Contracted Services 40,948Other Supplies and Materials 23,583In Service/Staff Development 31,037Other Equipment 347

Total Special Education Program 1,672,414

Career and Technical Education ProgramTravel $ 133In Service/Staff Development 3,925


TransportationBus Drivers $ 84,222Social Security 5,110Pensions 10,135Employer Medicare 1,195Contracts with Parents 2,098Other Contracted Services 4,616Other Charges 3,957

Total Transportation 111,333

Total School Federal Projects Fund $ 16,043,591

Central Cafeteria FundOperation of Non-Instructional Services

Food ServiceSupervisor/Director $ 113,650Salary Supplements 2,850Truck Drivers 100,285

(Continued)

234

Exhibit L-8



Central Cafeteria Fund (Cont.)Operation of Non-Instructional Services (Cont.)

Food Service (Cont.)Secretary(ies) $ 137,294Cafeteria Personnel 3,873,218Custodial Personnel 231,243Overtime Pay 46,319Other Salaries and Wages 589,696Social Security 293,509Pensions 633,970Life Insurance 7,061Medical Insurance 1,350,251Employer Medicare 68,671Bank Charges 692Communication 4,878Dues and Memberships 11,774Laundry Service 64,503Licenses 3,040Travel 10,108Other Contracted Services 393,827Equipment and Machinery Parts 173,851Food Supplies 6,132,940Gasoline 8,601Lubricants 133Office Supplies 32,691Tires and Tubes 422Uniforms 8,451Utilities 342,000Vehicle Parts 1,162USDA - Commodities 1,208,257Software 24,026Other Supplies and Materials 559,323Workers' Compensation Insurance 4,474In Service/Staff Development 22,402Other Charges 1,086Administration Equipment 16,099Food Service Equipment 488,109

Total Food Service $ 16,960,866

Total Central Cafeteria Fund $ 16,960,866

School Transportation FundSupport Services

Board of EducationTrustee's Commission $ 42,494

Total Board of Education $ 42,494

TransportationSupervisor/Director $ 221,803

(Continued)

235

Exhibit L-8



School Transportation Fund (Cont.)Support Services (Cont.)

Transportation (Cont.)Salary Supplements $ 117,740Mechanic(s) 715,367Bus Drivers 5,145,533Dispatchers/Radio Operators 149,360Secretary(ies) 171,556Temporary Personnel 121,436Overtime Pay 34,016Other Salaries and Wages 1,229,914Social Security 460,057Pensions 966,664Life Insurance 11,096Medical Insurance 1,881,164Employer Medicare 108,144Communication 42,405Dues and Memberships 1,401Laundry Service 5,401Licenses 2,921Maintenance and Repair Services - Equipment 40,190Maintenance and Repair Services - Vehicles 4,881Medical and Dental Services 46,475Transportation - Other than Students 153,200Other Contracted Services 44,041Food Supplies 1,923Fuel Oil 61,056Garage Supplies 9,664Gasoline 828,406Lubricants 14,128Office Supplies 15,567Tires and Tubes 69,045Vehicle Parts 384,033Software 7,940Other Supplies and Materials 18,899Vehicle and Equipment Insurance 118,628In Service/Staff Development 20,342Communication Equipment 4,991Transportation Equipment 1,663,336

Total Transportation $ 14,892,723

Total School Transportation Fund $ 14,935,217

Extended School Program FundInstruction

Regular Instruction ProgramTeachers $ 161,565Social Security 10,017Pensions 15,545

(Continued)

236

Exhibit L-8



Extended School Program Fund (Cont.)Instruction (Cont.)

Regular Instruction Program (Cont.)Employer Medicare $ 2,343Other Contracted Services 36,271

Total Regular Instruction Program $ 225,741

Support ServicesBoard of Education

Trustee's Commission $ 451Total Board of Education 451

Office of the PrincipalAssistant Principals $ 40,352Social Security 2,502Pensions 3,795Employer Medicare 585

Total Office of the Principal 47,234

Total Extended School Program Fund $ 273,426

Education Capital Projects FundCapital Projects

Education Capital ProjectsArchitects $ 687,466Building Construction 510Building Improvements 3,575,045Site Development 438,316Other Capital Outlay 25,429

Total Education Capital Projects $ 4,726,766

Total Education Capital Projects Fund 4,726,766

Total Governmental Funds - Clarksville-Montgomery County School System $ 311,909,861

237

Exhibit L-9

Montgomery County, TennesseeSchedule of Detailed Revenues and ExpensesAll Proprietary FundsFor the Year Ended June 30, 2018


Revenues Operating Revenues Charges for Current Services Self-Insurance Premiums/Contributions $ 50,798,509 $ 787,117 $ 48,125 $ 51,633,751 Other Employee Benefit Charges 3,223,234 0 0 3,223,234 Other Charges for Services 73,029 0 0 73,029 Retirees' Insurance Payments 1,778,983 0 0 1,778,983 Total Operating Revenues $ 55,873,755 $ 787,117 $ 48,125 $ 56,708,997

Nonoperating Revenues Investment Income $ 119,458 $ 0 $ 0 $ 119,458 Miscellaneous Refunds 3,122,097 0 0 3,122,097 Insurance Recovery 0 7,500 0 7,500 Total Nonoperating Revenues $ 3,241,555 $ 7,500 $ 0 $ 3,249,055

Total Revenues $ 59,115,310 $ 794,617 $ 48,125 $ 59,958,052

Expenses Operating Expenses Election Commission Medical and Dental Services $ 0 $ 330 $ 0 $ 330 Total Election Commission $ 0 $ 330 $ 0 $ 330

Other Facilities Medical and Dental Services $ 0 $ 448 $ 0 $ 448 Total Other Facilities $ 0 $ 448 $ 0 $ 448

Risk Management Supervisor/Director $ 0 $ 59,390 $ 0 $ 59,390 Clerical Personnel 0 47,233 0 47,233 Social Security 0 5,912 0 5,912 Pensions 0 13,712 0 13,712 Life Insurance 0 132 0 132 Medical Insurance 0 35,453 0 35,453 Employer Medicare 0 1,383 0 1,383 Communication 0 419 0 419 Consultants 0 4,000 0 4,000 Contracts with Private Agencies 0 73,744 0 73,744 Dues and Memberships 0 480 0 480 Postal Charges 0 117 0 117 Printing, Stationary, and Forms 0 96 0 96 Travel 0 3,605 0 3,605 Tuition 0 2,478 0 2,478 Other Contracted Services 0 424 0 424 Data Processing Supplies 0 240 0 240 Drug and Medical Supplies 0 1,622 0 1,622 Office Supplies 0 19 0 19 Other Supplies and Materials 0 2,673 0 2,673 Total Risk Management $ 0 $ 253,132 $ 0 $ 253,132

(Continued)


238

Exhibit L-9

Montgomery County, TennesseeSchedule of Detailed Revenues and ExpensesAll Proprietary Funds (Cont.)


Expenses (Cont.) Property Assessor's Office Medical and Dental Services $ 0 $ 109 $ 0 $ 109 Drugs and Medical Supplies 0 25 0 25 Total Property Assessor's Office $ 0 $ 134 $ 0 $ 134

County Clerk's Office Medical and Dental Services $ 0 $ 700 $ 0 $ 700 Total County Clerk's Office $ 0 $ 700 $ 0 $ 700

Circuit Court Unemployment Compensation $ 0 $ 0 $ 3,702 $ 3,702 Medical and Dental Services 0 60 0 60 Total Probation Services $ 0 $ 60 $ 3,702 $ 3,762

Juvenile Court Medical and Dental Services $ 0 $ 60 $ 0 $ 60 Total Juvenile Court $ 0 $ 60 $ 0 $ 60

Sheriff's Department Medical and Dental Services $ 0 $ 15,941 $ 0 $ 15,941 Drugs and Medical Supplies 0 2,826 0 2,826 Total Sheriff's Department $ 0 $ 18,767 $ 0 $ 18,767

Jail Medical and Dental Services $ 0 $ 8,628 $ 0 $ 8,628 Drugs and Medical Supplies 0 47 0 47 Total Jail $ 0 $ 8,675 $ 0 $ 8,675

Civil Defense Medical and Dental Services $ 0 $ 38,966 $ 0 $ 38,966 Drugs and Medical Supplies 0 160 0 160 Total Civil Defense $ 0 $ 39,126 $ 0 $ 39,126

Rabies and Animal Control Medical and Dental Services $ 0 $ 1,150 $ 0 $ 1,150 Drugs and Medical Supplies 0 130 0 130 Total Rabies and Animal Control $ 0 $ 1,280 $ 0 $ 1,280

Ambulance/Emergency Medical Services Medical and Dental Services $ 0 $ 18,334 $ 0 $ 18,334 Drugs and Medical Supplies 0 662 0 662 Total Ambulance/Emergency Medical Services $ 0 $ 18,996 $ 0 $ 18,996

Waste Pickup Unemployment Compensation $ 0 $ 0 $ 1,925 $ 1,925 Total Waste Pickup $ 0 $ 0 $ 1,925 $ 1,925

Landfill Operation and Maintenance Medical and Dental Services $ 0 $ 16,419 $ 0 $ 16,419 Drugs and Medical Supplies 0 280 0 280 Total Landfill Operation and Maintenance $ 0 $ 16,699 $ 0 $ 16,699

(Continued)


239

Exhibit L-9

Montgomery County, TennesseeSchedule of Detailed Revenues and ExpensesAll Proprietary Funds (Cont.)


Libraries Medical and Dental Services $ 0 $ 188 $ 0 $ 188 Total Libraries $ 0 $ 188 $ 0 $ 188

Parks and Fair Boards Medical and Dental Services $ 0 $ 1,028 $ 0 $ 1,028 Total Parks and Fair Boards $ 0 $ 1,028 $ 0 $ 1,028

Highway and Bridge Maintenance Medical and Dental Services $ 0 $ 26,948 $ 0 $ 26,948 Drugs and Medical Supplies 0 3,129 0 3,129 Total Highway and Bridge Maintenance $ 0 $ 30,077 $ 0 $ 30,077

Other Charges Medical Personnel $ 769,700 $ 0 $ 0 $ 769,700 Clerical Personnel 152,732 0 0 152,732 Overtime Pay 77 0 0 77 Other Salaries and Wages 46,726 0 0 46,726 Social Security 57,521 0 0 57,521 State Retirement 93,333 0 0 93,333 Life Insurance 483 0 0 483 Medical Insurance 125,884 0 0 125,884 Employer Medicare 13,479 0 0 13,479 Dues and Memberships 2,631 0 0 2,631 Travel 119 0 0 119 Other Contracted Services 257,566 0 0 257,566 Other Supplies and Materials 198,802 0 0 198,802 Liability Insurance 23,909 0 0 23,909 Depreciation 991 0 0 991 In-Service/Staff Development 6,998 0 0 6,998 Other Charges 12,255 0 0 12,255 Data Processing Equipment 1,197 0 0 1,197 Total Other Charges $ 1,764,403 $ 0 $ 0 $ 1,764,403

Employee Benefits Life Insurance $ 226,110 $ 0 $ 0 $ 226,110 Contracts with Private Agencies 2,296,461 0 0 2,296,461 Medical and Dental Services 2,355,137 0 0 2,355,137 Other Contracted Services 673,270 0 0 673,270 Drugs and Medical Supplies 112,506 0 0 112,506 Medical Claims 49,834,243 0 0 49,834,243 Other Charges 215,729 0 0 215,729 Total Employee Benefits $ 55,713,456 $ 0 $ 0 $ 55,713,456

Other Unemployment Compensation $ 0 $ 0 $ 42,498 $ 42,498 Total Other $ 0 $ 0 $ 42,498 $ 42,498

Total Expenses $ 57,477,859 $ 389,700 $ 48,125 $ 57,915,684


240

Exhibit L-10

Montgomery County, TennesseeSchedule of Detailed Receipts, Disbursements,

and Changes in Cash Balances - City Agency FundFor the Year Ended June 30, 2018

Cities -Sales Tax

Fund

Cash Receipts Local Option Sales Tax $ 17,437,002Total Cash Receipts $ 17,437,002

Cash Disbursements Remittance of Revenues Collected $ 17,262,632 Trustee's Commission 174,370Total Cash Disbursements $ 17,437,002

Excess of Cash Receipts Over (Under) Cash Disbursements $ 0Cash Balance, July 1, 2017 0

Cash Balance, June 30, 2018 $ 0

241

SINGLE AUDIT SECTION

242

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

To the County Mayor and Board of County Commissioners:

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Montgomery County, Tennessee, as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise Montgomery County’s basic financial statements, and have issued our report thereon dated December 7, 2018.

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.

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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. 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 one instance of noncompliance or other matter that is required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item: 2018-001.

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,


December 7, 2018

JPW/yu

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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 County, Tennessee To the County Mayor and Board of County Commissioners: 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, 2018. 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 those requirements and performing such other procedures as we considered necessary in the circumstances.

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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, 2018. 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. 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, 2018, and the related notes to the financial statements, which collectively comprise Montgomery County’s basic financial statements. We issued our report thereon dated December 7, 2018, which contained unmodified opinions on those financial statements. Our audit

246

was conducted for the purpose of forming opinions on 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.

Very truly yours,


December 7, 2018

JPW/yu

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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, 2018

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) $ 1,208,257 (5) Passed-through State Department of Education: Child Nutrition Cluster: (4) School Breakfast Program 10.553 (3) 3,200,524 National School Lunch Program 10.555 (3) 7,870,007 (5)Total U.S. Department of Agriculture $ 12,278,788

U.S. Department of Defense: Direct Program: Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools 12.556 N/A $ 1,513,147 Army Youth Programs in Your Neighborhood 12.U01 (3) 767,392 Passed-through State Department of General Services: Section 1033 Excess Property Program (Noncash Assistance) 12.U02 (3) 16,560Total U.S. Department of Defense $ 2,297,099

U.S. Department of Housing and Urban Development: Passed-through State Department of Housing and Urban Development: Home Investment Partnerships Program 14.239 (3) $ 69,192Total U.S. Department of Housing and Urban Development $ 69,192

U.S. Department of Justice: Passed-through State Commission on Children and Youth: Juvenile Justice and Delinquency Prevention Program 16.540 (3) $ 11,000 Passed-through State Department of Finance and Administration: Crime Victim Assistance 16.575 (3) 41,390 Passed-through State Department of Mental Health and Substance Abuse Services: Drug Court Discretionary Grant Program 16.585 2014DCBX0057 47,981 Passed-through the City of Clarksville: Edward Byrne Memorial Justice Assistance Grant Program 16.738 (3) 5,061Total U.S. Department of Justice $ 105,432

U.S. Department of Transportation: Passed-through State Department of Transportation: Highway Planning and Construction Cluster: Highway Planning and Construction 20.205 (3) $ 42,633 Passed-through State Department of Safety and Homeland Security: Highway Safety Cluster: State and Community Highway Safety 20.600 (3) 56,755Total U.S. Department of Transportation $ 99,388

U.S. Environmental Protection Agency: Passed-through East Tennessee Clean Fuels Coalition: State Clean Diesel Grant Program 66.040 (3) $ 54,600Total U.S. Environmental Protection Agency $ 54,600

(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 Education: Direct Program: Impact Aid 84.041 N/A $ 1,777,633 Passed-through State Department of Education: Title I Grants to Local Educational Agencies 84.010 N/A 7,190,999 Special Education Cluster: (4) Special Education - Grants to States 84.027 N/A 6,448,146 Special Education - Preschool Grants 84.173 N/A 115,402 Career and Technical Education - Basic Grants to States 84.048 N/A 465,836 Education for Homeless Children and Youth 84.196 (3) 39,435 English Language Acquisition State Grants 84.365 N/A 97,834 Improving Teacher Quality State Grants 84.367 N/A 733,407 Student Support and Academic Enrichment Program 84.424 N/A 74,658Total U.S. Department of Education $ 16,943,350

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) 133,223Total U.S. Department of Homeland Security $ 207,573

Total Federal Awards $ 32,055,422

ContractNumber

State Grants

Early Childhood Education - State Department of Education N/A (3) $ 1,621,852Forensic 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) 80,749Juvenile Justice States Supplemental Funds - State Commission on Children and Youth N/A (3) 9,000Coordinated School Health - State Department of Education N/A (3) 154,969Safe Schools Act - State Department of Education N/A (3) 71,365CTE Equipment - State Department of Education N/A (3) 124,966Ready to Read - State Department of Education N/A (3) 8,483Connect Tenn - State Department of Education N/A (3) 87,395Child 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) 63,433Litter Program - State Department of Transportation N/A (3) 83,346Rural Local Health Services - State Department of Health N/A (3) 2,363,033Community Correction Grant - State Department of Correction N/A (3) 450,741School to Work Transition Grant - State Department of Human Services N/A (3) 175,193Adult Drug Court - State Department of Mental Health and Substance Abuse Services N/A (3) 69,989Teen 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) 1,056Low Cost Spay and Neuter Procedures - State Department of Health N/A (3) 1,150

Total State Grants $ 5,875,802

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 minimus cost rate permitted in the Uniform Guidance.(3) Information not available.(4) Child Nutrition Cluster total $12,278,788; Special Education Cluster total $6,563,548.(5) Total for CFDA No. 10.555 is $9,078,264.

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Montgomery County, TennesseeSummary Schedule of Prior-year FindingsFor the Year Ended June 30, 2018

Fiscal Page Finding CFDAYear Number Number Number

OFFICE OF TRUSTEE

2017 237 2017-001 N/A Corrected

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, 2018.

Prior-year Financial Statement Findings

A Cash Shortage of $12,461 Existed in the Office

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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? NO

3. Noncompliance material to the financial statements noted? NO

Federal Awards:

4. Internal Control Over Major Federal Programs:

* Material weakness identified? NO

* Significant deficiency identified? NONE REPORTED

5. Type of report auditor issued on compliance for major programs. UNMODIFIED

6. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? NO

7. Identification of Major Federal Programs:

* CFDA Nos. 10.553 and 10.555 Child Nutrition Cluster: SchoolBreakfast Program and NationalSchool Lunch Program

* CFDA No. 84.041 Impact Aid

8. Dollar threshold used to distinguish between Type A and Type B Programs. $961,663

9. Auditee qualified as low-risk auditee? NO

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

A finding, as a result of our audit, is presented below. We reviewed this finding with management to provide an opportunity for their response. The written response is paraphrased and presented following the finding. Management’s corrective action plans, whether related to the financial statements or federal awards, are 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 DIRECTOR OF SCHOOLS

FINDING 2018-001 AN INVESTIGATION IN THE CLARKSVILLE-MONTGOMERY COUNTY SCHOOL SYSTEM DISCLOSED A MISAPPROPRIATION OF $1,750 (Noncompliance Under Government Auditing Standards)

An investigation by the Comptroller’s Division of Investigations disclosed that a former employee of the School System misappropriated funds by using his school system-issued procurement card for personal purchases. On December 4, 2018, the Montgomery County Grand Jury indicted the former employee on one count of Theft over $1,000 and one count of Fraudulent Use of a Credit or Debit Card. Details of the cash shortage can be found in a report released by the Comptroller’s Division of Investigations at www.comptroller.tn.gov.

MANAGEMENT’S RESPONSE – DIRECTOR OF SCHOOLS

Our procedures for credit card purchases include a monthly reconciliation and review of the credit card statement at the departmental level and then a monthly reconciliation and review of the statement at the district office. The first statement that had inappropriate charges was the April 2018 statement, which was for the period of March 27, 2018 through April 25, 2018. During the departmental reconciliation and review of that statement, the inappropriate charges were discovered. The inappropriate charges on the May statement occurred on April 24-27, 2018. We believe that our current procedures of review and reconciliation were effective in identifying the misuse as they were identified on the first statement where they occurred. Upon our review of these charges and determining that these charges were not appropriate and did not appear to be an accidental misuse, we promptly completed the “Fraud Reporting Form” for submission to the Comptroller’s Office as required by TCA 8-4-119. We also acted to obtain full restitution and enacted disciplinary actions, which resulted in termination.

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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, 2018.

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FindingNumber

OFFICE OF COUNTY EXECUTIVE

2018-001 255-256

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 Requirementsfor Federal Awards (Uniform Guidance). Management’s corrective action plans for all financial statementfindings and federal award findings are presented in this section and have been indexed below. The correctiveaction plans were prepared by management and have been presented as they were submitted.

Montgomery County, TennesseeManagement's Corrective Action Plan


Title of Finding

An investigation in the Clarksville-Montgomery County School System disclosed a misappropriation of $1,750

Corrective ActionPlan Page Number

254

255

256

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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