ANDERSON COUNTY TENNESSEE - TN Comptroller · financial statements. Management believes that the MD&A complements this letter of transmittal and readers will benefit by reading it

COMPREHENSIVE ANNUAL FINANCIAL REPORT

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

DIVISION OF LOCAL GOVERNMENT AUDIT

COMPREHENSIVE ANNUAL FINANCIAL REPORT

ANDERSON COUNTY, TENNESSEE

FOR THE YEAR ENDED JUNE 30, 2019

COMPTROLLER OF THE TREASURY JUSTIN P. WILSON

DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE

Director

ANDREW WAY, CPA MARK TREECE, CPA, CGFM ANGIE COLLINS, CPA, CFE, CGFM Audit Manager ANDREW HUGHETT

HEATHER COOK AMY SOSVILLE, CPA DOUG SANDIDGE, CISA Senior Auditor State Auditors

Robby Holbrook, Interim Finance Director

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

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Exhibit Page(s)

Summary of Audit Findings 7

INTRODUCTORY SECTION 8

Letter of Transmittal 9-14GFOA Certificate of Achievement for FY18 Report 15Organization Chart 16Anderson County Officials 17-18

FINANCIAL SECTION 19

Independent Auditor's Report 20-22Management's Discussion and Analysis 23-38BASIC FINANCIAL STATEMENTS: 39

Government-wide Financial Statements:Statement of Net Position A 40-42Statement of Activities B 43-44

Fund Financial Statements:Governmental Funds:

Balance Sheet C-1 45-47Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position C-2 48Statement of Revenues, Expenditures, and Changes in

Fund Balances C-3 49-50Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities C-4 51

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

General Fund C-5 52-55Ambulance Service Fund C-6 56Highway/Public Works Fund C-7 57

Proprietary Funds:Statement of Net Position D-1 58Statement of Revenues, Expenses, and Changes in Net Position D-2 59Statement of Cash Flows D-3 60-61

Fiduciary Funds:Statement of Fiduciary Assets and Liabilities E-1 62

Index and Notes to the Financial Statements 63-142REQUIRED SUPPLEMENTARY INFORMATION: 143

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Planof TCRS – Primary Government F-1 144

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Primary Government F-2 145

ANDERSON COUNTY, TENNESSEETABLE OF CONTENTS

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Exhibit Page(s)

Schedule of Contributions Based on Participation in the TeacherPension Plan of TCRS – Discretely Presented AndersonCounty School Department F-3 146

Schedule of Contributions Based on Participation in the TeacherLegacy Pension Plan of TCRS – Discretely Presented AndersonCounty School Department F-4 147

Schedule of Proportionate Share of the Net Pension Liability (Asset)in the Teacher Pension Plan of TCRS – Discretely PresentedAnderson County School Department F-5 148

Schedule of Proportionate Share of the Net Pension Liability (Asset)in the Teacher Legacy Pension Plan of TCRS – Discretely PresentedAnderson County School Department F-6 149

Schedule of Changes in the Total OPEB Liability and Related Ratios -Anderson County Plan F-7 150

Schedule of Changes in the Total OPEB Liability and Related Ratios -Local Education Plan - Discretely Presented Anderson County School Department F-8 151

Notes to the Required Supplemental Information 152COMBINING AND INDIVIDUAL FUND FINANCIAL

STATEMENTS AND SCHEDULES: 153Nonmajor Governmental Funds: 154-155

Combining Balance Sheet G-1 156-161Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances G-2 162-167Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual (Budgetary Basis) and Budget:Public Library Fund G-3 168Solid Waste/Sanitation Fund G-4 169Drug Control Fund G-5 170Other General Government Special Revenue Fund G-6 171Other Special Revenue Fund G-7 172General Debt Service Fund G-8 173Rural Debt Service Fund G-9 174Education Debt Service Fund G-10 175

Major Governmental Fund: 176Schedules of Revenues, Expenditures, and Changes in Fund

Balance – Actual and Budget:General Capital Projects Fund H 177

Proprietary Funds: 178Statement of Net Position I-1 179Combining Statement of Revenues, Expenses, and Changes in

Net Position I-2 180Combining Statement of Cash Flows I-3 181

Fiduciary Funds: 182Combining Statement of Fiduciary Assets and Liabilities J-1 183-184Combining Statement of Changes in Assets and Liabilities –

All Agency Funds J-2 185-187Component Unit:

Discretely Presented Anderson County School Department: 188Statement of Activities K-1 189Balance Sheet – Government Funds K-2 190-191

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Exhibit Page(s)

Reconciliation of the Balance Sheet of Governmental Fundsto the Statement of Net Position K-3 192

Statement of Revenues, Expenditures, and Changes in FundBalances – Governmental Funds K-4 193-194

Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balances of Governmental Fundsto the Statement of Activities K-5 195

Combining Balance Sheet – Nonmajor Governmental Funds K-6 196-197Combining Statement of Revenues, Expenditures, and

Changes in Fund Balances – Nonmajor Governmental Funds K-7 198-199Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual (Budgetary Basis) and Budget:General Purpose School Fund K-8 200-201School Federal Projects Fund K-9 202Central Cafeteria Fund K-10 203Other Education Special Revenue Fund K-11 204Education Capital Projects Fund K-12 205

Miscellaneous Schedules: 206Schedule of Changes in Long-term Notes, Other Loans, Capital

Lease, and Bonds L-1 207-208Schedule of Long-term Debt Requirements by Year L-2 209-210Schedule of Investments L-3 211Schedule of Transfers – Primary Government and Discretely

Presented Anderson County School Department L-4 212Schedule of Salaries and Official Bonds of Principal Officials –

Primary Government and Discretely Presented AndersonCounty School Department L-5 213

Schedule of Detailed Revenues – All Governmental Fund Types L-6 214-234Schedule of Detailed Revenues – All Governmental Fund Types –

Discretely Presented Anderson County School Department L-7 235-238Schedule of Detailed Expenditures – All Governmental Fund Types L-8 239-272Schedule of Detailed Expenditures – All Governmental Fund Types –

Discretely Presented Anderson County School Department L-9 273-287Schedule of Detailed Receipts, Disbursements, and Changes in

Cash Balance – City Agency Funds L-10 288

TableSTATISTICAL SECTION 289

Financial Trends:Net Position by Component 1 290Changes in Net Position 2 291-292Governmental Activities Tax Revenue by Source 3 293Fund Balances of Governmental Funds 4 294Changes in Fund Balances of Governmental Funds 5 295

Revenue Capacity:General Government Tax Revenues by Source 6 296Assessed Value and Estimated Actual Value of Taxable Property 7 297Property Tax Rates – Direct and Overlapping Governments 8 298Principal Property Taxpayers 9 299Property Tax Levies and Collections 10 300

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Table Page(s)

Debt Capacity:Ratios of Outstanding Debt by Type 11 301Ratios of General Bonded Debt Outstanding 12 302Direct and Overlapping Governmental Activities Debt 13 303Legal Debt Margin Information 14 304Pledged-Revenue Coverage 15 305

Demographic and Economic Information:Demographic and Economic Statistics 16 306Principal Employers 17 307

Operating Information:Full-time Equivalent County Government Employees by Function 18 308Operating Indicators by Function 19 309Capital Assets Statistics by Function 20 310

SINGLE AUDIT SECTION 311

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 312-313

Auditor's Report on Compliance for Each Major Federal Program; Report onInternal Control Over Compliance; and Report on the Schedule ofExpenditures of Federal Awards Required by Uniform Guidance 314-316

Schedule of Expenditures of Federal Awards and State Grants 317-318Summary Schedule of Prior-year Findings 319Schedule of Findings and Questioned Costs 320-322Management's Corrective Action Plan 323-324

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Summary of Audit FindingsComprehensive Annual Financial Report

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

Scope

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

Results

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

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

Finding

The following is a summary of the audit finding:

OFFICES OF DIRECTOR OF SCHOOLS AND INTERIM FINANCE DIRECTOR

♦ Revenue anticipation notes were not retired in compliance with state statute.

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INTRODUCTORY SECTION

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To the Honorable Terry Frank, County Mayor, Board of County Commissioners, and Citizens of Anderson County, Tennessee

The Comprehensive Annual Financial Report of Anderson County, Tennessee, for the year ended June 30, 2019, is hereby submitted as required by state statutes. These statutes require that all local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GAAS) by the State of Tennessee’s Comptroller of the Treasury, Division of Local Government Audit, or by independent public accountants within six months of the close of each fiscal year. Pursuant to that requirement, we hereby issue the comprehensive annual financial report for Anderson County, Tennessee. This report was prepared by the county’s Finance Department in conjunction with the above state agency.

Management assumes full responsibility for the completeness and reliability of all the information contained in this report based upon a comprehensive internal control framework that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The State of Tennessee’s Comptroller of the Treasury, Division of Local Government Audit, has issued an unmodified (“clean”) opinion on the financial statements of Anderson County, Tennessee, for the fiscal year ended June 30, 2019. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statements presentation. The independent auditor’s report is presented at the front of the financial section of this report.

The independent audit of the financial statements of Anderson County was part of a broader federally mandated “Single Audit” which was designed to meet the special needs of federal grantor agencies. The standards governing “Single Audit” engagements required the independent auditor to report not only on the fair presentation of the financial statements,

ANDERSON COUNTY, TENNESSEE Letter of Transmittal

November 27, 2019

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but also on the audited government’s internal control and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. Both of these reports are included under the Single Audit Section following the other required sections of the Comprehensive Annual Financial Report. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview and analysis of the basic financial statements. Management believes that the MD&A complements this letter of transmittal and readers will benefit by reading it in conjunction with this letter. Another aspect of an audit is the auditor will sometimes develop a finding and recommendation on specific areas on the operations of Anderson County. The auditor for the year ending June 30, 2019, did have a finding addressing the unpaid balance ($233,000) of a revenue anticipation note as of June 30, 2019, between the General Purpose School Fund and the School Federal Projects Fund. This amount has been included on the accompanying financial statements as a part of the Due from Other Funds balance in the General Purpose School Fund and as Due to Other Funds in the School Federal Project Fund. This balance was paid August 6, 2019. Profile of the Government Anderson County was established on November 6, 1801, by Private Act of the State of Tennessee. The county is named after Joseph Anderson, who was the U.S. senator from Tennessee at the time. The county is located in the eastern portion of the state. The bordering counties are Campbell (north), Union (northeast), Knox (southeast), Roane (southwest), Morgan (west), and Scott (northwest). Anderson County occupies a land area of approximately 345 square miles and serves a population of 76,482. Anderson County operates as a political subdivision of the state as provided by the Tennessee Constitution. Anderson County, as a political subdivision of the state, is subject to control by the Tennessee General Assembly, and the county has no authority except that expressly given by state statutes. Anderson County is empowered to levy a property tax on both real and personal properties located within its boundaries. The county utilizes this power to provide a material portion of estimated revenue for the operations of various funds. However, management believes it has done so in a manner that will minimalize the effect on the taxpayers in the county. Anderson County operates under a County Mayor – County Commission form of government since September 1, 1980. The Anderson County Commission consists of a 16-member board elected in eight districts (two commissioners from each district) within the county. Policymaking and legislative authority is vested in the Board of Commissioners. The Commission is responsible for various tasks, including but not limited to, adopting the annual budget, setting the property tax levy, appointing various boards and committees, and passing local ordinances. Voters elect the County Mayor for a four-year term as the county’s chief executive officer. The County Mayor is responsible for carrying out policies and ordinances of

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the County Commission, overseeing the day-to-day operations of the government, and appointing or recommending for appointment various department heads. In addition, the County Mayor serves as an ex-officio member of the County Commission and as a member of several boards, committees and commissions.

Anderson County adopted the County Financial Management System of 1981 in February 2016. The adoption of this local option law created a county finance department and county financial management committee. In May 2016, the county hired a certified public accountant as Finance Director. This individual left the position effective May 24, 2019. In compliance with controlling statutes, the Assistant Finance Director assumed the position of Interim Finance Director. The financial management committee is in the process of attempting to fill the position of Finance Director; however, the position remains unfilled as of this date. Financial Management Policies and Procedures were adopted by County Commission.

Anderson County provides a full range of essential services, including police and fire protection; solid waste disposal; emergency medical services; emergency management planning; recreational activities; cultural events; acquisition of capital assets necessary for the performance of the aforementioned services; and construction and maintenance of highways, streets, and other infrastructure.

Anderson County also is financially responsible for a legally separate school district. Anderson County School Department’s financial statements are reported separately as a discretely presented component unit. This component unit was audited by the State of Tennessee, Comptroller of the Treasury, Division of Local Governmental Audit. Another entity that qualifies as a discretely presented component unit is the Anderson County Emergency Communications District. The qualifying factors are that Anderson County Commission appoints the governing body of the entity and must approve most debt instruments prior to the entity issuing said debt. An independent auditor other than the State of Tennessee, Comptroller of the Treasury, Division of Local Governmental Audit audited this entity. However; that auditor has provided audited financial statements and related footnotes for inclusion in the Comprehensive Annual Financial Report of Anderson County. Attention is hereby directed to Note 1.A for additional information on these legally separate entities along with the county’s other related organizations. These notes immediately follow the Basic Financial Statements.

Anderson County is required to adopt an annual budget in compliance with state statutes. The annual budget serves as the foundation for Anderson County’s financial planning and control. As required, each department submits an itemized statement of appropriations needed for the upcoming year to the Director of Finance. Each fiscal year, the Director of Finance submits a consolidated budget to the Budget Committee. According to the Tennessee Code Annotated Sections 5-21-110 & 111, the Budget Committee shall vote to approve or reject the proposed budgets for all departments, offices and agencies. After approval by the Budget Committee, a summary of the recommended budget is published in a paper of general circulation. The next step is to hold a public hearing on the budget appropriation resolution and the tax levy resolution. The County Commission then votes to approve the budget as

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presented or to send it back to the budget committee for revisions. After the County Commission approves the proposed budget and resolutions, the budget is sent to the state for final approval. Any and all future transfers of appropriations between major headings in the budget and increases in appropriations that require additional resources or sources of funding must be approved by the County Commission.

Budgetary statements that reflect actual, original budgets and final budgets along with comparisons of actual and final budgeted amounts for the General Fund and other major funds are included as part of the Basic Financial Statements. Budgetary statements for other governmental funds of the primary government and the discretely presented school department are included in the Combining and Individual Funds portion of the Comprehensive Annual Financial Report. The Finance Department, department heads, and elected officials understand the importance of budgets and take great care to ensure that the budgets are followed during the day to day operations of the funds. However, due to emergencies and other unforeseeable circumstances, in a few cases expenditures exceeding appropriations may be unavoidable.

Local Economy

Anderson County is centrally located in the eastern United States. The county is adjacent to thousands of industrial and commercial customers in a concentrated eight-state area. It is within 500 miles of approximately one-third of the population of the United States.

The county’s largest employers are U.S. Department of Energy (DOE)/Consolidated Nuclear Security (CNS), Anderson County Government, and Tennessee Department of Human Services. The DOE Oak Ridge Reservation, which includes the CNS-Y-12 National Security, is located in Anderson County. These DOE facilities are vital to the nation’s scientific research and development, environmental remediation and weapons disarmament, and the development of alternative types of energy and materials. Over 57% of the county’s workforce is employed by the top ten employers. These employers are identified on Table 17 in the Statistical Section of this report.

Anderson County is home to such diverse companies as Clayton Homes, Pharma Packaging Solutions, Techmer PM, Mag USA Inc., Energy Solutions, Powder Cote II, Remotec, Navarro Research and Engineering, and Leidos. Anderson County is also home to two of the top ten global automotive companies, Eagle Bend Manufacturing and Aisin Automotive, as well as automotive giant SL Tennessee.

The unemployment rate in Anderson County fell to a ten-year low of 4.4 percent. The per capital personal income is $40,847. The positive trends of low interest rates, increased government spending, and good consumer spending will enable Anderson County to remain an attractive location for future economic development.

Recent surveys indicate that although government funded operations are still a strong factor in the local economy, service and manufacturing related employment are also important. One of the area’s strengths is its high percentage of precision craft and repair workers and

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technicians. Approximately 60 percent of Anderson County’s population is in the workforce age group of 18 to 64 years of age.

Long-term Financial Planning and Major Initiatives

Anderson County strives to keep new debt issues to a minimum. During fiscal year 2019, the county issued two separate bonds of $5,620,000 and $5,280,000 for the benefit of the Anderson County School Department for various energy savings projects. This department expects to recognize energy cost savings in amounts sufficient to provide debt service payments, including principal and interest averaging approximately $770,000 per year, over the 20-year life of the bonds.

Anderson County closely monitors all unassigned fund balances and is open to long-term financing options for large capital projects if conditions warrant. The county’s minimum fund balance policy requires a two-thirds approval vote by the County Commission to spend down the fund balance below $4 million. Anderson County maintains a credit rating of Aa2 from Moody’s Investor Service, which was last upgraded in March 2019. The county has a strong capacity to meet its financial commitments.

For the year ended June 30, 2019, the county increased the General Fund unassigned fund balance by $1,883,104 for unforeseen contingencies to a total of $7,508,363. To draw the unassigned fund balance below $4,000,000 required two-thirds (2/3) affirmative vote by the County Commission.

Anderson County adopted the County Financial Management System of 1981 in February 2016, this adoption of this local option law created a county financial management office. In May 2016, the county hired a certified public accountant as finance director. This individual left the position effective May 24, 2019. In compliance with controlling statutes, the assistant finance director assumed the position of interim finance director. The financial management committee is in the process of attempting to fill the position of financial director; however, the position remains unfilled as of this date. Financial Management Policies and Procedures were adopted by the County Commission.

Awards and Acknowledgments

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Anderson County for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2018. This is the twenty-third consecutive year that Anderson County has achieved this prestigious award. To be awarded a Certificate of Achievement, the county must publish an easily readable and efficiently organized CAFR that satisfies both generally accepted accounting principles and applicable legal requirements.

The Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, we believe that our current CAFR continues to conform to the

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Certificate of Achievement for Excellence in Financial Reporting Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

Also, Anderson County received the GFOA’s Award for Outstanding Achievement in Popular Annual Financial Reporting (PAFR) for its annual condensed financial report. To receive this award, a government unit must publish a PAFR, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal.

The preparation of this report could not have been possible without the skill, effort and dedication of the entire Finance Department. I would like extend my sincerest gratitude to Katherine Ajmeri, Lydia Beckwith, Kayla Childress, Royden Crocker, Sheila Davis, Karen Holbrook, Paul Richardson, Libby Smith, Randy Walters, and Peyton Webb. I would also like to thank the staff of the county’s Information Technology Department for keeping our accounting system secure and operational. We also express our appreciation to the County Mayor and Board of County Commissioners for their interest, support, and leadership in the financial operations of the county.

Sincerely,

Robert J. Holbrook

Interim Finance Director

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Award for

Presented to

Anderson County Government

For its Annual

June 30, 2018

Executive Director/CEO

Financial Reportfor the Fiscal Year Ended

Financial ReportingPopular AnnualAchievement in

Outstanding

Text38: Tennessee

Government Finance Officers Association

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Tourism Board

Veterans Service

Public Defender (elected)

Parks & Recreation

Board

Animal Care & Control Archives

Buildings & Grounds

Emergency Medical Services

Pre-TrialSenior Center

& Office of Aging

Emergency Management

Boards & Committees

Finance Department

Human Resource

Department

Information Technology Department

Law Director

Sanitation & Solid Waste

Assessor of Property (elected)

County Clerk (elected)

Highway Superintendent

(elected)

Register of Deeds (elected)

County Mayor (elected)

Fleet ServicesPlanning

& Development

Sheriff (elected)

Trustee (elected)

Health Department

Director of Schools

Chancery Court Judge (elected)

Chancery Clerk & Master

Circuit Court Court Clerk

(elected)

Circuit Court Judges (elected)

General Sessions Judges

(elected)

Juvenile Judge (elected)

District Attorney General (elected)

School Board of Education

(elected)

Anderson County, Tennessee

E-911 Board

Industrial Development

Board

Library Board

Regional Planning (ACEDA)

Organization Chart

Electorate

County Commission (elected)

Purchasing Agent

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Anderson County OfficialsJune 30, 2019

Officials

Theresa Frank, County MayorGary Long, Highway SuperintendentDr. Tim Parrott, Director of SchoolsRegina Copeland, TrusteeJohnny Alley, Assessor of PropertyJeff Cole, County ClerkRex Lynch, Circuit, General Sessions, and Juvenile Courts ClerkHarold Cousins, Jr., Clerk and MasterTim Shelton, Register of DeedsRussell Barker, SheriffRobby Holbrook, Interim Finance Director

Board of County Commissioners

Tracy Wandell, Chairman Rick MeredithRobert Jameson Theresa ScottJerry Creasey Bob SmallridgeCatherine Denenberg Shain VowellChuck Fritts Denver WaddellTim Isbel Josh AndersonRobert McKamey Jerry WhiteSteve Mead Phil Yager

Financial Management Committee

Phil Yager Chuck FrittsTheresa Frank, County Mayor Tim IsbelGary Long, Highway Superintendent Rick MeredithDr. Tim Parrott, Director of Schools

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Anderson County Officials (Cont.)

Board of Education

Dr. John Burrell, Chairman Glenda LangenbergDon Bell Andy McKameyDail Cantrell Teresa PortwoodScott Gillenwaters Jo Williams

Audit Committee

Steve Mead, Chairman Chuck FrittsGail Cook Bob SmallridgeCatherine Denenberg Josh AndersonTheresa Scott

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FINANCIAL SECTION

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Independent Auditor's Report

Anderson County Mayor and Board of County Commissioners Anderson 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 Anderson County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the county’s basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Anderson County Emergency Communications District, which represent 2.3 percent, 3.1 percent, and 0.6 percent, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Anderson County Emergency Communications District, is based solely on the report of the other auditors. 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

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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.

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, based on our audit and the report of other auditors, 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 Anderson County, Tennessee, as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General, Ambulance Service, and Highway/Public Works funds for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedules of changes in the county’s net pension liability and related ratios, schedules of county and school contributions, schedule of school’s proportionate share of the net pension liability, and schedules of county and school changes in the total other postemployment benefits liability and related ratios, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary and Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Anderson County’s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Capital Projects Fund, combining and individual fund financial statements of the Anderson County School Department (a discretely presented component unit), miscellaneous schedules and the other information such as the introductory section, management’s corrective action plan, and statistical 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

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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 Capital Projects Fund, combining and individual fund financial statements of the Anderson County School Department (a discretely presented component unit), schedule of expenditures of federal awards, and miscellaneous schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Capital Projects Fund, combining and individual fund financial statements of the Anderson County School Department (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, management’s corrective action plan, and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 27, 2019, on our consideration of Anderson County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Anderson 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 Anderson County’s internal control over financial reporting and compliance.

Very truly yours,

Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee

November 27, 2019

JPW/tg

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Anderson County, Tennessee Management’s Discussion and Analysis

For the Year Ended June 30, 2019 As management of Anderson County, Tennessee, we offer readers of Anderson County’s financial statements, this narrative overview and analysis of the financial activities of Anderson County for the year ended June 30, 2019. We encourage readers to consider this information in conjunction with additional information furnished in the letter of transmittal in the introductory section of this report. FINANCIAL HIGHLIGHTS

• The assets and deferred outflows of Anderson County Primary Government exceeded liabilities and deferred inflows at the end of the fiscal year by $3,694,232 (net position). Of this amount, a negative $24,279,458 represents unrestricted net position.

• Anderson County’s total net position decreased by $4,723,252. Primarily, the reason for this decrease was during the year Anderson County issued additional debt ($10,900,000) for the benefit of the discretely presented Anderson County School Department. Anderson County contributed these proceeds and other debt issuance source of funds to the discretely presented Anderson County School Department. This issuance increased the long-term liability recognized by Anderson County without any offsetting increase in capital assets or other assets.

• At the end of the fiscal year, Anderson County’s governmental funds reported total combined fund balances of $21,417,273, a decrease of $65,377 in comparison with the prior year. Approximately 35 percent of this amount or $7,508,363 is available for spending at the county’s discretion (unassigned fund balance).

• At the end of the fiscal year, unrestricted fund balance (the total of the committed, assigned and unassigned components of fund balance) for the General Fund was $11,191,524, or approximately 37 percent of total General Fund expenditures of $27,551,518.

• Anderson County’s total outstanding long-term debt for governmental activities

increased $7,260,449 or approximately 14.6 percent during the current fiscal year primarily the result of the above-noted debt issuance for the benefit of the discretely presented Anderson County School Department.

OVERVIEW OF THE FINANCIAL REPORT The discussion and analysis provided here are intended to serve as an introduction to Anderson County’s basic financial statements. Anderson County’s basic financial statements include three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves.

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Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of Anderson County’s finances in a manner similar to a private-sector business. The statement of net position presents information on all of Anderson County’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Anderson County is improving or deteriorating. The statement of activities presents information showing changes to Anderson County’s net position during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of Anderson County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of Anderson County include general government; finance; administration of justice; public safety; public health and welfare; social, cultural and recreational services; agricultural and natural resources; emergency medical services/ambulance; highway/public works; education; and interest on long-term debt. The county does not have functions that are business-type activities. The government-wide financial statements include not only Anderson County government itself (known as the primary government), but also a legally separate school system for which the Anderson County government is financially accountable. These statements also include a legally separate Anderson County Emergency Communications District (E-911). Financial information for these component units is reported separately from the financial information presented for the primary government itself. The government-wide financial statements can be found in Exhibits A and B of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Anderson County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the county can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

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Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Anderson County maintains thirteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General, Ambulance Service, Highway/Public Works (all Special Revenue Fund Types), and the General Capital Projects funds, which all are considered to be major funds. Data from the other nine governmental funds are combined into a single aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the combining and individual fund financial statements and schedules of this report. The DPCU School Department maintains five individual governmental funds. The General Purpose School and the Educational Capital Projects funds are considered major funds with the remaining three funds combined into a single, aggregated amount with detail provided in the combining and individual fund financial statements and schedules. Anderson County adopts an annual appropriated budget for the primary government’s General, Ambulance Service, Highway/Public Works, and General Capital Projects funds and discretely presented component unit (DPCU) School Department’s General Purpose School and Educational Capital Projects funds. Budgetary comparison statements have been provided for these funds and other funds to demonstrate compliance with their budgets. The basic governmental fund financial statements can be found in Exhibits C-1 through C-7 of this report. Proprietary Funds. Proprietary funds are used to account for activities where the emphasis is placed on net income determination. There are two types of proprietary funds – enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The county does not have any business-type activities. Internal service funds are accounting devices used to accumulate and allocate costs internally among the county’s various

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functions. The county had two internal service funds at the start of the year. One was to account for employee health insurance activities. The other fund was to account for the county’s cable Channel 95 activities. This fund was reclassified as a special revenue fund type effective July 1, 2018. Because internal service funds predominantly benefit governmental rather than business-type functions, their assets and liabilities have been included with governmental activities in the government-wide financial statements. The internal service fund is combined within the governmental activities in the government-wide financial statements and are presented separately in the fund financial statements. The proprietary fund financial statements can be found in Exhibits D-1 through D-3 and I-1 through I-2 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the governmental entity. Fiduciary funds are not reported in the government-wide financial statements because the resources of those funds are not available to support Anderson County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The county’s fiduciary funds consist of the Cities’ Sales Tax, Clinton School Average Daily Attendance Tax, Oak Ridge School Average Daily Attendance Tax, Constitutional Officers – Agency, Judicial District Drug, and District Attorney General funds, which are combined into agency funds on the fiduciary funds financial statements. The basic fiduciary funds financial statement can be found on Exhibit E-1 of this report. Exhibit J-1 and J-2 will provide additional details pertaining to financial activities on each of these fiduciary funds. Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. Page references for notes to the financial statements can be found in the table of contents. Other Information. In addition to the basic financial statements and accompanying notes, this report presents required supplementary information concerning pension and other postemployment benefits information. This required information is presented in the required supplementary information section of this report. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes to the required supplementary information. Page references for combining and individual fund statements and schedules can be found in the table of contents. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position (surplus or deficit) may serve as a useful indicator of a government’s financial position. In the case of Anderson County, assets and deferred outflows exceeded its liabilities and deferred inflows by $3,694,232 at the close of the most recent fiscal year. The Constitution for the State of Tennessee authorizes the local legislative body to issue debt. Therefore, whenever the Anderson County Board of Education requires additional money to fund school construction and equipment, the related debt must be issued

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by the Anderson County Government. As of June 30, 2019, Anderson County had outstanding debt totaling $56,883,216. Of the county’s total outstanding debt, $37,854,943, or approximately 67 percent is for the benefit of the Anderson County Board of Education. This debt will be paid from the Rural School Debt Service and Education Debt Service funds either by contributions from the Anderson County School Department and other local revenue (property taxes and interest earned on investments), as authorized by the County Commission. Anderson County’s Statement of Net Position – Primary Government Governmental Activities 2019

2018

Current and Other Assets $ 49,735,074 $ 45,384,557 Capital Assets 35,091,647 34,498,632 Total Assets $ 84,826,721 $ 79,883,189 Total Deferred Outflows of Resources

$ 2,363,913 $ 2,571,212

Current Liabilities $ 2,595,257 $ 2,467,725 Long Term Liabilities 60,116,790 52,516,185 Total Liabilities $ 62,712,047 $ 54,983,910 Total Deferred Inflows of Resources

$ 20,784,355 $ 19,053,007

Net Position: Net Investment in Capital Assets

$ 15,883,442 $ 14,227,812

Restricted 12,090,248 11,244,658 Unrestricted (24,279,458) (17,054,986 Total Net Position $ 3,694,232 $ 8,417,484 Anderson County’s Statement of Net Position – DPCU School Department Governmental Activities 2019 2018

Current and Other Assets $ 39,968,783 $ 27,637,416 Capital Assets 51,426,822 46,151,541 Total Assets $ 91,395,605 $ 73,788,957 Total Deferred Outflows of Resources

$ 6,423,930 $ 6,439,344

Long-term Liabilities $ 4,446,425 $ 2,920,225 Other Liabilities 4,052,373 5,056,240 Total Liabilities $ 8,498,798 $ 7,976,465 Total Deferred Inflows of Resources

$ 21,761,164 $ 21,086,084

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Net Position: Net Investment in Capital Assets

$ 51,426,822 $ 46,151,541

Restricted 10,991,991 2,788,018 Unrestricted 5,140,760 2,226,193 Total Net Position $ 67,559,573 $ 51,165,752

The largest portion of Anderson County’s net position is its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure) less any related outstanding debt used to acquire those assets of $15,883,442. The largest portion of the DPCU School Department net position is its investment in capital assets of $51,426,822. Both Anderson County and DPCU School Department use these capital assets to provide a variety of services to citizens. Accordingly, these assets are not available for future spending. Although Anderson County’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of Anderson County’s net position totaling $12,090,248 represents resources that are subject to external restrictions on how they may be used; the total for the DPCU School Department is $10,991,991. Anderson County’s Governmental Activities unrestricted net position is a negative $24,279,458; the DPCU School Department’s unrestricted net position is a $5,140,760. The negative balance represents non-capital related asset net of Anderson County’s Government Activities debt. Both of these amounts are the results of certain capital assets being reflected as part of the Net Investments in Capital Assets in the DPCU School Department that were financed by debt issued which is included in the Long Term Liabilities of the Primary Government. Governmental Activities. The net position for governmental activities decreased $4,723,252 from the prior fiscal year balance of $8,417,484 to a June 30, 2019, balance of $3,694,232. Revenues on the government-wide Statement of Activities are broken into two major categories, program and general revenues. Program revenues are comprised of three types: charges for services to customers, operating grants and contributions (restricted for a specific purpose), and capital grants and contributions (restricted for a specific purpose). General revenues are all revenues that do not qualify as program revenues and are the largest revenue source. The largest revenue sources within this major category are local taxes for the county and state and federal – unrestricted for the DPCU School Department.

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Anderson County’s Statement of Activities – Primary Government Governmental Activities 2019 2018 Program Revenues: Charges for Services $ 14,433,565 $ 14,404,955 Operating Grants and Contributions 4,579,383 3,706,388 Capital Grants and Contributions 747,673 889,035 General Revenues: Local Taxes 22,016,000 21,427,759 Grants and Contributions Not Restricted to Specific Programs 5,526,788 5,413,716 Unrestricted Investment Income 120,759 79,209 Miscellaneous 23,312 35,196 Total Revenues $ 47,447,480 $ 45,956,258 Expenses: General Government $ 5,014,298 $ 4,800,543 Finance 2,902,433 2,957,049 Administration of Justice 2,864,820 2,957,763 Public Safety 14,171,665 13,070,328 Public Health and Welfare 8,273,405 8,476,280 Social, Cultural and Recreational Services 1,298,570 1,368,608 Agricultural and Natural Resources 238,149 247,912 Highways 4,237,204 4,463,812 Education 11,275,996 0 Interest on Long-term Debt 1,894,192 1,858,282 Total Expenses $ 52,170,732 $ 40,200,577 Increase (decrease) in Net Position Before Transfers $ (4,723,252) $ 5,755,681 Transfers In (Out) 0 559,610 Increase (Decrease) in Net Position $ 4,723,252 $ 6,315,291 Net Position, July 1 8,417,484 2,404,563 Restatement – Pension Liability 0 (302,370) Net Position, June 30 $ 3,694,232 $ 8,417,484 Operating Grants and Contributions increased by $872,995 (24%) during the year. Most of this increase is the result of an aggressive grant application strategy undertaken by Anderson County. These grant awards furnished major resources to support two of Anderson County’s functions; Public Safety and Highways. Local Taxes increased by $588,241. This increase was primarily the result of increases in Property Tax collections of $274,899 and Local Option Sales Tax collections of $178,962. The increase in Property Taxes collections assisted in supporting the Public Safety expense function.

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The Education expense function increased by $11,275,996. Anderson County issued long-term debt and contributed the net proceeds to the discretely presented Anderson County School department during the year. This is not a recurring expense item for every year and the occurrence of this expenditure over the past ten years is reflected on Table 2: Changes in Net Position. The last time this expense occurred was during the fiscal year ended June 30, 2016. The Public Safety expense function increased by $1,101,337. As noted above, the increases in Operating Grants and Contributions along with Local Taxes collections were utilized to support this increase. Anderson County’s Statement of Activities – DPCU School Department Governmental Activities 2019 2018 Program Revenues: Charges for Services $ 1,246,794 $ 783,688 Operating Grants and Contributions 13,910,348 13,857,043 Capital Grants and Contributions 11,275,996 1,854,328 General Revenues: Local Taxes 25,136,241 24,526,983 State and Federal – Unrestricted 33,451,128 32,638,337 Investment Income 53,901 28,848 Miscellaneous 122,695 51,014 Total Revenues $ 85,197,103 $ 73,740,241 Expenses: Education $ 68,803,282

$ 68,823,808

Total Expenses $ 68,803,282 $ 66,402,053 Increase (Decrease) in Net Position $ 16,393,821 $ 4,916,433 Net Position, July 1 51,165,752 49,380,064 Restatement – Pension Liability 0 (3,130,745) Net Position, June 30 $ 67,559,573 $ 51,165,752

Anderson County’s Statement of Activities – Ambulance Service Fund Business-Type Activities 2019 2018 Transfer In (Out) $ 0 $ (559,610) Net Position, July 1 0 559,610 Net Position, June 30 $ 0 $ 0

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The Ambulance Service Fund was accounted for in the business-type activities in prior years. This fund was closed (transferred) into a special revenue fund effective July 1, 2017, and has been included in the governmental activities for the fiscal year since that date.

Anderson County Expense and Program Revenue for Governmental Activities

Program expenses exceed program revenues for governmental activities by $32,410,111. Expenses for General Government, Public Safety, Public Health & Welfare, Highways, and Education, are the largest components of Anderson County, which when combined total $42,972,568 and are 82% of total expenses. FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS As noted earlier, Anderson County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of Anderson County’s governmental funds is to provide information on the near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Anderson County’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, Anderson County Government itself, or a

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group or individual that has been delegated authority to assign resources for use for particular purposes. At June 30, 2019, Anderson County’s governmental funds reported combined ending fund balances of $21,417,273, a decrease of $65,377, in comparison with the prior year. Approximately 35 percent of this amount or $7,508,363 constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder or fund balance is either restricted, committed, or assigned to indicate that it is (1) non-spendable, $48,060; (2) restricted for particular purposes, $9,714,228; (3) committed for particular purposes, $3,617,378; or (4) assigned for particular purposes, $529,244. The assigned amount is a reflection of the portion of fund balance utilized to balance the 2019-2020 budget for the General Fund. Detailed analysis of the afore-mentioned decrease in ending fund balance can be found on Exhibit C-3 Statement of Revenues, Expenditures, and Changes in Fund Balance; however, in summary, this decrease was the result of Deficiency of Revenues over Expenditures being $(11,770,754) and Other Financing Sources being $11,705,377. Both of these amounts include the effect of issuing debt and contributing the net proceeds to the DPCU School Department.

Anderson County General Fund Components of Fund Balance

$5,625,259

$880,480

$2,952,229

$1,535,977

$1,040,858

7,508,363

529,244

2,153,917

1,792,009

12,500

$- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000

Unassigned

Assigned

Committted

Restricited

Nonspendable

2019 2018

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The General Fund is the chief operating fund of Anderson County. At the end of the current fiscal year, unassigned fund balance increased to $7,508,363 and the total fund balance decreased to $11,996,033. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures. The General Fund’s liquidity decreased in the current fiscal year due to the increase in General Fund expenditures.

Anderson County’s General Fund Liquidity 2019

2018 Total General Fund Expenditures $ 27,551,518

$ 25,151,540

Unassigned Fund Balance to Total General Fund Expenditures

27% 22%

Total Fund Balance to Total General Fund Expenditures

44% 48%

For several years, the General Fund reflected various amounts as Due from Other Funds (Ambulance Service Fund) as a component in the Non-Spendable Fund Balance. During this year, the County Commission by resolution forgave the July 1, 2018, balance of $1,026,787. This forgiveness is included in the Transfer Out (General Fund) on Exhibit C-3. Summary of Other Major Funds Fund Balances The Ambulance Service Fund balance was $524,213, which was an increase $1,136,742 from the beginning fund deficit of $612,529. The major component of the increase was the forgiveness of the Due to Other Funds - General Fund of $1,026,787. Other components of the above noted increase were Excess (Deficiency) of Revenue over Expenditures of $29,075 and Insurance Recovery of $80,014. The Excess (Deficiency) of Revenue over Expenditures above may not seem very material; however, it should be noted that in fiscal year 2018 expenditures exceeded revenue by $68,046. This improvement of $97,121 was the result of management’s additional steps to improve the operations of the fund and the decrease in expenditures related to the purchase of capital assets. The insurance recovery was based on a wrecked ambulance that was replaced during fiscal year ended June 2018. Receivables of $956,230 were offset by the recognition of Other Deferred Unavailable Revenues Receivables due to not being received within the 30-day availability period (July 2019). This amount increased $349,457 from the June 30, 2018 balance primarily due to the inclusion of $195,157 from the State of Tennessee that was receipted August 29, 2019. The remittance of the amount by the State of Tennessee is beyond control of Anderson County management. If any portion of that amount had been received during July, the increase would have been even more favorable. The fund balance represents approximately 10 percent of current year expenditures The Highway/Public Works Fund balance was $3,981,626, which is an increase of $400,387 from 2018. This increase was primarily the result of less expenditures during this year. The expenditure relating to resurfacing roads (Asphalt) reflected a major reduction from that of prior year. This fund balance represents 94 percent of current year expenditures.

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The General Capital Projects fund balance of $120,339 decreased by $68,090 from the June 30, 2018, balance. This fund was established in a prior year by management in order to provide current funding (and thereby lessen the necessity of obtaining outside financing) for purchasing of capital assets. It is management’s intent that the fund will continue to provide funding for this purpose in the future. The DPCU School Department’s main operating fund is the General Purpose School Fund. At the close of fiscal year, the fund balance of this fund was $7,569,459, with an unassigned balance of $7,396,257. The balance in this fund increased $1,914,529 during the fiscal year. The unassigned balance represents 13 percent of current year expenditures. The Education Capital Projects Fund is used to account for building construction and renovations of school facilities. Due to the nature of this fund, the activity can vary from year to year. In addition to $6,721,694, being expended for these projects, unfilled construction contracts of $4,565,926 existed as of June 30, 2019. The source of funding for these projects was $11,275,996 of contributions of net debt proceeds by Anderson County. BUDGETARY HIGHLIGHTS Original budget compared to final budget. During the fiscal year, appropriations to the original budget increased in the General Fund. These differences are summarized in the following table: General Fund Appropriations Original Amended

Increase

(Decrease) General Government $ 3,964,282 $ 4,762,433 $ 798,151 Finance 3,355,836 3,479,992 124,156 Administration of Justice 3,302,227 3,393,714 91,487 Public Safety 14,167,695 15,164,809 997,114 Public Health and Welfare 1,479,248 1,587,980 108,732 Social, Cultural and Recreational Services 127,112 155,307 28,195 Agricultural and Natural Resources 266,836 266,836 0 Other Operations 813,029 1,100,479 287,450 Capital Projects 0 503,168 503,168 Total Net Position $ 27,476,265 $ 30,414,718 $ 2,938,453

The major portion of the increase in the General Government expenditure function budget was due to a lawsuit being adjudicated during the current year with the county directed to pay an individual approximately $400,000 in back pay. The financial statements reflect this judgement payable but the judgement remains unpaid. Anderson County has appealed the ruling of the court and hopes for a favorable outcome. The increase in the Public Safety expenditure function budget was primarily the result of having to increase appropriations for Sheriff Department and Jail by a total of $1,047,844. These additional unplanned expenditures were funded by additional revenue from the State of Tennessee, Other Revenues, and the use of beginning fund balance.

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The increase in the Capital Projects expenditure function budget was primarily due to several additional grant-funded public safety and public utility projects. These projects were funded through federal programs, such as safe routes to school grant, and the office of surface mining. Final budget compared to actual results of the General Fund. Actual revenue was $1,165,549 more than anticipated with the most significant difference between estimated revenues and actual revenues was State of Tennessee grants was $979,943 more than anticipated. At the close of the fiscal year, actual expenditures and encumbrances were $2,986,790 less than budgetary estimates. A review of actual expenditures compared with the appropriations in the final budget resulted in the following significant variances:

• Expenditures and encumbrances were held below appropriations in the functions of Public Safety ($828,946), General Government ($530,581), Public Health and Welfare ($466,406), Finance ($371,283) and Administration of Justice ($295,182). These functions were specified as amounts were above $250,000. Expenditures in all other functions were held below appropriations by amounts ranging up to $227,372.

• Additional details on actual revenue and expenditures functions variances with amended budgets can be found in Exhibits C-5 of this report.

• Management and Department Heads continue to exhibit a conservative attitude towards the budgetary controls instead of spending whatever is available to be spent.

Proprietary Funds Anderson County’s proprietary funds provide the same type of information found in the government-wide financial statements. Net Position of Internal Service Funds Proprietary Funds 2019

2018

Employee Health Insurance Fund 1,126,737 $370,184 Channel 95 0 142,374

The proprietary fund financial statements can be found as Exhibits D-1 through D-3 and I-1 through I-2 in the financial statements. As previously noted, the Channel 95 fund was reclassified as a special revenue fund type by transferring the June 30, 2018 ,unrestricted net position amount ($105,829) into a special revenue fund. The June 30, 2018, Net Investment in Capital Assets ($36,545) has been removed from the Internal Service Fund and are now reflected in the Governmental Activities for the current year.

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CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. Anderson County’s investment in capital assets for its governmental activities as of June 30, 2019, totals $35,091,647 (net of accumulated depreciation). The investment in capital assets includes land, construction in progress, buildings and improvements, other capital assets (including vehicles and equipment), and infrastructure (highways and bridges). The net increase in capital assets for the current fiscal year was $593,015 or approximately 2 percent.

Anderson County’s Capital Assets (net of depreciation) Governmental Activities 2019 2018 Land $ 2,659,202 $ 2,462,093 Construction in Progress 101,777 14,000 Buildings and Improvements 21,669,489 22,221,940 Other Capital Assets 5,270,215 4,192,000 Infrastructure 5,390.964 5,608,599 Total $ 35,091,647 $ 34,498,632

Additional information on Anderson County’s capital assets can be found in Note IV.B. of the notes to the financial statements. Long-term Debt. At the end of the 2019 fiscal year, Anderson County government had total debt outstanding of $56,883,216. All debt is backed by the full faith and credit of the government.

Anderson County’s Outstanding Debt Governmental Activities 2019 2018 Notes Payable $ 1,527,082 $ 2,166,322 Other Loans Payable 9,123,000 9,933,019 Bonds Payable 46,070,000 37,150,000 Capital Lease Payable 163,134 373,426 Total $ 56,883,216 $ 49,622,767

Anderson County’s total debt increased $7,260,449 or approximately 14.6 percent during the current fiscal year. This increase consisted of a new bond issuance of $10,900,000 and retirement of $3,639,551 of debt. Currently, state statutes do not limit the amount of general obligation debt a government entity may issue. Anderson County’s bond rating from Moody’s Investor Services was affirmed at Aa2 in March 2019. Additional information on Anderson County government’s long-term debt can be found in Exhibits L-1, L-2, and Note IV.G. of this report.

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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES The following economic factors currently affect Anderson County. The Commission considered these factors in developing the 2019-2020 fiscal year budget: The reader’s attention is hereby directed to the Statistical Section of this Comprehensive

Annual Financial Report for various indications of economic factors that may have an effect on Anderson County operations in the future. However, it should be noted: • Table 1 reflects a material decrease in the Primary Governmental Net Position. As

previously noted, this decrease was primarily the result of Anderson County issuing long-term debt for the benefit of the Discretely Presented School Department. Anderson County has incurred additional debt with no offsetting increases in either current or capital assets.

• Table 2 reflects continued improvement in both the Total Program Revenue for Governmental Activities and General Revenue.

• Table 3 reflects continued improvement in the Government Activities Tax Revenue by Source.

• Table 4 reflects stable fund balances in Governmental Funds over the past four years. • Table 5 can be used to review the primary reasons for the stable fund balances by

reflecting net changes in fund balances. • Table 6 details the Tax Revenue by Sources. Although not noted on the face of the

table, it indicates an increase each year. • Table 7 reflects the continued increases in the various appraised and assessed values

for tax purpose. It should be noted that this continued improvement is the primary reason that Anderson County has been able to maintain the same total tax rate for several years as reflected on Table 8.

• Table 9 lists the Principal Taxpayers for 2019 as compared to 2010. Although it is not illustrated on this table, it is noteworthy that the principal taxpayers for 2019 were much the same for 2018, with very few changes in the ranking.

• Table 10 reflects the percentage of tax levy collected during the current year is decreasing since 2016 to a ten-year low of 93.25 percent.

• The remaining statistical tables mainly deal with debt capacity, demographic and economic information and operating information. These tables provide additional insight to the readers and users of the financial statements and the accompanying notes to those statements.

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The following chart presents the 2019 tax rate of $2.8903 and percentage of total rate allocated to each fund.

Anderson County utilized $483,225 of June 30, 2019, unassigned balance to balance the

2019-2020 original budget for the General Fund. The June 30, 2019, financial statements include this amount in the Assigned Fund Balance in the General Fund.

County Commission approved the same total tax rate of $2.7903 for the last four tax years. Commission approved a rate of $2.8903 for the 2019 tax year, an increase of $.10.

REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of Anderson County’s finances for all those with an interest in the government’s financial information. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Anderson County Director of Finance, 100 North Main Street, Room 212, Clinton, Tennessee 37716-3625.

55.72%

27.08%

3.65%

1.09% 5.69%

0.98%

2.31% 0.52% 0.24% 1.73% 1.01%

General Pupose School Fund$1.6105

General Fund$ .7827

General Debt Service$.1054

Rural Debt Service Fund$ .0314

Education Debt Service$ .1644

Library Fund$ .0282

Solid Waste Fund$ .0667

Ambulance Fund$ .0150

Genera Projects Fund$ .0069

Education Capital Projects$ .0500

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BASIC FINANCIAL STATEMENTS

39

Exhibit A

Anderson County, TennesseeStatement of Net PositionJune 30, 2019

Primary Anderson EmergencyGovernment County Communica-

Governmental School tionsActivities Department District

ASSETS

Cash $ 1,378,569 $ 266,722 $ 1,397,826Equity in Pooled Cash and Investments 21,100,595 15,159,911 0Inventories 35,560 81,580 0Investments 19,407 0 0Accounts Receivable 3,648,313 36,888 0Allowance for Uncollectible (1,982,716) 0 0Due from Other Governments 1,843,032 2,979,735 0Due from Primary Government 0 46,436 0Due from Component Units 150,546 0 0Property Taxes Receivable 20,946,172 17,096,544 0Allowance for Uncollectible Property Taxes (611,390) (502,451) 0Prepaid Items 27,013 0 30,585Net Pension Asset - Agent Plan 3,179,973 1,809,785 147,128Net Pension Asset - Teacher Legacy Plan 0 2,605,954 0Net Pension Asset - Teacher Retirement Plan 0 258,432 0Restricted Assets 0 129,247 0Capital Assets: Assets Not Depreciated: Land 2,659,202 865,214 0 Construction in Progress 101,777 7,050,765 0 Assets Net of Accumulated Depreciation: Buildings and Improvements 21,669,489 41,095,035 0 Other Capital Assets 5,270,215 2,415,808 549,616 Infrastructure 5,390,964 0 0Total Assets $ 84,826,721 $ 91,395,605 $ 2,125,155

(Continued)

Component Units

40

Exhibit A

Anderson County, TennesseeStatement of Net Position (Cont.)



DEFERRED OUTFLOWS OF RESOURCES

Deferred Charge on Refunding $ 407,839 $ 0 $ 0Pension Changes in Experience 45,197 567,112 0Pension Changes in Assumptions 682,922 1,939,946 0Pension Contributions After Measurement Date 1,198,683 3,392,851 4,405Pension Changes in Proportionate Share 0 55,111 0OPEB Changes in Assumptions 29,272 105,889 0OPEB Contributions After Measurement Date 0 323,503 0OPEB Changes in Proportionate Share 0 39,518 0Total Deferred Outflows of Resources $ 2,363,913 $ 6,423,930 $ 4,405

LIABILITIES

Accounts Payable $ 944,763 $ 1,169,211 $ 6,879Accrued Payroll 325,805 1,897 0Accrued Interest Payable 378,986 0 0Payroll Deductions Payable 165,302 800,716 0Contracts Payable 86,030 1,872,571 0Retainage Payable 4,389 55,956 0Claims and Judgments Payable 400,000 0 0Due to Primary Government 0 150,546 0Due to Component Units 46,436 0 0Due to State of Tennessee 970 227 0Other Current Liabilities 242,576 389 0Unearned/Unavailable Revenues 0 860 0Noncurrent Liabilities: Due Within One Year - Debt 3,490,495 0 0 Due Within One Year - Other 620,284 321,146 0 Due in More than One Year - Debt 55,462,667 0 0 Due in More than One Year - Other 543,344 4,125,279 0Total Liabilities $ 62,712,047 $ 8,498,798 $ 6,879

(Continued)

Component Units

41

Exhibit A

Anderson County, TennesseeStatement of Net Position (Cont.)



DEFERRED INFLOWS OF RESOURCES

Deferred Current Property Taxes $ 19,383,092 $ 15,816,460 $ 0Pension Changes in Experience 1,133,373 4,170,957 0Pension Changes in Investment Earnings 211,923 702,371 640Pension Changes in Proportionate Share 0 159,158 0OPEB Changes in Experience 55,967 735,397 0OPEB Changes in Assumptions 0 176,821 0Total Deferred Inflows of Resources $ 20,784,355 $ 21,761,164 $ 640

NET POSITION

Net Investment in Capital Assets $ 15,883,442 $ 51,426,822 $ 549,616Restricted for: General Government 182,188 0 0 Finance 81,780 0 0 Administration of Justice 804,158 0 0 Public Safety 678,446 0 0 Public Health and Welfare 643,277 0 0 Social, Cultural, and Recreational Services 752,241 0 0 Highway/Public Works 4,154,276 0 0 Debt Service 1,305,439 0 0 Capital Projects 308,470 4,572,414 0 Education 0 1,616,159 0 Pensions 3,179,973 4,803,418 0Unrestricted (24,279,458) 5,140,760 1,572,425

Total Net Position $ 3,694,232 $ 67,559,573 $ 2,122,041

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

Component Units

42

Exhibit B

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

PrimaryProgram Revenues Government Anderson Emergency

Operating Capital Total County Communica-Charges for Grants and Grants and Governmental School tions

Functions/Programs Expenses Services Contributions Contributions Activities Department District

Primary Government: Governmental Activities: General Government $ 5,014,298 $ 957,355 $ 155,809 $ 0 $ (3,901,134) $ 0 $ 0 Finance 2,902,433 2,542,354 0 0 (360,079) 0 0 Administration of Justice 2,864,820 1,394,386 124,659 0 (1,345,775) 0 0 Public Safety 14,171,665 2,718,093 1,192,506 39,962 (10,221,104) 0 0 Public Health and Welfare 8,273,405 6,201,036 222,081 138,710 (1,711,578) 0 0 Social, Cultural, and Recreational Services 1,298,570 437,252 128,752 3,165 (729,401) 0 0 Agriculture and Natural Resources 238,149 0 0 0 (238,149) 0 0 Highways 4,237,204 183,089 2,755,576 565,836 (732,703) 0 0 Education 11,275,996 0 0 0 (11,275,996) 0 0 Debt Service: Interest on Long-term Debt 1,894,192 0 0 0 (1,894,192) 0 0

Total Primary Government $ 52,170,732 $ 14,433,565 $ 4,579,383 $ 747,673 $ (32,410,111) $ 0 0

Component Unit: Anderson County School Department $ 68,803,282 $ 1,246,794 $ 13,910,348 $ 11,275,996 $ 0 $ (42,370,144) $ 0 Emergency Communications District 666,506 475,967 32,000 0 0 0 (158,539)

Total Component Units $ 69,469,788 $ 1,722,761 $ 13,942,348 $ 11,275,996 $ 0 $ (42,370,144) $ (158,539)

(Continued)

Component UnitsNet (Expense) Revenue and Changes in Net Position

43

Exhibit B

Anderson County, TennesseeStatement of Activities (Cont.)

PrimaryProgram Revenues Government Anderson Emergency

Operating Capital Total County Communica-Charges for Grants and Grants and Governmental School tions

Functions/Programs Expenses Services Contributions Contributions Activities Department District

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 15,022,265 $ 15,645,605 $ 0 Property Taxes Levied for Debt Service 1,866,088 0 0 Property Taxes Levied for Capital Projects 1,431,734 0 0 Local Option Sales Taxes 1,428,550 9,488,268 0 Hotel/Motel Tax 395,870 0 0 Litigation Tax 364,060 0 0 Business Tax 1,137,029 0 0 Wholesale Beer Tax 171,673 0 0 Mineral and Coal Severance Tax 122,857 0 0 Gas and Oil Severance Tax 62,411 0 0 Other Local Taxes 13,463 2,368 0 Grants and Contributions Not Restricted to Specific Programs 5,526,788 33,451,128 0 Unrestricted Investment Income 120,759 53,901 4,686 Miscellaneous 23,312 122,695 0Total General Revenues and Transfers $ 27,686,859 $ 58,763,965 $ 4,686

Change in Net Position $ (4,723,252) $ 16,393,821 $ (153,853)Net Position, July 1, 2018 8,417,484 51,165,752 2,275,894

Net Position, June 30, 2019 $ 3,694,232 $ 67,559,573 $ 2,122,041


Net (Expense) Revenue and Changes in Net PositionComponent Units

44

Exhibit C-1

Anderson County, TennesseeBalance SheetGovernmental FundsJune 30, 2019

OtherHighway / General Govern- Total

Ambulance Public Capital mental GovernmentalGeneral Service Works Projects Funds Funds

ASSETS

Cash $ 63,375 $ 0 $ 0 $ 0 $ 2,227 $ 65,602Equity in Pooled Cash and Investments 11,875,148 325,918 3,757,800 146,579 4,995,150 21,100,595Inventories 0 0 35,560 0 0 35,560Accounts Receivable 87,310 3,342,876 2,556 0 215,571 3,648,313Allowance for Uncollectibles 0 (1,982,716) 0 0 0 (1,982,716)Due from Other Governments 1,224,434 7,480 609,815 0 1,303 1,843,032Due from Other Funds 62,114 2,265 28,426 0 19,395 112,200Due from Component Units 1,657 0 4,028 0 0 5,685Property Taxes Receivable 14,301,858 277,454 535,944 217,421 5,613,495 20,946,172Allowance for Uncollectible Property Taxes (418,632) (8,827) (16,572) (25,520) (141,839) (611,390)Prepaid Items 12,500 0 0 0 0 12,500

Total Assets $ 27,209,764 $ 1,964,450 $ 4,957,557 $ 338,480 $ 10,705,302 $ 45,175,553

LIABILITIES

Accounts Payable $ 387,569 $ 126,163 $ 154,024 $ 30,827 $ 191,956 $ 890,539Accrued Payroll 234,495 61,664 18,265 0 11,381 325,805Payroll Deductions Payable 125,090 27,252 8,583 0 4,377 165,302Contracts Payable 2,642 0 0 0 83,388 86,030Retainage Payable 0 0 0 0 4,389 4,389Claims and Judgments Payable 400,000 0 0 0 0 400,000Due to Other Funds 2,885 1,211 0 0 108,104 112,200Due to Component Units 0 0 0 0 46,436 46,436Other Current Liabilities 33,000 0 0 0 0 33,000Sales Tax 970 0 0 0 0 970Total Liabilities $ 1,186,651 $ 216,290 $ 180,872 $ 30,827 $ 450,031 $ 2,064,671

(Continued)

Major FundsNonmajor

Funds

45

Exhibit C-1

Anderson County, TennesseeBalance SheetGovernmental Funds (Cont.)




Deferred Current Property Taxes $ 13,238,457 $ 253,708 $ 492,192 $ 116,706 $ 5,282,029 $ 19,383,092Deferred Delinquent Property Taxes 605,134 14,009 25,522 70,608 178,180 893,453Other Deferred/Unavailable Revenue 183,489 956,230 277,345 0 0 1,417,064Total Deferred Inflows of Resources $ 14,027,080 $ 1,223,947 $ 795,059 $ 187,314 $ 5,460,209 $ 21,693,609

FUND BALANCES

Nonspendable:Inventory $ 0 $ 0 $ 35,560 $ 0 $ 0 $ 35,560Prepaid Items 12,500 0 0 0 0 12,500

Restricted:Restricted for General Government 182,188 0 0 0 0 182,188Restricted for Finance 81,780 0 0 0 0 81,780Restricted for Administration of Justice 804,158 0 0 0 0 804,158Restricted for Public Safety 398,308 0 0 0 280,138 678,446Restricted for Public Health and Welfare 188,250 0 0 0 401,166 589,416Restricted for Social, Cultural, and Recreational Services 19,802 0 0 0 711,104 730,906Restricted for Highways/Public Works 0 0 3,946,066 0 0 3,946,066Restricted for Capital Outlay 117,523 0 0 120,339 0 237,862Restricted for Debt Service 0 0 0 0 2,463,406 2,463,406

Committed:Committed for General Government 24,566 0 0 0 0 24,566Committed for Finance 213,117 0 0 0 0 213,117Committed for Public Safety 500 0 0 0 6,249 6,749Committed for Public Health and Welfare 31,760 524,213 0 0 0 555,973Committed for Social, Cultural, and Recreational Services 39,699 0 0 0 111,675 151,374

(Continued)

Major FundsNonmajor

Funds

46

Exhibit C-1

Anderson County, TennesseeBalance SheetGovernmental Funds (Cont.)



FUND BALANCES (Cont.)

Committed (Cont.):Committed for Debt Service $ 0 $ 0 $ 0 $ 0 $ 466,323 $ 466,323Committed for Capital Projects 1,266,412 0 0 0 355,001 1,621,413Committed for Other Purposes 577,863 0 0 0 0 577,863

Assigned:Assigned for General Government 529,244 0 0 0 0 529,244

Unassigned 7,508,363 0 0 0 0 7,508,363Total Fund Balances $ 11,996,033 $ 524,213 $ 3,981,626 $ 120,339 $ 4,795,062 $ 21,417,273

Total Liabilities, Deferred Inflows of Resources, and Fund Balances$ 27,209,764 $ 1,964,450 $ 4,957,557 $ 338,480 $ 10,705,302 $ 45,175,553


Major FundsNonmajor

Funds

47

Exhibit C-2

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

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

Total fund balances - balance sheet - governmental funds (Exhibit C-1) $ 21,417,273

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 2,659,202 Add: construction in progress 101,777 Add: infrastructure net of accumulated depreciation 5,390,964 Add: buildings and improvements net of accumulated depreciation 21,625,839 Add: other capital assets net of accumulated depreciation 5,270,215 35,047,997

(2) Internal service funds are used by management to charge thecost of employee health insurance to individual funds. The assetsand liabilities are included in governmental activities in thestatement of net position. Add: capital assets $ 43,650 Add: current assets 1,346,887 Less: liabilities (263,800) 1,126,737

(3) Long-term liabilities are not due and payable in the currentperiod and therefore are not reported in the governmental funds. Less: notes payable $ (1,527,082) Less: other loans payable (9,123,000) Less: bonds payable (46,070,000) Less: capital lease payable (163,134) Add: deferred amount on refunding 407,839 Add: debt to be contributed by the School Department 144,861 Less: unamortized premium on debt (2,069,946) Less: net OPEB liability (510,697) Less: compensated absences payable (652,931) Less: accrued interest on bonds, notes, and other loans (378,986) (59,943,076)

(4) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions and OPEB will be amortizedand recognized as components of expense in future years. Add: deferred outflows of resources related to pensions $ 1,926,802 Less: deferred inflows of resources related to pensions (1,345,296) Add: deferred outflows of resources related to OPEB 29,272 Less: deferred inflows of resources related to OPEB (55,967) 554,811

(5) Net pension assets of the agent plan are not currentfinancial resources and therefore are not reported in the 3,179,973governmental funds.

(6) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 2,310,517

Net position of governmental activities (Exhibit A) $ 3,694,232


48

Exhibit C-3

Anderson County, TennesseeStatement of Revenues, Expenditures,

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



RevenuesLocal Taxes $ 18,234,119 $ 269,991 $ 1,153,869 $ 1,362,134 $ 3,844,928 $ 24,865,041Licenses and Permits 355,633 0 0 0 150,532 506,165Fines, Forfeitures, and Penalties 359,794 0 0 0 36,084 395,878Charges for Current Services 613,729 4,886,095 0 0 636,431 6,136,255Other Local Revenues 816,833 5,476 209,623 0 64,536 1,096,468Fees Received From County Officials 3,826,199 0 0 0 0 3,826,199State of Tennessee 3,844,589 0 3,264,435 0 93,464 7,202,488Federal Government 691,946 205,869 0 0 29,484 927,299Other Governments and Citizens Groups 95,907 0 11,091 0 1,825,382 1,932,380

Total Revenues $ 28,838,749 $ 5,367,431 $ 4,639,018 $ 1,362,134 $ 6,680,841 $ 46,888,173

ExpendituresCurrent:

General Government $ 4,231,852 $ 0 $ 0 $ 0 $ 0 $ 4,231,852Finance 3,108,709 0 0 0 601 3,109,310Administration of Justice 3,098,532 0 0 0 7,988 3,106,520Public Safety 14,459,453 0 0 0 182,878 14,642,331Public Health and Welfare 1,121,574 5,303,386 0 0 1,806,375 8,231,335Social, Cultural, and Recreational Services 131,154 0 0 0 801,824 932,978Agriculture and Natural Resources 243,505 0 0 0 0 243,505Other Operations 880,943 0 0 25,000 348,987 1,254,930Highways 0 0 4,256,579 0 0 4,256,579

Debt Service:Principal on Debt 0 32,000 0 0 3,607,551 3,639,551Interest on Debt 0 2,970 0 0 1,801,411 1,804,381Other Debt Service 0 0 0 192,065 56,574 248,639

(Continued)

Major FundsNonmajor

Funds

49

Exhibit C-3


and Changes in Fund BalancesGovernmental Funds (Cont.)



Expenditures (Cont.)Capital Projects $ 275,796 $ 0 $ 0 $ 12,681,220 $ 0 $ 12,957,016

Total Expenditures $ 27,551,518 $ 5,338,356 $ 4,256,579 $ 12,898,285 $ 8,614,189 $ 58,658,927

Excess (Deficiency) of RevenuesOver Expenditures $ 1,287,231 $ 29,075 $ 382,439 $ (11,536,151) $ (1,933,348) $ (11,770,754)

Other Financing Sources (Uses)Bonds Issued $ 0 $ 0 $ 0 $ 10,900,000 $ 0 $ 10,900,000Premiums on Debt Sold 0 0 0 568,061 0 568,061Proceeds from Sale of Capital Assets 3,833 866 0 0 0 4,699Insurance Recovery 28,327 80,014 18,448 0 0 126,789Transfers In 500 1,026,787 0 0 437,702 1,464,989Transfers Out (1,358,661) 0 (500) 0 0 (1,359,161)

Total Other Financing Sources (Uses) $ (1,326,001) $ 1,107,667 $ 17,948 $ 11,468,061 $ 437,702 $ 11,705,377

Net Change in Fund Balances $ (38,770) $ 1,136,742 $ 400,387 $ (68,090) $ (1,495,646) $ (65,377)Fund Balance, July 1, 2018 12,034,803 (612,529) 3,581,239 188,429 6,290,708 21,482,650

Fund Balance, June 30, 2019 $ 11,996,033 $ 524,213 $ 3,981,626 $ 120,339 $ 4,795,062 $ 21,417,273


Major FundsNonmajor

Funds

50

Exhibit C-4

Anderson County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesFor the Year Ended June 30, 2019

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

Net change in fund balances - total governmental funds (Exhibit C-3) $ (65,377)

(1) Governmental funds report capital outlays as expenditures. However, in thestatement of activities, the cost of these assets is allocated over their usefullives and reported as depreciation expense. The difference between capital outlaysand depreciation is itemized as follows. Add: capital assets purchased in the current period $ 2,488,889 Less: current-year depreciation expense (1,881,718) Add: current year depreciation expense included in internal service fund operations- item (6) below 2,619 609,790

(2) The net effect of various miscellaneous transactions involving capital assets (sales, trades-ins, and donations) is to increase net position. Less: book value of capital assets disposed $ (14,156) Add: capital assets, net of accumulated depreciation, transferred upon closure of the Channel 95 internal service fund 36,545 22,389

(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2019 $ 2,310,517 Less: deferred delinquent property taxes and other deferred June 30, 2018 (1,654,873) 655,644

(4) The issuance of long-term debt (e.g., bonds, notes, other loans, leases) provides current financial resources to governmental funds, while the repaymentof the principal of long-term debt consumes the current financialresources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effectof premiums, discounts, and similar items when debt 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: Add: principal payments on notes $ 639,240 Add: principal payments on other loans 810,019 Add: principal payments on bonds 1,980,000 Add: principal payments on capital leases 210,292 Less: bond proceeds (10,900,000) Less: change in unamortized premium on debt issuances (359,401) Less: contributions from the School Department for capital leases (101,616) Less: change in deferred amount on refunding debt (15,617) (7,737,083)

(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 $ (34,215) Change in OPEB liability 38,499 Change in net pension asset 1,765,139 Change in deferred outflows related to pensions (220,954) Change in deferred inflows related to pensions (325,314) Change in deferred outflows related to OPEB 29,272 Change in deferred inflows related to OPEB (55,967) Change in compensated absences payable (19,254) 1,177,206

(6) Internal service funds are used by management to charge the cost ofemployee health benefits to individual funds and to reflect activities of the county television station. The net revenue (expense) of certain activities of the internal service fund is reported with governmental activities in the statement of activities. 614,179

Change in net position of governmental activities (Exhibit B) $ (4,723,252)


51

Exhibit C-5

Anderson County, TennesseeStatement of Revenues, Expenditures, and Changes

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

Actual VarianceRevenues/ with Final

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

RevenuesLocal Taxes $ 18,234,119 $ 0 $ 18,234,119 $ 17,982,094 $ 18,005,094 $ 229,025Licenses and Permits 355,633 0 355,633 326,000 336,000 19,633Fines, Forfeitures, and Penalties 359,794 0 359,794 297,775 319,775 40,019Charges for Current Services 613,729 0 613,729 540,400 579,195 34,534Other Local Revenues 816,833 0 816,833 415,394 443,411 373,422Fees Received From County Officials 3,826,199 0 3,826,199 3,940,000 3,962,000 (135,801)State of Tennessee 3,844,589 0 3,844,589 2,925,900 2,864,646 979,943Federal Government 691,946 0 691,946 272,705 1,076,741 (384,795)Other Governments and Citizens Groups 95,907 0 95,907 30,000 86,338 9,569

Total Revenues $ 28,838,749 $ 0 $ 28,838,749 $ 26,730,268 $ 27,673,200 $ 1,165,549

ExpendituresGeneral Government

County Commission $ 288,806 $ 0 $ 288,806 $ 317,966 $ 306,978 $ 18,172Board of Equalization 1,399 0 1,399 7,448 7,448 6,049Other Boards and Committees 288,326 0 288,326 317,730 372,526 84,200County Mayor/Executive 206,580 0 206,580 223,000 223,476 16,896Personnel Office 212,252 0 212,252 209,420 223,309 11,057County Attorney 303,437 0 303,437 329,399 340,177 36,740Election Commission 454,084 0 454,084 489,282 489,282 35,198Register of Deeds 389,995 0 389,995 376,207 395,207 5,212Planning 205,552 0 205,552 263,967 283,967 78,415Building 37,425 0 37,425 43,000 49,246 11,821County Buildings 894,971 0 894,971 923,531 1,034,065 139,094Other General Administration 868,420 0 868,420 415,265 952,685 84,265Preservation of Records 80,605 0 80,605 48,067 84,067 3,462

(Continued)

Budgeted Amounts

52

Exhibit C-5


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



Expenditures (Cont.)Finance

Accounting and Budgeting $ 640,779 $ 0 $ 640,779 $ 643,728 $ 654,289 $ 13,510Purchasing 220,037 0 220,037 234,738 237,238 17,201Property Assessor's Office 356,472 0 356,472 393,974 394,299 37,827Reappraisal Program 218,579 0 218,579 296,121 295,796 77,217County Trustee's Office 652,852 0 652,852 687,633 697,633 44,781County Clerk's Office 758,569 0 758,569 862,513 903,069 144,500Data Processing 261,421 0 261,421 237,129 297,668 36,247

Administration of JusticeCircuit Court 1,159,454 0 1,159,454 1,200,396 1,280,754 121,300Criminal Court 579 0 579 2,058 2,058 1,479General Sessions Judge 563,009 0 563,009 579,462 579,462 16,453Drug Court 76,886 0 76,886 80,921 80,921 4,035Chancery Court 500,007 0 500,007 500,377 507,713 7,706Juvenile Court 521,146 0 521,146 564,960 564,960 43,814District Attorney General 90,839 0 90,839 102,985 102,985 12,146Office of Public Defender 32,378 0 32,378 40,979 40,979 8,601Judicial Commissioners 2,631 0 2,631 2,154 3,454 823Probate Court 3,273 0 3,273 3,500 3,500 227Other Administration of Justice 108,103 0 108,103 122,185 122,185 14,082Courtroom Security 14,556 0 14,556 75,500 75,500 60,944Victim Assistance Programs 25,671 0 25,671 26,750 29,243 3,572

Public SafetySheriff's Department 5,639,373 0 5,639,373 5,416,362 5,892,739 253,366Jail 6,582,457 0 6,582,457 6,146,100 6,717,567 135,110Correctional Incentive Program Improvements 82,051 0 82,051 150,000 99,978 17,927

(Continued)

Budgeted Amounts

53

Exhibit C-5





Expenditures (Cont.)Public Safety (Cont.)

Commissary $ 17,220 $ 0 $ 17,220 $ 35,000 $ 35,000 $ 17,780Civil Defense 647,739 (123,590) 524,149 639,945 802,675 278,526Rescue Squad 27,500 0 27,500 27,500 27,500 0Other Emergency Management 722,043 0 722,043 948,332 784,894 62,851County Coroner/Medical Examiner 385,804 0 385,804 385,804 385,804 0Other Public Safety 355,266 0 355,266 418,652 418,652 63,386

Public Health and WelfareLocal Health Center 205,776 0 205,776 259,100 278,070 72,294Rabies and Animal Control 214,586 0 214,586 155,237 244,999 30,413Dental Health Program 245,868 0 245,868 367,206 367,206 121,338Other Local Health Services 333,224 0 333,224 574,219 574,219 240,995Appropriation to State 122,120 0 122,120 123,486 123,486 1,366

Social, Cultural, and Recreational ServicesSenior Citizens Assistance 105,504 0 105,504 124,112 129,657 24,153Parks and Fair Boards 3,000 0 3,000 3,000 3,000 0Other Social, Cultural, and Recreational 22,650 0 22,650 0 22,650 0

Agriculture and Natural ResourcesAgricultural Extension Service 166,698 0 166,698 175,087 175,087 8,389Soil Conservation 55,941 0 55,941 56,489 56,489 548Storm Water Management 20,866 0 20,866 35,260 35,260 14,394

Other OperationsIndustrial Development 174,302 0 174,302 162,000 262,000 87,698Veterans' Services 91,500 0 91,500 107,356 110,356 18,856Other Charges 463,419 0 463,419 451,600 476,100 12,681Contributions to Other Agencies 35,050 0 35,050 0 135,050 100,000

(Continued)

Budgeted Amounts

54

Exhibit C-5





Expenditures (Cont.)Other Operations (Cont.)

Miscellaneous $ 116,672 $ 0 $ 116,672 $ 92,073 $ 116,973 $ 301Capital Projects

Public Safety Projects 9,800 0 9,800 0 218,168 208,368Public Utility Projects 265,996 0 265,996 0 285,000 19,004

Total Expenditures $ 27,551,518 $ (123,590) $ 27,427,928 $ 27,476,265 $ 30,414,718 $ 2,986,790

Excess (Deficiency) of RevenuesOver Expenditures $ 1,287,231 $ 123,590 $ 1,410,821 $ (745,997) $ (2,741,518) $ 4,152,339

Other Financing Sources (Uses)Proceeds from Sale of Capital Assets $ 3,833 $ 0 $ 3,833 $ 0 $ 0 $ 3,833Insurance Recovery 28,327 0 28,327 0 27,827 500Transfers In 500 0 500 0 500 0Transfers Out (1,358,661) 0 (1,358,661) (17,175) (1,359,735) 1,074

Total Other Financing Sources $ (1,326,001) $ 0 $ (1,326,001) $ (17,175) $ (1,331,408) $ 5,407

Net Change in Fund Balance $ (38,770) $ 123,590 $ 84,820 $ (763,172) $ (4,072,926) $ 4,157,746Fund Balance, July 1, 2018 12,034,803 (123,590) 11,911,213 10,983,596 10,983,596 927,617

Fund Balance, June 30, 2019 $ 11,996,033 $ 0 $ 11,996,033 $ 10,220,424 $ 6,910,670 $ 5,085,363


Budgeted Amounts

55

Exhibit C-6


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

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesLocal Taxes $ 269,991 $ 281,056 $ 281,056 $ (11,065)Charges for Current Services 4,886,095 5,069,700 5,069,700 (183,605)Other Local Revenues 5,476 0 0 5,476Federal Government 205,869 349,221 200,000 5,869

Total Revenues $ 5,367,431 $ 5,699,977 $ 5,550,756 $ (183,325)

ExpendituresPublic Health and Welfare

Ambulance/Emergency Medical Services $ 5,303,386 $ 5,665,589 $ 5,729,117 $ 425,731Principal on Debt

General Government 32,000 0 32,000 0Interest on Debt

General Government 2,970 0 2,970 0Other Debt Service

General Government 0 34,970 0 0Total Expenditures $ 5,338,356 $ 5,700,559 $ 5,764,087 $ 425,731

Excess (Deficiency) of RevenuesOver Expenditures $ 29,075 $ (582) $ (213,331) $ 242,406

Other Financing Sources (Uses)Proceeds from Sale of Capital Assets $ 866 $ 0 $ 0 $ 866Insurance Recovery 80,014 0 63,528 16,486Transfers In 1,026,787 0 1,026,787 0

Total Other Financing Sources $ 1,107,667 $ 0 $ 1,090,315 $ 17,352

Net Change in Fund Balance $ 1,136,742 $ (582) $ 876,984 $ 259,758Fund Balance, July 1, 2018 (612,529) 176,243 176,243 (788,772)

Fund Balance, June 30, 2019 $ 524,213 $ 175,661 $ 1,053,227 $ (529,014)


Budgeted Amounts

56

Exhibit C-7


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



RevenuesLocal Taxes $ 1,153,869 $ 984,658 $ 984,658 $ 169,211Other Local Revenues 209,623 300,000 332,360 (122,737)State of Tennessee 3,264,435 3,213,200 3,759,032 (494,597)Other Governments and Citizens Groups 11,091 0 0 11,091

Total Revenues $ 4,639,018 $ 4,497,858 $ 5,076,050 $ (437,032)

ExpendituresHighways

Administration $ 214,981 $ 319,752 $ 321,806 $ 106,825Highway and Bridge Maintenance 2,939,221 2,113,141 3,979,587 1,040,366Operation and Maintenance of Equipment 586,972 917,093 1,021,093 434,121Other Charges 250,007 237,944 255,944 5,937Capital Outlay 265,398 920,000 919,500 654,102

Total Expenditures $ 4,256,579 $ 4,507,930 $ 6,497,930 $ 2,241,351

Excess (Deficiency) of RevenuesOver Expenditures $ 382,439 $ (10,072) $ (1,421,880) $ 1,804,319

Other Financing Sources (Uses)Insurance Recovery $ 18,448 $ 0 $ 4,614 $ 13,834Transfers Out (500) 0 (500) 0

Total Other Financing Sources $ 17,948 $ 0 $ 4,114 $ 13,834

Net Change in Fund Balance $ 400,387 $ (10,072) $ (1,417,766) $ 1,818,153Fund Balance, July 1, 2018 3,581,239 3,983,533 3,983,533 (402,294)

Fund Balance, June 30, 2019 $ 3,981,626 $ 3,973,461 $ 2,565,767 $ 1,415,859


Budgeted Amounts

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Exhibit D-1Anderson County, TennesseeStatement of Net PositionProprietary FundJune 30, 2019

Employee HealthInsurance

FundASSETS

Current Assets:Cash $ 1,312,967Investments 19,407Prepaid Items 14,513

Total Current Assets $ 1,346,887

Noncurrent Assets:Capital Assets:

Assets Net of Accumulated Depreciation:Buildings and Improvements $ 43,650

Total Noncurrent Assets $ 43,650Total Assets $ 1,390,537

LIABILITIES

Current Liabilities:Accounts Payable $ 54,224Other Current Liabilities 209,576

Total Liabilities $ 263,800

NET POSITION

Net Investment in Capital Assets $ 43,650Unrestricted 1,083,087

Total Net Position $ 1,126,737


Governmental Activities -

Internal Service Fund

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Exhibit D-2

Anderson County, TennesseeStatement of Revenues, Expenses, and Changes

in Net PositionProprietary FundsFor the Year Ended June 30, 2019

Operating RevenuesCharges for Services $ 4,457,894

Total Operating Revenues $ 4,457,894

Operating ExpensesCommunication $ 1,707Other Contracted Services 293,872Depreciation 2,619Other Charges 1,442Medical and Dental Services 2,961,625Excess Risk Insurance 440,656

Total Operating Expenses $ 3,701,921Operating Income (Loss) $ 755,973

Nonoperating Revenues (Expenses)Investment Income $ 580

Total Nonoperating Revenues (Expenses) $ 580

Income (Loss) Before Transfers $ 756,553Transfers Out - Cash (105,829)Transfers Out - Capital Assets (36,545)

Change in Net Position $ 614,179Net Position, July 1, 2018 512,558

Net Position, June, 30, 2019 $ 1,126,737


GovernmentalActivitiesInternalService Funds

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Exhibit D-3

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

Cash Flows from Operating Activities Receipts for Self-insurance Premiums $ 4,457,894 Receipts for Licenses and Permits 38,009 Payments to Vendors (51,313) Payments to Employees (829) Payments for Fringe Benefits (127) Payments to Fiscal Agents (307,619) Payments to Insurers (456,123) Receipts for Stop-loss Recovery 141,831 Receipts for Prescription Drug Rebates 263,982 Payments for Administrative Costs (3,149) Payments for Claims (3,293,945)Net Cash Provided By (Used In) Operating Activities $ 788,611

Cash Flows from Noncapital Financing Activities Transfers to Other Funds $ (105,829)Net Cash Provided By (Used In) Noncapital Financing Activities $ (105,829)

Cash Flows from Investing Activities Interest on Investments $ 155Net Cash Provided By (Used In) Investing Activities $ 155

Increase (Decrease) in Cash $ 682,937Cash, July 1, 2018 630,030

Cash, June 30, 2019 $ 1,312,967

(Continued)

Service Funds

GovernmentalActivitiesInternal

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Exhibit D-3

Anderson County, TennesseeStatement of Cash FlowsProprietary Funds (Cont.)

Reconciliation of Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating ActivitiesOperating Income (Loss) $ 755,973Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Depreciation 2,619Changes in Assets and Liabilities (net of balances transferred to Special Revenue Fund/Governmental Activities - See Noncash Financing Activities Below) (Increase) Decrease in Accounts Receivables (net of allowance) 106,044 (Increase) Decrease in Due from Other Funds (non-transfers) 538 (Increase) Decrease in Prepaid Items (14,513) Increase (Decrease) in Accounts Payable (66,552) Increase (Decrease) in Accrued Payroll (829) Increase (Decrease) in Payroll Deductions (127) Increase (Decrease) in Other Current Liabilities 5,458

Net Cash Provided By (Used In) Operating Activities $ 788,611

Schedule of Non-Cash Capital and Related Financing Activities Transfer of Capital Assets to Governmental Funds ($36,545)


Funds

ActivitiesInternalService

Governmental

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Exhibit E-1

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

ASSETS

Cash $ 2,097,382Equity in Pooled Cash and Investments 1,061,986Due from Other Governments 3,977,167Taxes Receivable 13,261,920Allowance for Uncollectible Taxes (389,754)

Total Assets $ 20,008,701

LIABILITIES

Accounts Payable $ 2,692Due to Other Taxing Units 17,552,379Due to Litigants, Heirs, and Others 2,123,330Due to Joint Ventures 330,300

Total Liabilities $ 20,008,701


AgencyFunds

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Note Page(s)

I. Summary of Significant Accounting PoliciesA. Reporting Entity 65B. Government-wide and Fund Financial Statements 66C. Measurement Focus, Basis of Accounting, and Financial

Statement Presentation 67D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and

Net Position/Fund Balance1. Deposits and Investments 702. Receivables and Payables 713. Inventories and Prepaid Items 724. Restricted Assets 735. Capital Assets 736. Deferred Outflows/Inflows of Resources 747. Compensated Absences 758. Long-term Debt and Long-term Obligations 759. Net Position and Fund Balance 7610. Minimum Fund Balance Policy 79

E. Pension Plans 79F. Other Postemployment Benefits (OPEB) Plans 80

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 81B. Explanation of Certain Differences Between the Governmental Fund

Statement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 81

III. Stewardship, Compliance, and AccountabilityA. Budgetary Information 81B. Revenue Anticipation Notes were not Retired in Compliance

with State Statutes 82IV. Detailed Notes on All Funds

A. Deposits and Investments 83B. Capital Assets 89C. Construction Commitments 91D. Interfund Receivables, Payables, and Transfers 91E. Income from Operating Lease Commitments 94F. Capital Lease 94G. Long-term Debt 95H. Long-term Obligations 100I. On-Behalf Payments 101J. Short-term Debt 101

(Continued)

ANDERSON COUNTY, TENNESSEEIndex of Notes to the Financial Statements

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Note Page(s)

V. Other InformationA. Risk Management 102B. Accounting Changes 103C. Contingent Liabilities 104D. Changes in Administration 105E. Joint Ventures 105F. Jointly Governed Organization 106G. Retirement Commitments 106H. Other Postemployment Benefits (OPEB) 123I. Termination Benefits 132J. Office of Central Accounting, Budgeting, and Purchasing 133K. Purchasing Laws 133

VI. Other Notes - Discretely Presented Anderson County EmergencyCommunications District 133

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

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ANDERSON COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended June 30, 2019

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Anderson 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 Anderson County:

A. Reporting Entity

Anderson County is a public municipal corporation governed by an elected 16-member board. As required by GAAP, these financial statements present Anderson County (the primary government) and its component units. 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 Anderson County School Department operates the public school system in the county, and the voters of Anderson County elect its board. The School Department is fiscally dependent on the county because its budget and property tax levy are subject to the county commission’s approval. The School Department has a financial benefit/burden relationship with the county since all debt issued for school purposes is a liability of the primary government. Also, the School Department’s taxes are levied under the taxing authority of the county and are included as part of the county’s total tax levy. The Anderson County Emergency Communications District provides a simplified means of securing emergency services through a uniform emergency number for the residents of Anderson County, and the Anderson County Commission appoints its governing body. The district is funded primarily through a service charge levied on telephone services. Before the issuance of most debt instruments, the district must obtain the approval of the county commission.

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The Anderson County School Department does not issue separate financial statements from those of the county. Therefore, basic financial statements of the School Department are included in this report as listed in the table of contents. Complete financial statements of the Anderson County Emergency Communications District can be obtained from its administrative office at the following address:

Administrative Office:

Anderson County Emergency Communications District 101 South Main Street, Suite 440 Clinton, Tennessee 37716

Related Organizations – The Anderson County Water Authority is a related organization of Anderson County. The county mayor nominates and the Anderson County Commission confirms the board members, but the county’s accountability for the organization does not extend beyond making the appointments. The Anderson County Industrial Development Board is a related organization of Anderson County. The Anderson County Commission elects the board members, but the county’s accountability 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 rely to a significant extent on fees and charges, are required to be reported separately from governmental activities in government-wide financial statements. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The Anderson County School Department 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

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properly included among program revenues are reported instead as general revenues. Anderson County issues all debt for the discretely presented Anderson County School Department. Net debt issues of $11,275,996 were contributed by the county to the School Department during the year ended June 30, 2019. Separate financial statements are provided for governmental funds, proprietary funds (internal service), and fiduciary funds. 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 Anderson County are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, deferred outflow of resources, liabilities, deferred inflow of resources, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. Anderson County reports two proprietary funds, both internal service funds. At year end, Anderson County has only one internal service fund remaining open. The other was closed during the year. 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.

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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. Anderson 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 debt service funds 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 fund and fiduciary fund 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. Anderson County reports the following major governmental funds:

General Fund – This is the county’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Ambulance Service Fund – This fund is used to account for the county’s ambulance service operations. Fees for services are the foundational revenues of the fund. Highway/Public Works Fund – This special revenue fund accounts for transactions of the county’s Highway Department. Local and state gasoline/fuel taxes and property taxes are the foundational revenues of this fund.

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General Capital Projects Fund – This fund is 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.

Additionally, Anderson County reports the following fund types:

Debt Service Funds – These funds account for the resources accumulated and payments made for principal and interest on long-term obligation debt of governmental funds.

Internal Service Funds – These funds, the Employee Health Insurance Fund and the Channel 95 Fund are used to account for the county’s self-insured employee health program and the community television station, which serves the primary government, School Department, and cities in Anderson County. Premiums charged to the various county funds and employee payroll deductions are placed in the Employee Health Insurance Fund for the payment of claims of county employees. Previously, Channel 95 was funded primarily by annually determined charges to the participating entities. However, Channel 95 is now funded primarily by revenue received from cable tv franchise fees. Due to the change in funding, the county closed the Channel 95 Internal Service Fund July 1, 2018. Operations of Channel 95 are now accounted for as a special revenue fund. See Note V.B., Accounting Changes.

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 Anderson County, city school systems’ shares of educational revenues, state grants and other restricted revenues held for the benefit of the Judicial District Drug Task Force, and restricted revenues held for the benefit of the Office of District Attorney General. 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 Anderson County School Department reports the following major governmental funds:

General Purpose School Fund – This fund is the primary operating fund for the School Department. It is used to account for general operations of the School Department. Education Capital Projects Fund – This fund is used to account for the receipt of debt issued by Anderson County and contributed to the School Department for building construction and renovations.

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Additionally, the Anderson County School Department reports the following fund type:

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

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 two proprietary funds, an internal service fund used to account for the employees’ health insurance program, and an internal service fund used to account for the operations of Channel 95, the community television station. As previously stated, the Channel 95 Fund was closed as of July 1, 2018. 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 fund is self-insurance premiums. Operating expenses for the health insurance internal service fund include medical claims, excess risk insurance, and administrative charges.

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 demand deposits and cash on deposit with the county trustee. State statutes authorize the government to make direct investments in bonds, notes, or treasury bills of the U.S. government and obligations guaranteed by the U.S. government or any of its agencies, deposit accounts at state and federal chartered banks and savings and loan associations, repurchase agreements, the State Treasurer’s Investment Pool, bonds of any state or political subdivision rated A or higher by any nationally recognized rating service, nonconvertible debt securities of certain federal government sponsored enterprises, and the county’s own legally issued bonds or notes.

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The county trustee maintains a cash and internal investment pool that is used by all funds and the discretely presented Anderson County School Department. 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. Income from these investments is credited to various funds based on legal requirements of the budget adopted by the county commission, with the majority of the investment income being assigned to the General, General Purpose School, and the various debt service funds. In addition, investments are held separately by the self-insurance fund. Anderson County and the School Department 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. The primary oversight responsibility for the investments and operations of the State Treasurer’s Investment Pool rests with the Funding Board of the State of Tennessee (Funding Board). The Funding Board has established an investment policy that is administered by the state treasurer. These polices were designed to comply with generally accepted accounting principles. In addition, 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. Compliance with Funding Board polices is audited by the Tennessee Comptroller of the Treasury, Division of State Audit. The latest audit opinion issued by the Division of State Audit concluded that the State Treasurer’s Investment Pooled complied with accounting principles generally accepted in the United State of America. All other investments are reported at fair value. Other than the pension stabilization trust discussed in Note IV.A., no investments required to be reported at fair value were held at the balance sheet date.

2. Receivables and Payables

Activity between funds for unremitted current collections or that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as due to/from other funds. All ambulance and property taxes receivables are shown with an allowance for uncollectibles. Ambulance receivables allowance for uncollectibles is based on historical collection data. The allowance for uncollectible property taxes is equal to 1.61 percent of total taxes levied.

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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 deferred inflow of resources as of June 30. Property taxes receivable are also reported as of June 30 for the taxes that are levied, collected, and reported as revenue during the current fiscal year. These property taxes receivable are presented on the balance sheet as a deferred inflow of resources to reflect amounts not available as of June 30. Property taxes collected within 30 days of year-end are considered available and accrued. The allowance for uncollectible taxes represents the estimated amount of the receivable that will be filed in court for collection. Delinquent taxes filed in court for collection are not included in taxes receivable since they are neither measurable nor available. Property taxes are levied as of the first Monday in October. Taxes become delinquent and begin accumulating interest and penalty the following March 1. Suit must be filed in Chancery Court between the following February 1 to April 1 for any remaining unpaid taxes. Additional costs attach to delinquent taxes after a court suit has been filed. Most payables are disaggregated on the face of the financial statements. The balance in the account Other Current Liabilities totaling $242,576 in the governmental activities Statement of Net Position for the primary government consists of performance bonds of $33,000 and self-insurance claims of $209,576. Retainage payable represents amounts withheld from payments made on construction contracts pending completion of the projects. These amounts are held by the county trustee as Equity in Pooled Cash and Investments in the applicable governmental funds.

3. Inventories and Prepaid Items Inventories of Anderson County and the discretely presented Anderson County School Department are recorded at cost, determined on the first-in, first-out basis. 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.

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Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as an expenditure when consumed rather than when purchased. Prepaids are offset in the nonspendable fund balance account in governmental funds.

4. Restricted Assets Restricted assets consist of amounts held in a pension stabilization trust by the Tennessee Consolidated Retirement (TCRS) for the benefit of the discretely presented Anderson County School Department’s Teacher Retirement Plan. The purpose of this trust is to accumulate funds to provide stabilization (smoothing) of retirement costs to the school system in times of fluctuating investment returns and market downturns. These funds are held and invested by TCRS pursuant to an irrevocable agreement and may only be used for the benefit of the Anderson County School Department to fund retirement benefits upon approval of the TCRS Board of Directors. To date, the Anderson County School Department has not withdrawn any funds from the trust to pay pension cost. Trust documents provide that the funds are not subject to the claims of general creditors of the School Department.

5. Capital Assets Governmental funds do not capitalize the cost of capital outlays; these funds report capital outlays as expenditures upon acquisition. Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, and similar items), are reported in the governmental column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of $5,000 or more and an estimated useful life exceeding one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

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

Assets Years

Building and Improvements 20 - 50Other Capital Assets 5 - 20Infrastructure 25 - 40

6. Deferred Outflows/Inflows of Resources

In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has items that qualify for reporting in this category. Accordingly, the items are reported in the government-wide Statement of Net Position. These items are for a deferred charge on refunding, pension changes in experience, pension and OPEB changes in assumptions, employer contributions made to the pension and OPEB plans after the measurement date, and pensions and OPEB other deferrals. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has items that qualify for reporting in this category. Accordingly, the items are reported in the government-wide Statement of Net Position and the governmental funds balance sheet. These items are from the following sources: current and delinquent property taxes, pension and OPEB changes in experience, pension changes in investment earnings, pension other deferrals, OPEB changes in assumptions and various receivables for revenues, which do not meet the availability criteria for governmental funds.

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7. Compensated Absences The policies of the county and School Department 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 Department do not have policies to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government-wide statements for the county and the discretely presented School Department. A liability for vacation pay is reported in governmental funds only if amounts have matured, for example, as a result of employee resignations and retirements.

8. Long-term Debt and Long-term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the 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 payable is reported net of the applicable debt premium or discount. Debt issuance costs are expensed in the period incurred. In refunding transactions, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources or a deferred inflow of resources and recognized as a component of interest expense in a systematic and rational manner over the remaining life of the refunded debt or the life of the new debt issued, whichever is shorter. In the fund financial statements, governmental funds recognize debt premiums and discounts, as well as debt issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Only the matured portion (the portion that has come due for payment) of long-term indebtedness, including bonds payable, is recognized as a liability and expenditure in the governmental fund financial statements. Liabilities and expenditures for other long-term obligations, including compensated absences and other postemployment benefits, are recognized to the extent that the liabilities have matured (come due for payment) each period.

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9. Net Position and Fund Balance In the government-wide financial statements and the 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.

The government-wide Statement of Net Position, Governmental Activities, reports $12,090,248 of restricted net position, of which $485,551 is restricted by enabling legislation. As of June 30, 2019, Anderson County had $37,854,943 in outstanding debt for capital purposes for the discretely presented Anderson County School Department. This debt is a liability of Anderson County, but the capital assets acquired are reported in the financial statements of the School Department. Therefore, Anderson County has incurred a liability, significantly decreasing its unrestricted net position with no corresponding increase in the county’s capital assets. For most funds, 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. One exception is the Highway/Public Works Fund for which unrestricted amounts are reduced first, followed by restricted 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.

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

Nonspendable Fund Balance – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund Balance – includes amounts that have constraints placed on the use of the resources that are either (a) externally imposed by creditors, grantors, contributors or laws and regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal resolutions of the county commission, the county’s highest level of decision-making authority and the Board of Education, the School Department’s highest level of decision-making authority, and shall remain binding unless removed in the same manner. Assigned Fund Balance – includes amounts that are constrained by the county’s intent to be used for specific purposes but are neither restricted nor committed (excluding stabilization arrangements). The county follows a policy requiring all assignments of fund balance to be approved by resolution by the county commission for the primary government and by the Board of Education for the School Department. Unassigned Fund Balance – the residual classification of the General and General Purpose School funds. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General and General Purpose School funds. These funds are the only governmental funds that report positive unassigned fund balance. However, in governmental funds other than the General and General Purpose School funds, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned for those purposes, it may be necessary to report a negative unassigned fund balance, which would be a deficit. The primary restrictions and commitments of fund balance for the governmental funds are identified below.

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Fund/ Function/Purpose Amount

PRIMARY GOVERNMENTGeneral Fund:

Restricted for Administration of Justice:Drug Court 72,902$ Courthouse Security 658,395 Circuit, Sessions, and Chancery Data Processing 55,194 Sex Offender Registry 17,667

Restricted for Public Safety:Various Law Enforcement Purpose 46,883 Jail Commissary 351,425

Restricted for Public Health and Welfare:Alcohol and Drug Treatment 104,082 Animal Holding Facilities 43,604 Various Grants 40,564

Committed for Finance:Property Asessor 162,771 Purchasing - Surplus Property 50,346

Committed for Capital Projectsand Other Purposes: Industrial Land Purchases 1,266,412 Tennessee College of Applied Technology 237,698 Economic Development 340,165

Ambulance Service Fund:Committed for Public Health and Welfare:

Ambulance Service 524,231

Highway/Public Works Fund:Restricted for Highway/Public Works:

General Highway Purposes 3,946,066

Nonmajor Governmental Funds:Restricted for Public Safety:

Drug Control 280,138 Restricted for Public Health and Welfare:

Solid Waste/Sanitation 401,166 Restricted for Social, Cultural, and Recreational Services:

Public Libraries 343,071 Tourism 368,033

Restricted for Debt Service:Principal and Interest on General County Debt 1,393,293 Principal and Interest on Debt Related to Elementary Schools 934,395 Principal and Interest on Debt Related to Middle and and High Schools 135,718

Committed for Social, Cultural, and Recreational Services:Channel 95 111,675

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Fund/ Function/Purpose Amount

PRIMARY GOVERNMENT (CONT.)

Nonmajor Governmental Funds: (Cont.)Committed for Debt Service:

Principal and Interest on General County Debt 347,328$ Principal and Interest on Debt Related to Middle and and High Schools 118,995

Committed for Capital Projects:Solid Waste/Sanitation 355,001

DISCRETELY PRESENTED SCHOOL DEPARTMENTNonmajor Governmental:

Restricted for Education:Cafeteria Operations 1,425,640

Restricted for Capital Projects:School Upgrades 4,572,414

Committed for Education: Cash Flow for Federal Programs 225,000

Assigned fund balance in the General Fund consists primarily of amounts appropriated for use in the 2019-20 year budget ($483,225).

10. Minimum Fund Balance Policy To provide management with appropriate guidelines and direction to assist in making sound decisions related to managing the fund balance, the county commission adopted a policy establishing a minimum unassigned fund balance level for the General Fund of $4,000,000. To draw the unassigned fund balance below $4,000,000 requires two-thirds (2/3) affirmative vote by the board of county commissioners. At June 30, 2019, the unassigned fund balance was $7,508,363, which is $3,508,363 above the minimum amount.

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 Anderson County’s participation in the Public Employee Retirement Plan of the Tennessee Consolidated Retirement System (TCRS), and additions to/deductions from Anderson 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

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the Public Employee Retirement Plan of TCRS. Investments are reported at fair value. Discretely Presented Anderson County School Department

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teacher Retirement Plan and the Teacher Legacy Pension Plan in the Tennessee Consolidated Retirement System, and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the TCRS. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms of the Teacher Retirement Plan and the Teacher Legacy Pension Plan. Investments are reported at fair value.

F. Other Postemployment Benefit (OPEB) Plans

Primary Government Anderson County provides OPEB benefits to its retirees through a self-insured health plan administered by Blue Cross Blue Shield. For reporting purposes the plan is considered a single-employer defined benefit OPEB plan based on criteria in Statement No. 75 of the Governmental Accounting Standards Board (GASB). 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 Anderson County. For this purpose, Anderson County recognizes benefit payments when due and payable in accordance with benefit terms. Anderson County’s OPEB plan is not administered through a trust. Discretely Presented Anderson County School Department

Anderson County School Department provides OPEB benefits to its retirees through a state administered public entity risk pool. For reporting purposes the plan is considered a single-employer defined benefit OPEB plan based on criteria in Statement No. 75 of the Governmental Accounting Standards Board (GASB). 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 Anderson County School Department. For this purpose, the School Department recognizes benefit payments when due and payable in accordance with benefit terms. The School Department’s OPEB plan is not administered through a trust.

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II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

A. Explanation of certain differences between the governmental fund

balance sheet and the government-wide Statement of Net Position Primary Government Exhibit C-2 includes explanations of the nature of individual elements of items required to reconcile the balance sheet of governmental funds with the government-wide Statement of Net Position. Discretely Presented Anderson County School Department 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 Anderson County School Department 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. 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, County Mayor, County Attorney, 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, if any, is presented on the face of each budgetary schedule. At June 30, 2019, Anderson County and the Anderson County School Department reported encumbrances in the following budgeted funds: Fund Amount

Primary Government: Nonmajor govermental $ 586,710

Discretely Presented School Department: Education Capital Projects 4,565,926

B. Revenue Anticipation Notes were not Retired in Compliance with

State Statutes

During the period under examination, the School Federal Projects Fund borrowed $520,420 from the General Purpose School Fund in the form of revenue anticipation notes to provide cash flow for the payment of federal grant expenditures. Of these notes, only $297,420 was paid back during the fiscal year. The remaining notes totaling $223,000 were not retired by June 30, 2019, due to the lack of available funds. Section 9-21-801, Tennessee Code Annotated, provides that revenue anticipation notes shall mature not later than the close of the fiscal year issued. These notes have been reflected in the financial statements of this report as Due from Other Funds in the General Purpose School Fund and as Due to Other Funds in the School Federal Projects Fund.

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IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments Anderson County and the Anderson County School Department 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 and investments reflected on the balance sheets or statements of net position represent nonpooled amounts held separately by individual funds.

Deposits Legal Provisions. All deposits with financial institutions must be secured by one of two methods. One method involves financial institutions that participate in the bank collateral pool administered by the state treasurer. Participating banks determine the aggregate balance of their public fund accounts for the State of Tennessee and its political subdivisions. The amount of collateral required to secure these public deposits must equal at least 105 percent of the average daily balance of public deposits held. Collateral securities required to be pledged by the participating banks to protect their public fund accounts are pledged to the state treasurer on behalf of the bank collateral pool. The securities pledged to protect these accounts are pledged in the aggregate rather than against each account. The members of the pool may be required by agreement to pay an assessment to cover any deficiency. Under this additional assessment agreement, public fund accounts covered by the pool are considered to be insured for purposes of credit risk disclosure. For deposits with financial institutions that do not participate in the bank collateral pool, state statutes require that all deposits be collateralized with collateral whose market value is equal to 105 percent of the uninsured amount of the deposits. The collateral must be placed by the depository bank in an escrow account in a second bank for the benefit of the county.

Investments Legal Provisions. Counties are authorized to make direct investments in bonds, notes, or treasury bills of the U.S. government and obligations guaranteed by the U.S. government or any of its agencies; deposits at state and federal chartered banks and savings and loan associations; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; nonconvertible debt securities of certain federal government sponsored enterprises; and the county’s own legally issued bonds or notes. These investments may not have a maturity greater than two years. The county may make investments with longer maturities if various restrictions set out in state law are followed. Counties are also authorized to make investments in the State Treasurer’s Investment Pool and in repurchase agreements. The primary

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oversight responsibility for the investments and operations of the State Treasurer’s Investment Pool rests with the Funding Board of the State of Tennessee (Funding Board). The Funding Board has established an investment policy that is administered by the state treasurer. Investments in the State Treasurer’s Investment Pool are reported both by the pool and the county at amortized cost using a stable net asset value. 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, 2019, Anderson County had the following investments carried at amortized cost using a Stable Net Asset Value. Pooled investments are held in the county trustee’s investment pool. Separate disclosures concerning pooled investments cannot be made for Anderson County and the discretely presented Anderson County School Department since both pool their deposits and investments through the county trustee. Nonpooled investments represent amounts held in the Employee Health Insurance Fund (an internal service fund).

POOLED INVESTMENTS

WeightedAverageMaturity Amortized

Investment (days) Maturities Cost

State Treasurer's Investment Pool 1 to 86 N/A $ 5,639,889

NONPOOLED INVESTMENTS

WeightedAverageMaturity Amortized

Investment (days) Maturities Cost

State Treasurer's Investment Pool 1 to 86 N/A $ 19,407

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. Anderson 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. Anderson County has no investment policy that would further limit its investment choices. As of June 30, 2019, Anderson County’s investments in the State Treasurer’s Investment Pool were unrated. TCRS Stabilization Trust Legal Provisions. The Anderson County School Department is a member of the Tennessee Consolidated Retirement System (TCRS) Stabilization Reserve Trust. The School Department has placed funds into the irrevocable trust as authorized by statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the trust. Funds of trust members are held and invested in the name of the trust for the benefit of each member. Each member’s funds are restricted for the payment of retirement benefits of that member’s employees. Trust funds are not subject to the claims of general creditors of the School Department. The trust is authorized to make investments as directed by the TCRS Board of Trustees. The Anderson County School Department may not impose any restrictions on investments placed by the trust on their behalf. Investment Balances. Assets of the TCRS, including the Stabilization Reserve Trust, are invested in the Tennessee Retiree Group Trust (TRGT). The TRGT is not registered with the Securities and Exchange Commission (SEC) as an investment company. The State of Tennessee has not obtained a credit quality rating for the TRGT from a nationally recognized credit ratings agency. The fair value of investment positions in the TRGT is determined daily based on the fair value of the pool’s underlying portfolio. Furthermore, TCRS had not obtained or provided any legally binding guarantees to support the value of participant shares during the fiscal year. There are no restrictions on the sale or redemption of shares. Investments are reported at fair value or amortized cost, which approximates fair value. Securities traded on a national exchange are valued at the last reported sales price. Investment income consists of realized and unrealized appreciation (depreciation) in the fair value. Securities and securities transactions are recorded in the financial statements on a trade-date basis. The fair value of assets of the TRGT held at June 30, 2019, represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets held are categorized for fair value measurement within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset and give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

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• Level 1 - Unadjusted quoted prices for identical assets or liabilities in active markets that can be accessed at the measurement date. • Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; assets or liabilities that have a bid-ask spread price in an inactive dealer market, brokered market and principal-to-principal market; and Level 1 assets or liabilities that are adjusted. • Level 3 - Valuations derived from valuation techniques in which significant inputs are unobservable. Investments using the Net Asset Value (“NAV”) per share have no readily determinable fair value and have been determined using amortized cost, which approximates fair value. Where inputs used in the measurement of fair value fall into different levels of the hierarchy, fair value of the instrument in its entirety is categorized based on the lowest level input that is significant to the valuation. This assessment requires professional judgement and as such management of the TRGT developed a fair value committee that worked in conjunction with the plan’s custodian and investment professionals to make these valuations. All assets held were valued individually and aggregated into classes to be represented in the table below. Short-term securities generally include investments in money market-type securities reported at cost plus accrued interest. Equity and equity derivative securities classified in Level 1 are valued using last reported sales prices quoted in active markets that can be accessed at the measurement date. Equity and equity derivative securities classified in Level 2 are securities whose values are derived daily from associated traded securities. Equity securities classified in Level 3 are valued with last trade data having limited trading volume. U.S. Treasury Bills, Bonds, Notes and Futures classified in Level 1 are valued using last reported sales prices quoted in active markets that can be accessed at the measurement date. Debt and debt derivative securities classified in Level 2 are valued using a bid-ask spread price from multiple independent brokers, dealers, or market principals, which are known to be actively involved in the market. Level 3 debt securities are valued using proprietary information, a single pricing source, or other unobservable inputs related to similar assets or liabilities. Real estate investments classified in Level 3 are valued using the last valuations provided by external investment advisors or independent external appraisers. Generally, all direct real estate investments are appraised by a qualified independent appraiser(s) with the professional designation of

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Member of the Appraisal Institute (“MAI”), or its equivalent, every three (3) years beginning from the acquisition date of the property. The appraisals are performed using generally accepted valuation approaches applicable to the property type. Investments in private mutual funds, traditional private equity funds, strategic lending funds and real estate funds that report using GAAP, the fair value, as well as the unfunded commitments, were determined using the prior quarter’s NAV, as reported by the fund managers, plus the current cash flows. These assets were then categorized by investment strategy. In instances where the fund investment reported using non-GAAP standards, the investment was valued using the same method, but was classified in Level 3.

At June 30, 2019, the Anderson County School Department had the following investments held by the trust on its behalf.

WeightedAverageMaturity Fair

Investment (days) Maturities ValueInvestments at Fair Value: U.S. Equity N/A N/A $ 40,067 Developed Market International Equity N/A N/A 18,095 Emerging Market International Equity N/A N/A 5,170 U.S. Fixed Income N/A N/A 25,849 Real Estate N/A N/A 12,925 Short-term Securities N/A N/A 1,292 Investments at Amortized Cost using the NAV: Private Equity and Strategic Lending N/A N/A 25,849

Total $ 129,247

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AmortizedQuoted Cost

Prices inActive Significant

Markets for Other SignificantIdentical Observable Unobservable

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

U.S. Equity $ 40,067 $ 40,067 0 $ 0 $ 0Developed Market International Equity 18,095 18,095 0 0 0Emerging Market International Equity 5,170 5,170 0 0 0U.S. Fixed Income 25,849 0 25,849 0 0Real Estate 12,925 0 0 12,925 0Short-term Securities 1,292 0 1,292 0 0Private Equity and Strategic Lending 25,849 0 0 0 25,849

Total $ 129,247 $ 63,332 $ 27,141 $ 12,925 $ 25,849

Fair Value Measurements Using

Risks and Uncertainties. The trust’s investments include various types of investment funds, which in turn invest in any combination of stock, bonds and other investments exposed to various risks, such as interest rate, credit, and market risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported for trust investments. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Anderson County School Department does not have the ability to limit trust investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Anderson County School Department does not have the ability to limit the credit ratings of individual investments made by the trust. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of the county’s investment in a single issuer. Anderson County School Department places no limit on the amount the county may invest in one issuer. Custodial Credit Risk. Custodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the county will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Pursuant to the trust agreement, investments are held in the name of the trust for the benefit of the Anderson County School Department to pay retirement benefits of the School Department employees.

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For further information concerning the School Department’s investments with the TCRS Stabilization Reserve Trust, audited financial statements of the Tennessee Consolidated Retirement System may be obtained at https://comptroller.tn.gov/content/dam/cot/sa/advanced-search/disclaimer/2019/ag18092.pdf

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

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

Capital Assets Not Depreciated:Land $ 2,462,093 $ 197,109 $ 0 $ 2,659,202Construction in Progress 14,000 87,777 0 101,777Total Capital Assets Not Depreciated $ 2,476,093 $ 284,886 $ 0 $ 2,760,979

Capital Assets Depreciated:Buildings and Improvements $ 33,792,475 $ 214,818 $ 0 $ 34,007,293Infrastructure 47,034,429 126,149 0 47,160,578Other Capital Assets 14,630,923 1,863,036 (873,893) 15,620,066Total Capital Assets Depreciated $ 95,457,827 $ 2,204,003 $ (873,893) $ 96,787,937

Less Accumulated Depreciation For:Buildings and Improvements $ 11,570,535 $ 767,269 $ 0 $ 12,337,804Infrastructure 41,425,830 343,784 0 41,769,614Other Capital Assets 10,438,923 770,665 (859,737) 10,349,851Total Accumulated Depreciation $ 63,435,288 $ 1,881,718 $ (859,737) $ 64,457,269

Total Capital Assets Depreciated, Net $ 32,022,539 $ 322,285 $ (14,156) $ 32,330,668

Governmental Activities Capital Assets, Net $ 34,498,632 $ 607,171 $ (14,156) $ 35,091,647

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

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

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

Governmental Activities:

General Government $ 479,367Finance 24,703Administration of Justice 22,901Public Safety 631,833Public Health and Welfare 296,630Social, Cultural, and Recreational 32,043Highway/Public Works 394,241

Total Depreciation Expense - Governmental Activities $ 1,881,718

Discretely Presented Anderson County School Department Governmental Activities:

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

Capital Assets Not Depreciated:Land $ 865,214 $ 0 $ 0 $ 865,214Construction in Progress 0 7,050,765 0 7,050,765Total Capital Assets Not Depreciated $ 865,214 $ 7,050,765 $ 0 $ 7,915,979

Capital Assets Depreciated:Buildings and Improvements $ 88,506,712 $ 721,348 $ 0 $ 89,228,060Other Capital Assets 8,369,308 18,340 (45,431) 8,342,217Total Capital Assets Depreciated $ 96,876,020 $ 739,688 $ (45,431) $ 97,570,277

Less Accumulated Depreciation For:Buildings and Improvements $ 46,018,908 $ 2,114,117 $ 0 $ 48,133,025Other Capital Assets 5,570,785 401,055 (45,431) 5,926,409Total Accumulated Depreciation $ 51,589,693 $ 2,515,172 $ (45,431) $ 54,059,434

Total Capital Assets Depreciated, Net $ 45,286,327 $ (1,775,484) $ 0 $ 43,510,843

Governmental Activities Capital Assets, Net $ 46,151,541 $ 5,275,281 $ 0 $ 51,426,822

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

Governmental Activities:

Instruction $ 2,076,144Support Services 167,575Operation of Non-instructional Services 271,453

Total Depreciation Expense - Governmental Activities $ 2,515,172

C. Construction Commitments

At June 30, 2019, the county had an uncompleted construction contract of$586,710 to construct a convenience center and the School Department had anuncompleted contract of $4,565,926 to upgrade various school buildings forenergy savings. Funding has been received for these future expenditures.

D. Interfund Receivables, Payables, and Transfers

The composition of interfund balances as of June 30, 2019, was as follows:

Primary Government

Due to/from Other Funds:

Receivable Fund Payable Fund Amount

Primary Government: General Nonmajor governmental $ 62,114 Ambulance Service Nonmajor governmental 2,265 Highway/Public Works General 2,885 " Ambulance Service 1,211 " Nonmajor governmental 24,330 Nonmajor governmental Nonmajor governmental 19,395

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

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Discretely Presented Anderson County School Department

Due to/from Other Funds


General Purpose School Nonmajor governmental $ 420,197Nonmajor governmental General Purpose School 231,602

The amount due to the General Purpose School Fund consists primarily of amounts due for indirect costs ($197,192) and an interfund loan discussed in Note IV.J. ($223,000). The amount due to the nonmajor governmental funds consists primarily of amounts that had been placed in the General Purpose School Fund in error ($229,841).

Due to/from Primary Government and Component Unit


Component Unit:Primary Government: School Department: General General Purpose School $ 1,657 Highway/Public Works General Purpose School 3,745 " Nonmajor governmental 283

Component Unit: School Department: Primary Government:

General Purpose School Nonmajor governmental 46,436

The amount reflected as due to primary government from the discretely presented School Department on the government-wide Statement of Net Position also includes $144,861 for debt issued by the primary government, which is being retired by the School Department. Of that amount, $29,879 is not expected to be received within one year.

Interfund Transfers

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

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Ambulance NonmajorGeneral Service Governmental

Transfers Out Fund Fund Funds

General Fund $ 0 $ 1,026,787 $ 331,874Highway/Public Works Fund 500 0 0Internal Service Fund 0 0 105,828

Total $ 500 $ 1,026,787 $ 437,702

Transfers In

The transfer from the Internal Service fund was reported to recognize the closing of the Channel 95 Fund. The Internal Service Funds also reported transfers out of $36,546 for capital assets transferred to governmental funds upon closing the Channel 95 Fund. The transfer into the Ambulance Service Fund was reported to recognize the county commission’s forgiveness of amounts owed to the General Fund. Transfers from the General Fund to the nonmajor governmental funds includes $330,798 to provide funds for the movement of a solid waste convenience center.


NonmajorGovernmental

Transfers Out Funds

General Purpose School Fund $ 0 $ 155,521Nonmajor Governmental Funds 215,438 40,759

Total $ 215,438 $ 196,280

Transfers InGeneral

Purpose SchoolFund

Transfers into the General Purpose School Fund were for indirect cost reimbursements. Transfers into the nonmajor governmental funds include $100,000 from the General Purpose School Fund to establish a cash flow balance and $55,521 from the General Purpose School Fund for building improvements.

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 accordance with budgetary authorizations.

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Primary Government

E. Income from Operating Lease Commitments Anderson County leases space in the Robert Jolley Administration Building and the Daniel Arthur Rehabilitation Center to various tenants under operating lease agreements. The carrying value of the leased properties was $882,855 at June 30, 2019. The original cost was $3,079,264 and accumulated depreciation was $2,196,409. Total lease revenues for the year ended June 30, 2019, were $119,520. The future minimum lease payments under existing leases are as follows: Year EndingJune 30 Amount

2020 $ 93,0102021 93,0102022 93,0002023 93,000

Total $ 372,020

F. Capital Lease On July 23, 2014, Anderson County entered into a seven-year lease-purchase agreement for a phone system for several county buildings. The terms of the agreement require total lease payments of $501,365 plus interest of 6.25 percent. The lease payments are made from the General Debt Service Fund. During the 2003-04 year, Anderson County entered into an agreement for the School Department for the lease of a building for its daycare and head start programs. Generally accepted accounting principles require the lease to be capitalized because, at the time of inception of the lease, the present value of minimum lease payments exceeded 90 percent of the fair value of the asset. The School Department made advance payments totaling $749,060 to decrease the entity’s future lease obligations, and the revised lease agreement provides for all required payments to be made during a 16-year period ending in 2021. The School Department has an option to extend the lease for two five-year terms. The lease carries an implicit interest rate of 11.4 percent, and the title does not transfer at the end of the lease. The assets acquired through the capital leases outstanding at June 30, 2019, consisted of the following:

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Building and Improvements $ 501,365 $ 1,606,295Less: Accumulated Depreciation (451,228) (1,244,879)

Total $ 50,137 $ 361,416

GovernmentalActivities

PrimaryGovernment -

SchoolDepartment -Governmental

Activities

Future minimum payments and the net present value of these minimum lease payments as of June 30, 2019, were as follows: Year EndingJune 30

2020 $ 143,9182021 30,448Total Minimum Lease Payments $ 174,366Less: Amount Representing Interest (11,232)

Present Value of Minimum Payments $ 163,134

GovernmentalActivities

G. Long-term Debt

Primary Government General Obligation Bonds, Notes, and Other Loans General Obligation Bonds - Anderson County issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities for the primary government and the discretely presented School Department. In addition, general obligation bonds have been issued to refund other general obligation bonds. General obligation bonds are direct obligations and pledge the full faith, credit, and taxing authority of the government. General obligation bonds outstanding were issued for original terms of up to 20 years. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. All bonds included in long-term debt as of June 30, 2019, will be retired from the debt service funds. Direct Borrowing and Direct Placements - Anderson County issues other loans to provide funds for the acquisition and construction of major capital facilities for the primary government and the discretely presented School Department. Capital outlay notes are also issued to fund capital facilities and other capital outlay purchases, such as equipment. Capital outlay notes and other loans are direct obligations and pledge the full faith, credit, and taxing authority of the

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government. Capital outlay notes and other loans outstanding were issued for original terms of up to 12 years for notes and up to 20 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 notes, and other loans included in long-term debt as of June 30, 2019, will be retired from the debt service funds. General obligation bonds, capital outlay notes, other loans, and capital leases outstanding as of June 30, 2019, for governmental activities are as follows:

OriginalInterest Final Amount Balance

Type Rate Maturity of Issue 6-30-19

General Obligation Bonds 1 to 5.25 % 5-1-29 $ 17,200,000 $ 8,370,000General Obligation Bonds - Refunding 2 to 2.7 5-1-35 8,030,000 7,940,000Rural School Bonds 2 to 5 5-1-39 20,900,000 19,885,000Rural School Bonds - Refunding 3 to 5 5-1-26 11,080,000 9,875,000Direct Borrowing and Direct Placement: Capital Outlay Notes 0 to 2.35 6-1-29 2,465,658 1,527,082 Other Loans See table below 5-1-31 14,385,215 9,123,000 Capital Lease 6.25 to 11.4 5-25-21 1,458,601 163,134

The following table further details loan agreements outstanding at June 30, 2019:

Original InterestAmount Outstanding Ratesof Loan Principal Interest as of Other

Description Agreement 6-30-19 Type 6-30-19 Fees

Montgomery County Public Building Authority

Industrial Development $ 1,700,000 $ 262,000 Variable 1.95 % .88 % Jail Renovation 3,000,000 1,141,000 Variable 2.04 .84

City of Clarksville Public Building Authority Rural Debt Series 2014 4,505,215 3,610,000 Fixed 2.75 NA Education Debt Series 2014 5,180,000 4,110,000 Fixed 2.75 NA

Total $ 14,385,215 $ 9,123,000

The annual requirements to amortize all general obligation bonds, notes, and other loans outstanding as of June 30, 2019, including interest payments and other loan fees, are presented in the following tables. The interest rates on the variable rate public building authority loan agreements are tax-exempt rates

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determined by the remarketing agent daily or weekly depending on the particular program. In addition, the county pays various other fees (trustee, debt remarketing, etc.) in connection with these variable rate loans. Interest payments and other fees included in the table for the variable rate issues are computed based on the rates in effect at June 30, 2019. YearEndingJune 30 Principal Interest Total

2020 $ 2,405,000 $ 1,831,103 $ 4,236,1032021 2,550,000 1,666,784 4,216,7842022 2,805,000 1,556,484 4,361,4842023 2,965,000 1,433,084 4,398,0842024 3,095,000 1,302,984 4,397,9842025-2029 15,450,000 4,467,931 19,917,9312030-2034 11,965,000 1,724,164 13,689,1642035-2039 4,835,000 385,779 5,220,779

Total $ 46,070,000 $ 14,368,313 $ 60,438,313

Bonds

YearEndingJune 30 Principal Interest Total

2020 $ 223,240 $ 30,380 $ 253,6202021 225,240 27,147 252,3872022 200,709 23,866 224,5752023 120,893 20,492 141,3852024 118,000 17,790 135,7902025-2029 639,000 45,872 684,872

Total $ 1,527,082 $ 165,547 $ 1,692,629

Notes - Direct Placement

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YearEndingJune 30 Principal Interest Other Fees Total

2020 $ 729,000 $ 240,685 $ 11,836 $ 981,5212021 740,000 222,912 9,243 972,1552022 612,000 204,919 6,555 823,4742023 618,000 189,416 4,991 812,4072024 624,000 173,792 3,378 801,1702025-2029 3,930,000 602,995 1,714 4,534,7092030-2031 1,870,000 77,413 0 1,947,413

Total $ 9,123,000 $ 1,712,132 $ 37,717 $ 10,872,849

Other Loans - Direct Placement

There is $2,929,729 available in the debt service funds to service long-term debt. Bonded debt per capita totaled $217, based on the 2010 federal census for residents living inside the Oak Ridge School District, $581 for residents living inside the Clinton School District, and $945 for residents living outside of these school districts. Total debt per capita, including bonds, notes, other loans, capital leases, and unamortized debt premiums, totaled $256 for residents living inside the Oak Ridge School District, $731 for residents living inside the Clinton School District, and $1,231 for residents living outside of these school districts, based on the 2010 federal census. The School Department is currently contributing funds to service some of the debt issued on its behalf by the primary government as noted in the table below. This debt is reflected in the government-wide financial statements as Due to the Primary Government in the financial statements of the School Department and as Due from Component Units in the financial statements of the primary government.

OutstandingDescription of Debt 6-30-19

Capital Leases - Direct Placement Contributions from the Other Education Special Revenue Fund to the Rural Debt Service Fund Headstart Facility $ 144,861

Total $ 144,861

In addition to the above-noted future contributions, based on budgetary appropriations, the School Department remitted $1,685,070 to the primary government’s Rural Debt Service Fund to be applied to the retirement of other debt issued for the benefit of the School Department.

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

Leases -Direct

Bonds Placement

Balance, July 1, 2018 $ 37,150,000 $ 373,426Additions 10,900,000 0Reductions (1,980,000) (210,292)

Balance, June 30, 2019 $ 46,070,000 $ 163,134

Balance Due Within One Year $ 2,405,000 $ 133,255

OtherLoans - Notes -Direct Direct

Placement Placement

Balance, July 1, 2018 $ 9,933,019 $ 2,166,322Reductions (810,019) (639,240)

Balance, June 30, 2019 $ 9,123,000 $ 1,527,082

Balance Due Within One Year $ 729,000 $ 223,240

Analysis of Noncurrent Liabilities for Debt Presented on Exhibit A:

Total Noncurrent Liabilities - Debt, June 30, 2019 $ 56,883,216Less: Balance Due Within One Year - Debt (3,490,495)Add: Unamortized Premium on Debt 2,069,946

Noncurrent Liabilities - Due in More Than One Year - Debt - Exhibit A $ 55,462,667

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

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Amount

Series 2011 D General Obligation (callable 5-1-20) $ 7,350,000

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

OtherCompensated Postemployment

Absences Benefits

Balance, July 1, 2018 $ 633,677 $ 549,196Additions 863,407 37,912Reductions (844,153) (76,411)

Balance, June 30, 2019 $ 652,931 $ 510,697

Balance Due Within One Year $ 620,284 $ 0

Analysis of Other Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2019 $ 1,163,628Less: Balance Due Within One Year - Other (620,284)

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 543,344

Compensated absences and other postemployment benefits will be paid from the employing funds, primarily the General, Ambulance Service, and Highway/Public Works funds. Discretely Presented Anderson County School Department Changes in Long-term Obligations Long-term obligations activity for the discretely presented Anderson County School Department for the year ended June 30, 2019, was as follows:

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OtherCompensated Postemployment

Absences Benefits

Balance, July 1, 2018 $ 355,113 $ 4,701,127Additions 498,265 854,102Reductions (515,330) (1,446,852)

Balance, June 30, 2019 $ 338,048 $ 4,108,377

Balance Due Within One Year $ 321,146 $ 0

Analysis of Other Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2019 $ 4,446,425Less: Balance Due Within One Year - Other (321,146)

Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 4,125,279

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

I. On-Behalf Payments – Discretely Presented Anderson County School Department The State of Tennessee pays health insurance premiums for retired teachers on-behalf of the Anderson County School Department. These payments are made by the state to the Local Education Group Insurance Plan. The plan is administered by the State of Tennessee and reported in the state’s Comprehensive Annual Financial Report. Payments by the state to the Local Education Group Insurance Plan for the year ended June 30, 2019, was $184,328. The School Department has recognized these on-behalf payments as revenues and expenditures in the General Purpose School Fund.

J. Short-term Debt

Anderson County issued tax and revenue anticipation notes in advance of property tax and other revenue collections in the following funds. These notes were necessary because funds were not available to meet obligations coming due before revenues were available. Short-term debt activity for the year ended June 30, 2019, was as follows:

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Balance BalanceFund 7-1-18 Issued Paid 6-30-19

General Capital Projects Fund $ 0 $ 465,990 $ (465,990) $ 0 (Borrowed from General Fund)

Discretely Presented School DepartmentSchool Federal Projects Fund 0 520,420 (297,420) 223,000 (Borrowed from General Purpose School Fund)Other Education Special Revenue Fund 0 22,000 (22,000) 0 (Borrowed from General Purpose School Fund)

V. OTHER INFORMATION

A. Risk Management

The county has chosen to establish the Employee Health Insurance Fund for risks associated with the employees’ health insurance plan. The Employee Health Insurance Fund is accounted for as an internal service fund where assets are set aside for claim settlements. The county has obtained a stop/loss commercial policy to cover claims beyond certain liabilities. The stop/loss policy contains a maximum reimbursement limit of $1,000,000 per claim year. Annually, the county retains the risk of loss to the first $100,000 per covered person. Settled claims have not exceeded this commercial insurance coverage in any of the past three fiscal years. An estimated liability for outstanding medical claims of $209,576 has been recorded in the financial statements of the Employee Health Insurance Fund. All full-time employees of the primary government are eligible to participate along with eligible pre-65 retirees as discussed in Note V.H., Other Postemployment Benefits. A premium charge is allocated to each fund that accounts for full-time employees or that pays premiums for retirees. This charge is based on actuarial estimates for the amounts needed to pay prior- and current-year claims and to establish a reserve for catastrophic losses. That reserve was $1,083,087 at June 30, 2019. 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 Employee Health Insurance Fund establishes claims liabilities based on estimates of the ultimate cost of claims that have been incurred but not reported. Claims liabilities include specific, incremental claim adjustment expenditures/expenses, if any. In addition, estimated recoveries, if any, on settled claims have been deducted from the liability for unpaid claims. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the past two fiscal years are as follows:

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Employee Insurance - Health Fund

Beginning of Current-year BalanceFiscal Year Claims and Fiscal

Liability Estimates Payments Year-end

2017-18 $ 164,044 $ 3,733,798 $ 3,693,724 $ 204,118 2018-19 204,118 2,961,625 2,956,167 209,576

Current-year claims and estimates are presented net of stop/loss recoveries ($73,796) and contracted prescription drug rebates ($263,982) for the 2018-19 year. The discretely presented Anderson County School Department participates in the Local Education Group Insurance Fund (LEGIF), a public entity risk pool established to provide a program of health insurance coverage for employees of local education agencies. In accordance with Section 8-27-301, Tennessee Code Annotated (TCA), all local education agencies are eligible to participate. The LEGIF is included in the Comprehensive Annual Financial Report of the State of Tennessee, but the state does not retain any risk for losses by this fund. Section 8-27-303, TCA, provides for the LEGIF to be self-sustaining through member premiums. Anderson County and the discretely presented Anderson County School Department are exposed to various risks related to general liability, property, casualty, and workers’ compensation losses. The county and the School Department decided it was more economically feasible to join a public entity risk pool as opposed to purchasing commercial insurance for general liability, property, casualty, and workers’ compensation coverage. The county and the School Department joined the Tennessee Risk Management Trust (TN-RMT), which is a public entity risk pool created under the auspices of the Tennessee Governmental Tort Liability Act to provide governmental insurance coverage. The county and the School Department pay annual premiums to the TN-RMT for their general liability, property, casualty, and workers’ compensation insurance coverage. The creation of TN-RMT provides for it to be self-sustaining through member premiums.

B. Accounting Changes At July 1, 2018, Anderson County changed its accounting for Channel 95, a county operated television station, from an internal service fund to a special revenue fund. In the financial statements, a transfer of $105,829 was reported out of the internal service fund to the governmental funds to recognize the transfer of current financial resources and payables on the modified accrual basis of accounting. Transfers out of the internal service fund totaling $36,545 were also reported on the accrual basis of accounting to recognize capital assets transferred to governmental funds.

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

C. Contingent Liabilities Anderson County is a defendant in a wrongful termination lawsuit. The county won the case in chancery court; however, the verdict was subsequently reversed in the Court of Appeals and the county was ordered to pay back pay equating to approximately $400,000. The county is currently appealing the Court of Appeals case. A liability of $400,000 has been recorded for the awarded back pay in the General Fund as of June 30, 2019. However, the amount has not been paid as of the date of this report, pending the appeal. A business filed an appeal on an assessment of nonstandard personal property tax from 2009 to 2012. The taxes were paid under protest since 2009. The county lost the case before the Administrative Law Judge in Nashville but prevailed at trial in Anderson County Chancery Court. The business has appealed. If the company ultimately prevails, the county will be required to refund over $600,000 of previously paid personal property tax. The county has not recorded any liability for this claim.

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The county is also involved in several other pending lawsuits. The county law director estimates that the potential claims not covered by insurance resulting from such litigation would not materially affect the county’s financial statements.

D. Changes in Administration On August 31, 2018, Myron Iwanski left the Office of Trustee and was succeeded by Regina Copeland; Paul White left the Office of Sheriff and was succeeded by Russell Barker; and William Jones left the Office of Circuit, General Sessions, and Juvenile Courts Clerk and was succeeded by Rex Lynch. On May 24, 2019, Natalie Erb left the Office of Finance Director and was succeeded by Robby Holbrook, Interim Finance Director.

E. Joint Ventures

The Seventh Judicial District Drug Task Force (DTF) is a joint venture formed by an interlocal agreement between the district attorney general of the Seventh Judicial District, Anderson County, and various cities within Anderson 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, the sheriff, and police chiefs of participating law enforcement agencies. Anderson County did not contribute to the operation of the DTF for the year ended June 30, 2019. The Anderson County Economic Development Association (ACEDA) is a joint venture formed by an interlocal agreement between Anderson County and the cities and towns within Anderson County. The East Tennessee Economic Development association and the Clinton Utilities Board are also members of the association. Membership on the Board of Directors is allocated based on the entities’ relative level of funding for the prior fiscal year budget pro-rated among a total of 25 members, with no participating organization having more than one-third of the 25 members. In addition, the county mayor and the mayor or city manager of each municipality in Anderson County are members of the Board of Directors. Each participating organization appoints its own members on the Board of Directors. Anderson County has control over budgeting and financing the joint venture only to the extent of its representation by its board members. Anderson County contributed $124,500 to the operations of ACEDA during the fiscal year ended June 30, 2019. In addition to the operations contribution, Anderson County also committed an additional $237,698 for their portion of the building renovations for the Tennessee College of Applied Technology.

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Anderson County does not have an equity interest in either of the above-noted joint ventures. Complete financial statements for the DTF and ACEDA can be obtained at their administrative offices at the following addresses:

Seventh Judicial District Drug Task Force 101 S. Main Street, Suite 300 Clinton, TN 37716 Anderson County Economic Development Association 245 North Main Street, Suite 200 Clinton, TN 37716

F. Jointly Governed Organization

The Northeast Tennessee Railroad Authority is jointly operated by Anderson County in conjunction with Campbell and Scott counties. The authority’s board consists of the county mayor of each county and one member selected by the governing body of each county; however, the counties do not have any ongoing financial interest or responsibility for the entity. Anderson County did not contribute to the operations of the Northeast Tennessee Railroad Authority during the year ended June 30, 2019.

G. Retirement Commitments

1. Tennessee Consolidated Retirement System (TCRS)

Primary Government General Information About the Pension Plan Plan Description. Employees of Anderson County and non-certified employees of the discretely presented Anderson County School Department are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The primary government employees comprise 63.73 percent, the non-certified employees of the discretely presented School Department comprise 36.27 percent of the plan based on contribution data. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies.

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


Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with five years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. Reduced benefits for early retirement are available to vested members at age 55. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions plus any accumulated interest. Employees Covered by Benefit Terms. At the measurement date of June 30, 2018, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 424Inactive Employees Entitled to But Not Yet Receiving Benefits 963Active Employees 789

Total 2,176

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 salary. Anderson County makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2019, the employer contribution for Anderson County was $1,895,881 based on a rate of 7.32 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept Anderson County’s state shared taxes if required

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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) Anderson County’s net pension liability (asset) was measured as of June 30, 2018, and the total pension liability (asset) used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability as of the June 30, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 2.5%Salary Increases Graded Salary Ranges from 8.72%

to 3.44% Based on Age, Including Inflation, Averaging 4%

Investment Rate of Return 7.25%, Net of Pension Plan Investment Expenses, Including Inflation

Cost of Living Adjustment 2.25%

Mortality rates were based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2018, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historic market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investments expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major class are summarized in the following table:

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PercentageLong-termExpected PercentageReal Rate Target

Asset Class of Return Allocations

U.S. Equity 5.69 % 31 %Developed Market International Equity 5.29 14Emerging Market International Equity 6.36 4Private Equity and Strategic Lending 5.79 20U.S. Fixed Income 2.01 20Real Estate 4.32 10Short-term Securities 0.00 1

Total 100 %

The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employee contributions will be made at the current rate and that contributions from Anderson County will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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Changes in the Net Pension Liability (Asset)

NetTotal Plan Pension

Pension Fiduciary LiabilityLiability Net Position (Asset)

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

Balance, July 1, 2017 $ 74,226,130 $ 76,398,119 $ (2,171,989)

Changes for the Year: Service Cost $ 2,198,130 $ 0 $ 2,198,130 Interest 5,416,952 0 5,416,952 Differences Between Expected and Actual Experience (1,142,753) 0 (1,142,753) Changes in Assumptions 0 0 0 Contributions-Employer 0 1,800,808 (1,800,808) Contributions-Employees 0 1,238,883 (1,238,883) Net Investment Income 0 6,322,893 (6,322,893) Benefit Payments, Including Refunds of Employee Contributions (3,415,355) (3,415,355) 0 Administrative Expense 0 (72,486) 72,486 Other Changes 0 0 0Net Changes $ 3,056,974 $ 5,874,743 $ (2,817,769)

Balance, June 30, 2018 $ 77,283,104 $ 82,272,862 $ (4,989,758)

Increase (Decrease)

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

Plan NetTotal Fiduciary Pension

Pension Net LiabilityLiability Position (Asset)

Primary Government 63.73% $ 49,252,522 $ 52,432,495 $ (3,179,973)

School Department 36.27% 28,030,582 29,840,367 (1,809,785)

Total $ 77,283,104 $ 82,272,862 $ (4,989,758)

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

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Current1% Discount 1%

Decrease Rate IncreaseAnderson County 6.25% 7.25% 8.25%

Primary Government $ 3,120,429 $ (3,179,973) $ (8,393,439)School Department 1,775,897 (1,809,785) (4,776,872)

Total Net Pension Liability $ 4,896,326 $ (4,989,758) $ (13,170,311)

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, 2019, Anderson County recognized (negative) pension expense of ($79,206). Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, Anderson 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 $ 70,920 $ 1,778,398Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 332,532Changes in Assumptions 1,071,587 0Contributions Subsequent to the Measurement Date of June 30, 2018 (1) 1,895,881 N/A

Total $ 3,038,388 $ 2,110,930

(1) The amount shown above for “Contributions Subsequent to the Measurement Date of June 30, 2018,” will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period.

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

Deferred DeferredOutflows of Inflows ofResources Resources

Primary Government $ 1,926,802 $ 1,345,296

School Department 1,111,586 765,634

Total $ 3,038,388 $ 2,110,930

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 Ending Primary SchoolJune 30 Government Department Total

2020 $ 111,979 $ 63,729 $ 175,7082021 (20,933) (11,913) (32,846)2022 (460,563) (262,115) (722,678)2023 (247,659) (140,947) (388,606)2024 0 0 0Thereafter 0 0 0

In the table shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense. Payable to the Pension Plan At June 30, 2019, Anderson County reported a payable of $213,447 for the outstanding amount of contributions due to the pension plan at year end. Discretely Presented Anderson County School Department Non-certified Employees General Information About the Pension Plan Plan Description. As noted above under the primary government, employees of Anderson County and non-certified employees of the discretely presented Anderson County School Department are provided a defined benefit pension plan through the Public Employee Retirement

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Plan, an agent multiple-employer pension plan administered by the TCRS. The primary government employees comprise 63.73 percent and the non-certified employees of the discretely presented School Department comprise 36.27 percent of the plan based on contribution data. Certified Employees Teacher Retirement Plan General Information About the Pension Plan Plan Description. Teachers of the Anderson County School Department with membership in the TCRS before July 1, 2014, are provided with pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan is closed to new membership. Teachers with membership in the TCRS after June 30, 2014, are provided with pensions through a legally separate plan referred to as the Teacher Retirement Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members are eligible to retire with an unreduced benefit at age 65 with five years of service credit or pursuant to the rule of 90 in which the member’s age and service credit total 90. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 60 or pursuant to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the

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consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. Members who leave employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Retirement Plan, benefit terms and conditions, including COLA, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly or by automatic cost controls set out in law. Teachers are required to contribute five percent of their salary to the plan. The Local Education Agencies (LEAs) make employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. Per the statutory provisions governing TCRS, the employer contribution rate cannot be less than four percent, except in years when the maximum funded level, approved by the TCRS Board of Trustees, is reached. By law, employer contributions for the Teacher Retirement Plan are required to be paid. The TCRS may intercept the state shared taxes of the sponsoring governmental entity of the LEA if the required employer contributions are not remitted. Employer contributions for the year ended June 30, 2019, to the Teacher Retirement Plan were $123,211, which is 1.94 percent of covered payroll. In addition, employer contributions of $122,722 were made to the Pension Stabilization Reserve Trust Fund to fund future pension costs. The employer rate, when combined with member contributions and the stabilization reserve trust funds, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Liabilities (Assets). At June 30, 2019, the School Department reported a liability (asset) of ($258,432) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. The School Department’s proportion of the net pension liability (asset) was based on the School Department’s share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2018, the School Department’s proportion was .569825 percent. The proportion as of June 30, 2017, was .547672 percent.

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Pension Expense. For the year ended June 30, 2019, the School Department recognized pension expense of $86,086. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the School Department reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



Difference Between Expected and Actual Experience $ 14,637 $ 10,293Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 14,598Changes in Assumptions 12,192 0Changes in Proportion of Net Pension Liability (Asset) 0 24,980LEA's Contributions Subsequent to the Measurement Date of June 30, 2018 (1) 123,211 N/A

Total $ 150,040 $ 49,871

The School Department’s employer contributions of $123,211, reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as an increase of net pension asset in the year ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year EndingJune 30 Amount

2020 $ (4,062)2021 (4,526)2022 (6,606)2023 (2,792)2024 (847)Thereafter (4,209)

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

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Actuarial Assumptions. The total pension liability in the June 30, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:





Mortality rates are based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2018, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historic market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investments expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major class are summarized in the following table:

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Total 100 %

The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employee contributions will be made at the current rate and that contributions from all the LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Proportionate Share of Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the School Department’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.25 percent, as well as what the School Department’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is one percentage point lower (6.25 percent) or one percentage point higher (8.25 percent) than the current rate:

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

Net Pension Liability $ 39,954 $ (258,432) $ (478,271)

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Payable to the Pension Plan At June 30, 2019, the Anderson County School Department reported a payable of $26,509 for the outstanding amount of contributions due to the pension plan at year end. Teacher Legacy Pension Plan General Information About the Pension Plan Plan Description. Teachers of the Anderson County School Department with membership in the TCRS before July 1, 2014, are provided with pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30, 2014, but will continue providing benefits to existing members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by LEAs after June 30, 2014. The Teacher Retirement Plan is a separate cost-sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible to retire with an unreduced benefit at age 60 with five years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 55. Members are vested with five years of service credit. Service related disability

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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 Anderson County School Department for the year ended June 30, 2019, to the Teacher Legacy Pension Plan were $2,572,443, which is 10.46 percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Liability (Assets). At June 30, 2019, the School Department reported a liability (asset) of ($2,605,954) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. The School Department’s proportion of the net pension liability (asset) was based on the School Department’s

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long-term share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2018, the School Department’s proportion was .740556 percent. The proportion measured at June 30, 2017, was .745236 percent. Pension Expense. For the year ended June 30, 2019, the School Department recognized (negative) pension expense of ($781,723). Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the School Department reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



Difference Between Expected and Actual Experience $ 526,752 $ 3,515,639Changes in Assumptions 1,539,089 0Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 567,164Changes in Proportion of Net Pension Liability (Asset) 55,111 134,178LEA's Contributions Subsequent to the Measurement Date of June 30, 2018 2,572,443 N/A

Total $ 4,693,395 $ 4,216,981

The School Department’s employer contributions of $2,572,443 reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as an increase in net pension asset in the year ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

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2020 $ 501,4462021 (867,974)2022 (1,485,384)2023 (244,116)2024 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, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:





Mortality rates are based actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2018, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historic market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investments expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS

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




Total 100 %

The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employee contributions will be made at the current rate and that contributions from all the LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Proportionate Share of Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the School 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

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percentage point lower (6.25 percent) or one percentage point higher (8.25 percent) than the current rate: School Department's Current Proportionate Share of 1% Discount 1% the Net Pension Decrease Rate Increase Liability (Asset) 6.25% 7.25% 8.25%

Net Pension Liability $ 20,088,338 $ (2,605,954) $ (21,382,319)

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

Payable to the Pension Plan At June 30, 2019, the Anderson County School Department reported a payable of $176,327 for the outstanding amount of contributions due to the pension plan at year end.

2. Deferred Compensation

Teachers hired after July 1, 2014, by School Department are required to participate in a hybrid pension plan consisting of a defined benefit portion, which is detailed in the pensions footnote above and is managed by the Tennessee Consolidated Retirement System, and a defined contribution portion which is placed in the state’s 401 (K) plan and is managed by the employee. The defined contribution portion of the plan requires that the School Department contribute five percent of each teacher’s salary into their deferred compensation plan. In addition, teachers are required to contribute two percent of their salaries into this deferred compensation plan, unless they opt out of the employee portion. During the year the School Department contributed $312,119 and teachers contributed $92,529 to this deferred compensation pension plan.

H. Other Postemployment Benefits (OPEB)

Primary Government Plan Description. Anderson County participates in a self-insured postemployment benefits plan administered by Blue Cross-Blue Sheild for medical benefits for retirees and their beneficiaries. For reporting purposes the plan is considered to be a single employer defined benefit OPEB plan based on criteria in Statement No. 75 of the Governmental Accounting Standards Board (GASB). The plan is funded on a pay-as-you-go basis and there are no assets accumulating in a trust that meets the criteria of paragraph 4 of GASB Statement No. 75.

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Benefits Provided. The premium requirements of plan members are established and may be amended by the insurance committee. Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premium rates. Retirees with 30-plus years of service with Anderson County are eligible to continue coverage, until they are Medicare eligible, as long as the retiree continues to pay the premiums. For employees who retired after July 1, 2012, Anderson County pays $300 per month premium assistance until attainment of age 65 when the employee becomes eligible for Medicare. This premium assistance increased to $350 per month for eligible retirees who retired on or after September 1, 2017. For employees retiring after December 31, 2018, the county will establish a Health Reimbursement Account for the retiree with a monthly stipend up to $800 per month to reimburse out of pocket medical expenses and insurance premiums. This retiree group will no longer be eligible for coverage through the county medical plan. Employees Covered by Benefit Terms At the measurement date of June 30, 2019, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 6Inactive Employees Entitled to But Not Yet Receiving Benefits 0Active Employees 419

Total 425

Total OPEB Liability The plan’s total OPEB liability of $510,697 was measured as of June 30, 2019, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and Other Inputs. The total OPEB liability in the actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

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Actuarial Cost Method Entry Age NormalInflation 3%Salary Scale 2.5%Discount Rate 3.36%Healthcare Cost Trend Rates 8.5% decreasing .5% per year to an

ultimate rate of 4.5%Retirees share of Benefit-related Cost See discussion under Benefits Provided

The discount rate was based on the S&P Municipal Bond 20 Year High Grade Rate Index as of June 30, 2019. The mortality assumption is based on RPH-2014 Total Table with Projection MP-2018. The actuarial assumptions used in the valuation were based on plan data and costs presented by the county with concurrence by the actuary. Changes in Assumptions. The discount rate changed from 3.88 percent as of the beginning of the measurement period to 3.36 percent as of the measurement date. Healthcare cost trend assumptions were updated from a flat 5 percent to an immediate rate of 8.5 percent, decreasing .5 percent per year to an ultimate rate of 4.5 percent. The mortality improvement scale was updated from MP-2017 to MP-2018. Changes in the Total OPEB Liability

Total OPEBLiability

Balance July 1, 2018 $ 549,196Changes for the Year: Service Cost $ 19,625 Interest 21,106 Changes in Benefit Terms 0 Difference between Expected and Actuarial (61,877) Experience Changes in Assumption and Other Inputs 32,363

Benefit Payments (49,716)Net Changes $ (38,499)

Balance June 30, 2019 $ 510,697

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the primary government recognized OPEB expense of $37,912. At June 30, 2019, the primary government reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

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Deferred DeferredOutflows Inflowsof ofResources Resources

Difference Between Expected and Actual Experience $ 0 $ 55,967Changes of Assumption/Inputs 29,272 0Net Difference Between Projected and Actual Investment Earnings 0 0Benefits Paid After the Measurement Date 0 0

Total $ 29,272 $ 55,967

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following presents the total OPEB liability of the primary government calculated using the current discount rate, as well as what the OPEB liability would be if it was calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Current1% Discount 1%

Decrease Rate Increase2.36% 3.36% 4.36%

Total OPEB Liability $ 555,658 $ 510,697 $ 469,201

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

Current

1% Trend 1%Decrease Rate Increase

7.5% 8.5% 9.5%

Total OPEB Liability $ 509,854 $ 510,697 $ 511,552

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The discretely presented Anderson County School Department provides OPEB benefits to its retirees through a state administered public entity risk pool. For reporting purposes the plan is considered a single employer defined benefit OPEB plan based on criteria in Statement No. 75 of the Governmental Accounting Standards Board (GASB). The plan is 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. Plan Description. Employees of the Anderson County School Department who were hired prior to July 1, 2015, are provided with pre-65 retiree health insurance benefits through the closed Local Education Plan (LEP) administered by the Tennessee Department of Finance and Administration. All eligible pre-65 retired teachers, support staff, and disability participants of local education agencies, who choose coverage, participate in the LEP. This plan is closed to the employees of all participating employers that were hired on or after July 1, 2015. Once the certified retirees of Anderson County School Department reach Medicare eligibility they may then join the Tennessee Plan – Medicare (TNM), which provides supplemental medical insurance for retirees with Medicare. However, the School Department does not provide any subsidy (direct or indirect) to this plan and therefore does not recognize any OPEB liability associated with the TNM. The School Department’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 Other Inputs. 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 NormalInflation 2.25%Salary Increases Salary increases used in the July 1, 2018

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

Discount Rate 3.62%Healthcare Cost Trend Rates Based on the Getzen Model, with trend

starting at 6.75% for the 2019 calendar year, and decreasing over a 32-year period to a trend of rate of 3.53 percent with .32% added to approximate the effect of the excise tax

Retirees Share of Benefit Related Cost Discussed under Benefits Provided

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The discount rate was 3.62 percent, based on the daily rate of Fidelity’s 20-year Municipal GO AA index closest to but not later than the measurement date. Mortality rates were based on the results of a statewide experience study undertaken on behalf of the Tennessee Consolidated Retirement System (TCRS). These mortality rates were used in the July 1, 2018, actuarial valuation of the TCRS. Unless noted otherwise, the actuarial demographic assumptions used in the June 30, 2018, valuations were the same as those employed in the July 1, 2018, Pension Actuarial Valuation of the Tennessee Consolidated Retirement System (TCRS). These assumptions were developed by TCRS based on the results of an actuarial experience study for the period July 1, 2012 - June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. Mortality tables are used to measure the probabilities of participants dying before and after retirement. The mortality rates employed in this valuation are taken from the RP-2014 Healthy Participant Mortality Table for Annuitants for non-disabled post-retirement mortality, with mortality improvement projected to all future years using Scale MP-2016. Post-retirement tables are Blue Collar and adjusted with a 2 percent load for males and a negative 3 percent load for females. Mortality rates for impaired lives are the same as those used by TCRS and are taken from a gender distinct table published in the IRS Ruling 96-7 for disabled lives with a 10 percent load. Changes in Assumptions. The discount rate changed from 3.56 percent as of the beginning of the measurement period to 3.62 percent as of the measurement date of June 30, 2018. The assumed initial costs and premium amounts were revised to reflect rates adopted for the 2019 plan year. The assumed initial trend rate applicable to the 2019 plan year was revised from 5.4 percent to 6.75 percent. Benefits Provided. The Anderson County School Department offers the LEP to provide health insurance coverage to eligible pre-65 retirees, support staff, and disabled participants. Retirees are required to discontinue coverage under the LEP upon obtaining Medicare eligibility. Insurance coverage is the only postemployment benefit provided to retirees. An insurance committee created in accordance with TCA 8-27-301 establishes and amends the benefit terms of the LEP. All members have the option of choosing between the premier preferred provider organization (PPO), standard PPO, limited PPO or the wellness health savings consumer-driven health plan (CDHP) for healthcare benefits. Retired plan members of the LEP receive the same plan benefits as active employees at a blended premium rate that considers the cost of all participants. This creates an implicit subsidy for retirees. Participating employers determine their own policy related to direct subsidies provided for retiree premiums. Anderson County School Department does not provide a direct subsidy toward retirees insurance premiums and is subject only to the

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implicit subsidy. The state, as a governmental non-employer contributing entity, provides a direct subsidy for eligible retirees premiums based on years of service. Retirees with 30 or more years of service will receive 45 percent; 20 but less than 30 years, 35 percent; and less than 20 years, 20 percent of the scheduled premium. No subsidy is provided for enrollees of the health savings CDHP. Employees Covered by Benefit Terms At the measurement date of June 30, 2018, the following employees were covered by the benefit terms:

SchoolDepartment

Inactive Employees or Beneficiaries Currently Receiving Benefits 54Inactive Employees Entitled to But Not Yet Receiving Benefits 0Active Employees 697

Total 751

A state insurance committee, created in accordance with TCA 8-27-301, establishes the required payments to the LEP by member employers and employees through the blended premiums established for active and retired employees. Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premium rates. Administrative costs are allocated to plan participants. Employers contribute towards employee costs based on their own developed policies. During the current reporting period, the School Department paid $323,503 to the LEP for OPEB benefits as they came due.

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Changes in the Collective Total OPEB Liability

Anderson County State ofSchool Department TN Total OPEB

66.9321% 33.0679% Liability

Balance July 1, 2017 $ 4,701,127 $ 2,417,177 $ 7,118,304Changes for the Year: Service Cost $ 248,977 $ 123,008 $ 371,985 Interest 171,661 84,809 256,470 Changes in Benefit Terms 0 0 0 Difference between Expected and Actuarial Experience (810,437) (400,398) (1,210,835) Change in Proportion 63,304 (63,304) 0 Changes in Assumption and Other Inputs 116,693 57,653 174,346

Benefit Payments (382,948) (189,196) (572,144)Net Changes $ (592,750) $ (387,428) $ (980,178)

Balance June 30, 2018 $ 4,108,377 $ 2,029,749 $ 6,138,126

Share of Collective Liability

The Anderson County School Department has a special funding situation related to benefits paid by the State of Tennessee for its eligible retired employees participating in the LEP. The Anderson County School Department's proportionate share of the collective total OPEB liability was based on a projection of the employers long-term share of benefit payments to the OPEB plan relative to the projected share of benefit payments of all participating employers and nonemployer contributing entities, actuarially determined. The School Department recognized $161,891 in revenue for subsidies provided by nonemployer contributing entities for benefits paid by the LEP for School Department retirees. During the year, the Anderson County School Department’s proportionate share of the collective OPEB liability was 66.9321 percent and the State of Tennessee’s share was 33.0679 percent. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the School Department recognized OPEB expense of $501,766, which includes expenses funded by subsidies provided by the state. At June 30, 2019, the School Department reported deferred outflows of resources and deferred inflows of resources related to its proportionate share of OPEB from the following sources:

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Difference Between Expected and Actual Experience $ 0 $ 735,397Changes of Assumptions/Inputs 105,889 176,821Changes in Proportion and Differences Between Amounts Paid as Benefits Came Due and Proportionate Share Amounts Paid by the Employer and Nonemployer Contributors As Benefits Came Due 39,518 0Benefits Paid After the Measurement Date of June 30, 2018 323,503 0

Total $ 468,910 $ 912,218

Amounts reported as deferred inflows and deferred outflows of resources (excluding benefits paid after the measurement date) related to OPEB will be recognized in OPEB expense as follows: Year Ending SchoolJune 30 Department

2020 $ (80,763)2021 (80,763)2022 (80,763)2023 (80,763)2024 (80,763)Thereafter (362,999)

In the table shown above, positive amounts will increase OPEB expense while negative amounts will decrease OPEB expense. Sensitivity of Proportionate Share of the Collective Total OPEB Liability to Changes in the Discount Rate. The following presents the School Department’s proportionate share of the collective total OPEB liability related to the LEP, as well as what the proportionate share of the collective total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current discount rate.

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Discount Rate Current1% Discount 1%

Decrease Rate Increase2.62% 3.62% 4.62%

Proportionate Share of the Collective Total OPEB Liability $ 4,401,784 $ 4,108,377 $ 3,831,225

Sensitivity of Proportionate Share of the Collective Total OPEB Liability to Changes in the Healthcare Cost Trend Rate. The following presents the School Department’s proportionate share of the collective total OPEB liability related to the LEP, as well as what the proportionate share of the collective total OPEB liability would be if it were calculated using a healthcare cost trend rate that is one percentage point lower or one percentage point higher than the current healthcare cost trend rate. Healthcare Cost Trend Rate

1% Curent 1%Decrease Rates Increase

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

Proportionate Share of the Collective Total OPEB Liability $ 3,670,193 $ 4,108,377 $ 4,630,295

I. Termination Benefits

The Anderson County School Department adopted a policy to pay employees for each sick day that they have accumulated at the time of their retirement. The benefit ranges from $10 to $60 based on years of service and date of notice of intent to retire. Since payments will be made at the actual time of their retirement, the amount of future payments was not measurable at June 30, 2019. Payments totaling $162,805 were paid to individuals who retired during the year ended June 30, 2019. The Anderson County School Department also has a retirement incentive bonus payment plan in accordance with contract provisions. This plan is available to all certified teachers who retire from the School Department with at least ten years of service in Anderson County and are between the ages of 55 and 60. Under the terms of the plan, employees with 30 or more years of service shall receive $100 for each school year of service with the School Department. Employees with 25 to 29 years of service shall receive $50 for each school year of service in the School Department. Since payments will be made at the actual time of their retirement, the amount of future payments

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was not measurable at June 30, 2019. Payments totaling $42,250 were paid to individuals who retired during the year ended June 30, 2019.

J. Office of Central Accounting, Budgeting, and Purchasing Anderson County operates under provisions of the County Financial Management System of 1981. This act provides for a central system of accounting, budgeting, and purchasing for all county departments. The act also provides for the creation of a Finance Department operated under the direction of the finance director.

K. Purchasing Laws The County Financial Management System of 1981 provides for the finance director or a deputy appointed by the finance director to serve as the county purchasing agent. The finance director serves as the purchasing agent for Anderson County. All purchase orders are issued by the Finance Department. The Financial Management Committee established a policy that purchases exceeding $20,000 for the County Mayor’s Office and the Anderson County School Department are to be made on a competitive bid basis. Purchasing procedures for the Highway Department are also governed by provisions of the Uniform Road Law, Section 54-7-113, Tennessee Code Annotated. Competitive bids are also required on highway purchases exceeding $20,000.

VI. OTHER NOTES – DISCRETELY PRESENTED ANDERSON COUNTY

EMERGENCY COMMUNICATIONS DISTRICT

A. Description of Organization

The Emergency Communications District of Anderson County, Tennessee, (the district) was created by a county-wide referendum on November 6, 1990. The Anderson County Board of Commissioners appointed the district's initial Board of Directors pursuant to Tennessee Code Annotated, Section 7-86-101. The district is responsible for the installation and maintenance of the emergency communications network of Anderson County, Tennessee, (Enhanced 911 Service). The district is considered a component unit of Anderson County, Tennessee, because the Anderson County Board of Commissioners appoints a majority of the district's Board of Directors and must approve any debt issued by the district.

B. Summary of Significant Accounting Policies

1. Basis of Accounting

The district’s financial statements are reported using the economic resources measurement focus and accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are

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included on the statements of net position. The statement of revenues, expenses, and changes in net position present increases (revenue) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenue is recognized in the period in which it is earned while expenses are recognized in the period in which the liability is incurred. Operating revenue is revenue that is generated from the primary operations of the district. All other revenue is reported as nonoperating revenue. Operating expenses are those expenses that are essential to the primary operations of the district. All other expenses are reported as nonoperating expenses. GASB Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments establishes standards for external financial reporting for state and local governments and requires that resources be classified for accounting and reporting purposes into the following three net position groups: Investment in capital assets: This category includes capital assets, net

of accumulated depreciation. Investment in capital assets at June 30, 2019, has been calculated as follows:

Capital Assets $ 1,348,219Less: Accumulated Depreciation (798,603)

Capital Assets Being Depreciated, Net $ 549,616

Restricted: This category includes net position whose use is subject to externally imposed stipulations that can be fulfilled by actions of the district pursuant to those stipulations or that expire by the passage of time. The district had no restricted net position as of June 30, 2019.

Unrestricted: This category includes net position that is not subject to externally imposed stipulations and does not meet the definition of restricted or net investment in capital assets. Unrestricted net position may be designated for specific purposes by action of management or the Board of Directors or may otherwise be limited by contractual agreements with outside parties.

2. Accounts Receivable Accounts receivable, which are deemed uncollectible based upon a periodic review of the accounts, are charged to revenue. At June 30, 2019, no allowance for uncollectible accounts was considered necessary.

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3. Capital Assets

Capital assets, which include property and equipment, are recorded at cost. Capital assets are defined by the district as assets with an initial, individual cost of $500 or more. Depreciation is computed using the straight-line method over the estimated useful lives, which range from five to 25 years.

4. Operating Budget The district is required by state law to adopt an annual operating budget. The Board of Directors approves the original budget and any amendments, and maintains the legal level of control at the line-item level. The budget is prepared on the accrual basis of accounting. All appropriations lapse at the end of the year.

5. Compensated Absences The district's full-time employees are granted vacation leave in varying amounts. In the event of termination, the employee is paid for any unused vacation leave.

6. Use of Restricted/Unrestricted Net Position When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the district’s policy is to apply restricted net position first.

7. Pension For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pension, and pension expense, information about the fiduciary net position of the district’s participation in the Public Employee Retirement Plan of the Tennessee Consolidated Retirement System (TCRS), and additions to/deductions from the district’s fiduciary net position have been determined on the same basis as they are reported by the TCRS for the Public Employee Retirement Plan. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms of the Public Employee Retirement Plan of TCRS. Investments are reported at fair value.

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C. Cash Cash represents money on deposit in various banks. The district considers all highly liquid investments with an original maturity date of three months or less when purchased to be cash equivalents.

State of Tennessee law authorizes the district to invest in obligations of the United States or its agencies, non-convertible debt securities of certain federal agencies, other obligations guaranteed as to principal and interest by the United States or any of its agencies, secured certificates of deposit and other evidences of deposit in state and federal banks and savings and loan associations, and the State of Tennessee Local Government Investment Pool (LGIP). The LGIP contains investments in certificates of deposit, U.S. Treasury securities and repurchase agreements, backed by the U.S. Treasury securities. The Treasurer of the State of Tennessee administers the investment pool. All deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) limits are required to be secured by one of two methods. Excess funds can be deposited with a financial institution that participates in the State of Tennessee Bank Collateral Pool. For deposits with financial institutions that do not participate in the State of Tennessee 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. All of the district’s cash and cash equivalent balances at June 30, 2019, were either insured through the Federal Deposit Insurance Corporation or through the State of Tennessee Bank Collateral Pool.

D. Lease The district occupies its facilities provided by Anderson County on a month-by-month basis without charge.

E. Risk Management The district is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The district carries commercial insurance for all risks of loss, including general liability and workers' compensation coverage. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

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F. Capital Assets

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

Balance Balance7-1-18 Additions Retirements 6-30-19

Capital Assets Depreciated: Communications Equipment $ 946,545 $ 37,715 $ 0 $ 984,260 Furniture and Fixtures 69,906 7,688 0 77,594 Vehicle 49,433 0 0 49,433 Leasehold Improvements 88,560 5,022 0 93,582 Other Capital Assets 143,350 0 0 143,350

$ 1,297,794 $ 50,425 $ 0 $ 1,348,219Accumulated Depreciation (695,594) (103,009) 0 (798,603)

Capital Assets Depreciated, Net $ 602,200 $ (52,584) $ 0 $ 549,616

G. Pension Plan

Employees of the district are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operations and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Tennessee Code Annotated, 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 the state. 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 at age 55 and vested. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria.

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Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLAs) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Employees Covered by Benefit Terms At the measurement date of June 30, 2018, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 0Inactive employees entitled to but not yet receiving benefits 0Active employees 2

2

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 salary. The district makes employer contributions at the rate set by the TCRS Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2019, the actuarially determined contribution (ADC) for the district was $4,405 based on a rate of six percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept the district’s base amount distributions if required contributions are not remitted. The employer’s 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) The District’s net pension liability (asset) was measured as of June 30, 2018, and the total pension liability used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial Assumptions The total pension liability as of June 30, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

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to 3.44% Based on Age, IncludingInflation, Averaging 4%

Investment Rate of Return 7.25%, Net of Pension PlanInvestment Expenses, IncludingInflation

Mortality rates were based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2018, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historical 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 investment 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 weighting the expected future real rates of return by the target asset 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 asset class are summarized in the following table:

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Total 100 %

The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the three factors described above. Discount Rate The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from the City will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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Changes in Net Pension Liability(Asset)

Total Plan Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)

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

Changes for the year ended June 30, 2018: Service Cost $ 0 $ 0 $ 0 Interest 0 0 0 Changes of benefit terms 11,327 0 11,327 Changes in Assumptions 0 0 0 Contributions-Employer 0 148,659 (148,659) Contributions-Employees 0 3,671 (3,671) Net Investment Income 0 6,315 (6,315) Benefit Payments, Including Refunds of Employee Contributions 0 0 0 Administrative Expense 0 (190) 190Net Changes for the year ended June 30, 2018 $ 11,327 $ 158,455 $ (147,128)Balance July 1, 2017 0 0 0

Balance, June 30, 2018 $ 11,327 $ 158,455 $ (147,128)

Increase (Decrease)

Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the net pension liability (asset) of the district 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 1.0‐percentage‐point lower (6.25 percent) or 1.0‐percentage‐point higher (8.25 percent) than the current rate:

Current

1% Discount 1%Decrease Rate Increase

6.25% 7.25% 8.25%

Net Pension Liability (Asset) $ (144,855) $ (147,128) $ (148,961)

Pension Expense For the year ended June 30, 2019, the district recognized pension expense of $2,171.

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Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended June 30, 2019, the district reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



Difference Between Expected and Actual Experience $ 0 $ 0Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 640Changes in Assumptions 0 0Contributions Subsequent to the Measurement Date of June 30, 2018 4,405 not applicable

Total $ 4,405 $ 640

The amount shown above for “Contributions Subsequent to the Measurement Date of June 30, 2018,” will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:


2020 $ (160)2021 (160)2022 (160)2023 (160)2024 0Thereafter 0

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

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REQUIRED SUPPLEMENTARY INFORMATION

143

Exhibit F-1

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

2014 2015 2016 2017 2018

Total Pension Liability Service Cost $ 1,965,886 $ 1,881,362 $ 1,942,096 $ 2,160,412 $ 2,198,130Interest 4,591,169 4,800,731 4,931,912 5,228,786 5,416,952Changes in Benefit Terms 0 0 0 0 0Differences Between Actual and Expected Experience (736,310) (1,866,757) 177,297 (818,071) (1,142,753)Changes in Assumptions 0 0 0 1,785,979 0Benefit Payments, Including Refunds of Employee Contributions (2,877,320) (3,006,821) (3,247,155) (3,375,434) (3,415,355)Net Change in Total Pension Liability $ 2,943,425 $ 1,808,515 $ 3,804,150 $ 4,981,672 $ 3,056,974Total Pension Liability, Beginning 60,688,368 63,631,793 65,440,308 69,244,458 74,226,130

Total Pension Liability, Ending (a) $ 63,631,793 $ 65,440,308 $ 69,244,458 $ 74,226,130 $ 77,283,104

Plan Fiduciary Net PositionContributions - Employer $ 1,806,650 $ 1,611,660 $ 1,718,873 $ 1,748,927 $ 1,800,808Contributions - Employee 1,112,396 1,121,723 1,171,606 1,199,857 1,238,883Net Investment Income 9,411,066 2,027,661 1,790,540 7,801,377 6,322,893Benefit Payments, Including Refunds of Employee Contributions (2,877,320) (3,006,821) (3,247,155) (3,375,434) (3,415,355)Administrative Expense (28,682) (36,172) (55,760) (62,693) (72,486)Other 0 0 6,006 0 0Net Change in Plan Fiduciary Net Position $ 9,424,110 $ 1,718,051 $ 1,384,110 $ 7,312,034 $ 5,874,743Plan Fiduciary Net Position, Beginning 56,559,814 65,983,924 67,701,975 69,086,085 76,398,119

Plan Fiduciary Net Position, Ending (b) $ 65,983,924 $ 67,701,975 $ 69,086,085 $ 76,398,119 $ 82,272,862

Net Pension Liability (Asset), Ending (a - b) $ (2,352,131) $ (2,261,667) $ 158,373 $ (2,171,989) $ (4,989,758)

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 103.70% 103.46% 99.77% 102.93% 106.46%Covered Payroll $ 22,113,264 $ 23,222,323 $ 23,228,009 $ 23,634,144 $ 24,567,608Net Pension Liability (Asset) as a Percentage of Covered Payroll (10.64%) 9.74% (0.68%) (9.19%) (20.31%)

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

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

144

Exhibit F-2

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

2014 2015 2016 2017 2018 2019

Actuarially Determined Contribution $ 1,806,650 $ 1,611,660 $ 1,718,873 $ 1,748,927 $ 1,800,808 $ 1,895,881Less Contributions in Relation to the Actuarially Determined Contribution (1,806,650) (1,611,660) (1,718,873) (1,748,927) (1,800,808) (1,895,881)

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

Covered Payroll $ 22,113,264 $ 21,779,109 $ 23,228,009 $ 23,634,144 $ 24,567,608 $ 25,900,014

Contributions as a Percentage of Covered Payroll 8.17% 7.4% 7.4% 7.4% 7.33% 7.32%


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

145

Exhibit F-3

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

2015 2016 2017 2018 2019*

Contractually Required Contribution $ 18,809 $ 69,605 $ 143,783 $ 199,183 $ 123,211Less Contributions in Relation to the Contractually Required Contribution (18,809) (69,605) (143,783) (199,183) (123,211)

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

Covered Payroll $ 470,216 $ 1,740,114 $ 3,594,587 $ 4,977,911 $ 6,351,117

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

*- In FY 2019 the School Department placed the actuarially determined contribution rate (1.94%) of covered payroll into the pension plan and placed $122,722 into the Pension Stabilization Reserve Trust.


146

Exhibit F-4

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

2014 2015 2016 2017 2018 2019

Contractually Required Contribution $ 2,641,046 $ 2,595,924 $ 2,514,075 $ 2,381,472 $ 2,354,613 $ 2,572,443Less Contributions in Relation to the Contractually Required Contribution (2,641,046) (2,595,924) (2,514,075) (2,381,472) (2,354,613) (2,572,443)

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

Covered Payroll $ 29,741,510 $ 28,715,973 $ 27,810,568 $ 26,343,699 $ 25,933,509 $ 24,593,144

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


147

Exhibit F-5

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

2015 2016 2017 2018

School Department's Proportion of the Net Pension Liability (Asset) 0.226313% 0.395477% 0.547672% 0.569825%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (9,104) $ (41,170) $ (144,495) $ (258,432)

Covered Payroll $ 470,216 $ 1,740,114 $ 3,594,587 $ 4,977,911

School Department's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (1.94)% (2.37%) (4.02%) (5.19%)

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


148

Exhibit F-6

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

2014 2015 2016 2017 2018

School Department's Proportion of the Net Pension Liability (Asset) 0.757747% 0.767088% 0.770419% 0.745236% 0.740556%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (123,130) $ 314,226 $ 4,814,691 $ (243,830) $ (2,605,954)

Covered Payroll $ 29,741,510 $ 28,715,973 $ 27,810,568 $ 26,343,699 $ 25,933,509

School Department's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (0.41%) 1.09% 17.31% (0.93%) (10.05%)

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


149

Exhibit F-7

Anderson County, TennesseeSchedule of Changes in the Total OPEB Liability and Related Ratios - Anderson County PlanFor the Fiscal Year Ended June 30

2017 2018Total OPEB LiabilityService Cost $ 18,892 $ 19,625 Interest 21,263 21,106 Changes in Benefit Terms 0 0Differences Between Actual and Expected Experience 0 (61,877)Changes in Assumptions or Other Inputs 0 32,363Benefit Payments (40,162) (49,716) Net Change in Total OPEB Liability $ (7) $ (38,499) Total OPEB Liability, Beginning 549,203 549,196

Total OPEB Liability, Ending $ 549,196 $ 510,697

Covered Employee Payroll $ 11,361,615 $ 15,653,637 Net OPEB Liability as a Percentage of Covered Employee Payroll 4.84% 3.3%

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

Note 2: Changes in assumptions. (a) The following are the discount rates used in each period:

2017 4.00% 2018 3.88% 2019 3.36% (b) The assumed initial trend rate applicable to the 2019 plan year was updated from a flat 5.00% to an immediate rate of 8.5%, decreasing 0.5% per year to an ultimate rate of 4.5%.

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

150

Exhibit F-8

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

2017 2018Total OPEB LiabilityService Cost $ 401,367 $ 371,985Interest 218,903 256,470Changes in Benefit Terms 0 0Differences Between Actual and Expected Experience 0 (1,210,835)Changes in Assumptions or Other Inputs (325,616) 174,346Benefit Payments (543,331) (572,144)Net Change in Total OPEB Liability $ (248,677) $ (980,178) Total OPEB Liability, Beginning 7,366,981 7,118,304

Total OPEB Liability, Ending $ 7,118,304 $ 6,138,126

Nonemployer Contributing Entity Proportionate Share of the Total OPEB Liability $ 2,417,177 $ 2,029,749 Employer Proportionate Share of the Total OPEB Liability 4,701,127 4,108,377

Covered Employee Payroll $ 39,854,303 $ 41,291,868 Total OPEB Liability as a Percentage of Covered Employee Payroll 11.80% 9.95%

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

Note 2. Changes in assumptions. (a) The following are the discount rates used in each period:

2017 2.92% 2018 3.56% 2019 3.62% (b) The assumed initial trend rate applicable to the 2019 plan year was revised from 5.4% to 6.75%.

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

151

ANDERSON COUNTY, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION


TENNESSEE CONSOLIDATED RETIREMENT SYSTEM Valuation Date: Actuarially determined contribution rates for 2019 were calculated based on the July 1, 2017, actuarial valuation.

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age NormalAmortization Method Level Dollar, Closed (Not to Exceed 20 Years)Remaining Amortization Period Varies by YearAsset Valuation 10-Year Smoothed Within a 20%

Corridor to Market ValueInflation 2.5%Salary Increases Graded Salary Ranges from 8.72% to

3.44% Based on Age, Including Inflation,Investment Rate of Return 7.25%, Net of Investment Expense,

Including InflationRetirement Age Pattern of Retirement Determined by

Experience StudyMortality Customized Table Based on Actual

Experience Including an Adjustment for Some Anticipated Improvement


Changes of assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3 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 percent; and modified mortality assumptions.

152

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

153

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.

____________________________ Public Library Fund – The Public Library Fund is used to account for transactions of the Anderson County Public Library, which is jointly funded by Anderson County, the City of Clinton, City of Oak Ridge, and Rocky Top. Solid Waste/Sanitation Fund – The Solid Waste/Sanitation Fund is used to account for transactions involving solid waste collection. Drug Control Fund – The Drug Control Fund is used to account for revenues received from drug-related fines, forfeitures, and seizures. Other General Government Fund – The Other General Government Fund is used to account for transactions of the Anderson County television station. This fund was established during the current year. These transactions were previously reported in the Channel 95 Internal Service Fund. Other Special Revenue Fund – The Other Special Revenue Fund is used to account for transactions of the Anderson County Tourism Board. 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.

154

Debt Service Funds ____________________________

Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.

____________________________ General Debt Service Fund – The General Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest, and related costs. Rural Debt Service Fund – The Rural Debt Service Fund is used to account for the retirement of long-term debt issued for the construction and renovations of the county’s elementary schools. Education Debt Service Fund – The Education Debt Service Fund is used to account for the retirement of long-term debt issued for the construction and renovations of the county’s middle and high schools.

155

Exhibit G-1

Anderson County, TennesseeCombining Balance SheetNonmajor Governmental FundsJune 30, 2019

OtherSolid General Other

Public Waste / Drug Government SpecialLibrary Sanitation Control Fund Revenue

ASSETS

Cash $ 737 $ 0 $ 0 $ 0 $ 0Equity in Pooled Cash and Investments 352,891 848,952 301,606 106,212 345,394Accounts Receivable 163 112,197 924 37,377 37,484Due from Other Governments 1,303 0 0 0 0Due from Other Funds 2,153 3,768 2,343 584 1,741Property Taxes Receivable 516,642 1,221,431 0 0 0Allowance for Uncollectible Property Taxes (15,407) (36,425) 0 0 0

Total Assets $ 858,482 $ 2,149,923 $ 304,873 $ 144,173 $ 384,619

LIABILITIES

Accounts Payable $ 6,825 $ 121,672 $ 18,486 $ 31,003 $ 13,570Accrued Payroll 6,719 1,526 0 1,026 2,110Payroll Deductions Payable 2,112 890 0 469 906Contracts Payable 0 83,388 0 0 0Retainage Payable 0 4,389 0 0 0Due to Other Funds 0 385 0 0 0Due to Component Units 0 0 0 0 0Total Liabilities $ 15,656 $ 212,250 $ 18,486 $ 32,498 $ 16,586


Deferred Current Property Taxes $ 476,970 $ 1,127,645 $ 0 $ 0 $ 0

(Continued)

Special Revenue Funds

156

Exhibit G-1

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



DEFERRED INFLOWS OF RESOURCES (Cont.)

Deferred Delinquent Property Taxes $ 22,785 $ 53,861 $ 0 $ 0 $ 0Total Deferred Inflows of Resources $ 499,755 $ 1,181,506 $ 0 $ 0 $ 0

FUND BALANCES

Restricted:Restricted for Public Safety $ 0 $ 0 $ 280,138 $ 0 $ 0Restricted for Public Health and Welfare 0 401,166 0 0 0Restricted for Social, Cultural, and Recreational Services 343,071 0 0 0 368,033Restricted for Debt Service 0 0 0 0 0

Committed:Committed for Public Safety 0 0 6,249 0 0Committed for Social, Cultural, and Recreational Services 0 0 0 111,675 0Committed for Debt Service 0 0 0 0 0Committed for Capital Projects 0 355,001 0 0 0

Total Fund Balances $ 343,071 $ 756,167 $ 286,387 $ 111,675 $ 368,033

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 858,482 $ 2,149,923 $ 304,873 $ 144,173 $ 384,619

(Continued)


157

Exhibit G-1


Constitu -tional General Rural

Officers - Debt DebtFees Total Service Service

ASSETS

Cash $ 1,490 $ 2,227 $ 0 $ 0Equity in Pooled Cash and Investments 0 1,955,055 1,866,260 928,395Accounts Receivable 2,405 190,550 25,021 0Due from Other Governments 0 1,303 0 0Due from Other Funds 0 10,589 0 5,495Property Taxes Receivable 0 1,738,073 1,811,823 212,893Allowance for Uncollectible Property Taxes 0 (51,832) (29,106) (6,392)

Total Assets $ 3,895 $ 3,845,965 $ 3,673,998 $ 1,140,391

LIABILITIES

Accounts Payable $ 0 $ 191,556 $ 400 $ 0Accrued Payroll 0 11,381 0 0Payroll Deductions Payable 0 4,377 0 0Contracts Payable 0 83,388 0 0Retainage Payable 0 4,389 0 0Due to Other Funds 3,895 4,280 103,824 0Due to Component Units 0 0 46,436 0Total Liabilities $ 3,895 $ 299,371 $ 150,660 $ 0


Deferred Current Property Taxes $ 0 $ 1,604,615 $ 1,782,717 $ 197,711

(Continued)

Special Revenue Funds (Cont.) Debt Service Funds

158

Exhibit G-1





Deferred Delinquent Property Taxes $ 0 $ 76,646 $ 0 $ 8,285Total Deferred Inflows of Resources $ 0 $ 1,681,261 $ 1,782,717 $ 205,996

FUND BALANCES

Restricted:Restricted for Public Safety $ 0 $ 280,138 $ 0 $ 0Restricted for Public Health and Welfare 0 401,166 0 0Restricted for Social, Cultural, and Recreational Services 0 711,104 0 0Restricted for Debt Service 0 0 1,393,293 934,395

Committed:Committed for Public Safety 0 6,249 0 0Committed for Social, Cultural, and Recreational Services 0 111,675 0 0Committed for Debt Service 0 0 347,328 0Committed for Capital Projects 0 355,001 0 0

Total Fund Balances $ 0 $ 1,865,333 $ 1,740,621 $ 934,395

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 3,895 $ 3,845,965 $ 3,673,998 $ 1,140,391

(Continued)


159

Exhibit G-1


TotalEducation Nonmajor

Debt GovernmentalService Total Funds

ASSETS

Cash $ 0 $ 0 $ 2,227Equity in Pooled Cash and Investments 245,440 3,040,095 4,995,150Accounts Receivable 0 25,021 215,571Due from Other Governments 0 0 1,303Due from Other Funds 3,311 8,806 19,395Property Taxes Receivable 1,850,706 3,875,422 5,613,495Allowance for Uncollectible Property Taxes (54,509) (90,007) (141,839)

Total Assets $ 2,044,948 $ 6,859,337 $ 10,705,302

LIABILITIES

Accounts Payable $ 0 $ 400 $ 191,956Accrued Payroll 0 0 11,381Payroll Deductions Payable 0 0 4,377Contracts Payable 0 0 83,388Retainage Payable 0 0 4,389Due to Other Funds 0 103,824 108,104Due to Component Units 0 46,436 46,436Total Liabilities $ 0 $ 150,660 $ 450,031


Deferred Current Property Taxes $ 1,696,986 $ 3,677,414 $ 5,282,029

(Continued)

Debt Service Funds (Cont.)

160

Exhibit G-1





Deferred Delinquent Property Taxes $ 93,249 $ 101,534 $ 178,180Total Deferred Inflows of Resources $ 1,790,235 $ 3,778,948 $ 5,460,209

FUND BALANCES

Restricted:Restricted for Public Safety $ 0 $ 0 $ 280,138Restricted for Public Health and Welfare 0 0 401,166Restricted for Social, Cultural, and Recreational Services 0 0 711,104Restricted for Debt Service 135,718 2,463,406 2,463,406

Committed:Committed for Public Safety 0 0 6,249Committed for Social, Cultural, and Recreational Services 0 0 111,675Committed for Debt Service 118,995 466,323 466,323Committed for Capital Projects 0 0 355,001

Total Fund Balances $ 254,713 $ 2,929,729 $ 4,795,062

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 2,044,948 $ 6,859,337 $ 10,705,302


161

Exhibit G-2

Anderson County, TennesseeCombining Statement of Revenues, Expenditures,

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



RevenuesLocal Taxes $ 458,130 $ 1,082,427 $ 0 $ 0 $ 395,870Licenses and Permits 0 0 0 150,532 0Fines, Forfeitures, and Penalties 0 0 36,084 0 0Charges for Current Services 25,143 577,699 0 25,000 0Other Local Revenues 8,013 26,340 2,343 584 2,095State of Tennessee 600 62,864 0 0 30,000Federal Government 3,165 0 2,240 0 0Other Governments and Citizens Groups 130,312 0 0 10,000 0

Total Revenues $ 625,363 $ 1,749,330 $ 40,667 $ 186,116 $ 427,965


Finance $ 0 $ 0 $ 0 $ 0 $ 0Administration of Justice 0 0 0 0 0Public Safety 0 0 182,878 0 0Public Health and Welfare 0 1,806,375 0 0 0Social, Cultural, and Recreational Services 620,479 0 0 181,345 0Other Operations 0 0 0 0 348,987

Debt Service:Principal on Debt 0 0 0 0 0Interest on Debt 0 0 0 0 0Other Debt Service 0 0 0 0 0

Total Expenditures $ 620,479 $ 1,806,375 $ 182,878 $ 181,345 $ 348,987

(Continued)


162

Exhibit G-2


and Changes in Fund BalancesNonmajor Governmental Funds (Cont.)



Excess (Deficiency) of RevenuesOver Expenditures $ 4,884 $ (57,045) $ (142,211) $ 4,771 $ 78,978

Other Financing Sources (Uses)Transfers In $ 0 $ 330,798 $ 0 $ 106,904 $ 0

Total Other Financing Sources (Uses) $ 0 $ 330,798 $ 0 $ 106,904 $ 0

Net Change in Fund Balances $ 4,884 $ 273,753 $ (142,211) $ 111,675 $ 78,978Fund Balance, July 1, 2018 338,187 482,414 428,598 0 289,055

Fund Balance, June 30, 2019 $ 343,071 $ 756,167 $ 286,387 $ 111,675 $ 368,033

(Continued)


163

Exhibit G-2





RevenuesLocal Taxes $ 0 $ 1,936,427 $ 105,412 $ 194,611Licenses and Permits 0 150,532 0 0Fines, Forfeitures, and Penalties 0 36,084 0 0Charges for Current Services 8,589 636,431 0 0Other Local Revenues 0 39,375 16,355 5,495State of Tennessee 0 93,464 0 0Federal Government 0 5,405 24,079 0Other Governments and Citizens Groups 0 140,312 0 1,685,070

Total Revenues $ 8,589 $ 3,038,030 $ 145,846 $ 1,885,176


Finance $ 601 $ 601 $ 0 $ 0Administration of Justice 7,988 7,988 0 0Public Safety 0 182,878 0 0Public Health and Welfare 0 1,806,375 0 0Social, Cultural, and Recreational Services 0 801,824 0 0Other Operations 0 348,987 0 0

Debt Service:Principal on Debt 0 0 1,171,695 1,045,856Interest on Debt 0 0 608,224 536,639Other Debt Service 0 0 17,570 5,608

Total Expenditures $ 8,589 $ 3,148,653 $ 1,797,489 $ 1,588,103

(Continued)


164

Exhibit G-2





Excess (Deficiency) of RevenuesOver Expenditures $ 0 $ (110,623) $ (1,651,643) $ 297,073

Other Financing Sources (Uses)Transfers In $ 0 $ 437,702 $ 0 $ 0

Total Other Financing Sources (Uses) $ 0 $ 437,702 $ 0 $ 0

Net Change in Fund Balances $ 0 $ 327,079 $ (1,651,643) $ 297,073Fund Balance, July 1, 2018 0 1,538,254 3,392,264 637,322

Fund Balance, June 30, 2019 $ 0 $ 1,865,333 $ 1,740,621 $ 934,395

(Continued)


165

Exhibit G-2





RevenuesLocal Taxes $ 1,608,478 $ 1,908,501 $ 3,844,928Licenses and Permits 0 0 150,532Fines, Forfeitures, and Penalties 0 0 36,084Charges for Current Services 0 0 636,431Other Local Revenues 3,311 25,161 64,536State of Tennessee 0 0 93,464Federal Government 0 24,079 29,484Other Governments and Citizens Groups 0 1,685,070 1,825,382

Total Revenues $ 1,611,789 $ 3,642,811 $ 6,680,841


Finance $ 0 $ 0 $ 601Administration of Justice 0 0 7,988Public Safety 0 0 182,878Public Health and Welfare 0 0 1,806,375Social, Cultural, and Recreational Services 0 0 801,824Other Operations 0 0 348,987

Debt Service:Principal on Debt 1,390,000 3,607,551 3,607,551Interest on Debt 656,548 1,801,411 1,801,411Other Debt Service 33,396 56,574 56,574

Total Expenditures $ 2,079,944 $ 5,465,536 $ 8,614,189

(Continued)


166

Exhibit G-2





Excess (Deficiency) of RevenuesOver Expenditures $ (468,155) $ (1,822,725) $ (1,933,348)

Other Financing Sources (Uses)Transfers In $ 0 $ 0 $ 437,702

Total Other Financing Sources (Uses) $ 0 $ 0 $ 437,702

Net Change in Fund Balances $ (468,155) $ (1,822,725) $ (1,495,646)Fund Balance, July 1, 2018 722,868 4,752,454 6,290,708

Fund Balance, June 30, 2019 $ 254,713 $ 2,929,729 $ 4,795,062


167

Exhibit G-3

Anderson County, TennesseeSchedule of Revenues, Expenditures, and Changes

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



RevenuesLocal Taxes $ 458,130 $ 469,713 $ 469,713 $ (11,583)Charges for Current Services 25,143 25,350 25,350 (207)Other Local Revenues 8,013 2,826 3,426 4,587State of Tennessee 600 0 600 0Federal Government 3,165 0 0 3,165Other Governments and Citizens Groups 130,312 130,311 130,311 1

Total Revenues $ 625,363 $ 628,200 $ 629,400 $ (4,037)

ExpendituresSocial, Cultural, and Recreational Services

Libraries $ 620,479 $ 610,817 $ 658,835 $ 38,356Total Expenditures $ 620,479 $ 610,817 $ 658,835 $ 38,356

Excess (Deficiency) of RevenuesOver Expenditures $ 4,884 $ 17,383 $ (29,435) $ 34,319

Net Change in Fund Balance $ 4,884 $ 17,383 $ (29,435) $ 34,319Fund Balance, July 1, 2018 338,187 347,196 347,196 (9,009)

Fund Balance, June 30, 2019 $ 343,071 $ 364,579 $ 317,761 $ 25,310

Budgeted Amounts

168

Exhibit G-4


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


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

RevenuesLocal Taxes $ 1,082,427 $ 0 $ 0 $ 1,082,427 $ 1,115,953 $ 1,115,953 $ (33,526)Charges for Current Services 577,699 0 0 577,699 492,000 492,000 85,699Other Local Revenues 26,340 0 0 26,340 19,500 19,500 6,840State of Tennessee 62,864 0 0 62,864 54,074 80,289 (17,425)

Total Revenues $ 1,749,330 $ 0 $ 0 $ 1,749,330 $ 1,681,527 $ 1,707,742 $ 41,588

ExpendituresPublic Health and Welfare

Sanitation Management $ 141,607 $ 0 $ 0 $ 141,607 $ 181,820 $ 154,520 $ 12,913Convenience Centers 767,526 (32,500) 586,710 1,321,736 595,000 1,329,802 8,066Other Waste Collection 87,791 0 0 87,791 97,421 97,421 9,630Recycling Center 4,979 0 0 4,979 6,000 6,000 1,021Landfill Operation and Maintenance 731,332 0 0 731,332 724,000 743,146 11,814Other Waste Disposal 73,140 0 0 73,140 75,000 74,000 860

Total Expenditures $ 1,806,375 $ (32,500) $ 586,710 $ 2,360,585 $ 1,679,241 $ 2,404,889 $ 44,304

Excess (Deficiency) of RevenuesOver Expenditures $ (57,045) $ 32,500 $ (586,710) $ (611,255) $ 2,286 $ (697,147) $ 85,892

Other Financing Sources (Uses)Transfers In $ 330,798 $ 0 $ 0 $ 330,798 $ 0 $ 330,798 $ 0

Total Other Financing Sources $ 330,798 $ 0 $ 0 $ 330,798 $ 0 $ 330,798 $ 0

Net Change in Fund Balance $ 273,753 $ 32,500 $ (586,710) $ (280,457) $ 2,286 $ (366,349) $ 85,892Fund Balance, July 1, 2018 482,414 (32,500) 0 449,914 424,242 424,242 25,672

Fund Balance, June 30, 2019 $ 756,167 $ 0 $ (586,710) $ 169,457 $ 426,528 $ 57,893 $ 111,564

Budgeted Amounts

169

Exhibit G-5


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



RevenuesFines, Forfeitures, and Penalties $ 36,084 $ 59,500 $ 59,500 $ (23,416)Other Local Revenues 2,343 500 500 1,843Federal Government 2,240 0 0 2,240

Total Revenues $ 40,667 $ 60,000 $ 60,000 $ (19,333)

ExpendituresPublic Safety

Drug Enforcement $ 182,878 $ 60,000 $ 203,300 $ 20,422Total Expenditures $ 182,878 $ 60,000 $ 203,300 $ 20,422

Excess (Deficiency) of RevenuesOver Expenditures $ (142,211) $ 0 $ (143,300) $ 1,089

Net Change in Fund Balance $ (142,211) $ 0 $ (143,300) $ 1,089Fund Balance, July 1, 2018 428,598 436,869 436,869 (8,271)

Fund Balance, June 30, 2019 $ 286,387 $ 436,869 $ 293,569 $ (7,182)

Budgeted Amounts

170

Exhibit G-6


in Fund Balance - Actual and BudgetOther General Government Special Revenue FundFor the Year Ended June 30, 2019



RevenuesLicenses and Permits $ 150,532 $ 140,000 $ 140,000 $ 10,532Charges for Current Services 25,000 35,000 35,000 (10,000)Other Local Revenues 584 0 0 584Other Governments and Citizens Groups 10,000 0 0 10,000

Total Revenues $ 186,116 $ 175,000 $ 175,000 $ 11,116

ExpendituresSocial, Cultural, and Recreational Services

Other Social, Cultural, and Recreational $ 181,345 $ 176,075 $ 188,085 $ 6,740Total Expenditures $ 181,345 $ 176,075 $ 188,085 $ 6,740

Excess (Deficiency) of RevenuesOver Expenditures $ 4,771 $ (1,075) $ (13,085) $ 17,856

Other Financing Sources (Uses)Transfers In $ 106,904 $ 1,075 $ 16,411 $ 90,493

Total Other Financing Sources $ 106,904 $ 1,075 $ 16,411 $ 90,493

Net Change in Fund Balance $ 111,675 $ 0 $ 3,326 $ 108,349Fund Balance, July 1, 2018 0 66,057 66,057 (66,057)


Budgeted Amounts

171

Exhibit G-7


in Fund Balance - Actual and BudgetOther Special Revenue FundFor the Year Ended June 30, 2019



RevenuesLocal Taxes $ 395,870 $ 375,000 $ 380,000 $ 15,870Other Local Revenues 2,095 0 0 2,095State of Tennessee 30,000 25,000 30,000 0

Total Revenues $ 427,965 $ 400,000 $ 410,000 $ 17,965

ExpendituresOther Operations

Tourism $ 348,987 $ 400,620 $ 445,620 $ 96,633Total Expenditures $ 348,987 $ 400,620 $ 445,620 $ 96,633

Excess (Deficiency) of RevenuesOver Expenditures $ 78,978 $ (620) $ (35,620) $ 114,598

Net Change in Fund Balance $ 78,978 $ (620) $ (35,620) $ 114,598Fund Balance, July 1, 2018 289,055 228,133 228,133 60,922


Budgeted Amounts

172

Exhibit G-8


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



RevenuesLocal Taxes $ 105,412 $ 86,200 $ 86,200 $ 19,212Other Local Revenues 16,355 6,000 6,000 10,355Federal Government 24,079 25,725 25,725 (1,646)

Total Revenues $ 145,846 $ 117,925 $ 117,925 $ 27,921

ExpendituresPrincipal on Debt

General Government $ 1,171,695 $ 1,079,576 $ 1,174,276 $ 2,581Interest on Debt

General Government 608,224 663,881 663,261 55,037Other Debt Service

General Government 17,570 66,500 66,500 48,930Total Expenditures $ 1,797,489 $ 1,809,957 $ 1,904,037 $ 106,548

Excess (Deficiency) of RevenuesOver Expenditures $ (1,651,643) $ (1,692,032) $ (1,786,112) $ 134,469

Net Change in Fund Balance $ (1,651,643) $ (1,692,032) $ (1,786,112) $ 134,469Fund Balance, July 1, 2018 3,392,264 3,455,096 3,455,096 (62,832)

Fund Balance, June 30, 2019 $ 1,740,621 $ 1,763,064 $ 1,668,984 $ 71,637

Budgeted Amounts

173

Exhibit G-9


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



RevenuesLocal Taxes $ 194,611 $ 195,268 $ 195,268 $ (657)Other Local Revenues 5,495 0 0 5,495Other Governments and Citizens Groups 1,685,070 1,295,000 1,419,514 265,556

Total Revenues $ 1,885,176 $ 1,490,268 $ 1,614,782 $ 270,394


Education $ 1,045,856 $ 944,242 $ 1,045,858 $ 2Interest on Debt

Education 536,639 513,741 536,639 0Other Debt Service

Education 5,608 17,800 17,800 12,192Total Expenditures $ 1,588,103 $ 1,475,783 $ 1,600,297 $ 12,194

Excess (Deficiency) of RevenuesOver Expenditures $ 297,073 $ 14,485 $ 14,485 $ 282,588

Net Change in Fund Balance $ 297,073 $ 14,485 $ 14,485 $ 282,588Fund Balance, July 1, 2018 637,322 641,533 641,533 (4,211)


Budgeted Amounts

174

Exhibit G-10


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



RevenuesLocal Taxes $ 1,608,478 $ 1,663,356 $ 1,663,356 $ (54,878)Other Local Revenues 3,311 1,500 1,500 1,811

Total Revenues $ 1,611,789 $ 1,664,856 $ 1,664,856 $ (53,067)


Education $ 1,390,000 $ 1,390,000 $ 1,390,000 $ 0Interest on Debt

Education 656,548 657,879 657,879 1,331Other Debt Service

Education 33,396 46,000 46,000 12,604Total Expenditures $ 2,079,944 $ 2,093,879 $ 2,093,879 $ 13,935

Excess (Deficiency) of RevenuesOver Expenditures $ (468,155) $ (429,023) $ (429,023) $ (39,132)

Other Financing Sources (Uses)Transfers In $ 0 $ 16,100 $ 0 $ 0

Total Other Financing Sources $ 0 $ 16,100 $ 0 $ 0

Net Change in Fund Balance $ (468,155) $ (412,923) $ (429,023) $ (39,132)Fund Balance, July 1, 2018 722,868 730,517 730,517 (7,649)

Fund Balance, June 30, 2019 $ 254,713 $ 317,594 $ 301,494 $ (46,781)

Budgeted Amounts

175

Major Governmental Fund

Capital Projects Funds

_____________________________

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

_____________________________ General Capital Projects Fund – The General Capital Projects Fund is used to account for general capital expenditures of the county.

176

Exhibit H


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



RevenuesLocal Taxes $ 1,362,134 $ 1,414,366 $ 1,414,366 $ (52,232)

Total Revenues $ 1,362,134 $ 1,414,366 $ 1,414,366 $ (52,232)

ExpendituresOther Operations

Contributions to Other Agencies $ 25,000 $ 15,000 $ 25,000 $ 0Other Debt Service

Education 192,065 0 192,065 0Capital Projects

General Administration Projects 179,885 30,230 220,730 40,845Administration of Justice Projects 931 0 931 0Public Safety Projects 399,428 0 403,000 3,572Public Health and Welfare Projects 824,980 0 825,456 476Education Capital Projects 11,275,996 0 11,275,996 0

Total Expenditures $ 12,898,285 $ 45,230 $ 12,943,178 $ 44,893

Excess (Deficiency) of RevenuesOver Expenditures $ (11,536,151) $ 1,369,136 $ (11,528,812) $ (7,339)

Other Financing Sources (Uses)Bonds Issued $ 10,900,000 $ 0 $ 10,900,000 $ 0Premiums on Debt Sold 568,061 0 568,061 0

Total Other Financing Sources $ 11,468,061 $ 0 $ 11,468,061 $ 0

Net Change in Fund Balance $ (68,090) $ 1,369,136 $ (60,751) $ (7,339)Fund Balance, July 1, 2018 188,429 141,799 141,799 46,630

Fund Balance, June 30, 2019 $ 120,339 $ 1,510,935 $ 81,048 $ 39,291

Budgeted Amounts

177

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 to other governments, on a cost-reimbursement basis.

____________________________ Employee Health Insurance Fund – The Employee Health Insurance Fund is used to account for the county’s self-insurance employee health program. Premiums charged to the various county funds and employee payroll deductions are placed in this fund for the payment of claims of county employees. Channel 95 Fund – The Channel 95 Fund is used to account for transactions of the Anderson County television station. This fund was closed during the current year. These transactions are now reported in the Other General Government Special Revenue Fund.

178

Exhibit I-1Anderson County, TennesseeStatement of Net PositionProprietary FundJune 30, 2019

Employee HealthInsurance

FundASSETS

Current Assets:Cash $ 1,312,967Investments 19,407Prepaid Items 14,513

Total Current Assets $ 1,346,887

Noncurrent Assets:Capital Assets:

Assets Net of Accumulated Depreciation:Buildings and Improvements $ 43,650

Total Noncurrent Assets $ 43,650Total Assets $ 1,390,537

LIABILITIES

Current Liabilities:Accounts Payable $ 54,224Other Current Liabilities 209,576

Total Liabilities $ 263,800

NET POSITION

Net Investment in Capital Assets $ 43,650Unrestricted 1,083,087

Total Net Position $ 1,126,737

Internal Service Fund

179

Exhibit I-2

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

EmployeeHealth Channel

Insurance 95 Total

Operating Revenues Charges for Services $ 4,457,894 $ 0 $ 4,457,894Total Operating Revenues $ 4,457,894 $ 0 $ 4,457,894

Operating ExpensesCommunication $ 1,707 $ 0 $ 1,707Other Contracted Services 293,872 0 293,872Depreciation 2,619 0 2,619Other Charges 1,442 0 1,442Medical and Dental Services 2,961,625 0 2,961,625Excess Risk Insurance 440,656 0 440,656Total Operating Expenses $ 3,701,921 $ 0 $ 3,701,921Operating Income (Loss) $ 755,973 $ 0 $ 755,973

Nonoperating Revenues (Expenses) Investment Income $ 580 $ 0 $ 580Total Nonoperating Revenues (Expenses) $ 580 $ 0 $ 580

Income (Loss) Before Operating Transfers $ 756,553 $ 0 $ 756,553Transfers Out 0 (142,374) (142,374)

Change in Net Position $ 756,553 $ (142,374) $ 614,179Net Position, July 1, 2018 370,184 142,374 512,558

Net Position, June 30, 2019 $ 1,126,737 $ 0 $ 1,126,737

Internal Service Funds

180

Exhibit I-3

Anderson County, TennesseeCombining Statement of Cash FlowsProprietary FundsFor the Year Ended June 30, 2019

EmployeeHealth Channel

Insurance 95 Total

Cash Flows from Operating Activities Receipts for Self-insurance Premiums $ 4,457,894 $ 0 $ 4,457,894 Receipts from Licenses and Permits 0 38,009 38,009 Payments to Vendors 0 (51,313) (51,313) Payments to Employees 0 (829) (829) Payments for Fringe Benefits 0 (127) (127) Payments to Fiscal Agents (307,619) 0 (307,619) Payments to Insurers (456,123) 0 (456,123) Receipts for Stop-loss Recovery 141,831 0 141,831 Receips for Prescription Rebates 263,982 0 263,982 Payments for Administrative Costs (3,149) 0 (3,149) Payments for Claims (3,293,945) 0 (3,293,945)Net Cash Provided By (Used In) Operating Activities $ 802,871 $ (14,260) $ 788,611

Cash Flows from Noncapital Financing Activities Transfers to Other Funds $ 0 $ (105,829) $ (105,829)Net Cash Provided By (Used In) Noncapital Financing Activities $ 0 $ (105,829) $ (105,829)

Cash Flows from Investing Activities Interest on Investments $ 155 $ 0 $ 155Net Cash Provided By (Used In) Investing Activities $ 155 $ 0 $ 155

Increase (Decrease) in Cash $ 803,026 $ (120,089) $ 682,937Cash, July 1, 2018 509,941 120,089 630,030

Cash, June 30, 2019 $ 1,312,967 $ 0 $ 1,312,967

Reconciliation of Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ 755,973 $ 0 $ 755,973 Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Depreciation 2,619 0 2,619 Changes in Assets and Liabilities: (Increase) Decrease in Accounts Receivable 68,035 38,009 106,044 (Increase) Decrease in Due from Other Funds (non-transfers) 538 0 538 (Increase) Decrease in Prepaid Items (14,513) 0 (14,513) Increase (Decrease) in Accounts Payable (15,239) (51,313) (66,552) Increase (Decrease) in Accrued Payroll 0 (829) (829) Increase (Decrease) in Payroll Deductions 0 (127) (127) Increase (Decrease) in Other Current Liabilities 5,458 0 5,458

Net Cash Provided By (Used In) Operating Activities $ 802,871 $ (14,260) $ 788,611

Schedule of Non-Cash Capital and Related Financing Activities Transfer of Capital Assets to Governmental Funds $ 0 $ (36,545) $ 0

Internal Service Funds

181

Fiduciary Funds _______________________

Agency Funds are used to account for assets held by the county in a trustee capacity or 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.

City School ADA - Clinton Fund and City School ADA - Oak Ridge Fund – These two funds are used to account for the city school systems’ shares of education revenues collected by the county that must be apportioned between the various school systems on an average daily attendance basis. These collections are remitted to the city school systems 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 transactions of the Judicial District Drug Task Force, a joint venture of the various law enforcement agencies of the Seventh Judicial District. District Attorney General Fund – The District Attorney General Fund is used to account for restricted revenue held for the benefit of the Office of District Attorney General.

182

Exhibit J-1

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

Constitu -Cities - City City tionalSales School School Officers -Tax ADA - Clinton ADA - Oak Ridge Agency

ASSETS

Cash $ 0 $ 0 $ 0 $ 2,097,382Equity in Pooled Cash and Investments 0 129,305 582,728 0Due from Other Governments 2,767,106 240,767 960,307 0Property Taxes Receivable 0 2,408,399 10,853,521 0Allowance for Uncollectible Property Taxes 0 (70,780) (318,974) 0

Total Assets $ 2,767,106 $ 2,707,691 $ 12,077,582 $ 2,097,382

LIABILITIES

Accounts Payable $ 0 $ 0 $ 0 $ 0Due to Other Taxing Units 2,767,106 2,707,691 12,077,582 0Due to Litigants, Heirs, and Others 0 0 0 2,097,382Due to Joint Ventures 0 0 0 0

Total Liabilities $ 2,767,106 $ 2,707,691 $ 12,077,582 $ 2,097,382

(Continued)

Agency Funds

183

Exhibit J-1

Anderson County, TennesseeCombining Statement of Fiduciary Assets and LiabilitiesFiduciary Funds (Cont.)

Judicial DistrictDistrict Attorney

Drug General TotalASSETS

Cash $ 0 $ 0 $ 2,097,382Equity in Pooled Cash and Investments 324,005 25,948 1,061,986Due from Other Governments 8,987 0 3,977,167Property Taxes Receivable 0 0 13,261,920Allowance for Uncollectible Property Taxes 0 0 (389,754)

Total Assets $ 332,992 $ 25,948 $ 20,008,701

LIABILITIES

Accounts Payable $ 2,692 $ 0 $ 2,692Due to Other Taxing Units 0 0 17,552,379Due to Litigants, Heirs, and Others 0 25,948 2,123,330Due to Joint Ventures 330,300 0 330,300

Total Liabilities $ 332,992 $ 25,948 $ 20,008,701

Agency Funds (Cont.)

184

Exhibit J-2

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

Beginning Ending Balance Additions Deductions Balance

Cities - Sales Tax Fund Assets Equity in Pooled Cash and Investments $ 0 $ 15,136,405 $ 15,136,405 $ 0 Due from Other Governments 2,437,526 2,767,106 2,437,526 2,767,106

Total Assets $ 2,437,526 $ 17,903,511 $ 17,573,931 $ 2,767,106

Liabilities Due to Other Taxing Units $ 2,437,526 $ 17,903,511 $ 17,573,931 $ 2,767,106


City School ADA - Clinton Fund Assets Equity in Pooled Cash and Investments $ 2,744 $ 3,411,652 $ 3,285,091 $ 129,305 Due from Other Governments 217,395 240,767 217,395 240,767 Taxes Receivable 2,304,906 2,408,399 2,304,906 2,408,399 Allowance for Uncollectible Taxes (79,979) (70,780) (79,979) (70,780)

Total Assets $ 2,445,066 $ 5,990,038 $ 5,727,413 $ 2,707,691



City School ADA - Oak Ridge Fund Assets Equity in Pooled Cash and Investments $ 11,829 $ 15,377,773 $ 14,806,874 $ 582,728 Due from Other Governments 937,061 960,307 937,061 960,307 Taxes Receivable 9,933,133 10,853,521 9,933,133 10,853,521 Allowance for Uncollectible Taxes (344,675) (318,974) (344,675) (318,974)

Total Assets $ 10,537,348 $ 26,872,627 $ 25,332,393 $ 12,077,582



(Continued)

185

Exhibit J-2

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


Constitutional Officers - Agency Fund Assets Cash $ 2,019,418 $ 14,724,086 $ 14,646,122 $ 2,097,382

Total Assets $ 2,019,418 $ 14,724,086 $ 14,646,122 $ 2,097,382

Liabilities Due to Litigants, Heirs, and Others $ 2,019,418 $ 14,724,086 $ 14,646,122 $ 2,097,382


Judicial District Drug Fund - Agency Fund Assets Equity in Pooled Cash and Investments $ 324,461 $ 164,952 $ 165,408 $ 324,005 Due from Other Governments 14,270 8,987 14,270 8,987

Total Assets $ 338,731 $ 173,939 $ 179,678 $ 332,992

Liabilities Accounts Payable $ 3,359 $ 2,692 $ 3,359 $ 2,692 Due to Joint Venture 335,372 171,247 176,319 330,300

Total Liabilities $ 338,731 $ 173,939 $ 179,678 $ 332,992

District Attorney General Fund Assets Equity in Pooled Cash and Investments $ 21,262 $ 11,923 $ 7,237 $ 25,948

Total Assets $ 21,262 $ 11,923 $ 7,237 $ 25,948

Liabilities Accounts Payable $ 61 $ 0 $ 61 $ 0 Due to Other Litigants, Heirs, and Others 21,201 11,923 7,176 25,948

Total Liabilities $ 21,262 $ 11,923 $ 7,237 $ 25,948

(Continued)

186

Exhibit J-2

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


Totals - All Agency Funds Assets Cash $ 2,019,418 $ 14,724,086 $ 14,646,122 $ 2,097,382 Equity in Pooled Cash and Investments 360,296 34,102,705 33,401,015 1,061,986 Due from Other Governments 3,606,252 3,977,167 3,606,252 3,977,167 Taxes Receivable 12,238,039 13,261,920 12,238,039 13,261,920 Allowance for Uncollectible Taxes (424,654) (389,754) (424,654) (389,754)

Total Assets $ 17,799,351 $ 65,676,124 $ 63,466,774 $ 20,008,701

Liabilities Accounts Payable $ 3,420 $ 2,692 $ 3,420 $ 2,692 Due to Other Taxing Units 15,419,940 50,766,176 48,633,737 17,552,379 Due to Litigants, Heirs, and Others 2,040,619 14,736,009 14,653,298 2,123,330 Due to Joint Ventures 335,372 171,247 176,319 330,300


187

Anderson County School Department ________________________________________

This section presents combining and individual fund financial statements for the Anderson County School Department, a discretely presented component unit. The School Department uses a General Fund, three 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 Department. School Federal Projects Fund – The School Federal Projects Fund is used to account for restricted federal revenues, which must be expended on specific education programs. Central Cafeteria Fund – The Central Cafeteria Fund is used to account for the cafeteria operations in each of the schools. Other Education Special Revenue Fund – The Other Education Special Revenue Fund is used to account for day-care programs offered by the School Department, the companion program, and the headstart program. Education Capital Projects Fund – The Education Capital Projects Fund is used to account for building construction and renovations of the School Department.

188

Exhibit K-1

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

Net (Expense)Revenue andChanges in

Operating Capital Net PositionCharges Grants Grants Total

for and and GovernmentalFunctions/Programs Expenses Services Contributions Contributions Activities

Governmental Activities: Instruction $ 37,363,730 $ 104,270 $ 5,058,246 $ 0 $ (32,201,214) Support Services 23,445,360 396,692 826,320 0 (22,222,348) Operation of Non-instructional Services 7,994,192 745,832 8,025,782 11,275,996 12,053,418

Total Governmental Activities $ 68,803,282 $ 1,246,794 $ 13,910,348 $ 11,275,996 $ (42,370,144)

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 15,645,605 Local Option Sales Taxes 9,488,268 Other Local Taxes 2,368 Grants and Contributions Not Restricted for Specific Programs 33,451,128 Unrestricted Investment Income 53,901 Miscellaneous 122,695Total General Revenues $ 58,763,965

Change in Net Position $ 16,393,821Net Position, July 1, 2018 51,165,752

Net Position, June 30, 2019 $ 67,559,573

Program Revenues

189

Exhibit K-2

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

OtherGeneral Education Govern- TotalPurpose Capital mental GovernmentalSchool Projects Funds Funds

ASSETS

Cash $ 266,692 $ 0 $ 30 $ 266,722Equity in Pooled Cash and Investments 6,930,555 6,413,915 1,815,441 15,159,911Inventories 0 0 81,580 81,580Accounts Receivable 36,393 0 495 36,888Due from Other Governments 1,944,075 0 1,035,660 2,979,735Due from Other Funds 420,197 0 231,602 651,799Due from Primary Government 46,436 0 0 46,436Property Taxes Receivable 16,612,512 484,032 0 17,096,544Allowance for Uncollectible Property Taxes (494,675) (7,776) 0 (502,451)Restricted Assets 129,247 0 0 129,247

Total Assets $ 25,891,432 $ 6,890,171 $ 3,164,808 $ 35,946,411

LIABILITIES

Accounts Payable $ 512,123 $ 0 $ 657,088 $ 1,169,211Accrued Payroll 500 0 1,397 1,897Payroll Deductions Payable 681,770 0 118,946 800,716Contracts Payable 0 1,802,880 69,691 1,872,571Retainage Payable 0 38,621 17,335 55,956Due to Other Funds 231,602 0 420,197 651,799Due to Primary Government 5,402 0 283 5,685Due to State of Tennessee 0 0 227 227Other Current Liabilities 389 0 0 389Unearned/Unavailable Revenue 0 0 860 860Total Liabilities $ 1,431,786 $ 1,841,501 $ 1,286,024 $ 4,559,311

(Continued)

Major FundsNonmajor

Funds

190

Exhibit K-2

Anderson County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Anderson County School Department (Cont.)



Deferred Current Property Taxes $ 15,340,204 $ 476,256 $ 0 $ 15,816,460Deferred Delinquent Property Taxes 730,189 0 0 730,189Other Deferred/Unavailable Revenue 819,794 0 0 819,794Total Deferred Inflows of Resources $ 16,890,187 $ 476,256 $ 0 $ 17,366,443

FUND BALANCES

Nonspendable:Inventory $ 0 $ 0 $ 81,580 $ 81,580

Restricted:Restricted for Education 43,955 0 1,572,204 1,616,159Restricted for Capital Projects 0 4,572,414 0 4,572,414Restricted for Hybrid Retirement Stabilization Funds 129,247 0 0 129,247

Committed:Committed for Education 0 0 225,000 225,000

Unassigned 7,396,257 0 0 7,396,257Total Fund Balances $ 7,569,459 $ 4,572,414 $ 1,878,784 $ 14,020,657

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 25,891,432 $ 6,890,171 $ 3,164,808 $ 35,946,411

Major FundsNonmajor

Funds

191

Exhibit K-3

Anderson County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionDiscretely Presented Anderson County School DepartmentJune 30, 2019

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

Total fund balances - balance sheet - governmental funds (Exhibit K-2) $ 14,020,657

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 865,214 Add: construction in progress 7,050,765 Add: buildings and improvements net of accumulated depreciation 41,095,035 Add: other capital assets net of accumulated depreciation 2,415,808 51,426,822

(2) Long-term liabilities are not due and payablein the current period and therefore are not reportedin the governmental funds.

Less: contributions due on primary government debt for capital lease $ (144,861)Less: other postemployment benefits liability (4,108,377)Less: compensated absences payable (338,048) (4,591,286)

(3) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 1,549,983

(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 $ 5,955,020 Less: deferred inflows of resources related to pensions (5,032,486) Add: deferred outflows of resources related to OPEB 468,910 Less: deferred inflows of resources related to OPEB (912,218) 479,226

(5) Net pension assets are not current financial resources andtherefore are not reported in the governmental funds:governmental funds. Add: net pension assets - agent plan $ 1,809,785 Add: net pension assets - teacher legacy plan 2,605,954 Add: net pension assets - teacher retirement plan 258,432 4,674,171

Net position of governmental activities (Exhibit A) $ 67,559,573

192

Exhibit K-4


and Changes in Fund Balances - Governmental Funds

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


RevenuesLocal Taxes $ 24,834,563 $ 490 $ 0 $ 24,835,053Licenses and Permits 2,255 0 0 2,255Charges for Current Services 485,050 0 752,482 1,237,532Other Local Revenues 123,495 0 52,978 176,473State of Tennessee 34,193,098 0 1,360,474 35,553,572Federal Government 137,637 0 11,695,185 11,832,822Other Governments and Citizens Groups 2,000 11,275,996 0 11,277,996

Total Revenues $ 59,778,098 $ 11,276,486 $ 13,861,119 $ 84,915,703


Instruction $ 33,239,355 $ 0 $ 2,816,723 $ 36,056,078Support Services 22,684,225 0 2,109,981 24,794,206Operation of Non-Instructional Services 103,631 0 8,313,061 8,416,692Capital Outlay 340,623 6,711,614 346,687 7,398,924

Debt Service:Other Debt Service 1,560,556 0 124,514 1,685,070

Capital Projects 0 10,080 0 10,080Total Expenditures $ 57,928,390 $ 6,721,694 $ 13,710,966 $ 78,361,050

Excess (Deficiency) of RevenuesOver Expenditures $ 1,849,708 $ 4,554,792 $ 150,153 $ 6,554,653

(Continued)

Major FundsNonmajor

Funds

193

Exhibit K-4


and Changes in Fund Balances - Governmental Funds

Discretely Presented Anderson County School Department (Cont.)


Other Financing Sources (Uses)Proceeds from Sale of Capital Assets $ 4,904 $ 0 $ 0 $ 4,904Transfers In 215,438 0 196,280 411,718Transfers Out (155,521) 0 (256,197) (411,718)

Total Other Financing Sources (Uses) $ 64,821 $ 0 $ (59,917) $ 4,904

Net Change in Fund Balances $ 1,914,529 $ 4,554,792 $ 90,236 $ 6,559,557Fund Balance, July 1, 2018 5,654,930 17,622 1,788,548 7,461,100


Major FundsNonmajor

Funds

194

Exhibit K-5

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

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

Net change in fund balances - total governmental funds (Exhibit K-4) $ 6,559,557

(1) Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of these assets is allocatedover their useful lives and reported as depreciation expense. Thedifference between capital outlays and depreciation is itemized asfollows: Add: capital assets purchased in the current period $ 7,790,453 Less: current-year depreciation expense (2,515,172) 5,275,281

(2) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2019 $ 1,549,983 Less: deferred delinquent property taxes and other deferred June 30, 2018 (1,251,050) 298,933

(3) The contribution of long-term debt (e.g., notes, bonds, leases) by the primarygovernment provides current financial resources to governmental funds, while thecontributions 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 101,616

(4) 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 other postemployment benefits liability $ 592,750 Change in compensated absences payable 17,065 Change in net pension asset - agent plan 1,052,630 Change in net pension asset - teacher retirement plan 113,937 Change in net pension asset - teacher legacy pension plan 2,362,124 Change in deferred outflows related to OPEB 108,337 Change in deferred inflows related to OPEB (717,459) Change in deferred outflows related to pensions (123,751) Change in deferred inflows related to pensions 752,801 4,158,434

Change in net position of governmental activities (Exhibit B) $ 16,393,821

195

Exhibit K-6

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

Other TotalSchool Education NonmajorFederal Central Special GovernmentalProjects Cafeteria Revenue Funds

ASSETS

Cash $ 0 $ 30 $ 0 $ 30Equity in Pooled Cash and Investments 8,415 1,748,657 58,369 1,815,441Inventories 0 81,580 0 81,580Accounts Receivable 4 491 0 495Due from Other Governments 543,384 0 492,276 1,035,660Due from Other Funds 231,602 0 0 231,602

Total Assets $ 783,405 $ 1,830,758 $ 550,645 $ 3,164,808

LIABILITIES

Accounts Payable $ 107,586 $ 306,178 $ 243,324 $ 657,088Accrued Payroll 0 0 1,397 1,397Payroll Deductions Payable 60,964 17,360 40,622 118,946Contracts Payable 0 0 69,691 69,691Retainage Payable 0 0 17,335 17,335Due to Other Funds 326,401 0 93,796 420,197Due to Primary Government 78 0 205 283Due to State of Tennessee 0 0 227 227Unearned/Unavailable Revenue 0 0 860 860Total Liabilities $ 495,029 $ 323,538 $ 467,457 $ 1,286,024

(Continued)


196

Exhibit K-6

Anderson County, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Anderson County School Department (Cont.)


FUND BALANCES

Nonspendable:Inventory $ 0 $ 81,580 $ 0 $ 81,580

Restricted:Restricted for Education 63,376 1,425,640 83,188 1,572,204

Committed:Committed for Education 225,000 0 0 225,000

Total Fund Balances $ 288,376 $ 1,507,220 $ 83,188 $ 1,878,784

Total Liabilities and Fund Balances $ 783,405 $ 1,830,758 $ 550,645 $ 3,164,808


197

Exhibit K-7


and Changes in Fund Balances - Nonmajor Governmental Funds

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


RevenuesCharges for Current Services $ 6,650 $ 516,454 $ 229,378 $ 752,482Other Local Revenues 46,347 3,736 2,895 52,978State of Tennessee 665,018 35,761 659,695 1,360,474Federal Government 4,761,898 2,915,493 4,017,794 11,695,185

Total Revenues $ 5,479,913 $ 3,471,444 $ 4,909,762 $ 13,861,119


Instruction $ 2,816,723 $ 0 $ 0 $ 2,816,723Support Services 2,109,981 0 0 2,109,981Operation of Non-Instructional Services 389,128 3,548,803 4,375,130 8,313,061Capital Outlay 0 0 346,687 346,687

Debt Service:Other Debt Service 0 0 124,514 124,514


Excess (Deficiency) of RevenuesOver Expenditures $ 164,081 $ (77,359) $ 63,431 $ 150,153

Other Financing Sources (Uses)Transfers In $ 100,000 $ 40,759 $ 55,521 $ 196,280Transfers Out (121,642) 0 (134,555) (256,197)

Total Other Financing Sources (Uses) $ (21,642) $ 40,759 $ (79,034) $ (59,917)

(Continued)


198

Exhibit K-7


and Changes in Fund Balances - Nonmajor Governmental Funds

Discretely Presented Anderson County School Department (Cont.)


Net Change in Fund Balances $ 142,439 $ (36,600) $ (15,603) $ 90,236Fund Balance, July 1, 2018 145,937 1,543,820 98,791 1,788,548

Fund Balance, June 30, 2019 $ 288,376 $ 1,507,220 $ 83,188 $ 1,878,784


199

Exhibit K-8


in Fund Balance - Actual and BudgetDiscretely Presented Anderson County School DepartmentGeneral Purpose School FundFor the Year Ended June 30, 2019



RevenuesLocal Taxes $ 24,834,563 $ 24,358,824 $ 24,349,554 $ 485,009Licenses and Permits 2,255 3,178 3,178 (923)Charges for Current Services 485,050 142,039 347,039 138,011Other Local Revenues 123,495 66,000 117,085 6,410State of Tennessee 34,193,098 34,512,896 34,731,256 (538,158)Federal Government 137,637 132,948 132,948 4,689Other Governments and Citizens Groups 2,000 3,900 5,900 (3,900)

Total Revenues $ 59,778,098 $ 59,219,785 $ 59,686,960 $ 91,138

ExpendituresInstruction

Regular Instruction Program $ 24,485,989 $ 24,889,280 $ 25,317,618 $ 831,629Special Education Program 5,516,647 5,691,542 5,793,782 277,135Career and Technical Education Program 3,141,747 3,372,460 3,354,460 212,713Student Body Education Program 94,972 100,000 102,250 7,278

Support ServicesAttendance 321,669 409,975 382,577 60,908Health Services 777,940 762,322 878,226 100,286Other Student Support 1,279,711 1,739,885 1,399,682 119,971Regular Instruction Program 1,180,262 1,261,661 1,264,511 84,249Special Education Program 1,785,912 1,754,510 1,925,520 139,608Career and Technical Education Program 234,160 264,524 273,855 39,695Technology 1,254,246 1,186,358 1,277,392 23,146Other Programs 184,328 300,000 300,000 115,672Board of Education 1,093,829 1,189,607 1,149,607 55,778Director of Schools 491,176 529,879 529,879 38,703Office of the Principal 3,653,071 3,711,778 3,827,042 173,971Fiscal Services 524,805 537,830 561,095 36,290Human Services/Personnel 98,477 92,606 105,081 6,604Operation of Plant 4,834,313 4,983,056 5,168,809 334,496Maintenance of Plant 1,207,901 1,640,118 1,559,321 351,420Transportation 3,136,734 3,133,468 3,144,289 7,555Central and Other 625,691 0 642,889 17,198

Operation of Non-Instructional ServicesCommunity Services 103,631 4,100 128,371 24,740

Capital OutlayRegular Capital Outlay 340,623 350,000 860,004 519,381

Interest on DebtEducation 0 1,560,556 0 0

Other Debt ServiceEducation 1,560,556 1,700 1,562,256 1,700


Excess (Deficiency) of RevenuesOver Expenditures $ 1,849,708 $ (247,430) $ (1,821,556) $ 3,671,264

(Continued)

Budgeted Amounts

200

Exhibit K-8


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



Other Financing Sources (Uses)Proceeds from Sale of Capital Assets $ 4,904 $ 11,274 $ 11,274 $ (6,370)Insurance Recovery 0 20,000 20,000 (20,000)Transfers In 215,438 218,656 218,656 (3,218)Transfers Out (155,521) (2,500) (1,295,885) 1,140,364

Total Other Financing Sources $ 64,821 $ 247,430 $ (1,045,955) $ 1,110,776

Net Change in Fund Balance $ 1,914,529 $ 0 $ (2,867,511) $ 4,782,040Fund Balance, July 1, 2018 5,654,930 5,244,273 5,244,273 410,657


Budgeted Amounts

201

Exhibit K-9


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



RevenuesCharges for Current Services $ 6,650 $ 0 $ 0 $ 6,650Other Local Revenues 46,347 43,069 46,347 0State of Tennessee 665,018 0 254,670 410,348Federal Government 4,761,898 4,236,257 6,526,598 (1,764,700)

Total Revenues $ 5,479,913 $ 4,279,326 $ 6,827,615 $ (1,347,702)

ExpendituresInstruction

Regular Instruction Program $ 1,333,973 $ 1,108,867 $ 1,454,085 $ 120,112Special Education Program 1,382,661 1,354,951 1,653,481 270,820Career and Technical Education Program 100,089 103,199 102,930 2,841

Support ServicesOther Student Support 423,224 135,607 797,843 374,619Regular Instruction Program 1,111,817 1,077,123 1,305,304 193,487Special Education Program 335,498 249,598 514,798 179,300Other Programs 3,278 0 3,278 0Transportation 236,164 156,750 422,295 186,131

Operation of Non-Instructional ServicesFood Service 3,087 0 3,089 2Community Services 386,041 0 438,506 52,465


Excess (Deficiency) of RevenuesOver Expenditures $ 164,081 $ 93,231 $ 132,006 $ 32,075

Other Financing Sources (Uses)Transfers In $ 100,000 $ 0 $ 150,000 $ (50,000)Transfers Out (121,642) (93,231) (141,726) 20,084

Total Other Financing Sources $ (21,642) $ (93,231) $ 8,274 $ (29,916)

Net Change in Fund Balance $ 142,439 $ 0 $ 140,280 $ 2,159Fund Balance, July 1, 2018 145,937 145,937 145,937 0


Budgeted Amounts

202

Exhibit K-10


in Fund Balance - Actual and BudgetDiscretely Presented Anderson County School DepartmentCentral Cafeteria FundFor the Year Ended June 30, 2019



RevenuesCharges for Current Services $ 516,454 $ 574,200 $ 574,200 $ (57,746)Other Local Revenues 3,736 4,500 4,500 (764)State of Tennessee 35,761 30,000 35,000 761Federal Government 2,915,493 2,870,966 2,877,116 38,377Other Governments and Citizens Groups 0 6,150 0 0

Total Revenues $ 3,471,444 $ 3,485,816 $ 3,490,816 $ (19,372)

ExpendituresOperation of Non-Instructional Services

Food Service $ 3,548,803 $ 3,660,787 $ 3,979,187 $ 430,384Total Expenditures $ 3,548,803 $ 3,660,787 $ 3,979,187 $ 430,384

Excess (Deficiency) of RevenuesOver Expenditures $ (77,359) $ (174,971) $ (488,371) $ 411,012

Other Financing Sources (Uses)Transfers In $ 40,759 $ 45,000 $ 45,000 $ (4,241)

Total Other Financing Sources $ 40,759 $ 45,000 $ 45,000 $ (4,241)

Net Change in Fund Balance $ (36,600) $ (129,971) $ (443,371) $ 406,771Fund Balance, July 1, 2018 1,543,820 1,611,100 1,611,100 (67,280)

Fund Balance, June 30, 2019 $ 1,507,220 $ 1,481,129 $ 1,167,729 $ 339,491

Budgeted Amounts

203

Exhibit K-11


in Fund Balance - Actual and BudgetDiscretely Presented Anderson County School DepartmentOther Education Special Revenue FundFor the Year Ended June 30, 2019



RevenuesCharges for Current Services $ 229,378 $ 141,000 $ 334,980 $ (105,602)Other Local Revenues 2,895 0 2,895 0State of Tennessee 659,695 632,613 662,029 (2,334)Federal Government 4,017,794 3,597,219 4,053,368 (35,574)

Total Revenues $ 4,909,762 $ 4,370,832 $ 5,053,272 $ (143,510)

ExpendituresOperation of Non-Instructional Services

Community Services $ 3,741,817 $ 3,507,122 $ 3,840,021 $ 98,204Early Childhood Education 633,313 607,854 633,876 563

Capital OutlayRegular Capital Outlay 346,687 0 365,377 18,690

Principal on DebtEducation 0 101,617 0 0

Interest on DebtEducation 0 22,897 0 0

Other Debt ServiceEducation 124,514 0 124,515 1

Total Expenditures $ 4,846,331 $ 4,239,490 $ 4,963,789 $ 117,458

Excess (Deficiency) of RevenuesOver Expenditures $ 63,431 $ 131,342 $ 89,483 $ (26,052)

Other Financing Sources (Uses)Transfers In $ 55,521 $ 0 $ 55,521 $ 0Transfers Out (134,555) (131,342) (147,227) 12,672

Total Other Financing Sources $ (79,034) $ (131,342) $ (91,706) $ 12,672

Net Change in Fund Balance $ (15,603) $ 0 $ (2,223) $ (13,380)Fund Balance, July 1, 2018 98,791 60,665 60,665 38,126


Budgeted Amounts

204

Exhibit K-12


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Anderson County School DepartmentEducation Capital Projects FundFor the Year Ended June 30, 2019


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

RevenuesLocal Taxes $ 490 $ 0 $ 490 $ 0 $ 0 $ 490Other Governments and Citizens Groups 11,275,996 0 11,275,996 0 11,275,996 0

Total Revenues $ 11,276,486 $ 0 $ 11,276,486 $ 0 $ 11,275,996 $ 490

ExpendituresCapital Outlay

Regular Capital Outlay $ 6,711,614 $ 4,565,926 $ 11,277,540 $ 0 $ 12,403,007 $ 1,125,467Capital Projects

Education Capital Projects 10,080 0 10,080 0 10,092 12Total Expenditures $ 6,721,694 $ 4,565,926 $ 11,287,620 $ 0 $ 12,413,099 $ 1,125,479

Excess (Deficiency) of RevenuesOver Expenditures $ 4,554,792 $ (4,565,926) $ (11,134) $ 0 $ (1,137,103) $ 1,125,969

Other Financing Sources (Uses)Transfers In $ 0 $ 0 $ 0 $ 0 $ 1,127,000 $ (1,127,000)

Total Other Financing Sources $ 0 $ 0 $ 0 $ 0 $ 1,127,000 $ (1,127,000)

Net Change in Fund Balance $ 4,554,792 $ (4,565,926) $ (11,134) $ 0 $ (10,103) $ (1,031)Fund Balance, July 1, 2018 17,622 0 17,622 0 10,103 7,519

Fund Balance, June 30, 2019 $ 4,572,414 $ (4,565,926) $ 6,488 $ 0 $ 0 $ 6,488

Budgeted Amounts

205

MISCELLANEOUS SCHEDULES

206

Exhibit L-1

Anderson County, TennesseeSchedule of Changes in Long-term Notes, Other Loans, Capital Leases, and BondsFor the Year Ended June 30, 2019

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

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

GOVERNMENTAL ACTIVITIES:

NOTES PAYABLE

Payable through General Debt Service FundGeneral Obligation Series 2017A $ 1,400,000 2.35 % 6-22-17 6-1-29 $ 1,300,000 $ 0 $ 103,000 $ 1,197,000

Total Payable through General Debt Service Fund $ 1,300,000 $ 0 $ 103,000 $ 1,197,000

Payable through Rural Debt Service Fund Local Government Energy Efficient Loan Program 489,502 0 3-25-11 11-1-21 $ 167,261 $ 0 $ 48,948 $ 118,313 Local Government Energy Efficient Loan Program 352,931 0 6-21-12 8-1-22 147,061 0 35,292 111,769 Total Payable through Rural Debt Service Fund $ 314,322 $ 0 $ 84,240 $ 230,082

Payable through Education Debt Service FundSchool Capital Projects Note 1,200,000 1.9 5-4-16 4-1-19 $ 420,000 $ 0 $ 420,000 $ 0

Total Payable through Education Debt Service Fund $ 420,000 $ 0 $ 420,000 $ 0

Payable through Ambulance Service Fund Ambulances 223,225 2.25 6-4-15 6-1-22 $ 132,000 $ 0 $ 32,000 $ 100,000 Total Payable through Ambulance Service Fund $ 132,000 $ 0 $ 32,000 $ 100,000

Total Notes Payable $ 2,166,322 $ 0 $ 639,240 $ 1,527,082

OTHER LOANS PAYABLE

Payable through General Debt Service FundUSDA Loan for Briceville Library 125,000 3.38 9-11-13 7-25-42 $ 94,019 $ 0 $ 94,019 $ 0

Public Building Authority Loan Agreements:Industrial Development - Montgomery County PBA 1,700,000 Variable 7-13-01 5-25-21 383,000 0 121,000 262,000Jail Renovation - Montgomery County PBA 3,000,000 Variable 5-22-06 5-25-25 1,311,000 0 170,000 1,141,000

Total Payable through General Debt Service Fund $ 1,788,019 $ 0 $ 385,019 $ 1,403,000

Payable through Rural Debt Service FundCity of Clarksville Series 2014 PBA 4,505,215 2.75 2-4-14 5-1-31 $ 3,810,000 $ 0 $ 200,000 $ 3,610,000

Total Payable through Rural Debt Service Fund $ 3,810,000 $ 0 $ 200,000 $ 3,610,000

Payable through Education Debt Service FundCity of Clarksville Series 2014 PBA 5,180,000 2.75 2-4-14 5-1-31 $ 4,335,000 $ 0 $ 225,000 $ 4,110,000

Total Payable through Education Debt Service Fund $ 4,335,000 $ 0 $ 225,000 $ 4,110,000

Total Other Loans Payable $ 9,933,019 $ 0 $ 810,019 $ 9,123,000

(Continued)

207

Exhibit L-1

Anderson County, TennesseeSchedule of Changes in Long-term Notes, Other Loans, Capital Leases, and Bonds (Cont.)

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

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

GOVERNMENTAL ACTIVITIES (CONT.):

BONDS PAYABLE

Payable through General Debt Service Fund General Obligation $ 2,450,000 1 to 5.25 % 6-4-10 5-1-28 $ 1,500,000 $ 0 $ 130,000 $ 1,370,000 General Obligation Refunding 1,750,000 2.5 to 3 2-25-11 5-1-19 305,000 0 305,000 0 General Obligation 14,750,000 2 to 4 9-28-11 5-1-29 7,100,000 0 100,000 7,000,000 General Obligation Refunding, Series 2017 8,030,000 2 to 2.7 5-19-17 5-1-35 7,980,000 0 40,000 7,940,000 Total Payable through General Debt Service Fund $ 16,885,000 $ 0 $ 575,000 $ 16,310,000

Payable through Rural Debt Service Fund Rural School 2,000,000 2 to 4 9-28-11 5-1-31 $ 1,825,000 $ 0 $ 25,000 $ 1,800,000 Rural School Refunding 6,310,000 3 to 5 3-8-18 5-1-26 6,310,000 0 635,000 5,675,000 Rural School 5,620,000 2 to 5 2-28-19 5-1-39 0 5,620,000 0 5,620,000 Total Payable through Rural Debt Service Fund $ 8,135,000 $ 5,620,000 $ 660,000 $ 13,095,000

Payable through Education Debt Service Fund Rural High School 8,000,000 2 to 4 9-28-11 5-1-31 $ 7,360,000 $ 0 $ 175,000 $ 7,185,000 Rural High School Refunding 4,770,000 3 to 5 3-8-18 5-1-25 4,770,000 0 570,000 4,200,000 Rural High School 5,280,000 3 to 5 2-28-19 5-1-39 0 5,280,000 0 5,280,000 Total Payable through Education Debt Service Fund $ 12,130,000 $ 5,280,000 $ 745,000 $ 16,665,000

Total Bonds Payable $ 37,150,000 $ 10,900,000 $ 1,980,000 $ 46,070,000

CAPITAL LEASES PAYABLE

Payable through General Debt Service FundPhone System 501,365 6.25 7-23-14 5-25-21 $ 126,949 $ 0 $ 108,676 $ 18,273

Total Payable through General Debt Service Fund $ 126,949 $ 0 $ 108,676 $ 18,273

Contributions Due by the School Department from the Other Education Special Revenue Fund to the Rural Debt Service Fund

Headstart Facility 957,236 11.4 12-1-03 12-1-20 $ 246,477 $ 0 $ 101,616 $ 144,861 Total Contributions Due by the School Department from the Other Education Special

Revenue Fund to the Rural Debt Service Fund $ 246,477 $ 0 $ 101,616 $ 144,861

Total Capital Leases Payable $ 373,426 $ 0 $ 210,292 $ 163,134

208

Exhibit L-2Anderson County, TennesseeSchedule of Long-term Debt Requirements by Year

GOVERNMENTAL ACTIVITIES


2020 $ 223,240 $ 30,380 $ 253,6202021 225,240 27,147 252,3872022 200,709 23,866 224,5752023 120,893 20,492 141,3852024 118,000 17,790 135,7902025 121,000 15,016 136,0162026 124,000 12,173 136,1732027 128,000 9,259 137,2592028 131,000 6,251 137,2512029 135,000 3,173 138,173

Total $ 1,527,082 $ 165,547 $ 1,692,629

YearEndingJune 30 Principal Interest Other Fees Total

2020 $ 729,000 $ 240,685 $ 11,836 $ 981,5212021 740,000 222,912 9,243 972,1552022 612,000 204,919 6,555 823,4742023 618,000 189,416 4,991 812,4072024 624,000 173,792 3,378 801,1702025 630,000 158,044 1,714 789,7582026 625,000 142,175 0 767,1752027 875,000 124,988 0 999,9882028 875,000 100,925 0 975,9252029 925,000 76,863 0 1,001,8632030 925,000 51,425 0 976,4252031 945,000 25,988 0 970,988

Total $ 9,123,000 $ 1,712,132 $ 37,717 $ 10,872,849

(Continued)

Notes

Other Loans

209

Exhibit L-2Anderson County, TennesseeSchedule of Long-term Debt Requirements by Year (Cont.)

GOVERNMENTAL ACTIVITIES (CONT.)


2020 $ 2,405,000 $ 1,831,103 $ 4,236,1032021 2,550,000 1,666,784 4,216,7842022 2,805,000 1,556,484 4,361,4842023 2,965,000 1,433,084 4,398,0842024 3,095,000 1,302,984 4,397,9842025 3,235,000 1,166,894 4,401,8942026 3,420,000 1,024,544 4,444,5442027 2,845,000 872,544 3,717,5442028 2,985,000 760,281 3,745,2812029 2,965,000 643,668 3,608,6682030 3,100,000 528,569 3,628,5692031 3,220,000 422,499 3,642,4992032 1,820,000 312,184 2,132,1842033 1,885,000 258,359 2,143,3592034 1,940,000 202,553 2,142,5532035 1,990,000 148,254 2,138,2542036 680,000 92,544 772,5442037 700,000 71,294 771,2942038 720,000 48,544 768,5442039 745,000 25,143 770,143

Total $ 46,070,000 $ 14,368,313 $ 60,438,313

EndingJune 30 Principal Interest Total

2020 $ 133,255 $ 10,663 143,9182021 29,879 569 30,448

Total $ 163,134 $ 11,232 $ 174,366

Capital Lease

Bonds

210

Exhibit L-3Anderson County, TennesseeSchedule of InvestmentsJune 30, 2019

Fund and Type Amount

Employee Health Insurance (Internal Service) Fund State Treasurer's Investment Pool $ 19,407

Total Investments $ 19,407

211

Exhibit L-4

Anderson County, TennesseeSchedule of TransfersPrimary Government and Discretely Presented Anderson County School DepartmentFor the Year Ended June 30, 2019

From Fund To Fund Purpose Amount

PRIMARY GOVERNMENT

General Solid Waste/Sanitation Move Glen Alpine Convenience Center $ 330,798 General Ambulance Service Debt forgiveness 1,026,787 General Other General Government Special Revenue Channel 95 funding 1,075 Highway/Public Works General Vehicle purchase 500 Channel 95 Other General Government Special Revenue To establish special revenue fund 105,829

Total Transfers Primary Government $ 1,464,989

DISCRETELY PRESENTED ANDERSON COUNTY SCHOOL DEPARTMENT

General Purpose School Other Education Special Revenue Headstart building addition $ 55,521 General Purpose School School Federal Projects Cash flow 100,000 School Federal Projects General Purpose School Indirect costs 121,642 Other Education Special Revenue General Purpose School Indirect costs 93,796 Other Education Special Revenue Central Cafeteria Food Service 40,759

Total Transfers Discretely Presented Anderson County School Department $ 411,718

212

Exhibit L-5

Anderson County, TennesseeSchedule of Salaries and Official Bonds of Principal OfficialsPrimary Government and Discretely Presented Anderson County School DepartmentFor the Year Ended June 30, 2019

SalaryPaid

During Official Authorization for Salary Period Bond Surety

County Mayor Section 8-24-102, TCA $ 107,546 (1) $ (2)Highway Superintendent Section 8-24-102, TCA 97,853 (2)Director of Schools State Board of Education 156,000 (3) (2)

and County Board of Education

Trustee: Myron Iwanski (7-1-18 through 8-31-18) Section 8-24-102, TCA 14,826 (2) Regina Copeland (9-1-18 through 6-30-19) 74,131 (2)Assessor of Property Section 8-24-102, TCA 88,957 (2)Finance Director: Natalie Erb (7-1-18 through 5-24-19) County Commission 88,401 (4) (2) Robby Holbrook (5-25-19 through 6-30-19) 7,185 (2)County Clerk Section 8-24-102, TCA 88,957 (2)Circuit, General Sessions, and Juvenile Courts Clerk: Williams Jones (7-1-18 through 8-31-18) Section 8-24-102, TCA 14,826 (2) Rex Lynch (9-1-18 through 6-30-19) 74,131 (2)Clerk and Master Section 8-24-102, TCA,

and Chancery Court Judge 88,957 (5) (2)Register of Deeds Section 8-24-102, TCA 88,957 (2)Sheriff: Paul White (7-1-18 through 8-31-18) Section 8-24-102, TCA 17,009 (6) (2) Russell Barker (9-1-18 through 6-30-19) 82,644 (6) (2)

Employee Blanket Bonds: Employee Fidelity - County Departments 400,000 Tennessee Risk Management Trust Employee Fidelity - School Department 400,000 "

(1) Includes a vehicle allowance of $4,800.(2) Officials were covered by a $400,000 officials' blanket bond by Tennessee Risk Management Trust.(3) Includes a payment for career ladder supplement of $1,000. Does not include a travel allowance of $9,000 and an internet allowance of $1,084.(4) - Includes $6,501 payment for vacation balance.(5) Does not include special commissioner fees of $5,722.(6) Includes a law enforcement training supplement of $600.

213

Exhibit L-6

Anderson County, TennesseeSchedule of Detailed Revenues -

All Governmental Fund TypesFor the Year Ended June 30, 2019

SolidPublic Waste / Ambulance Drug

General Library Sanitation Service Control

Local TaxesCounty Property Taxes

Current Property Tax $ 11,656,025 $ 438,640 $ 1,036,928 $ 269,686 $ 0Trustee's Collections - Prior Year 440,684 16,538 38,590 0 0Trustee's Collections - Bankruptcy 2,710 102 240 3 0Circuit Clerk/Clerk and Master Collections - Prior Years 195,534 0 0 0 0Interest and Penalty 148,412 2,850 6,669 302 0Payments in-Lieu-of Taxes - T.V.A. 36,293 0 0 0 0Payments in-Lieu-of Taxes - Local Utilities 448,664 0 0 0 0Payments in-Lieu-of Taxes - Other 2,657,660 0 0 0 0

County Local Option TaxesLocal Option Sales Tax 903,431 0 0 0 0Hotel/Motel Tax 0 0 0 0 0Litigation Tax - General 173,417 0 0 0 0Litigation Tax - Special Purpose 19,309 0 0 0 0Litigation Tax - Office of Public Defender 22,367 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 14,915 0 0 0 0Litigation Tax - Victim-Offender Mediation Center 10,432 0 0 0 0Litigation Tax - Courthouse Security 89,815 0 0 0 0Business Tax 1,137,029 0 0 0 0Mixed Drink Tax 3,387 0 0 0 0Mineral Severance Tax 0 0 0 0 0Other County Local Option Taxes 572 0 0 0 0

Statutory Local TaxesBank Excise Tax 92,286 0 0 0 0Wholesale Beer Tax 171,673 0 0 0 0Coal Severance Tax 0 0 0 0 0

(Continued)


214

Exhibit L-6


All Governmental Fund Types (Cont.)



Local Taxes (Cont.)Statutory Local Taxes (Cont.)

Other Statutory Local Taxes $ 9,504 $ 0 $ 0 $ 0 $ 0Total Local Taxes $ 18,234,119 $ 458,130 $ 1,082,427 $ 269,991 $ 0

Licenses and PermitsLicenses

Cable TV Franchise $ 194,702 $ 0 $ 0 $ 0 $ 0Permits

Beer Permits 712 0 0 0 0Building Permits 160,219 0 0 0 0

Total Licenses and Permits $ 355,633 $ 0 $ 0 $ 0 $ 0

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 11,510 $ 0 $ 0 $ 0 $ 0Officers Costs 21,592 0 0 0 0Drug Control Fines 2,804 0 0 0 2,804Drug Court Fees 5,595 0 0 0 0Jail Fees 12,730 0 0 0 0District Attorney General Fees 731 0 0 0 0DUI Treatment Fines 1,741 0 0 0 0Data Entry Fee - Circuit Court 2,372 0 0 0 0Courtroom Security Fee 308 0 0 0 0Victims Assistance Assessments 4,066 0 0 0 0

Criminal CourtFines 3,281 0 0 0 0

(Continued)


215

Exhibit L-6





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

Fines $ 39,760 $ 0 $ 0 $ 0 $ 0Officers Costs 94,140 0 0 0 0Drug Control Fines 523 0 0 0 430Drug Court Fees 4,093 0 0 0 0Jail Fees 51,397 0 0 0 0District Attorney General Fees 1,629 0 0 0 0DUI Treatment Fines 10,253 0 0 0 0Data Entry Fee - General Sessions Court 22,062 0 0 0 0Courtroom Security Fee 168 0 0 0 0Victims Assistance Assessments 19,113 0 0 0 0

Juvenile CourtFines 2,257 0 0 0 0Officers Costs 13,052 0 0 0 0Drug Court Fees 1,273 0 0 0 0Jail Fees 3,829 0 0 0 0DUI Treatment Fines 95 0 0 0 0Data Entry Fee - Juvenile Court 1,712 0 0 0 0

Chancery CourtOfficers Costs 16,245 0 0 0 0Data Entry Fee - Chancery Court 8,822 0 0 0 0Courtroom Security Fee 2,641 0 0 0 0

Judicial District Drug ProgramDrug Task Force Forfeitures and Seizures 0 0 0 0 217

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 0 0 0 32,633

Total Fines, Forfeitures, and Penalties $ 359,794 $ 0 $ 0 $ 0 $ 36,084

(Continued)


216

Exhibit L-6





Charges for Current ServicesGeneral Service Charges

Convenience Waste Centers Collection Charge $ 0 $ 0 $ 67,928 $ 0 $ 0Surcharge - Host Agency 0 0 424,986 0 0Solid Waste Disposal Fee 0 0 21,684 0 0Surcharge - Waste Tire Disposal 0 0 63,101 0 0Patient Charges 0 0 0 4,584,404 0Health Department Collections 228,263 0 0 0 0Other General Service Charges 315 0 0 299,067 0Service Charges 37,072 0 0 0 0

FeesRecreation Fees 129,550 0 0 0 0Copy Fees 160 0 0 906 0Library Fees 0 25,143 0 0 0Archives and Records Management Fee 32,042 0 0 0 0Telephone Commissions 119,254 0 0 0 0Constitutional Officers' Fees and Commissions 0 0 0 0 0Special Commissioner Fees/Special Master Fees 0 0 0 0 0Data Processing Fee - Register 22,528 0 0 0 0Data Processing Fee - Sheriff 13,631 0 0 0 0Sexual Offender Registration Fee - Sheriff 4,050 0 0 0 0Data Processing Fee - County Clerk 15,795 0 0 0 0Vehicle Insurance Coverage and Reinstatement Fees 1,785 0 0 0 0

Education ChargesTuition - Other 0 0 0 1,718 0Other Charges for Services 9,284 0 0 0 0

Total Charges for Current Services $ 613,729 $ 25,143 $ 577,699 $ 4,886,095 $ 0

(Continued)


217

Exhibit L-6





Other Local RevenuesRecurring Items

Investment Income $ 58,219 $ 2,153 $ 3,768 $ 2,265 $ 2,343Lease/Rentals 119,520 0 0 1,375 0Sale of Materials and Supplies 961 0 0 0 0Commissary Sales 60,532 0 0 0 0Sale of Gasoline 213 0 0 0 0Sale of Maps 2,000 0 0 0 0Sale of Recycled Materials 0 0 10,548 0 0E-Rate Funding 0 1,360 0 0 0Miscellaneous Refunds 8,268 285 24 1,836 0

Nonrecurring ItemsSale of Equipment 7,553 0 0 0 0Contributions and Gifts 5,404 4,215 12,000 0 0

Other Local RevenuesOther Local Revenues 554,163 0 0 0 0

Total Other Local Revenues $ 816,833 $ 8,013 $ 26,340 $ 5,476 $ 2,343

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 1,008,077 $ 0 $ 0 $ 0 $ 0General Sessions Court Clerk 621,387 0 0 0 0Clerk and Master 336,490 0 0 0 0Register 323,699 0 0 0 0Sheriff 65,351 0 0 0 0Trustee 1,471,195 0 0 0 0

Total Fees Received From County Officials $ 3,826,199 $ 0 $ 0 $ 0 $ 0

(Continued)


218

Exhibit L-6





State of TennesseeGeneral Government Grants

Juvenile Services Program $ 4,500 $ 0 $ 0 $ 0 $ 0Solid Waste Grants 0 0 23,594 0 0Other General Government Grants 0 600 0 0 0

Public Safety GrantsLaw Enforcement Training Programs 35,400 0 0 0 0Drug Control Grants 67,253 0 0 0 0

Health and Welfare GrantsHealth Department Programs 175,552 0 0 0 0Other Health and Welfare Grants 20,300 0 0 0 0

Public Works GrantsState Aid Program 0 0 0 0 0Litter Program 0 0 39,270 0 0

Other State RevenuesIncome Tax 127,843 0 0 0 0Beer Tax 17,959 0 0 0 0Alcoholic Beverage Tax 129,119 0 0 0 0State Revenue Sharing - T.V.A. 266,024 0 0 0 0State Revenue Sharing - Telecommunications 108,620 0 0 0 0Emergency Hospital - Prisoners 275,745 0 0 0 0Contracted Prisoner Boarding 2,468,906 0 0 0 0Gasoline and Motor Fuel Tax 0 0 0 0 0Petroleum Special Tax 0 0 0 0 0Registrar's Salary Supplement 15,164 0 0 0 0Other State Grants 41,074 0 0 0 0Other State Revenues 91,130 0 0 0 0

Total State of Tennessee $ 3,844,589 $ 600 $ 62,864 $ 0 $ 0

(Continued)


219

Exhibit L-6





Federal GovernmentFederal Through State

Civil Defense Reimbursement $ 33,500 $ 0 $ 0 $ 0 $ 0Disaster Relief 0 0 0 6,105 0Homeland Security Grants 39,962 0 0 0 0Medicaid 0 0 0 199,764 0Other Federal through State 593,314 3,165 0 0 0

Direct Federal RevenueTax Credit Bond Rebate 0 0 0 0 0Other Direct Federal Revenue 25,170 0 0 0 2,240

Total Federal Government $ 691,946 $ 3,165 $ 0 $ 205,869 $ 2,240

Other Governments and Citizens GroupsOther Governments

Contributions $ 24,427 $ 130,312 $ 0 $ 0 $ 0Contracted Services 44,308 0 0 0 0

Citizens GroupsDonations 26,229 0 0 0 0

OtherOther 943 0 0 0 0

Total Other Governments and Citizens Groups $ 95,907 $ 130,312 $ 0 $ 0 $ 0

Total $ 28,838,749 $ 625,363 $ 1,749,330 $ 5,367,431 $ 40,667

(Continued)


220

Exhibit L-6



Other Constitu -General Other tional Highway / General Rural

Government Special Officers - Public Debt DebtFund Revenue Fees Works Service Service


Current Property Tax $ 0 $ 0 $ 0 $ 491,340 $ 0 $ 185,072Trustee's Collections - Prior Year 0 0 0 17,349 62,342 7,908Trustee's Collections - Bankruptcy 0 0 0 113 367 103Circuit Clerk/Clerk and Master Collections - Prior Years 0 0 0 0 0 0Interest and Penalty 0 0 0 2,986 8,898 1,528Payments in-Lieu-of Taxes - T.V.A. 0 0 0 0 0 0Payments in-Lieu-of Taxes - Local Utilities 0 0 0 0 0 0Payments in-Lieu-of Taxes - Other 0 0 0 0 0 0

County Local Option TaxesLocal Option Sales Tax 0 0 0 519,224 0 0Hotel/Motel Tax 0 395,870 0 0 0 0Litigation Tax - General 0 0 0 0 0 0Litigation Tax - Special Purpose 0 0 0 0 0 0Litigation Tax - Office of Public Defender 0 0 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 0 0 0 0 33,805 0Litigation Tax - Victim-Offender Mediation Center 0 0 0 0 0 0Litigation Tax - Courthouse Security 0 0 0 0 0 0Business Tax 0 0 0 0 0 0Mixed Drink Tax 0 0 0 0 0 0Mineral Severance Tax 0 0 0 122,657 0 0Other County Local Option Taxes 0 0 0 0 0 0

Statutory Local TaxesBank Excise Tax 0 0 0 0 0 0Wholesale Beer Tax 0 0 0 0 0 0Coal Severance Tax 0 0 0 200 0 0

(Continued)

Special Revenue Funds Debt Service Funds

221

Exhibit L-6






Other Statutory Local Taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Total Local Taxes $ 0 $ 395,870 $ 0 $ 1,153,869 $ 105,412 $ 194,611


Cable TV Franchise $ 150,532 $ 0 $ 0 $ 0 $ 0 $ 0Permits

Beer Permits 0 0 0 0 0 0Building Permits 0 0 0 0 0 0

Total Licenses and Permits $ 150,532 $ 0 $ 0 $ 0 $ 0 $ 0


Fines $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Officers Costs 0 0 0 0 0 0Drug Control Fines 0 0 0 0 0 0Drug Court Fees 0 0 0 0 0 0Jail Fees 0 0 0 0 0 0District Attorney General Fees 0 0 0 0 0 0DUI Treatment Fines 0 0 0 0 0 0Data Entry Fee - Circuit Court 0 0 0 0 0 0Courtroom Security Fee 0 0 0 0 0 0Victims Assistance Assessments 0 0 0 0 0 0

Criminal CourtFines 0 0 0 0 0 0

(Continued)


222

Exhibit L-6






Fines $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Officers Costs 0 0 0 0 0 0Drug Control Fines 0 0 0 0 0 0Drug Court Fees 0 0 0 0 0 0Jail Fees 0 0 0 0 0 0District Attorney General Fees 0 0 0 0 0 0DUI Treatment Fines 0 0 0 0 0 0Data Entry Fee - General Sessions Court 0 0 0 0 0 0Courtroom Security Fee 0 0 0 0 0 0Victims Assistance Assessments 0 0 0 0 0 0

Juvenile CourtFines 0 0 0 0 0 0Officers Costs 0 0 0 0 0 0Drug Court Fees 0 0 0 0 0 0Jail Fees 0 0 0 0 0 0DUI Treatment Fines 0 0 0 0 0 0Data Entry Fee - Juvenile Court 0 0 0 0 0 0

Chancery CourtOfficers Costs 0 0 0 0 0 0Data Entry Fee - Chancery Court 0 0 0 0 0 0Courtroom Security Fee 0 0 0 0 0 0

Judicial District Drug ProgramDrug Task Force Forfeitures and Seizures 0 0 0 0 0 0

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 0 0 0 0 0

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

(Continued)


223

Exhibit L-6






Convenience Waste Centers Collection Charge $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Surcharge - Host Agency 0 0 0 0 0 0Solid Waste Disposal Fee 0 0 0 0 0 0Surcharge - Waste Tire Disposal 0 0 0 0 0 0Patient Charges 0 0 0 0 0 0Health Department Collections 0 0 0 0 0 0Other General Service Charges 25,000 0 0 0 0 0Service Charges 0 0 0 0 0 0

FeesRecreation Fees 0 0 0 0 0 0Copy Fees 0 0 0 0 0 0Library Fees 0 0 0 0 0 0Archives and Records Management Fee 0 0 0 0 0 0Telephone Commissions 0 0 0 0 0 0Constitutional Officers' Fees and Commissions 0 0 2,867 0 0 0Special Commissioner Fees/Special Master Fees 0 0 5,722 0 0 0Data Processing Fee - Register 0 0 0 0 0 0Data Processing Fee - Sheriff 0 0 0 0 0 0Sexual Offender Registration Fee - Sheriff 0 0 0 0 0 0Data Processing Fee - County Clerk 0 0 0 0 0 0Vehicle Insurance Coverage and Reinstatement Fees 0 0 0 0 0 0

Education ChargesTuition - Other 0 0 0 0 0 0Other Charges for Services 0 0 0 0 0 0

Total Charges for Current Services $ 25,000 $ 0 $ 8,589 $ 0 $ 0 $ 0

(Continued)

Debt Service FundsSpecial Revenue Funds

224

Exhibit L-6






Investment Income $ 584 $ 1,741 $ 0 $ 23,945 $ 16,355 $ 5,495Lease/Rentals 0 0 0 0 0 0Sale of Materials and Supplies 0 27 0 206 0 0Commissary Sales 0 0 0 0 0 0Sale of Gasoline 0 0 0 182,876 0 0Sale of Maps 0 0 0 0 0 0Sale of Recycled Materials 0 0 0 2,276 0 0E-Rate Funding 0 0 0 0 0 0Miscellaneous Refunds 0 327 0 320 0 0

Nonrecurring ItemsSale of Equipment 0 0 0 0 0 0Contributions and Gifts 0 0 0 0 0 0

Other Local RevenuesOther Local Revenues 0 0 0 0 0 0

Total Other Local Revenues $ 584 $ 2,095 $ 0 $ 209,623 $ 16,355 $ 5,495


County Clerk $ 0 $ 0 $ 0 $ 0 $ 0 $ 0General Sessions Court Clerk 0 0 0 0 0 0Clerk and Master 0 0 0 0 0 0Register 0 0 0 0 0 0Sheriff 0 0 0 0 0 0Trustee 0 0 0 0 0 0

Total Fees Received From County Officials $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

(Continued)


225

Exhibit L-6






Juvenile Services Program $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Solid Waste Grants 0 0 0 0 0 0Other General Government Grants 0 0 0 0 0 0

Public Safety GrantsLaw Enforcement Training Programs 0 0 0 0 0 0Drug Control Grants 0 0 0 0 0 0

Health and Welfare GrantsHealth Department Programs 0 0 0 0 0 0Other Health and Welfare Grants 0 0 0 0 0 0

Public Works GrantsState Aid Program 0 0 0 559,731 0 0Litter Program 0 0 0 0 0 0

Other State RevenuesIncome Tax 0 0 0 0 0 0Beer Tax 0 0 0 0 0 0Alcoholic Beverage Tax 0 0 0 0 0 0State Revenue Sharing - T.V.A. 0 0 0 0 0 0State Revenue Sharing - Telecommunications 0 0 0 0 0 0Emergency Hospital - Prisoners 0 0 0 0 0 0Contracted Prisoner Boarding 0 0 0 0 0 0Gasoline and Motor Fuel Tax 0 0 0 2,650,495 0 0Petroleum Special Tax 0 0 0 54,209 0 0Registrar's Salary Supplement 0 0 0 0 0 0Other State Grants 0 30,000 0 0 0 0Other State Revenues 0 0 0 0 0 0

Total State of Tennessee $ 0 $ 30,000 $ 0 $ 3,264,435 $ 0 $ 0

(Continued)


226

Exhibit L-6






Civil Defense Reimbursement $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Disaster Relief 0 0 0 0 0 0Homeland Security Grants 0 0 0 0 0 0Medicaid 0 0 0 0 0 0Other Federal through State 0 0 0 0 0 0

Direct Federal RevenueTax Credit Bond Rebate 0 0 0 0 24,079 0Other Direct Federal Revenue 0 0 0 0 0 0

Total Federal Government $ 0 $ 0 $ 0 $ 0 $ 24,079 $ 0


Contributions $ 10,000 $ 0 $ 0 $ 0 $ 0 $ 1,685,070Contracted Services 0 0 0 0 0 0

Citizens GroupsDonations 0 0 0 0 0 0

OtherOther 0 0 0 11,091 0 0

Total Other Governments and Citizens Groups $ 10,000 $ 0 $ 0 $ 11,091 $ 0 $ 1,685,070

Total $ 186,116 $ 427,965 $ 8,589 $ 4,639,018 $ 145,846 $ 1,885,176

(Continued)


227

Exhibit L-6



Education GeneralDebt Capital

Service Projects Total


Current Property Tax $ 1,548,040 $ 1,359,324 $ 16,985,055Trustee's Collections - Prior Year 50,345 1,108 634,864Trustee's Collections - Bankruptcy 539 22 4,199Circuit Clerk/Clerk and Master Collections - Prior Years 0 0 195,534Interest and Penalty 9,554 1,680 182,879Payments in-Lieu-of Taxes - T.V.A. 0 0 36,293Payments in-Lieu-of Taxes - Local Utilities 0 0 448,664Payments in-Lieu-of Taxes - Other 0 0 2,657,660

County Local Option TaxesLocal Option Sales Tax 0 0 1,422,655Hotel/Motel Tax 0 0 395,870Litigation Tax - General 0 0 173,417Litigation Tax - Special Purpose 0 0 19,309Litigation Tax - Office of Public Defender 0 0 22,367Litigation Tax - Jail, Workhouse, or Courthouse 0 0 48,720Litigation Tax - Victim-Offender Mediation Center 0 0 10,432Litigation Tax - Courthouse Security 0 0 89,815Business Tax 0 0 1,137,029Mixed Drink Tax 0 0 3,387Mineral Severance Tax 0 0 122,657Other County Local Option Taxes 0 0 572

Statutory Local TaxesBank Excise Tax 0 0 92,286Wholesale Beer Tax 0 0 171,673Coal Severance Tax 0 0 200

(Continued)

Debt Service Fund

Capital Projects Fund

228

Exhibit L-6






Other Statutory Local Taxes $ 0 $ 0 $ 9,504Total Local Taxes $ 1,608,478 $ 1,362,134 $ 24,865,041


Cable TV Franchise $ 0 $ 0 $ 345,234Permits

Beer Permits 0 0 712Building Permits 0 0 160,219

Total Licenses and Permits $ 0 $ 0 $ 506,165


Fines $ 0 $ 0 $ 11,510Officers Costs 0 0 21,592Drug Control Fines 0 0 5,608Drug Court Fees 0 0 5,595Jail Fees 0 0 12,730District Attorney General Fees 0 0 731DUI Treatment Fines 0 0 1,741Data Entry Fee - Circuit Court 0 0 2,372Courtroom Security Fee 0 0 308Victims Assistance Assessments 0 0 4,066

Criminal CourtFines 0 0 3,281

(Continued)

Debt Service Fund


229

Exhibit L-6






Fines $ 0 $ 0 $ 39,760Officers Costs 0 0 94,140Drug Control Fines 0 0 953Drug Court Fees 0 0 4,093Jail Fees 0 0 51,397District Attorney General Fees 0 0 1,629DUI Treatment Fines 0 0 10,253Data Entry Fee - General Sessions Court 0 0 22,062Courtroom Security Fee 0 0 168Victims Assistance Assessments 0 0 19,113

Juvenile CourtFines 0 0 2,257Officers Costs 0 0 13,052Drug Court Fees 0 0 1,273Jail Fees 0 0 3,829DUI Treatment Fines 0 0 95Data Entry Fee - Juvenile Court 0 0 1,712

Chancery CourtOfficers Costs 0 0 16,245Data Entry Fee - Chancery Court 0 0 8,822Courtroom Security Fee 0 0 2,641

Judicial District Drug ProgramDrug Task Force Forfeitures and Seizures 0 0 217

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 0 32,633

Total Fines, Forfeitures, and Penalties $ 0 $ 0 $ 395,878

(Continued)

Debt Service Fund


230

Exhibit L-6






Convenience Waste Centers Collection Charge $ 0 $ 0 $ 67,928Surcharge - Host Agency 0 0 424,986Solid Waste Disposal Fee 0 0 21,684Surcharge - Waste Tire Disposal 0 0 63,101Patient Charges 0 0 4,584,404Health Department Collections 0 0 228,263Other General Service Charges 0 0 324,382Service Charges 0 0 37,072

FeesRecreation Fees 0 0 129,550Copy Fees 0 0 1,066Library Fees 0 0 25,143Archives and Records Management Fee 0 0 32,042Telephone Commissions 0 0 119,254Constitutional Officers' Fees and Commissions 0 0 2,867Special Commissioner Fees/Special Master Fees 0 0 5,722Data Processing Fee - Register 0 0 22,528Data Processing Fee - Sheriff 0 0 13,631Sexual Offender Registration Fee - Sheriff 0 0 4,050Data Processing Fee - County Clerk 0 0 15,795Vehicle Insurance Coverage and Reinstatement Fees 0 0 1,785

Education ChargesTuition - Other 0 0 1,718Other Charges for Services 0 0 9,284

Total Charges for Current Services $ 0 $ 0 $ 6,136,255

(Continued)

Debt Service Fund


231

Exhibit L-6






Investment Income $ 3,311 $ 0 $ 120,179Lease/Rentals 0 0 120,895Sale of Materials and Supplies 0 0 1,194Commissary Sales 0 0 60,532Sale of Gasoline 0 0 183,089Sale of Maps 0 0 2,000Sale of Recycled Materials 0 0 12,824E-Rate Funding 0 0 1,360Miscellaneous Refunds 0 0 11,060

Nonrecurring ItemsSale of Equipment 0 0 7,553Contributions and Gifts 0 0 21,619

Other Local RevenuesOther Local Revenues 0 0 554,163

Total Other Local Revenues $ 3,311 $ 0 $ 1,096,468


County Clerk $ 0 $ 0 $ 1,008,077General Sessions Court Clerk 0 0 621,387Clerk and Master 0 0 336,490Register 0 0 323,699Sheriff 0 0 65,351Trustee 0 0 1,471,195

Total Fees Received From County Officials $ 0 $ 0 $ 3,826,199

(Continued)

Debt Service Fund


232

Exhibit L-6






Juvenile Services Program $ 0 $ 0 $ 4,500Solid Waste Grants 0 0 23,594Other General Government Grants 0 0 600

Public Safety GrantsLaw Enforcement Training Programs 0 0 35,400Drug Control Grants 0 0 67,253

Health and Welfare GrantsHealth Department Programs 0 0 175,552Other Health and Welfare Grants 0 0 20,300

Public Works GrantsState Aid Program 0 0 559,731Litter Program 0 0 39,270

Other State RevenuesIncome Tax 0 0 127,843Beer Tax 0 0 17,959Alcoholic Beverage Tax 0 0 129,119State Revenue Sharing - T.V.A. 0 0 266,024State Revenue Sharing - Telecommunications 0 0 108,620Emergency Hospital - Prisoners 0 0 275,745Contracted Prisoner Boarding 0 0 2,468,906Gasoline and Motor Fuel Tax 0 0 2,650,495Petroleum Special Tax 0 0 54,209Registrar's Salary Supplement 0 0 15,164Other State Grants 0 0 71,074Other State Revenues 0 0 91,130

Total State of Tennessee $ 0 $ 0 $ 7,202,488

(Continued)

Debt Service Fund


233

Exhibit L-6






Civil Defense Reimbursement $ 0 $ 0 $ 33,500Disaster Relief 0 0 6,105Homeland Security Grants 0 0 39,962Medicaid 0 0 199,764Other Federal through State 0 0 596,479

Direct Federal RevenueTax Credit Bond Rebate 0 0 24,079Other Direct Federal Revenue 0 0 27,410

Total Federal Government $ 0 $ 0 $ 927,299


Contributions $ 0 $ 0 $ 1,849,809Contracted Services 0 0 44,308

Citizens GroupsDonations 0 0 26,229

OtherOther 0 0 12,034

Total Other Governments and Citizens Groups $ 0 $ 0 $ 1,932,380

Total $ 1,611,789 $ 1,362,134 $ 46,888,173

Debt Service Fund


234

Exhibit L-7


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

OtherGeneral School Education EducationPurpose Federal Central Special CapitalSchool Projects Cafeteria Revenue Projects Total


Current Property Tax $ 14,057,008 $ 0 $ 0 $ 0 $ 0 $ 14,057,008Trustee's Collections - Prior Year 531,360 0 0 0 468 531,828Trustee's Collections - Bankruptcy 3,352 0 0 0 19 3,371Circuit Clerk/Clerk and Master Collections - Prior Years 164,427 0 0 0 0 164,427Interest and Penalty 153,307 0 0 0 3 153,310Payments in-Lieu-of Taxes - Other 492,000 0 0 0 0 492,000

County Local Option TaxesLocal Option Sales Tax 9,430,270 0 0 0 0 9,430,270Mixed Drink Tax 2,726 0 0 0 0 2,726

Statutory Local TaxesCoal Severance Tax 113 0 0 0 0 113

Total Local Taxes $ 24,834,563 $ 0 $ 0 $ 0 $ 490 $ 24,835,053


Marriage Licenses $ 2,255 $ 0 $ 0 $ 0 $ 0 $ 2,255Total Licenses and Permits $ 2,255 $ 0 $ 0 $ 0 $ 0 $ 2,255

Charges for Current ServicesEducation Charges

Tuition - Other $ 0 $ 0 $ 0 $ 229,378 $ 0 $ 229,378Lunch Payments - Children 0 0 203,083 0 0 203,083Lunch Payments - Adults 0 0 38,982 0 0 38,982Income from Breakfast 0 0 26,647 0 0 26,647

(Continued)

Special Revenue FundsCapital

Projects Fund

235

Exhibit L-7


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


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

Special Milk Sales $ 0 $ 0 $ 3,567 $ 0 $ 0 $ 3,567A la Carte Sales 0 0 244,175 0 0 244,175Contract for Instructional Services with Other LEA's 0 6,650 0 0 0 6,650School Based Health Services - FFS 396,692 0 0 0 0 396,692Receipts from Individual Schools 29,942 0 0 0 0 29,942Other Charges for Services 58,416 0 0 0 0 58,416

Total Charges for Current Services $ 485,050 $ 6,650 $ 516,454 $ 229,378 $ 0 $ 1,237,532


Investment Income $ 52,961 $ 0 $ 940 $ 0 $ 0 $ 53,901Lease/Rentals 51,081 0 0 0 0 51,081Sale of Materials and Supplies 8,713 0 549 0 0 9,262Miscellaneous Refunds 567 3,278 2,247 625 0 6,717

Nonrecurring ItemsDamages Recovered from Individuals 10,169 0 0 0 0 10,169

Other Local RevenuesOther Local Revenues 4 43,069 0 2,270 0 45,343

Total Other Local Revenues $ 123,495 $ 46,347 $ 3,736 $ 2,895 $ 0 $ 176,473


On-behalf Contributions for OPEB $ 184,328 $ 0 $ 0 $ 0 $ 0 $ 184,328

(Continued)


Projects Fund

236

Exhibit L-7




State of Tennessee (Cont.)State Education Funds

Basic Education Program $ 32,507,952 $ 0 $ 0 $ 0 $ 0 $ 32,507,952Early Childhood Education 0 0 0 652,465 0 652,465School Food Service 0 0 30,761 0 0 30,761Other State Education Funds 404,175 665,018 0 0 0 1,069,193Career Ladder Program 131,486 0 0 0 0 131,486

Other State RevenuesState Revenue Sharing - T.V.A. 943,176 0 0 0 0 943,176Other State Grants 17,500 0 5,000 0 0 22,500Other State Revenues 4,481 0 0 7,230 0 11,711

Total State of Tennessee $ 34,193,098 $ 665,018 $ 35,761 $ 659,695 $ 0 $ 35,553,572


USDA School Lunch Program $ 0 $ 0 $ 1,865,036 $ 0 $ 0 $ 1,865,036USDA - Commodities 0 0 244,123 0 0 244,123Breakfast 0 0 746,498 0 0 746,498USDA - Other 0 0 53,118 124,004 0 177,122Vocational Education - Basic Grants to States 0 113,750 0 0 0 113,750Other Vocational 0 10,159 0 0 0 10,159Title I Grants to Local Education Agencies 0 1,726,575 0 0 0 1,726,575Special Education - Grants to States 0 1,811,380 0 0 0 1,811,380Special Education Preschool Grants 0 94,448 0 0 0 94,448Eisenhower Professional Development State Grants 0 269,542 0 0 0 269,542Other Federal through State 0 736,044 6,718 0 0 742,762

(Continued)


Projects Fund

237

Exhibit L-7




Federal Government (Cont.)Direct Federal Revenue

ROTC Reimbursement $ 137,637 $ 0 $ 0 $ 0 $ 0 $ 137,637Other Direct Federal Revenue 0 0 0 3,893,790 0 3,893,790

Total Federal Government $ 137,637 $ 4,761,898 $ 2,915,493 $ 4,017,794 $ 0 $ 11,832,822


Contributions $ 0 $ 0 $ 0 $ 0 $ 11,275,996 $ 11,275,996Other

Other 2,000 0 0 0 0 2,000Total Other Governments and Citizens Groups $ 2,000 $ 0 $ 0 $ 0 $ 11,275,996 $ 11,277,996

Total $ 59,778,098 $ 5,479,913 $ 3,471,444 $ 4,909,762 $ 11,276,486 $ 84,915,703


Projects Fund

238

Exhibit L-8

Anderson County, TennesseeSchedule of Detailed Expenditures -

All Governmental Fund TypesFor the Year Ended June 30, 2019

General FundGeneral Government

County CommissionSecretary to Board $ 45,250Board and Committee Members Fees 115,728Social Security 8,490Pensions 10,494Life Insurance 462Medical Insurance 73,213Dental Insurance 7,015Disability Insurance 386Unemployment Compensation 65Employer Medicare 1,985Communication 1,002Dues and Memberships 3,285Legal Notices, Recording, and Court Costs 790Travel 13,728Other Contracted Services 896Office Supplies 1,292Other Supplies and Materials 370In Service/Staff Development 4,355

Total County Commission $ 288,806

Board of EqualizationBoard and Committee Members Fees $ 1,240Social Security 77Unemployment Compensation 10Employer Medicare 18Legal Notices, Recording, and Court Costs 54

Total Board of Equalization 1,399

Other Boards and CommitteesCounty Official/Administrative Officer $ 44,861Guards 6,240Secretary(ies) 6,492Maintenance Personnel 71,204Part-time Personnel 3,633Social Security 7,509Pensions 8,203Life Insurance 159Medical Insurance 29,131Dental Insurance 1,449Disability Insurance 720Unemployment Compensation 327Employer Medicare 1,756Communication 2,376Dues and Memberships 80Operating Lease Payments 1,250Maintenance and Repair Services - Equipment 2,780Maintenance and Repair Services - Vehicles 4,137

(Continued)

239

Exhibit L-8



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

Other Boards and Committees (Cont.)Rentals $ 3,648Disposal Fees 1,440Other Contracted Services 5,322Crushed Stone 1,045Custodial Supplies 2,750Gasoline 9,842Natural Gas 1,316Office Supplies 232Tires and Tubes 496Uniforms 1,209Utilities 35,891Water and Sewer 2,698Other Supplies and Materials 20,292Vehicle and Equipment Insurance 4,500In Service/Staff Development 140Other Construction 5,198

Total Other Boards and Committees $ 288,326

County Mayor/ExecutiveCounty Official/Administrative Officer $ 102,746Clerical Personnel 28,845Part-time Personnel 21,218Other Per Diem and Fees 4,800Social Security 9,282Pensions 9,983Life Insurance 75Medical Insurance 19,743Dental Insurance 877Disability Insurance 195Unemployment Compensation 141Employer Medicare 2,171Dues and Memberships 1,175Postal Charges 36Printing, Stationery, and Forms 399Travel 2,363Office Supplies 1,462Other Supplies and Materials 169In Service/Staff Development 900

Total County Mayor/Executive 206,580

Personnel OfficeSupervisor/Director $ 59,981Clerical Personnel 70,000Part-time Personnel 2,000Social Security 7,298Pensions 8,947Life Insurance 122

(Continued)

240

Exhibit L-8




Personnel Office (Cont.)Medical Insurance $ 36,500Dental Insurance 1,472Disability Insurance 887Unemployment Compensation 188Employer Medicare 1,707Communication 374Data Processing Services 10,470Dues and Memberships 239Legal Notices, Recording, and Court Costs 88Postal Charges 184Travel 835Other Contracted Services 2,732Office Supplies 3,530Other Supplies and Materials 399In Service/Staff Development 480Data Processing Equipment 3,819

Total Personnel Office $ 212,252

County AttorneyCounty Official/Administrative Officer $ 150,325Paraprofessionals 25,981Secretary(ies) 46,836Social Security 12,262Pensions 15,090Life Insurance 92Medical Insurance 22,744Dental Insurance 1,029Disability Insurance 958Unemployment Compensation 207Employer Medicare 3,125Communication 2,405Dues and Memberships 1,544Legal Services 9,616Postal Charges 754Travel 1,246Other Contracted Services 5,500Office Supplies 3,383Other Supplies and Materials 190Premiums on Corporate Surety Bonds 150

Total County Attorney 303,437

Election CommissionCounty Official/Administrative Officer $ 80,061Deputy(ies) 119,995Part-time Personnel 9,964Other Salaries and Wages 9,542Election Commission 9,800

(Continued)

241

Exhibit L-8




Election Commission (Cont.)Election Workers $ 99,855Social Security 17,747Pensions 14,352Life Insurance 188Medical Insurance 10,536Dental Insurance 2,401Disability Insurance 1,316Unemployment Compensation 697Employer Medicare 4,151Communication 3,624Data Processing Services 4,124Dues and Memberships 1,184Legal Notices, Recording, and Court Costs 6,928Maintenance Agreements 17,550Postal Charges 6,265Printing, Stationery, and Forms 8,281Rentals 4,572Travel 5,498Other Contracted Services 4,182Office Supplies 4,302Other Supplies and Materials 717In Service/Staff Development 1,365Data Processing Equipment 1,287Furniture and Fixtures 3,600

Total Election Commission $ 454,084

Register of DeedsCounty Official/Administrative Officer $ 88,957Clerical Personnel 146,518Social Security 13,485Pensions 17,239Life Insurance 180Medical Insurance 51,420Dental Insurance 2,068Disability Insurance 994Unemployment Compensation 168Employer Medicare 3,154Dues and Memberships 962Maintenance and Repair Services - Office Equipment 36,706Postal Charges 1,720Printing, Stationery, and Forms 445Rentals 318Travel 4,349Data Processing Supplies 954Duplicating Supplies 499Office Supplies 638In Service/Staff Development 615

(Continued)

242

Exhibit L-8




Register of Deeds (Cont.)Data Processing Equipment $ 9,727Furniture and Fixtures 8,879

Total Register of Deeds $ 389,995

PlanningSupervisor/Director $ 3,398Part-time Personnel 24,722Other Salaries and Wages 78,926Social Security 6,142Pensions 5,006Life Insurance 78Medical Insurance 28,858Dental Insurance 1,177Disability Insurance 457Unemployment Compensation 239Employer Medicare 1,436Communication 5,614Data Processing Services 1,308Dues and Memberships 265Legal Notices, Recording, and Court Costs 779Maintenance Agreements 659Maintenance and Repair Services - Vehicles 3,500Postal Charges 478Printing, Stationery, and Forms 496Other Contracted Services 31,865Gasoline 2,992Office Supplies 531Other Supplies and Materials 2,951Vehicle and Equipment Insurance 3,000In Service/Staff Development 675

Total Planning 205,552

BuildingMaintenance and Repair Services - Buildings $ 30,697Maintenance and Repair Services - Equipment 613Other Supplies and Materials 2,489Building Improvements 3,626

Total Building 37,425

County BuildingsSupervisor/Director $ 45,251Clerical Personnel 1,937Custodial Personnel 139,836Maintenance Personnel 18,500Part-time Personnel 18,211Other Salaries and Wages 3,505Social Security 13,108

(Continued)

243

Exhibit L-8




County Buildings (Cont.)Pensions $ 14,239Life Insurance 267Medical Insurance 48,905Dental Insurance 2,593Disability Insurance 1,287Unemployment Compensation 543Employer Medicare 3,031Communication 766Janitorial Services 9,924Maintenance and Repair Services - Buildings 43,359Maintenance and Repair Services - Vehicles 129Pest Control 1,860Disposal Fees 4,054Other Contracted Services 86,353Custodial Supplies 32,705Electricity 250,280Gasoline 2,571Natural Gas 85,063Office Supplies 645Small Tools 288Uniforms 1,713Water and Sewer 40,336Other Supplies and Materials 13,655Building Improvements 10,057

Total County Buildings $ 894,971

Other General AdministrationAccounting Services $ 8,475Audit Services 28,549Contributions 10,915Legal Services 3,722Legal Notices, Recording, and Court Costs 151Remittance of Revenue Collected 10,998Other Contracted Services 85,433Other Supplies and Materials 5,028Judgments 400,000Workers' Compensation Insurance 284,006Other Charges 31,143

Total Other General Administration 868,420

Preservation of RecordsClerical Personnel $ 31,853Part-time Personnel 8,592Social Security 2,497Pensions 2,331Life Insurance 17Dental Insurance 589

(Continued)

244

Exhibit L-8




Preservation of Records (Cont.)Disability Insurance $ 215Unemployment Compensation 111Employer Medicare 584Other Supplies and Materials 146Other Capital Outlay 33,670

Total Preservation of Records $ 80,605

FinanceAccounting and Budgeting

County Official/Administrative Officer $ 95,586Accountants/Bookkeepers 316,935Part-time Personnel 14,000Social Security 23,769Pensions 28,676Life Insurance 313Medical Insurance 88,311Dental Insurance 3,736Disability Insurance 2,612Unemployment Compensation 560Employer Medicare 5,756Communication 1,151Dues and Memberships 1,742Legal Notices, Recording, and Court Costs 644Maintenance Agreements 37,006Postal Charges 4,296Printing, Stationery, and Forms 2,727Travel 2,488Other Contracted Services 646Duplicating Supplies 485Office Supplies 2,646In Service/Staff Development 1,609Data Processing Equipment 2,968Office Equipment 2,117

Total Accounting and Budgeting 640,779

PurchasingCounty Official/Administrative Officer $ 52,540Purchasing Personnel 87,027Social Security 7,898Pensions 10,199Life Insurance 156Medical Insurance 39,924Dental Insurance 1,396Disability Insurance 929Unemployment Compensation 224Employer Medicare 1,847Advertising 581

(Continued)

245

Exhibit L-8



General Fund (Cont.)Finance (Cont.)

Purchasing (Cont.)Dues and Memberships $ 125Postal Charges 1,545Printing, Stationery, and Forms 235Rentals 3,262Travel 12Other Contracted Services 4,557Gasoline 68Office Supplies 2,341Other Supplies and Materials 2,356Vehicle and Equipment Insurance 750In Service/Staff Development 1,200Data Processing Equipment 865

Total Purchasing $ 220,037

Property Assessor's OfficeCounty Official/Administrative Officer $ 88,957Deputy(ies) 121,220Social Security 12,357Pensions 15,383Life Insurance 156Medical Insurance 30,646Dental Insurance 1,494Disability Insurance 820Unemployment Compensation 168Employer Medicare 2,890Audit Services 24,379Communication 7,704Data Processing Services 12,657Dues and Memberships 2,110Operating Lease Payments 731Legal Services 12,029Maintenance Agreements 5,309Postal Charges 2,113Travel 1,834Other Contracted Services 315Office Supplies 6,973In Service/Staff Development 1,931Furniture and Fixtures 4,296

Total Property Assessor's Office 356,472

Reappraisal ProgramDeputy(ies) $ 148,278Part-time Personnel 3,726Social Security 8,632Pensions 9,963Life Insurance 179Medical Insurance 30,516

(Continued)

246

Exhibit L-8




Reappraisal Program (Cont.)Dental Insurance $ 1,494Disability Insurance 907Unemployment Compensation 320Employer Medicare 2,073Data Processing Services 9,222Maintenance and Repair Services - Vehicles 937Printing, Stationery, and Forms 306Gasoline 1,313Office Supplies 118Uniforms 595

Total Reappraisal Program $ 218,579

County Trustee's OfficeCounty Official/Administrative Officer $ 88,957Clerical Personnel 266,305Part-time Personnel 31,558Social Security 21,889Pensions 26,593Life Insurance 360Medical Insurance 97,834Dental Insurance 3,834Disability Insurance 1,818Unemployment Compensation 543Employer Medicare 5,119Communication 3,829Data Processing Services 7,419Dues and Memberships 792Legal Notices, Recording, and Court Costs 163Maintenance Agreements 24,599Postal Charges 10,593Printing, Stationery, and Forms 9,968Rentals 15,150Travel 1,860Other Contracted Services 5,875Office Supplies 4,188Utilities 3,574Water and Sewer 1,072Other Supplies and Materials 2,935In Service/Staff Development 325Data Processing Equipment 13,832Furniture and Fixtures 1,868

Total County Trustee's Office 652,852

County Clerk's OfficeCounty Official/Administrative Officer $ 88,957Clerical Personnel 410,760Part-time Personnel 33,733

(Continued)

247

Exhibit L-8




County Clerk's Office (Cont.)Social Security $ 31,842Pensions 32,498Life Insurance 590Medical Insurance 52,033Dental Insurance 5,493Disability Insurance 2,439Unemployment Compensation 1,017Employer Medicare 7,445Communication 6,960Data Processing Services 14,750Dues and Memberships 900Legal Notices, Recording, and Court Costs 42Maintenance and Repair Services - Buildings 435Postal Charges 30,611Printing, Stationery, and Forms 5,547Travel 1,918Other Contracted Services 7,578Data Processing Supplies 6,037Office Supplies 6,684In Service/Staff Development 743Data Processing Equipment 9,557

Total County Clerk's Office $ 758,569

Data ProcessingCounty Official/Administrative Officer $ 70,000Data Processing Personnel 42,436Clerical Personnel 4,758Part-time Personnel 20,000Social Security 8,155Pensions 8,175Life Insurance 95Medical Insurance 15,811Dental Insurance 1,234Disability Insurance 753Unemployment Compensation 242Employer Medicare 1,907Communication 35,386Maintenance and Repair Services - Vehicles 18Travel 500Other Contracted Services 13,057Gasoline 84Office Supplies 2,355Other Supplies and Materials 4,635In Service/Staff Development 457Data Processing Equipment 1,211Law Enforcement Equipment 2,500Motor Vehicles 27,652

Total Data Processing 261,421

(Continued)

248

Exhibit L-8



General Fund (Cont.)Administration of Justice

Circuit CourtCounty Official/Administrative Officer $ 88,957Clerical Personnel 664,704Part-time Personnel 10,365Overtime Pay 450Social Security 45,013Pensions 53,346Life Insurance 867Medical Insurance 112,963Dental Insurance 9,098Disability Insurance 4,355Unemployment Compensation 1,406Employer Medicare 10,421Communication 12,861Data Processing Services 29,059Dues and Memberships 782Legal Notices, Recording, and Court Costs 185Maintenance Agreements 10,671Maintenance and Repair Services - Office Equipment 1,683Postal Charges 9,574Printing, Stationery, and Forms 7,054Travel 1,294Other Contracted Services 14,523Data Processing Supplies 986Duplicating Supplies 3,449Office Supplies 7,415Other Supplies and Materials 4,018In Service/Staff Development 360Other Charges 2,386Data Processing Equipment 5,946Furniture and Fixtures 869Other Capital Outlay 44,394

Total Circuit Court $ 1,159,454

Criminal CourtPostal Charges $ 47Office Supplies 532

Total Criminal Court 579

General Sessions JudgeJudge(s) $ 334,054Assistant(s) 89,200Other Salaries and Wages 24,207Social Security 22,546Pensions 32,153Life Insurance 153Medical Insurance 45,028Dental Insurance 2,321

(Continued)

249

Exhibit L-8



General Fund (Cont.)Administration of Justice (Cont.)

General Sessions Judge (Cont.)Disability Insurance $ 690Unemployment Compensation 212Employer Medicare 6,222Dues and Memberships 2,304Maintenance and Repair Services - Office Equipment 210Printing, Stationery, and Forms 391Travel 1,603Office Supplies 896In Service/Staff Development 819

Total General Sessions Judge $ 563,009

Drug CourtCounty Official/Administrative Officer $ 37,430Social Security 2,044Pensions 2,739Life Insurance 45Medical Insurance 13,368Dental Insurance 589Disability Insurance 248Unemployment Compensation 56Employer Medicare 478Contributions 1,622Dues and Memberships 200Travel 2,405Office Supplies 1,369Other Supplies and Materials 13,719Workers' Compensation Insurance 275Data Processing Equipment 299

Total Drug Court 76,886

Chancery CourtCounty Official/Administrative Officer $ 88,957Clerical Personnel 229,567Part-time Personnel 16,858Social Security 19,463Pensions 23,318Life Insurance 238Medical Insurance 62,696Dental Insurance 2,976Disability Insurance 2,156Unemployment Compensation 510Employer Medicare 4,552Communication 2,000Dues and Memberships 822Maintenance Agreements 3,393Maintenance and Repair Services - Office Equipment 15,662Postal Charges 6,750

(Continued)

250

Exhibit L-8




Chancery Court (Cont.)Printing, Stationery, and Forms $ 770Data Processing Supplies 250Duplicating Supplies 2,710Office Supplies 2,980Other Supplies and Materials 2,746Premiums on Corporate Surety Bonds 281Data Processing Equipment 10,352

Total Chancery Court $ 500,007

Juvenile CourtJudge(s) $ 167,027Other Salaries and Wages 239,679Social Security 22,287Pensions 28,434Life Insurance 275Medical Insurance 29,998Dental Insurance 3,003Disability Insurance 1,240Unemployment Compensation 448Employer Medicare 5,736Communication 201Contracts with Government Agencies 7,860Dues and Memberships 315Evaluation and Testing 2,278Maintenance and Repair Services - Vehicles 500Postal Charges 2,279Rentals 997Travel 751Gasoline 349Office Supplies 2,000Other Supplies and Materials 3,979Vehicle and Equipment Insurance 750In Service/Staff Development 760

Total Juvenile Court 521,146

District Attorney GeneralSupervisor/Director $ 29,718Other Salaries and Wages 28,811Social Security 3,240Pensions 3,052Life Insurance 70Medical Insurance 17,774Dental Insurance 816Disability Insurance 329Unemployment Compensation 168Employer Medicare 758Travel 3,445Other Supplies and Materials 2,658

Total District Attorney General 90,839

(Continued)

251

Exhibit L-8




Office of Public DefenderPart-time Personnel $ 29,966Social Security 1,840Unemployment Compensation 142Employer Medicare 430

Total Office of Public Defender $ 32,378

Judicial CommissionersOffice Supplies $ 1,366Furniture and Fixtures 1,265

Total Judicial Commissioners 2,631

Probate CourtOffice Supplies $ 2,584Other Supplies and Materials 689

Total Probate Court 3,273

Other Administration of JusticeSupervisor/Director $ 40,172Probation Officer(s) 31,860Social Security 4,225Pensions 5,266Life Insurance 78Medical Insurance 15,124Dental Insurance 891Disability Insurance 492Unemployment Compensation 112Employer Medicare 977Travel 202Other Contracted Services 5,999Office Supplies 1,551Other Supplies and Materials 190Data Processing Equipment 964

Total Other Administration of Justice 108,103

Courtroom SecurityOther Contracted Services $ 4,206Law Enforcement Supplies 7,981Other Supplies and Materials 1,023Other Construction 1,346

Total Courtroom Security 14,556

Victim Assistance ProgramsRemittance of Revenue Collected $ 25,671

Total Victim Assistance Programs 25,671

(Continued)

252

Exhibit L-8



General Fund (Cont.)Public Safety

Sheriff's DepartmentCounty Official/Administrative Officer $ 98,453Supervisor/Director 82,638Deputy(ies) 2,215,830Secretary(ies) 46,346Clerical Personnel 58,110School Resource Officer 409,283Overtime Pay 106,976Other Salaries and Wages 466,184Social Security 199,864Pensions 244,807Life Insurance 3,152Medical Insurance 704,420Dental Insurance 33,690Disability Insurance 18,463Unemployment Compensation 4,959Employer Medicare 46,719Communication 52,004Contracts with Government Agencies 8,314Contracts with Private Agencies 20,923Data Processing Services 210,750Dues and Memberships 2,500Maintenance and Repair Services - Equipment 27,854Maintenance and Repair Services - Vehicles 16,021Medical and Dental Services 4,225Postal Charges 17,356Printing, Stationery, and Forms 1,634Rentals 2,231Towing Services 7,169Travel 7,428Gasoline 156,577Law Enforcement Supplies 11,900Office Supplies 7,202Tires and Tubes 24,907Uniforms 37,995Utilities 4,036Other Supplies and Materials 485Liability Insurance 59,600Vehicle and Equipment Insurance 55,000In Service/Staff Development 6,808Communication Equipment 29,437Data Processing Equipment 44,876Law Enforcement Equipment 17,853Motor Vehicles 64,394

Total Sheriff's Department $ 5,639,373

JailGuards $ 2,871,685

(Continued)

253

Exhibit L-8



General Fund (Cont.)Public Safety (Cont.)

Jail (Cont.)Clerical Personnel $ 47,369Overtime Pay 67,638Other Salaries and Wages 14,269Social Security 174,315Pensions 197,911Life Insurance 3,071Medical Insurance 603,221Dental Insurance 30,014Disability Insurance 15,289Unemployment Compensation 5,764Employer Medicare 40,590Communication 29,829Contracts with Government Agencies 680Contracts with Private Agencies 1,316Maintenance and Repair Services - Buildings 44,830Medical and Dental Services 5,671Pest Control 480Travel 6,309Disposal Fees 6,204Other Contracted Services 862,836Custodial Supplies 72,048Duplicating Supplies 1,797Electricity 219,962Food Preparation Supplies 1,413Gasoline 22,570Law Enforcement Supplies 4,168Natural Gas 73,425Office Supplies 10,973Prisoners Clothing 9,192Uniforms 32,363Water and Sewer 138,813Other Supplies and Materials 27,790Building and Contents Insurance 26,000Liability Insurance 39,374Medical Claims 835,849Vehicle and Equipment Insurance 8,805In Service/Staff Development 1,425Other Charges 1,800Communication Equipment 5,974Data Processing Equipment 11,935Law Enforcement Equipment 7,490

Total Jail $ 6,582,457

Correctional Incentive Program ImprovementsSupervisor/Director $ 51,596Social Security 3,086Pensions 3,773

(Continued)

254

Exhibit L-8




Correctional Incentive Program Improvements (Cont.)Life Insurance $ 33Medical Insurance 5,268Disability Insurance 334Unemployment Compensation 56Employer Medicare 722Communication 148Other Contracted Services 6,651Other Supplies and Materials 10,384

Total Correctional Incentive Program Improvements $ 82,051

CommissaryOther Supplies and Materials $ 1,177Maintenance Equipment 9,023Other Capital Outlay 7,020

Total Commissary 17,220

Civil DefenseCounty Official/Administrative Officer $ 32,464Assistant(s) 42,241Part-time Personnel 14,838Overtime Pay 2,525Social Security 5,633Pensions 3,235Life Insurance 45Medical Insurance 5,268Dental Insurance 302Disability Insurance 269Unemployment Compensation 240Employer Medicare 1,318Communication 9,768Contracts with Government Agencies 2,000Contributions 394,030Maintenance and Repair Services - Equipment 3,174Maintenance and Repair Services - Vehicles 13,564Rentals 4,100Travel 1,151Gasoline 8,534Office Supplies 2,091Tires and Tubes 4,799Uniforms 4,108Utilities 835Other Supplies and Materials 59,316Building and Contents Insurance 2,000Vehicle and Equipment Insurance 6,500In Service/Staff Development 1,068Other Charges 20,927Communication Equipment 1,396

Total Civil Defense 647,739

(Continued)

255

Exhibit L-8




Rescue SquadContributions $ 27,500

Total Rescue Squad $ 27,500

Other Emergency ManagementDispatchers/Radio Operators $ 433,340Overtime Pay 52,266Social Security 33,251Pensions 38,556Life Insurance 560Medical Insurance 132,062Dental Insurance 6,591Disability Insurance 2,893Unemployment Compensation 1,121Employer Medicare 7,776Communication 785Contracts with Government Agencies 2,240Contracts with Private Agencies 3,300Medical and Dental Services 305Travel 1,138Office Supplies 983Uniforms 4,781Other Supplies and Materials 15In Service/Staff Development 80

Total Other Emergency Management 722,043

County Coroner/Medical ExaminerOther Contracted Services $ 385,804

Total County Coroner/Medical Examiner 385,804

Other Public SafetyMechanic(s) $ 158,142Clerical Personnel 3,265Other Salaries and Wages 25,800Social Security 10,692Pensions 12,289Life Insurance 231Medical Insurance 44,977Dental Insurance 2,221Disability Insurance 1,105Unemployment Compensation 339Employer Medicare 2,501Communication 3,554Dues and Memberships 3,164Maintenance and Repair Services - Vehicles 1,246Rentals 11,700Towing Services 3,915Travel 215

(Continued)

256

Exhibit L-8




Other Public Safety (Cont.)Other Contracted Services $ 15,341Garage Supplies 15,694Gasoline 3,022Lubricants 1,032Office Supplies 925Small Tools 2,352Tires and Tubes 519Uniforms 4,418Utilities 12,846Other Supplies and Materials 519Vehicle and Equipment Insurance 1,443In Service/Staff Development 767Other Equipment 11,032

Total Other Public Safety $ 355,266

Public Health and WelfareLocal Health Center

Medical Personnel $ 14,716Clerical Personnel 44,744Other Salaries and Wages 25,921Social Security 4,898Pensions 4,805Life Insurance 118Medical Insurance 22,754Dental Insurance 1,098Disability Insurance 435Unemployment Compensation 251Employer Medicare 1,145Communication 5,269Dues and Memberships 472Laundry Service 5,172Maintenance and Repair Services - Buildings 1,955Maintenance and Repair Services - Equipment 363Postal Charges 2,500Printing, Stationery, and Forms 1,000Rentals 756Travel 62Disposal Fees 676Other Contracted Services 919Drugs and Medical Supplies 1,432Electricity 28,789Natural Gas 126Office Supplies 8,573Uniforms 392Other Supplies and Materials 9,970Building and Contents Insurance 2,400Liability Insurance 1,000

(Continued)

257

Exhibit L-8



General Fund (Cont.)Public Health and Welfare (Cont.)

Local Health Center (Cont.)In Service/Staff Development $ 280Other Charges 2,122Building Improvements 7,406Furniture and Fixtures 2,962Other Equipment 295

Total Local Health Center $ 205,776

Rabies and Animal ControlPart-time Personnel $ 24,550Other Salaries and Wages 72,233Social Security 5,802Pensions 4,720Life Insurance 60Medical Insurance 10,214Dental Insurance 551Disability Insurance 314Unemployment Compensation 280Employer Medicare 1,357Communication 568Data Processing Services 675Licenses 976Maintenance and Repair Services - Vehicles 3,000Printing, Stationery, and Forms 473Other Contracted Services 54,021Animal Food and Supplies 1,121Gasoline 8,056Tires and Tubes 139Uniforms 1,136Other Supplies and Materials 3,115Vehicle and Equipment Insurance 1,500Building Purchases 19,725

Total Rabies and Animal Control 214,586

Dental Health ProgramMedical Personnel $ 143,445Social Security 7,979Pensions 5,105Life Insurance 124Medical Insurance 40,223Dental Insurance 1,619Disability Insurance 496Unemployment Compensation 340Employer Medicare 1,866Communication 2,459Maintenance and Repair Services - Equipment 3,698Postal Charges 1,592Printing, Stationery, and Forms 380

(Continued)

258

Exhibit L-8



General Fund (Cont.)Public Health and Welfare (Cont.)

Dental Health Program (Cont.)Travel $ 789Disposal Fees 80Other Contracted Services 5,000Gasoline 93Office Supplies 1,328Other Supplies and Materials 20,006Liability Insurance 2,500Other Charges 5,198Health Equipment 1,548

Total Dental Health Program $ 245,868

Other Local Health ServicesMedical Personnel $ 152,423Clerical Personnel 51,728Social Security 11,194Pensions 13,416Life Insurance 266Medical Insurance 76,233Dental Insurance 3,152Disability Insurance 1,193Unemployment Compensation 446Employer Medicare 2,593Travel 6,580Liability Insurance 3,500Workers' Compensation Insurance 3,000Other Charges 7,500

Total Other Local Health Services 333,224

Appropriation to StateContracts with Other Public Agencies $ 122,120

Total Appropriation to State 122,120

Social, Cultural, and Recreational ServicesSenior Citizens Assistance

Part-time Personnel $ 7,540Other Salaries and Wages 45,000Social Security 3,163Pensions 3,294Life Insurance 45Medical Insurance 6,358Dental Insurance 302Disability Insurance 305Unemployment Compensation 112Employer Medicare 740Communication 3,297Licenses 1,350Rentals 18,000

(Continued)

259

Exhibit L-8



General Fund (Cont.)Social, Cultural, and Recreational Services (Cont.)

Senior Citizens Assistance (Cont.)Travel $ 1,371Disposal Fees 216Other Contracted Services 1,083Custodial Supplies 4,627Electricity 6,202Gasoline 200Natural Gas 359Office Supplies 734Water and Sewer 682Other Supplies and Materials 524

Total Senior Citizens Assistance $ 105,504

Parks and Fair BoardsContributions $ 3,000

Total Parks and Fair Boards 3,000

Other Social, Cultural, and RecreationalContributions $ 22,650

Total Other Social, Cultural, and Recreational 22,650

Agriculture and Natural ResourcesAgricultural Extension Service

Dues and Memberships $ 420Postal Charges 316Travel 1,999Other Contracted Services 160,181Office Supplies 393Other Supplies and Materials 2,333In Service/Staff Development 709Data Processing Equipment 347

Total Agricultural Extension Service 166,698

Soil ConservationSecretary(ies) $ 35,790Social Security 1,976Pensions 2,619Life Insurance 45Medical Insurance 13,872Dental Insurance 589Disability Insurance 242Unemployment Compensation 56Employer Medicare 462Dues and Memberships 290

Total Soil Conservation 55,941

Storm Water ManagementMaintenance Agreements $ 3,460

(Continued)

260

Exhibit L-8



General Fund (Cont.)Agriculture and Natural Resources (Cont.)

Storm Water Management (Cont.)Other Contracted Services $ 17,106In Service/Staff Development 300

Total Storm Water Management $ 20,866

Other OperationsIndustrial Development

Contributions $ 174,302Total Industrial Development 174,302

Veterans' ServicesCounty Official/Administrative Officer $ 52,733Assistant(s) 6,754Part-time Personnel 9,070Social Security 4,199Pensions 4,351Life Insurance 64Medical Insurance 2,195Dental Insurance 715Disability Insurance 435Unemployment Compensation 127Employer Medicare 982Advertising 195Communication 369Maintenance Agreements 449Postal Charges 543Printing, Stationery, and Forms 400Rentals 499Travel 2,413Other Contracted Services 3,625Office Supplies 1,382

Total Veterans' Services 91,500

Other ChargesContributions $ 11,000Postal Charges 3,121Building and Contents Insurance 5,100Liability Insurance 118,000Trustee's Commission 326,198

Total Other Charges 463,419

Contributions to Other AgenciesContributions $ 35,050

Total Contributions to Other Agencies 35,050

MiscellaneousCommunication $ 94,699Dues and Memberships 12,073Other Contracted Services 9,900

Total Miscellaneous 116,672

(Continued)

261

Exhibit L-8



General Fund (Cont.)Capital Projects

Public Safety ProjectsEngineering Services $ 9,800

Total Public Safety Projects $ 9,800

Public Utility ProjectsContracts with Government Agencies $ 20,500Engineering Services 7,950Other Construction 237,546

Total Public Utility Projects 265,996

Total General Fund $ 27,551,518

Public Library FundSocial, Cultural, and Recreational Services

LibrariesLibrarians $ 219,080Part-time Personnel 129,553Social Security 20,539Pensions 15,589Life Insurance 296Medical Insurance 53,328Dental Insurance 3,598Disability Insurance 1,494Unemployment Compensation 1,125Employer Medicare 4,804Communication 17,859Data Processing Services 4,782Dues and Memberships 335Maintenance Agreements 2,848Maintenance and Repair Services - Buildings 15,763Maintenance and Repair Services - Equipment 49Pest Control 240Postal Charges 588Travel 2,696Other Contracted Services 1,250Custodial Supplies 1,685Library Books/Media 47,769Office Supplies 4,942Periodicals 2,932Utilities 25,499Other Supplies and Materials 13,706Trustee's Commission 9,542Workers' Compensation Insurance 707In Service/Staff Development 455Other Charges 600Data Processing Equipment 9,673Furniture and Fixtures 6,704Other Equipment 449

Total Libraries $ 620,479

Total Public Library Fund 620,479

(Continued)

262

Exhibit L-8



Solid Waste/Sanitation FundPublic Health and Welfare

Sanitation ManagementCounty Official/Administrative Officer $ 3,398Supervisor/Director 40,856Laborers 25,937Social Security 3,890Pensions 4,922Life Insurance 90Medical Insurance 20,988Dental Insurance 909Disability Insurance 478Unemployment Compensation 124Employer Medicare 910Advertising 1,324Communication 1,103Maintenance and Repair Services - Vehicles 3,000Other Contracted Services 196Gasoline 2,124Tires and Tubes 191Uniforms 321Other Supplies and Materials 40Trustee's Commission 26,814Vehicle and Equipment Insurance 1,500Workers' Compensation Insurance 2,492

Total Sanitation Management $ 141,607

Convenience CentersRentals $ 11,040Other Contracted Services 737,244Crushed Stone 808Electricity 6,118General Construction Materials 265Water and Sewer 1,656Fencing 6,500Other Supplies and Materials 1,387Solid Waste Equipment 2,508

Total Convenience Centers 767,526

Other Waste CollectionSupervisor/Director $ 2,574Deputy(ies) 31,889Social Security 1,855Pensions 2,526Life Insurance 48Medical Insurance 13,540Dental Insurance 277Disability Insurance 234Unemployment Compensation 58Employer Medicare 434

(Continued)

263

Exhibit L-8



Solid Waste/Sanitation Fund (Cont.)Public Health and Welfare (Cont.)

Other Waste Collection (Cont.)Communication $ 374Maintenance and Repair Services - Vehicles 2,000Travel 26Other Contracted Services 15,000Gasoline 3,008Instructional Supplies and Materials 10,366Uniforms 272Other Supplies and Materials 1,610Vehicle and Equipment Insurance 1,700

Total Other Waste Collection $ 87,791

Recycling CenterContracts with Private Agencies $ 4,979

Total Recycling Center 4,979

Landfill Operation and MaintenanceContracts with Private Agencies $ 725,186Contributions 6,146

Total Landfill Operation and Maintenance 731,332

Other Waste DisposalContracts with Private Agencies $ 73,140

Total Other Waste Disposal 73,140

Total Solid Waste/Sanitation Fund $ 1,806,375

Ambulance Service FundPublic Health and Welfare

Ambulance/Emergency Medical ServicesSupervisor/Director $ 71,053Accountants/Bookkeepers 123,262Medical Personnel 1,637,596Part-time Personnel 99,545Overtime Pay 899,487Social Security 165,892Pensions 175,804Life Insurance 2,239Medical Insurance 396,598Dental Insurance 22,544Disability Insurance 9,713Unemployment Compensation 4,507Employer Medicare 38,742Communication 30,736Contracts with Government Agencies 146,567Data Processing Services 2,773Dues and Memberships 865Laundry Service 46,381

(Continued)

264

Exhibit L-8



Ambulance Service Fund (Cont.)Public Health and Welfare (Cont.)

Ambulance/Emergency Medical Services (Cont.)Maintenance and Repair Services - Buildings $ 14,929Maintenance and Repair Services - Equipment 8,156Maintenance and Repair Services - Vehicles 105,411Pest Control 1,260Postal Charges 352Printing, Stationery, and Forms 800Rentals 18,000Travel 8,778Disposal Fees 1,351Other Contracted Services 378,291Custodial Supplies 9,423Drugs and Medical Supplies 212,645Duplicating Supplies 515Gasoline 124,347Natural Gas 5,830Office Supplies 2,449Tires and Tubes 17,725Uniforms 29,999Utilities 32,263Vehicle Parts 33,999Other Supplies and Materials 11,121Building and Contents Insurance 5,000Liability Insurance 22,612Trustee's Commission 56,192Vehicle and Equipment Insurance 13,396Workers' Compensation Insurance 180,000In Service/Staff Development 12,457Communication Equipment 4,925Data Processing Equipment 3,938Furniture and Fixtures 5,644Motor Vehicles 24,600Other Equipment 82,674

Total Ambulance/Emergency Medical Services $ 5,303,386

Principal on DebtGeneral Government

Principal on Notes $ 32,000Total General Government 32,000

Interest on DebtGeneral Government

Interest on Notes $ 2,970Total General Government 2,970

Total Ambulance Service Fund $ 5,338,356

(Continued)

265

Exhibit L-8



Drug Control FundPublic Safety

Drug EnforcementCommunication $ 8,332Contracts with Private Agencies 978Dues and Memberships 500Towing Services 960Travel 1,111Veterinary Services 3,411Animal Food and Supplies 4,071Gasoline 2,006Law Enforcement Supplies 1,956Office Supplies 373Uniforms 1,961Other Supplies and Materials 458Trustee's Commission 354Vehicle and Equipment Insurance 3,000In Service/Staff Development 5,315Other Charges 825Motor Vehicles 101,973Other Capital Outlay 45,294

Total Drug Enforcement $ 182,878

Total Drug Control Fund $ 182,878

Other General Government Special Revenue FundSocial, Cultural, and Recreational Services

Other Social, Cultural, and RecreationalAudiovisual Personnel $ 43,332Part-time Personnel 24,142Other Salaries and Wages 4,139Social Security 4,110Pensions 3,172Life Insurance 32Medical Insurance 15,508Dental Insurance 589Disability Insurance 294Unemployment Compensation 281Employer Medicare 961Communication 545Other Contracted Services 23,168Gasoline 147Other Supplies and Materials 11,497Trustee's Commission 1,512Workers' Compensation Insurance 132Data Processing Equipment 47,784

Total Other Social, Cultural, and Recreational $ 181,345

Total Other General Government Special Revenue Fund 181,345

(Continued)

266

Exhibit L-8



Other Special Revenue FundOther Operations

TourismSupervisor/Director $ 56,184Clerical Personnel 54,513Social Security 6,535Pensions 6,658Life Insurance 90Medical Insurance 15,720Dental Insurance 589Disability Insurance 578Unemployment Compensation 234Employer Medicare 1,529Advertising 138,502Communication 3,499Contributions 39,218Dues and Memberships 1,850Maintenance and Repair Services - Buildings 1,692Maintenance and Repair Services - Vehicles 274Postal Charges 1,434Printing, Stationery, and Forms 866Rentals 1,219Travel 2,559Other Contracted Services 420Gasoline 667Office Supplies 1,630Uniforms 500Utilities 3,320Other Supplies and Materials 119Building and Contents Insurance 750Liability Insurance 911Trustee's Commission 3,944Workers' Compensation Insurance 259In Service/Staff Development 613Other Charges 385Data Processing Equipment 329Furniture and Fixtures 1,397

Total Tourism $ 348,987

Total Other Special Revenue Fund $ 348,987

Constitutional Officers - Fees FundFinance

County Trustee's OfficeConstitutional Officers' Operating Expenses $ 601

Total County Trustee's Office $ 601

Administration of JusticeCircuit Court

Constitutional Officers' Operating Expenses $ 2,266Total Circuit Court 2,266

(Continued)

267

Exhibit L-8



Constitutional Officers - Fees Fund (Cont.)Administration of Justice (Cont.)

Chancery CourtSpecial Commissioner Fees/Special Master Fees $ 5,722

Total Chancery Court $ 5,722

Total Constitutional Officers - Fees Fund $ 8,589

Highway/Public Works FundHighways

AdministrationCounty Official/Administrative Officer $ 97,853Clerical Personnel 62,616Social Security 9,379Pensions 10,246Life Insurance 66Medical Insurance 18,636Dental Insurance 891Disability Insurance 285Unemployment Compensation 59Employer Medicare 2,241Dues and Memberships 4,319Licenses 1,874Maintenance and Repair Services - Equipment 1,087Pest Control 240Postal Charges 105Disposal Fees 338Other Contracted Services 1,054Office Supplies 2,502Data Processing Equipment 24Office Equipment 1,166

Total Administration $ 214,981

Highway and Bridge MaintenanceForemen $ 27,554Equipment Operators 127,755Truck Drivers 105,524Laborers 405,238Overtime Pay 79,219Social Security 42,267Pensions 48,960Life Insurance 827Medical Insurance 156,286Dental Insurance 8,783Disability Insurance 3,885Unemployment Compensation 560Employer Medicare 10,032Contracts with Private Agencies 1,305Rentals 1,127Other Contracted Services 50,027

(Continued)

268

Exhibit L-8



Highway/Public Works Fund (Cont.)Highways (Cont.)

Highway and Bridge Maintenance (Cont.)Asphalt $ 1,603,006Crushed Stone 172,454Custodial Supplies 4,147Other Road Materials 12,812Pipe - Metal 66,680Road Signs 4,326Uniforms 5,133Other Supplies and Materials 1,314

Total Highway and Bridge Maintenance $ 2,939,221

Operation and Maintenance of EquipmentMechanic(s) $ 33,870Nightwatchmen 39,190Overtime Pay 11,675Social Security 4,781Pensions 6,246Life Insurance 63Medical Insurance 24,939Dental Insurance 1,117Disability Insurance 526Unemployment Compensation 51Employer Medicare 1,118Maintenance and Repair Services - Equipment 9,572Other Contracted Services 2,949Equipment and Machinery Parts 129,013Garage Supplies 152Gasoline 260,863Lubricants 7,497Tires and Tubes 26,785Other Supplies and Materials 25,159Other Charges 1,406

Total Operation and Maintenance of Equipment 586,972

Other ChargesCommunication $ 2,809Electricity 10,209Natural Gas 6,719Water and Sewer 511Building and Contents Insurance 1,000Liability Insurance 58,600Trustee's Commission 43,215Vehicle and Equipment Insurance 50,000Workers' Compensation Insurance 76,944

Total Other Charges 250,007

Capital OutlayEngineering Services $ 5,600

(Continued)

269

Exhibit L-8



Highway/Public Works Fund (Cont.)Highways (Cont.)

Capital Outlay (Cont.)Highway Construction $ 111,427Highway Equipment 148,371

Total Capital Outlay $ 265,398

Total Highway/Public Works Fund $ 4,256,579

General Debt Service FundPrincipal on Debt

General GovernmentPrincipal on Bonds $ 575,000Principal on Notes 103,000Principal on Capital Leases 108,676Principal on Other Loans 385,019

Total General Government $ 1,171,695

Interest on DebtGeneral Government

Interest on Bonds $ 543,515Interest on Notes 30,550Interest on Capital Leases 1,160Interest on Other Loans 32,999

Total General Government 608,224

Other Debt ServiceGeneral Government

Fiscal Agent Charges $ 14,135Trustee's Commission 3,435

Total General Government 17,570

Total General Debt Service Fund 1,797,489

Rural Debt Service FundPrincipal on Debt

EducationPrincipal on Bonds $ 660,000Principal on Notes 84,240Principal on Capital Leases 101,616Principal on Other Loans 200,000

Total Education $ 1,045,856

Interest on DebtEducation

Interest on Bonds $ 408,966Interest on Capital Leases 22,898Interest on Other Loans 104,775

Total Education 536,639

(Continued)

270

Exhibit L-8



Rural Debt Service Fund (Cont.)Other Debt Service

EducationFiscal Agent Charges $ 1,706Trustee's Commission 3,902

Total Education $ 5,608

Total Rural Debt Service Fund $ 1,588,103

Education Debt Service FundPrincipal on Debt

EducationPrincipal on Bonds $ 745,000Principal on Notes 420,000Principal on Other Loans 225,000

Total Education $ 1,390,000

Interest on DebtEducation

Interest on Bonds $ 533,664Interest on Notes 3,672Interest on Other Loans 119,212


Other Debt ServiceEducation

Fiscal Agent Charges $ 1,207Trustee's Commission 32,189


Total Education Debt Service Fund 2,079,944

General Capital Projects FundOther Operations

Contributions to Other AgenciesContributions $ 25,000

Total Contributions to Other Agencies $ 25,000


Underwriter's Discount $ 73,065Other Debt Issuance Charges 119,000


Capital ProjectsGeneral Administration Projects

Trustee's Commission $ 27,510Building Improvements 115,435Communication Equipment 7,743Motor Vehicles 29,197

Total General Administration Projects 179,885

(Continued)

271

Exhibit L-8



General Capital Projects Fund (Cont.)Capital Projects (Cont.)

Administration of Justice ProjectsBuilding Improvements $ 931

Total Administration of Justice Projects $ 931

Public Safety ProjectsMotor Vehicles $ 399,428

Total Public Safety Projects 399,428

Public Health and Welfare ProjectsMotor Vehicles $ 25,456Other Equipment 799,524

Total Public Health and Welfare Projects 824,980

Education Capital ProjectsContributions $ 11,275,996

Total Education Capital Projects 11,275,996

Total General Capital Projects Fund $ 12,898,285

Total Governmental Funds - Primary Government $ 58,658,927

272

Exhibit L-9


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

General Purpose School FundInstruction

Regular Instruction ProgramTeachers $ 16,759,601Career Ladder Program 58,914Homebound Teachers 63,909Educational Assistants 712,251Bonus Payments 237,459Certified Substitute Teachers 52,049Non-certified Substitute Teachers 135,416Social Security 1,047,553Pensions 1,635,983Life Insurance 19,909Medical Insurance 1,691,280Unemployment Compensation 7,800Employer Medicare 246,842Payments to Retirees 102,280Other Contracted Services 49,288Instructional Supplies and Materials 698,793Textbooks - Bound 436,150Other Supplies and Materials 29,792Refund to Applicant for Criminal Investigation 6,437Other Charges 54,022Regular Instruction Equipment 440,261

Total Regular Instruction Program $ 24,485,989

Special Education ProgramTeachers $ 3,157,538Career Ladder Program 14,000Homebound Teachers 38,766Educational Assistants 927,029Certified Substitute Teachers 4,000Non-certified Substitute Teachers 11,180Social Security 233,618Pensions 389,156Life Insurance 6,472Medical Insurance 486,359Unemployment Compensation 2,767Employer Medicare 55,507Payments to Retirees 2,125Other Contracted Services 47,861Instructional Supplies and Materials 59,084Other Supplies and Materials 6,926Special Education Equipment 74,259

Total Special Education Program 5,516,647

Career and Technical Education ProgramTeachers $ 2,182,983Career Ladder Program 8,000

(Continued)

273

Exhibit L-9



General Purpose School Fund (Cont.)Instruction (Cont.)

Career and Technical Education Program (Cont.)Clerical Personnel $ 92,779Other Salaries and Wages 6,159Certified Substitute Teachers 8,320Non-certified Substitute Teachers 29,245Social Security 131,191Pensions 226,718Life Insurance 2,410Medical Insurance 247,847Unemployment Compensation 860Employer Medicare 31,049Payments to Retirees 3,890Maintenance and Repair Services - Equipment 20,046Instructional Supplies and Materials 91,278Other Supplies and Materials 3,452Vocational Instruction Equipment 55,520

Total Career and Technical Education Program $ 3,141,747

Student Body Education ProgramTeachers $ 60,924Social Security 3,601Pensions 6,373Life Insurance 50Medical Insurance 5,345Unemployment Compensation 19Employer Medicare 842Instructional Supplies and Materials 16,720Other Charges 1,098

Total Student Body Education Program 94,972

Support ServicesAttendance

Supervisor/Director $ 87,924Career Ladder Program 1,000Clerical Personnel 27,643Other Salaries and Wages 131,769Social Security 13,661Pensions 23,202Life Insurance 250Medical Insurance 29,611Unemployment Compensation 197Employer Medicare 3,195Travel 1,936Other Supplies and Materials 435Other Equipment 846

Total Attendance 321,669

(Continued)

274

Exhibit L-9



General Purpose School Fund (Cont.)Support Services (Cont.)

Health ServicesSupervisor/Director $ 76,049Medical Personnel 444,470Other Salaries and Wages 8,634Social Security 29,321Pensions 47,487Life Insurance 651Medical Insurance 59,932Unemployment Compensation 244Employer Medicare 6,863Communication 737Postal Charges 100Printing, Stationery, and Forms 500Travel 14,364Drugs and Medical Supplies 18,311Other Supplies and Materials 64,521In Service/Staff Development 3,729Other Equipment 2,027

Total Health Services $ 777,940

Other Student SupportCareer Ladder Program $ 1,000Guidance Personnel 970,433Social Security 54,867Pensions 99,787Life Insurance 897Medical Insurance 125,399Unemployment Compensation 449Employer Medicare 12,832Communication 384Printing, Stationery, and Forms 868Travel 3,640Other Supplies and Materials 7,478In Service/Staff Development 175Other Charges 1,502

Total Other Student Support 1,279,711

Regular Instruction ProgramSupervisor/Director $ 187,673Career Ladder Program 5,500Librarians 513,871Secretary(ies) 31,919Other Salaries and Wages 112,893Social Security 47,984Pensions 83,596Life Insurance 813Medical Insurance 91,121

(Continued)

275

Exhibit L-9




Regular Instruction Program (Cont.)Unemployment Compensation $ 613Employer Medicare 11,404Payments to Retirees 3,704Travel 3,129Library Books/Media 32,515Other Supplies and Materials 37,917In Service/Staff Development 15,610


Special Education ProgramSupervisor/Director $ 83,044Psychological Personnel 161,061Clerical Personnel 74,753Speech Pathologist 495,296Other Salaries and Wages 480,220Social Security 73,334Pensions 121,967Life Insurance 1,293Medical Insurance 144,459Unemployment Compensation 386Employer Medicare 17,263Payments to Retirees 8,565Consultants 885Travel 419Other Contracted Services 105,748Other Supplies and Materials 12,205In Service/Staff Development 5,014

Total Special Education Program 1,785,912

Career and Technical Education ProgramSupervisor/Director $ 90,980Other Salaries and Wages 59,123Social Security 8,979Pensions 13,835Life Insurance 158Medical Insurance 17,000Unemployment Compensation 87Employer Medicare 2,100Payments to Retirees 746Travel 38,448In Service/Staff Development 2,704

Total Career and Technical Education Program 234,160

TechnologySupervisor/Director $ 54,082Secretary(ies) 45,450

(Continued)

276

Exhibit L-9




Technology (Cont.)Other Salaries and Wages $ 444,500Social Security 31,407Pensions 43,870Life Insurance 480Medical Insurance 62,569Unemployment Compensation 133Employer Medicare 7,537Payments to Retirees 13,225Dues and Memberships 30Internet Connectivity 154,355Travel 4,258Other Contracted Services 219,781Other Supplies and Materials 118,480In Service/Staff Development 725Administration Equipment 9,606Data Processing Equipment 43,758

Total Technology $ 1,254,246

Other ProgramsOn-behalf Payments to OPEB $ 184,328

Total Other Programs 184,328

Board of EducationSecretary to Board $ 6,000Board and Committee Members Fees 57,500Social Security 2,164Pensions 1,530Life Insurance 400Unemployment Compensation 3,570Employer Medicare 715Advertising 1,008Audit Services 25,900Consultants 4,250Contributions 25,000Dues and Memberships 13,859Legal Services 16,360Travel 15,571Liability Insurance 156,481Trustee's Commission 469,341Workers' Compensation Insurance 286,918Other Charges 7,262

Total Board of Education 1,093,829

Director of SchoolsCounty Official/Administrative Officer $ 155,000Assistant(s) 110,943

(Continued)

277

Exhibit L-9




Director of Schools (Cont.)Career Ladder Program $ 1,000Secretary(ies) 40,401Social Security 17,635Pensions 30,880Life Insurance 150Medical Insurance 18,755Unemployment Compensation 42Employer Medicare 4,282Communication 56,179Dues and Memberships 3,157Postal Charges 4,871Travel 11,995Other Contracted Services 7,260Office Supplies 1,140Other Supplies and Materials 15,210Other Charges 12,276

Total Director of Schools $ 491,176

Office of the PrincipalPrincipals $ 1,440,436Career Ladder Program 8,000Assistant Principals 739,300Secretary(ies) 637,289Social Security 161,181Pensions 275,303Life Insurance 2,710Medical Insurance 322,011Unemployment Compensation 1,101Employer Medicare 37,709Communication 14,317Travel 7,284In Service/Staff Development 6,430

Total Office of the Principal 3,653,071

Fiscal ServicesSupervisor/Director $ 91,217Accountants/Bookkeepers 289,451Social Security 22,633Pensions 26,672Life Insurance 363Medical Insurance 35,967Unemployment Compensation 211Employer Medicare 5,529Payments to Retirees 23,265Travel 1,229Other Contracted Services 5,114

(Continued)

278

Exhibit L-9




Fiscal Services (Cont.)Office Supplies $ 5,128Other Supplies and Materials 16,661In Service/Staff Development 170Other Capital Outlay 1,195

Total Fiscal Services $ 524,805

Human Services/PersonnelSupervisor/Director $ 50,142Social Security 2,521Pensions 3,670Life Insurance 50Medical Insurance 10,253Unemployment Compensation 32Employer Medicare 590Advertising 240Travel 773Other Contracted Services 28,088Office Supplies 1,304Other Supplies and Materials 295In Service/Staff Development 519

Total Human Services/Personnel 98,477

Operation of PlantSupervisor/Director $ 87,126Custodial Personnel 1,595,034Social Security 97,544Pensions 122,204Life Insurance 3,055Medical Insurance 297,325Unemployment Compensation 1,046Employer Medicare 22,822Payments to Retirees 31,858Maintenance and Repair Services - Vehicles 14,383Rentals 126,603Disposal Fees 64,524Other Contracted Services 120,897Custodial Supplies 200,454Electricity 1,293,672Natural Gas 190,636Water and Sewer 214,072Other Supplies and Materials 11,722Building and Contents Insurance 266,918Motor Vehicles 52,021Plant Operation Equipment 20,397

Total Operation of Plant 4,834,313

(Continued)

279

Exhibit L-9




Maintenance of PlantMaintenance Personnel $ 558,868Social Security 31,316Pensions 40,844Life Insurance 784Medical Insurance 86,565Unemployment Compensation 460Employer Medicare 7,321Payments to Retirees 1,490Communication 119,622Maintenance and Repair Services - Buildings 15,886Maintenance and Repair Services - Equipment 21,245Travel 299Other Contracted Services 68,847Custodial Supplies 20,003Gasoline 60,445Office Supplies 1,996Other Supplies and Materials 171,910

Total Maintenance of Plant $ 1,207,901

TransportationOther Salaries and Wages $ 3,180Social Security 197Pensions 240Unemployment Compensation 21Employer Medicare 46Contracts with Vehicle Owners 3,122,987Travel 998Other Contracted Services 8,000Other Supplies and Materials 1,065

Total Transportation 3,136,734

Central and OtherSupervisor/Director $ 44,878Employer Medicare 651Contracts with Government Agencies 277,365Travel 1,019Other Contracted Services 11,340Other Supplies and Materials 8,769In Service/Staff Development 2,575Administration Equipment 255,756Motor Vehicles 23,338

Total Central and Other 625,691

Operation of Non-Instructional ServicesCommunity Services

Other Salaries and Wages $ 70,240

(Continued)

280

Exhibit L-9



General Purpose School Fund (Cont.)Operation of Non-Instructional Services (Cont.)

Community Services (Cont.)Social Security $ 4,202Pensions 5,142Life Insurance 100Unemployment Compensation 23Employer Medicare 983Communication 744Travel 4,453Other Supplies and Materials 17,744

Total Community Services $ 103,631

Capital OutlayRegular Capital Outlay

Building Improvements $ 340,623Total Regular Capital Outlay 340,623


Debt Service Contribution to Primary Government $ 1,560,556Total Education 1,560,556

Total General Purpose School Fund $ 57,928,390

School Federal Projects FundInstruction

Regular Instruction ProgramTeachers $ 855,644Educational Assistants 20,810Other Salaries and Wages 19,710Certified Substitute Teachers 5,795Non-certified Substitute Teachers 1,560Social Security 46,624Pensions 79,070Life Insurance 600Medical Insurance 80,847Unemployment Compensation 329Employer Medicare 12,312Other Fringe Benefits 3,773Instructional Supplies and Materials 201,209Other Charges 5,690


Special Education ProgramTeachers $ 508,530Educational Assistants 327,763Other Salaries and Wages 120,514Certified Substitute Teachers 440

(Continued)

281

Exhibit L-9



School Federal Projects Fund (Cont.)Instruction (Cont.)

Special Education Program (Cont.)Non-certified Substitute Teachers $ 2,210Social Security 54,215Pensions 83,145Life Insurance 1,664Medical Insurance 135,335Unemployment Compensation 1,377Employer Medicare 12,688Instructional Supplies and Materials 101,570Workers' Compensation Insurance 5,967Special Education Equipment 27,243

Total Special Education Program $ 1,382,661

Career and Technical Education ProgramOther Supplies and Materials $ 32,184Vocational Instruction Equipment 67,905

Total Career and Technical Education Program 100,089

Support ServicesOther Student Support

Supervisor/Director $ 79,000Social Workers 143,093Other Salaries and Wages 14,372Social Security 12,839Pensions 19,195Life Insurance 208Medical Insurance 30,637Employer Medicare 3,148Communication 2,282Travel 36,073Other Contracted Services 15,000Other Supplies and Materials 57,260In Service/Staff Development 10,117

Total Other Student Support 423,224

Regular Instruction ProgramSupervisor/Director $ 123,904Secretary(ies) 37,270Clerical Personnel 500Other Salaries and Wages 441,797Social Security 35,098Pensions 60,084Life Insurance 492Medical Insurance 58,173Unemployment Compensation 282Employer Medicare 8,208Other Fringe Benefits 2,872

(Continued)

282

Exhibit L-9



School Federal Projects Fund (Cont.)Support Services (Cont.)

Regular Instruction Program (Cont.)Communication $ 1,201Postal Charges 3,999Printing, Stationery, and Forms 9,377Travel 84,376Other Supplies and Materials 123,744In Service/Staff Development 105,889Other Charges 14,551


Special Education ProgramClerical Personnel $ 53,061Other Salaries and Wages 50,000Social Security 6,746Pensions 8,185Life Insurance 121Medical Insurance 9,531Unemployment Compensation 110Employer Medicare 1,578Maintenance and Repair Services - Equipment 520Travel 26,259Other Contracted Services 146,468Other Supplies and Materials 9,046Workers' Compensation Insurance 520In Service/Staff Development 23,353

Total Special Education Program 335,498

Other ProgramsTravel $ 451Other Supplies and Materials 2,827

Total Other Programs 3,278

TransportationOther Salaries and Wages $ 38,200Social Security 2,369Pensions 2,790Employer Medicare 554Contracts with Private Agencies 68,520Contracts with Parents 4,135Maintenance and Repair Services - Vehicles 8,464Gasoline 32,400Transportation Equipment 78,732

Total Transportation 236,164

Operation of Non-Instructional ServicesFood Service

Food Supplies $ 3,087Total Food Service 3,087

(Continued)

283

Exhibit L-9



School Federal Projects Fund (Cont.)Operation of Non-Instructional Services (Cont.)

Community ServicesSupervisor/Director $ 21,600Teachers 109,940Clerical Personnel 12,000Educational Assistants 43,480Other Salaries and Wages 111,131Certified Substitute Teachers 17,853Non-certified Substitute Teachers 5,760Social Security 19,950Pensions 27,637Employer Medicare 4,666Travel 1,754Food Supplies 939Instructional Supplies and Materials 6,795Other Supplies and Materials 1,781In Service/Staff Development 755

Total Community Services $ 386,041

Total School Federal Projects Fund $ 5,315,832

Central Cafeteria FundOperation of Non-Instructional Services

Food ServiceSupervisor/Director $ 81,845Accountants/Bookkeepers 99,798Clerical Personnel 518,994Educational Assistants 2,366Cafeteria Personnel 586,235Social Security 75,657Pensions 66,837Life Insurance 2,060Medical Insurance 160,002Unemployment Compensation 1,163Employer Medicare 17,694Payments to Retirees 14,107Bank Charges 1,006Communication 12,297Dues and Memberships 2,424Licenses 1,600Maintenance and Repair Services - Equipment 48,875Maintenance and Repair Services - Vehicles 128Postal Charges 14Printing, Stationery, and Forms 2,406Travel 15,450Other Contracted Services 43,481Food Supplies 1,143,606Gasoline 773

(Continued)

284

Exhibit L-9



Central Cafeteria Fund (Cont.)Operation of Non-Instructional Services (Cont.)

Food Service (Cont.)Office Supplies $ 3,879Tires and Tubes 111Uniforms 15,357Vehicle Parts 243USDA - Commodities 244,123Other Supplies and Materials 4,467Trustee's Commission 4Workers' Compensation Insurance 17,168In Service/Staff Development 7,167Data Processing Equipment 3,585Food Service Equipment 353,881

Total Food Service $ 3,548,803

Total Central Cafeteria Fund $ 3,548,803

Other Education Special Revenue FundOperation of Non-Instructional Services

Community ServicesSupervisor/Director $ 81,531Teachers 228,329Social Workers 2,588Medical Personnel 55,063Secretary(ies) 64,293Clerical Personnel 8,312Educational Assistants 1,390,663Other Salaries and Wages 98,546Non-certified Substitute Teachers 294Social Security 111,127Pensions 139,063Life Insurance 3,627Medical Insurance 234,027Unemployment Compensation 1,134Employer Medicare 26,032Advertising 250Communication 12,170Contracts with Other School Systems 817,456Dues and Memberships 1,824Maintenance and Repair Services - Office Equipment 1,679Maintenance and Repair Services - Vehicles 2,703Pest Control 720Postal Charges 710Rentals 7,800Travel 11,178Other Contracted Services 41,858Drugs and Medical Supplies 4,022Electricity 13,586

(Continued)

285

Exhibit L-9



Other Education Special Revenue Fund (Cont.)Operation of Non-Instructional Services (Cont.)

Community Services (Cont.)Food Supplies $ 41,837Gasoline 3,625General Construction Materials 3,698Instructional Supplies and Materials 18,367Natural Gas 1,677Office Supplies 3,910Water and Sewer 1,619Other Supplies and Materials 118,700Building and Contents Insurance 2,249Vehicle and Equipment Insurance 5,250Workers' Compensation Insurance 9,700In Service/Staff Development 43,473Other Charges 25,669Data Processing Equipment 68,313Furniture and Fixtures 6,811Other Equipment 26,334

Total Community Services $ 3,741,817

Early Childhood EducationSupervisor/Director $ 14,388Teachers 249,958Medical Personnel 18,066Secretary(ies) 10,617Clerical Personnel 19,913Educational Assistants 144,584Other Salaries and Wages 302Non-certified Substitute Teachers 65Social Security 27,352Pensions 40,821Life Insurance 762Medical Insurance 60,274Unemployment Compensation 255Employer Medicare 6,396Communication 863Maintenance and Repair Services - Office Equipment 834Postal Charges 210Travel 32Other Contracted Services 4,714Drugs and Medical Supplies 320Food Supplies 99Instructional Supplies and Materials 4,579Natural Gas 3,502Office Supplies 994Other Supplies and Materials 1,263Building and Contents Insurance 40Workers' Compensation Insurance 2,500

(Continued)

286

Exhibit L-9



Other Education Special Revenue Fund (Cont.)Operation of Non-Instructional Services (Cont.)

Early Childhood Education (Cont.)In Service/Staff Development $ 3,835Other Charges 8,281Data Processing Equipment 155Other Equipment 7,339

Total Early Childhood Education $ 633,313

Capital OutlayRegular Capital Outlay

Building Construction $ 346,687Total Regular Capital Outlay 346,687


Debt Service Contribution to Primary Government $ 124,514Total Education 124,514

Total Other Education Special Revenue Fund $ 4,846,331

Education Capital Projects FundCapital Outlay

Regular Capital OutlayContributions $ 7,531Trustee's Commission 9Building Improvements 6,704,074

Total Regular Capital Outlay $ 6,711,614

Capital ProjectsEducation Capital Projects

Regular Instruction Equipment $ 10,080Total Education Capital Projects 10,080

Total Education Capital Projects Fund 6,721,694

Total Governmental Funds - Anderson County School Department $ 78,361,050

287

Exhibit L-10

Anderson County, TennesseeSchedule of Detailed Receipts, Disbursements, and Changes in Cash Balances - City Agency FundsFor the Year Ended June 30, 2019

City City School

School ADA - Cities - ADA - Oak

Sales Tax Clinton RidgeFund Fund Fund Total

Cash ReceiptsCurrent Property Taxes $ 0 $ 1,973,485 $ 8,894,871 $ 10,868,356Trustee's Collections - Prior Years 0 81,770 369,731 451,501Trustee's Collections - Bankruptcy 0 463 2,088 2,551Circuit/Clerk and Master Collections - Prior Years 0 23,079 105,795 128,874Interest and Penalty 0 21,655 96,330 117,985Local Option Sales Tax 15,136,405 1,310,867 5,350,050 21,797,322Coal Severance Tax 0 16 72 88Cities - Local Option Sales Tax 0 0 557,399 557,399Marriage Licenses 0 317 1,437 1,754

Total Cash Receipts $ 15,136,405 $ 3,411,652 $ 15,377,773 $ 33,925,830

Cash DisbursementsRemittance of Revenues Collected $ 14,985,041 $ 3,228,778 $ 14,547,714 $ 32,761,533Trustee's Commission 151,364 56,313 259,160 466,837

Total Cash Disbursements $ 15,136,405 $ 3,285,091 $ 14,806,874 $ 33,228,370

Excess of Cash Receipts Over (Under)Cash Disbursements $ 0 $ 126,561 $ 570,899 $ 697,460

Cash Balance, July 1, 2018 0 2,744 11,829 14,573

Cash Balance, June 30, 2019 $ 0 $ 129,305 $ 582,728 $ 712,033

288

STATISTICAL SECTION

This part of Anderson County’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. Tables Pages Financial Trends: These schedules contain trend information to help the reader

understand how the government’s financial performance and well-being have changed over time.

1-6 290-296 Revenue Capacity: These schedules contain information to help the reader assess the

government’s most significant local revenue source, the property tax.

7-10 297-300 Debt Capacity: These schedules present information to help the reader assess the

affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future.

11-15 301-305 Demographic and Economic Information: These schedules offer demographic and economic indicators to help the

reader understand the environment within which the government’s financial activities take place.

16-17 306-307 Operating Information: These schedules contain service and infrastructure data to help the

reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs.

18-20 308-310 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

289

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Governmental Activities:Net Investment in Capital Assets $ 15,002,377 $ 15,962,344 $ 14,532,349 $ 14,886,641 $ 13,890,778 $ 13,852,050 $ 13,682,164 $ 13,178,548 $ 14,227,812 $ 15,883,442Restricted for:

General Government 0 22,823 164,343 233,741 37,233 57,168 77,455 88,864 93,231 182,188Finance 0 15,002 20,668 26,352 44,712 49,711 56,626 55,224 68,661 81,780Administration of Justice 0 323,830 357,587 376,066 462,167 559,449 663,791 724,192 817,386 804,158Public Safety 0 504,844 366,463 474,254 594,554 608,305 692,038 714,484 849,352 678,446Public Health and Welfare 0 101,338 223,471 220,066 531,472 459,276 493,754 525,220 534,746 643,277Social, Cultural, and Recreational Services 0 341,130 331,713 289,789 573,936 557,773 613,050 580,214 639,582 752,241Other Operations 387,877 8,000 4,826 0 0 0 0 0 0 0Highway/Public Works 972,780 1,286,623 1,496,633 1,939,581 2,605,860 2,466,945 3,678,033 3,677,601 3,721,912 4,154,276Debt Service 2,653,340 2,861,253 2,661,622 2,338,760 2,555,580 2,700,050 2,839,152 3,001,213 3,044,885 1,305,439Capital Projects 0 0 65,443 0 0 75,534 26,729 41,271 60,069 308,470Pensions 0 0 0 0 0 0 0 0 1,414,834 3,179,973Other Purposes 0 0 0 0 0 1,017,993 1,235,085 0 0 0Courthouse and Jail (1) 93,109 0 0 0 0 0 0 0 0 0Public Library (1) 249,191 0 0 0 0 0 0 0 0 0Solid Waste (1) 241,030 0 0 0 0 0 0 0 0 0Drug Control (1) 165,820 0 0 0 0 0 0 0 0 0Tourism (1) 88,919 0 0 0 0 0 0 0 0 0

Unrestricted (7,666,758) (7,588,444) (22,981,735) (21,919,871) (28,572,192) (27,234,277) (24,950,315) (20,182,268) (17,054,986) (24,279,458)

Subtotal Governmental Activities Net Position $ 12,187,685 $ 13,838,743 $ (2,756,617) $ (1,134,621) $ (7,275,900) $ (4,830,023) $ (892,438) $ 2,404,563 $ 8,417,484 $ 3,694,232

Business-type Activities: (3) Net Investment in Capital Assets $ 0 $ 0 $ 0 $ 0 $ 0 $ 916,480 $ 687,200 $ 511,757 $ 0 $ 0Invested in Capital Assets 1,526,540 1,370,128 1,403,609 1,139,613 12,506,797 0 0 0 0 0Other Purposes (4) 0 0 0 0 0 223,462 265,079 0 0 0Unrestricted 1,398,449 1,173,406 1,155,461 1,119,672 194,526 225,838 (43,945) 47,853 0 0

Subtotal Business-type Activities Net Position $ 2,924,989 $ 2,543,534 $ 2,559,070 $ 2,259,285 $ 12,701,323 $ 1,365,780 $ 908,334 $ 559,610 $ 0 $ 0

Primary Government:Net Investment in Capital Assets $ 15,002,377 $ 15,962,344 $ 14,532,349 $ 14,886,641 $ 13,890,778 $ 14,768,530 $ 14,369,364 $ 13,690,305 $ 14,227,812 $ 15,883,442Investment in Capital Assets 1,526,540 1,370,128 1,403,609 1,139,613 12,506,797 0 0 0 0 0Restricted for:

General Government 0 22,823 164,343 233,741 37,233 57,168 77,455 88,864 93,231 182,188Finance 0 15,002 20,668 26,352 44,712 49,711 56,626 55,224 68,661 81,780Administration of Justice 0 323,830 357,587 376,066 462,167 559,449 663,791 724,192 817,386 804,158Public Safety 0 504,844 366,463 474,254 594,554 608,305 692,038 714,484 849,352 678,446Public Health and Welfare 0 101,338 223,471 220,066 531,472 459,276 493,754 525,220 534,746 643,277Social, Cultural, and Recreational Services 0 341,130 331,713 289,789 573,936 557,773 613,050 580,214 639,582 752,241Other Operations 0 8,000 4,826 0 0 0 0 0 0 0Highway/Public Works 972,780 1,286,623 1,496,633 1,939,581 2,605,860 2,466,945 3,678,033 3,677,601 3,721,912 4,154,276Debt Service 2,653,340 2,861,253 2,661,622 2,338,760 2,555,580 2,700,050 2,839,152 3,001,213 3,044,885 1,305,439Capital Projects 0 0 65,443 0 0 75,534 26,729 41,271 60,069 308,470Pensions 0 0 0 0 0 0 0 0 1,414,834 3,179,973Other Purposes 0 0 0 0 0 1,241,455 1,500,164 0 0 0Courthouse and Jail (1) 93,109 0 0 0 0 0 0 0 0 0Public Library (1) 249,191 0 0 0 0 0 0 0 0 0Solid Waste (1) 241,030 0 0 0 0 0 0 0 0 0Drug Control (1) 165,820 0 0 0 0 0 0 0 0 0Tourism (1) 88,919 0 0 0 0 0 0 0 0 0Other Purposes 387,877 0 0 0 0 0 0 0 0 0

Unrestricted (6,268,309) (6,415,038) (21,826,274) (20,800,199) (28,377,666) (27,008,439) (24,994,260) (20,134,415) (17,054,986) (24,279,458)

Sub-Total Primary Government Net Position (2) $ 15,112,674 $ 16,382,277 $ (197,547) $ 1,124,664 $ 5,425,423 $ (3,464,243) $ 15,896 $ 2,964,173 $ 8,417,484 $ 3,694,232

(1) Prior to fiscal year 2011, amounts were included in Other Purposes. Since GASB Statement No. 54 - Fund Balance Reporting, the amounts are included in the appropriate functions.(2) See Table 2 for changes in net position from year to year.(3) The Business-type Activity was the Anderson County Emergency Medical Services from July 1, 2010 through June 30, 2017. Subsequent to that date the activity has been classified as Governmental Activity.(4) The Other Purpose reflected in the Business-type Activities is the result of Anderson County complying with the provisions of GASB Statement No. 67 - Financial Reporting for Pension Plans.

Fiscal Year

Table 1

Anderson County, TennesseeNet Position by Component

Last Ten Fiscal Years(accrual basis of accounting)

290

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019ExpensesGovernmental Activities:

General Government $ 3,806,607 $ 3,685,858 $ 3,548,769 $ 3,716,551 $ 4,811,254 $ 4,525,344 $ 4,722,322 $ 5,525,125 $ 4,800,543 $ 5,014,298Finance 2,795,163 2,791,197 2,710,791 2,719,335 2,668,619 2,708,370 2,833,421 2,957,033 2,957,049 2,902,433Administration of Justice 2,867,590 2,912,864 3,122,189 3,336,291 3,034,235 2,856,117 3,045,914 2,866,798 2,957,763 2,864,820Public Safety 11,073,910 11,594,279 11,914,342 12,297,181 12,567,081 12,363,564 13,040,212 13,275,663 13,070,328 14,171,665Public Health and Welfare (1) 2,847,206 2,677,855 4,308,053 2,985,437 3,127,945 2,854,886 2,918,888 3,447,087 8,407,549 8,273,405Social, Cultural, and Recreational Services 606,085 672,862 686,748 593,389 938,544 1,414,105 1,145,163 1,254,501 1,437,339 1,298,570Agriculture and Natural Resources 198,699 279,392 286,919 191,813 209,714 209,378 228,116 246,231 247,912 238,149Other Operations 1,252,748 1,211,879 1,577,100 1,428,085 0 0 0 0 0 0Highways 3,887,060 3,405,748 3,974,540 4,271,823 3,000,386 3,189,101 2,464,000 4,032,399 4,463,812 4,237,204Education 0 0 18,622,722 0 9,676,315 400,000 1,200,000 0 0 11,275,996Interest on Long-term Debt 758,747 861,452 1,603,475 1,738,298 2,099,727 1,877,096 1,892,076 2,006,374 1,858,282 1,894,192Other Debt Service 53,825 244,402 261,308 158,803 0 0 0 0 0 0

Total Governmental Activities Expenses $ 30,147,640 $ 30,337,788 $ 52,616,956 $ 33,437,006 $ 42,133,820 $ 32,397,961 $ 33,490,112 $ 35,611,211 $ 40,200,577 $ 52,170,732

Business-type ActivitiesAmbulance Service (1) $ 4,411,487 $ 5,189,348 $ 5,523,704 $ 5,629,430 $ 5,565,910 $ 5,477,030 $ 5,542,626 $ 5,577,294 $ 0 $ 0

Total Business-type Activities Expenses $ 4,411,487 $ 5,189,348 $ 5,523,704 $ 5,629,430 $ 5,565,910 $ 5,477,030 $ 5,542,626 $ 5,577,294 $ 0 $ 0

Total Primary Government Expenses $ 34,559,127 $ 35,527,136 $ 58,140,660 $ 39,066,436 $ 47,699,730 $ 37,874,991 $ 39,032,738 $ 41,188,505 $ 40,200,577 $ 52,170,732

Program RevenuesGovernmental Activities:

Charges for Services:General Government $ 1,185,031 $ 866,276 $ 944,164 $ 1,113,133 $ 922,960 $ 902,897 $ 947,657 $ 992,532 $ 1,019,812 $ 957,355Finance 2,034,646 2,092,261 2,170,181 2,135,245 2,263,272 2,267,332 2,397,467 2,438,941 2,460,709 2,542,354Administration of Justice 1,965,338 1,837,826 2,257,404 2,333,626 2,152,068 1,848,028 1,833,834 1,751,231 1,532,869 1,394,386Public Safety 556,712 159,292 1,018,448 1,386,581 1,632,200 1,898,609 1,795,679 1,513,344 2,306,962 2,718,093Public Health and Welfare (1) 128,311 662,670 622,962 617,232 687,545 702,688 778,187 782,134 6,543,431 6,201,036Social, Cultural, and Recreational Services 71,417 78,901 90,886 143,668 269,892 281,406 296,552 315,728 338,362 437,252Other Operations 0 661 434 0 0 0 0 0 0 0Highways 513,164 602,453 868,539 383,810 363,280 273,039 165,728 152,463 202,810 183,089

Debt Service:Interest on Long-term Debt 69,580 0 0 0 0 0 0 0 0Operating Grants and Contributions 3,457,014 4,137,178 3,603,825 3,644,441 3,076,558 3,450,460 3,099,104 3,163,801 3,706,388 4,579,383Capital Grants and Contributions 1,556,900 880,110 1,426,256 817,300 786,509 293,852 717,325 1,882,756 889,035 747,673

Total Governmental Activities Program Revenues $ 11,538,113 $ 11,317,628 $ 13,003,099 $ 12,575,036 $ 12,154,284 $ 11,918,311 $ 12,031,533 $ 12,992,930 $ 19,000,378 $ 19,760,621

Business-type Activities:Charges for Services:

Ambulance Service (1) $ 5,534,480 $ 4,805,793 $ 5,536,443 $ 5,329,645 $ 4,691,709 $ 5,033,696 $ 4,912,868 $ 5,243,281 $ 0 $ 0Total Business-type Activities Program

Revenues $ 5,534,480 $ 4,805,793 $ 5,536,443 $ 5,329,645 $ 4,691,709 $ 5,033,696 $ 4,912,868 $ 5,243,281 $ 0 $ 0

Total Primary Government Program Revenues $ 17,072,593 $ 16,123,421 $ 18,539,542 $ 17,904,681 $ 16,845,993 $ 16,952,007 $ 16,944,401 $ 18,236,211 $ 19,000,378 $ 19,760,621

(Continued)

Table 2

Fiscal Year

Anderson County, TennesseeChanges in Net Position


291

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Net (Expense)/RevenueGovernmental Activities $ (18,609,527) $ (19,020,160) $ (39,613,857) $ (20,861,970) $ (29,979,536) $ (20,479,650) $ (21,458,579) $ (22,618,281) $ (21,200,199) $ (32,410,111)Business-type Activities 1,122,993 (383,555) 12,739 (299,785) (874,201) (443,334) (629,758) (334,013) 0 0

Total Primary Government Net Expense $ (17,486,534) $ (19,403,715) $ (39,601,118) $ (21,161,755) $ (30,853,737) $ (20,922,984) $ (22,088,337) $ (22,952,294) $ (21,200,199) $ (32,410,111)

General Revenues and Other Changes in Net PositionGovernmental Activities:

Taxes:Property Taxes $ 13,839,528 $ 14,156,678 $ 16,408,402 $ 16,530,753 $ 16,803,070 $ 16,720,379 $ 17,603,970 $ 17,784,072 $ 18,045,188 $ 18,320,087Sales Taxes 934,132 910,270 673,151 806,190 772,057 841,454 974,149 954,828 1,249,588 1,428,550Other Taxes 1,852,972 2,069,023 2,402,726 1,927,167 2,185,010 2,053,486 1,924,562 2,119,326 2,132,983 2,267,363

Grants and Contributions not Restricted to Specific Programs 3,959,502 3,429,501 3,625,716 4,067,113 4,027,520 4,870,251 5,013,622 4,934,772 5,413,716 5,526,788

Unrestricted Investment Income 50,899 37,857 67,991 62,758 25,187 28,659 25,252 33,688 79,209 120,759Miscellaneous 58,435 67,889 40,182 54,387 25,413 44,590 26,921 71,469 35,196 23,312Transfers (1,801,996) 0 (1,812) 0 0 (628,381) (172,312) 17,127 559,610 0

Total Governmental Activities $ 18,893,472 $ 20,671,218 $ 23,216,356 $ 23,448,368 $ 23,838,257 $ 23,930,438 $ 25,396,164 $ 25,915,282 $ 27,515,490 $ 27,686,859

Business-type Activities: Gain on Disposal of Property $ 0 $ 0 $ 0 $ 0 $ 16,239 $ 0 $ 0 $ 0 $ 0 $ 0Miscellaneous 0 2,100 985 0 0 0 0 2416 0 0Transfers 1,801,996 0 1,812 0 0 628,381 172,312 (17,127) (559,610) 0

Total Business-type Activities $ 1,801,996 $ 2,100 $ 2,797 $ 0 $ 16,239 $ 628,381 $ 172,312 $ (14,711) $ (559,610) $ 0

Total Primary Government $ 20,695,468 $ 20,673,318 $ 23,219,153 $ 23,448,368 $ 23,854,496 $ 24,558,819 $ 25,568,476 $ 25,900,571 $ 26,955,880 $ 27,686,859

Change in Net PositionGovernmental Activities $ 283,945 $ 1,651,058 $ (16,397,501) $ 2,586,398 $ (6,141,279) $ 3,450,788 $ 3,937,585 $ 3,297,001 $ 6,315,291 $ (4,723,252)Business-type Activities 2,924,989 (381,455) 15,536 (299,785) (857,962) 185,047 (457,446) (348,724) (559,610) 0Total Primary Government (2) (3) (4) $ 3,208,934 $ 1,269,603 $ (16,381,965) $ 2,286,613 $ (6,999,241) $ 3,635,835 $ 3,480,139 $ 2,948,277 $ 5,755,681 $ (4,723,252)

(1) The Business-type Activity is Anderson County Emergency Medical Services. Prior to 2010 and subsequent to 2017 was reflected as special revenue fund (Governmental Activities - Public Health and Welfare).(2) In fiscal year ending 2012, the negative Net Position is primarily due to the issuance of $14,750,000 in bonds issued by the primary government and contributed the net proceeds to Anderson County School Department

which is reflected as a Discretely Presented Component Unit. (3) In fiscal year ending 2014, the negative Net Position is primarily due to the issuance of $9,810,215 in debt (Other Loans) issued by the primary government and contributed the net proceeds to the Anderson County School

Department, which is reflected as a Discretely Presented Component Unit. (4) In fiscal year ending 2019, the negative Net Position is primarily due to the issuance of $10,900,000 in debt (Bonds) issued by the primary government and contributed the proceeds to the Anderson County School Department

which is reflected as a Discretely Presented Component Unit.

Table 2

Changes in Net PositionLast Ten Fiscal Years

(accrual basis of accounting) (cont.)

Fiscal Year

Anderson County, Tennessee

292

Local Interstate Mineral and CoalOption Hotel Local Wholesale Telecommuni- Gas & Oil Other

Property Sales Motel Litigation Business Beer cations Severance LocalFiscal Year Tax (1) Tax Tax Tax Tax Tax Tax Taxes Taxes Total

2010 $ 13,839,528 $ 934,132 $ 178,023 $ 290,851 $ 1,008,018 $ - $ 5,735 $ 350,342 $ 20,003 $ 16,626,632 2011 14,156,678 910,270 324,673 356,430 1,120,438 - 3,746 257,521 6,215 17,135,971 2012 16,408,402 673,151 267,425 329,676 1,314,279 165,027 (2) 2,061 322,140 2,118 19,484,279 2013 16,530,753 806,190 275,561 304,544 996,687 143,170 2,848 201,211 3,146 19,264,110 2014 16,803,070 772,057 310,285 299,742 1,176,518 141,643 5,620 248,785 2,417 19,760,137 2015 16,720,379 841,454 340,344 324,034 1,011,454 140,146 3,698 231,280 2,530 19,615,319 2016 17,603,970 974,149 354,431 322,021 932,049 153,951 - (3) 147,222 14,888 20,502,681 2017 17,784,072 954,828 364,465 366,881 1,024,707 152,116 - 169,362 41,795 20,858,226 2018 18,045,188 1,249,588 384,964 318,670 1,070,057 155,969 - 192,299 11,024 21,427,759 2019 18,320,087 1,428,550 395,870 364,060 1,137,029 171,673 - 185,268 13,463 22,016,000

(1) Includes current year, prior year, interest and penalty, and in-lieu-of property taxes.(2) Wholesale Beer Tax was reallocated to the primary government starting fiscal year 2012.(3) Interstate Telecommunications Tax was reallocated to the Discretely Presented Component Unit - Anderson County School Department. starting in fiscal year 2016.

Table 3

Anderson County, TennesseeGovernmental Activities Tax Revenues by Source


293

2010 2011 (4) 2012 2013 2014 2015 2016 2017 2018 2019General Fund:

Nonspendable (1) (5) $ 0 $ 560,530 $ 405,685 $ 274,773 $ 154,483 $ 1,126,488 $ 960,146 $ 1,808,392 $ 1,040,858 $ 12,500Restricted (1) 0 608,426 1,276,846 1,033,728 1,219,876 1,167,992 1,375,295 1,411,627 1,535,977 1,792,009Committed (1) 0 1,289,938 1,543,171 1,421,797 1,810,878 1,992,850 2,936,535 2,588,346 2,952,229 2,153,917Assigned (1) 0 1,800 9,250 515,449 389,914 777,967 702,220 385,052 880,480 529,244Reserved 1,165,325 0 0 0 0 0 0 0 0 0Unassigned(2) 3,064,517 1,388,910 2,500,862 2,895,154 4,283,011 4,152,389 4,511,788 3,791,841 5,625,259 7,508,363

Total General Fund $ 4,229,842 $ 3,849,604 $ 5,735,814 $ 6,140,901 $ 7,858,162 $ 9,217,686 $ 10,485,984 $ 9,985,258 $ 12,034,803 $ 11,996,033

All Other Governmental Funds:

Nonspendable (1)Special Revenue Funds $ 0 $ 57,433 $ 57,910 $ 45,565 $ 46,663 $ 41,366 $ 24,295 $ 32,389 $ 47,973 $ 35,560Debt Service Funds 0 0 0 7,020 7,020 7,020 102,630 198,150 6,272 0

Restricted (1)Special Revenue Funds 0 1,574,076 1,798,331 2,390,140 3,554,605 3,351,031 4,684,213 5,214,792 4,981,798 5,338,474Debt Service Funds 0 12,623,723 4,810,991 4,605,200 4,804,733 4,513,262 4,442,662 4,528,560 4,320,709 2,463,406Capital Projects Funds 0 0 11,423,181 5,155,535 489,112 490,834 571,724 393,328 188,429 120,339

Committed (1)Special Revenue Funds 0 497,673 819,227 558,071 497,182 497,741 497,741 499,004 89,306 642,137Debt Service Funds 0 47,657 112,511 166,973 212,632 277,246 329,496 380,700 425,889 466,323Capital Projects Funds 0 25,427 0 0 0 0 0 0 0 355,001

Reserved 8,855,295 0 0 0 0 0 0 0 0 0Unreserved, Reported in:

Special Revenue Funds 1,476,166 0 0 0 0 0 0 0 (612,529) 0Debt Service Funds 4,815,007 0 0 0 0 0 0 0 0 0Capital Projects Funds 194,427 0 0 0 0 0 0 0 0 0

Total Other Governmental Funds $ 15,340,895 $ 14,825,989 $ 19,022,151 $ 12,928,504 $ 9,611,947 $ 9,178,500 $ 10,652,761 $ 11,246,923 $ 9,447,847 $ 9,421,240

Total Governmental Funds (3) $ 19,570,737 $ 18,675,593 $ 24,757,965 $ 19,069,405 $ 17,470,109 $ 18,396,186 $ 21,138,745 $ 21,232,181 $ 21,482,650 $ 21,417,273

(1) See Exhibit C-1 for details of fund balances.(2) Prior to fiscal year 2011, Unassigned was defined as Unreserved. (3) See Table 5 for Net Change in Fund Balances from year to year.(4) In fiscal year ending 2011, GASB Statement No. 54 - Fund Balance Reporting was implemented. (5) Fiscal years 2015-2018 included various amounts for a long-term receivable from the Ambulance Service Fund.

During 2019 Anderson County Commission passed a resolution forgiving the June 30, 2018 balance of $1,026,787.

Table 4

Anderson County, TennesseeFund Balances of Governmental Funds

Last Ten Fiscal Years(modified accrual basis of accounting)

294

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Revenues:

Local Taxes $ 18,702,680 $ 19,492,053 $ 21,646,045 $ 21,680,172 $ 22,425,886 $ 22,711,166 $ 23,279,676 $ 23,566,449 $ 24,405,901 $ 24,865,041Licenses and Permits 426,596 298,821 362,401 284,283 443,118 398,036 304,082 352,987 334,894 506,165Fines, Forfeitures, and Penalties 632,630 567,429 575,999 764,021 573,211 436,889 460,034 506,087 486,976 395,878Charges for Current Services 810,065 849,905 833,953 792,791 997,164 977,045 1,130,186 1,112,020 6,196,798 6,136,255Other Local Revenues 1,349,716 1,215,914 1,840,992 1,237,769 1,269,758 896,288 771,711 768,928 819,293 1,096,468Fees Received from County Officials 3,692,571 3,667,789 4,156,362 4,046,489 4,059,132 3,919,202 3,979,478 3,935,125 3,779,542 3,826,199State of Tennessee 3,840,768 4,417,699 3,903,351 4,923,306 4,574,843 5,045,929 5,153,509 5,000,725 6,938,862 7,202,488Federal Government 537,182 451,533 1,850,041 834,212 980,468 597,890 708,870 947,632 1,170,857 927,299Other Governments and Citizens Groups 1,782,115 530,604 1,091,979 1,490,362 1,167,135 1,705,985 1,782,793 1,941,128 1,973,217 1,932,380

Total Revenues $ 31,774,323 $ 31,491,747 $ 36,261,123 $ 36,053,405 $ 36,490,715 $ 36,688,430 $ 37,570,339 $ 38,131,081 $ 46,106,340 $ 46,888,173

Expenditures:General Government $ 3,530,085 $ 4,072,604 $ 3,179,117 $ 3,515,206 $ 3,362,978 $ 3,856,931 $ 3,482,482 $ 3,878,980 $ 3,834,111 $ 4,231,852Finance 2,778,596 2,755,700 2,679,473 2,720,118 2,710,236 2,752,456 2,909,850 3,044,210 3,044,031 3,109,310Administration of Justice 2,795,870 2,913,006 3,135,634 3,380,293 3,027,074 2,888,972 3,090,897 2,944,956 3,006,180 3,106,520Public Safety 10,627,558 11,328,197 11,643,265 11,906,184 12,043,745 12,135,006 12,257,379 13,067,528 12,821,855 14,642,331Public Health and Welfare 2,688,777 2,494,491 2,523,813 2,615,637 2,628,607 2,731,600 2,713,778 2,702,997 8,587,567 8,231,335Social, Cultural, and Recreational Services 598,734 694,235 673,710 966,599 579,672 655,898 644,560 680,210 736,004 932,978Agricultural and Natural Resources 197,427 275,149 283,632 194,312 210,497 209,216 231,371 243,121 248,764 243,505Other Operations 1,244,342 1,293,053 1,597,043 1,411,235 1,336,855 1,152,466 1,230,479 1,838,190 1,247,261 1,254,930Highways 3,501,270 3,378,288 3,556,381 3,833,371 2,841,991 3,432,702 2,664,137 4,453,512 4,431,339 4,256,579Debt Service:

Principal on Debt 4,405,900 1,081,000 2,502,553 2,894,015 2,291,914 3,147,167 2,976,386 3,368,560 3,689,418 3,639,551Interest on Debt 717,066 880,081 1,482,214 1,822,681 1,695,882 1,985,781 1,847,162 1,804,155 1,672,002 1,804,381Other Debt Service 78,513 389,779 635,401 74,321 180,407 88,571 92,411 251,212 268,041 248,639

Capital Projects 1,570,112 1,191,527 22,062,520 6,395,314 14,806,461 829,709 1,452,077 924,294 1,773,567 12,957,016Total Expenditures $ 34,734,250 $ 32,747,110 $ 55,954,756 $ 41,729,286 $ 47,716,319 $ 35,866,475 $ 35,592,969 $ 39,201,925 $ 45,360,140 $ 58,658,927

Excess of RevenuesOver (Under) Expenditures $ (2,959,927) $ (1,255,363) $ (19,693,633) $ (5,675,881) $ (11,225,604) $ 821,955 $ 1,977,370 $ (1,070,844) $ 746,200 $ (11,770,754)

Other Financing Sources (Uses):Bonds Issued $ 0 $ 0 $ 24,750,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 10,900,000Notes Issued 2,450,000 0 644,574 0 0 400,000 1,200,000 1,400,000 0 0Capital Leases Issued 0 0 0 0 0 501,365 0 0 0 0Refunding Debt Issued 0 19,055,000 0 0 3,100,000 0 0 8,030,000 11,080,000 0Other Loans Issued 0 0 0 0 9,810,215 0 0 0 0 0Premiums on Bonds Sold 0 359,660 578,835 0 74,022 0 0 3,157 1,359,374 568,061Proceeds from Sale of Capital Assets 13,115 11,220 1,100 7,307 2,993 1,650 9,705 29,743 10,554 4,699Insurance Recovery 19,525 2,648 1,496 8,135 10,289 19,300 19,389 13,919 164,752 126,789Transfers In 1,869,414 467,150 16,107 922,068 676,667 216,100 49,100 269,691 0 1,464,989Transfers Out (1,849,475) (467,150) (216,107) (926,444) (936,807) (1,034,293) (513,005) (690,141) (840,494) (1,359,161)Redemption of Refunded Debt 0 (19,068,309) 0 0 (3,111,071) 0 0 (7,892,089) (12,269,917) 0

Total Other Financing Sources (Uses) $ 2,502,579 $ 360,219 $ 25,776,005 $ 11,066 $ 9,626,308 $ 104,122 $ 765,189 $ 1,164,280 $ (495,731) $ 11,705,377

Net Change in Fund Balances $ (457,348) $ (895,144) $ 6,082,372 $ (5,664,815) $ (1,599,296) $ 926,077 $ 2,742,559 $ 93,436 $ 250,469 $ (65,377)

Debt Service as a Percentage of Noncapital Expenditures (1) 16.2% 6.5% 7.6% 13.6% 9.3% 15.2% 13.8% 13.7% 12.3% 9.7%

(1) This percentage will vary from year to year due to the treatment of amount of various debt issued by Anderson County for benefit of the Anderson County School Department. The contribution of these funds are included as Capital Projects expenditures but no capital asset obtained.

Table 5

Anderson County, TennesseeChanges in Fund Balances of Governmental Funds


295

Local Interstate Option Communi- Hotel Local Mineral Coal Wholesale Bank Other

Property Sales cations Motel Litigation Business Severance Severance Beer Excise LocalFiscal Year Tax Tax Tax Tax Tax Tax Taxes Taxes Tax Tax Tax Total

2010 $ 13,920,827 $ 940,962 $ 5,735 $ 178,023 $ 290,851 $ 1,008,018 $ 138,958 $ 68,597 $ - $ 64,190 $ 10,101 $ 16,626,262 2011 14,202,539 928,122 3,746 325,250 356,430 1,120,438 149,196 112,071 - 15,877 1,722 17,215,391 2012 16,225,512 655,449 2,061 267,425 329,676 1,314,279 117,727 95,216 165,027 (1) 15,233 2,123 19,189,728 2013 16,564,768 819,924 2,848 275,561 304,544 996,687 104,421 15,572 (2) 143,170 25,576 2,284 19,255,355 2014 16,732,170 771,814 5,620 310,285 299,742 1,176,518 118,949 - 141,643 50,031 1,838 19,608,610 2015 17,103,773 840,009 3,698 340,344 324,034 1,011,454 101,273 171 140,146 30,069 1,700 19,896,671 2016 17,419,382 972,826 3,401 354,431 322,021 932,049 93,556 - 153,951 52,191 10,939 20,314,747 2017 17,747,348 953,129 3,266 364,465 366,881 1,024,707 114,214 1,482 152,116 50,777 38,437 20,816,822 2018 17,994,943 1,208,047 9 (3) 384,964 318,670 1,070,057 163,675 125 155,969 60,240 9,713 21,366,412 2019 (4) 18,002,531 1,423,227 - 395,870 364,060 1,137,029 122,657 200 171,673 92,286 9,504 21,719,037

(1) Wholesale Beer Tax has been allocated to the primary government starting fiscal year 2012.(2) Errors had been made in the past as a mining company had its office and entrance to the mine in Anderson County. This resulted in the severance tax being remitted to Anderson County by State of Tennessee. However, some of the actual mining operations were in another county. Anderson County has remitted the overpayments to that county.(3) Starting in Fiscal Year 2018 Interstate Communications Tax has been allocated to the Anderson County School Department, which is presented as a Discretely Presented Component Unit.(4) Significant In-Lieu-of-Taxes revenue are not reflected:

$897,009 Aisin Automotive Casting$630,762 Eagle Bend Manufacturing (Magna)$629,405 U.S. Department of Energy (Includes $492,000 allocated to Anderson County School Department)$448,664 Clinton Utilities Board $425,057 City of Oak Ridge

Table 6

Anderson County, TennesseeGeneral Governmental Tax Revenues by Source


296

Ratio ofTotal

Fiscal Total Assessed Year Direct to Total

Ended Tax Appraised Assessed Appraised Assessed Appraised Assessed Appraised Assessed Tax AppraisedJune 30 Year Value Value Value Value Value Value Value Value Rate Value

2010 2009 4,203,971,000$ 1,198,159,565$ 413,123,786$ 103,947,656$ 60,168,982$ 33,092,940$ 4,677,263,768$ 1,335,200,161$ 2.0300$ 28.55%2011 2010 (2) 5,072,033,400 1,438,571,130 420,909,761 126,273,011 40,289,379 22,159,158 5,533,232,540 1,587,003,299 2.3700 28.68%2012 2011 5,103,304,200 1,447,259,535 405,505,830 121,651,846 61,665,568 33,916,062 5,570,475,598 1,602,827,443 2.5320 28.77%2013 2012 5,112,843,800 1,449,714,920 430,114,371 129,034,404 41,628,886 22,895,887 5,584,587,057 1,601,645,211 2.5320 28.68%2014 2013 5,158,438,800 1,466,353,110 467,797,674 140,339,403 40,871,190 22,479,155 5,667,107,664 1,629,171,668 2.5290 28.75%2015 2014 5,163,144,200 1,468,938,710 451,860,673 135,558,295 43,766,615 24,071,638 5,658,771,488 1,628,568,643 2.7090 28.78%2016 2015 (2) 4,983,179,900 1,432,911,060 523,996,186 157,198,953 46,079,094 25,343,502 5,553,255,180 1,615,453,515 2.7903 29.09%2017 2016 5,033,026,000 1,447,855,685 565,160,540 161,601,506 46,144,771 25,379,624 5,644,331,311 1,634,836,815 2.7903 28.96%2018 2017 5,083,535,000 1,462,664,725 609,152,390 174,726,476 39,749,720 21,862,346 5,732,437,110 1,659,253,547 2.7903 28.94%2019 2018 5,085,896,000 1,638,277,474 608,890,153 174,652,889 39,327,110 21,629,911 5,734,113,263 1,834,560,274 2.7903 31.99%

(1) Assessment rates are set by Tennessee State Law as follows:(a) Real Property: Residential and Farm at 25 percent of value.

Commercial and Industrial at 40 percent of value.(b) Personal Property at 30 percent of value.(c) Railroads at 40 percent of value and other Public Utilities at 55 percent of value.

(2) For these in fiscal year 2010 and 2015, county-wide reappraisals of real property were conducted by the State of Tennessee, Division of Property Assessments.Also, the county-wide reappraisals of real property were completed during tax years 2010 and 2015.

Real Property Personal Property Public Utility Property Total

Table 7

(1a) (1b) (1c)

Anderson County, TennesseeAppraised and Assessed Value of Taxable Property

Last Ten Fiscal Years

297

(7)(4) (5) (6) (7) (7) General General Total Total Total Total Direct (2) (2)

(4) Highway Solid Capital Ambulance Purpose Educational Debt Rural Education Direct Direct Direct Remainder (2) (2) (2) City of Town of Fiscal Tax General Library Dept. Waste Projects Service School Projects Service Debt Debt Tax Inside Inside of Anderson City of City of City of Rocky OliverYear Year Fund Fund Fund Fund Fund Fund Fund Fund Fund Service Service Rate Clinton Oak Ridge County Clinton Oak Ridge Norris Top Springs

2010 (3) 2009 $ 0.0000 $ 0.0000 $ 0.0000 $ 0.0000 $ 0.0000 $ 0.0000 $ 1.7100 $ 0.0000 $ 0.1800 $ 0.0100 $ 0.1300 $ 2.0300 $ 2.0200 $ 1.8900 $ 2.0300 $ 0.7600 $ 2.3900 $ 1.5500 $ 1.6000 $ 1.02002011 2010 0.7163 0.0262 0.0275 0.0000 0.0000 0.0000 1.4400 0.0000 0.0500 0.0100 0.1000 2.3700 2.3600 2.2600 2.3700 0.7600 2.3900 1.5500 1.6000 1.02002012 2011 0.7563 0.0262 0.0275 0.0000 0.0000 0.0000 1.4400 0.0000 0.1000 0.0290 0.1530 2.5320 2.5030 2.3500 2.5320 0.7600 2.3900 1.5500 1.6000 1.02002013 2012 0.6944 0.0262 0.0275 0.0619 0.0000 0.0000 1.4400 0.0000 0.1000 0.0290 0.1530 2.5320 2.5030 2.3500 2.5320 0.7600 2.3900 1.5500 1.6000 1.02002014 2013 0.6914 0.0262 0.0275 0.0619 0.0000 0.0000 1.4400 0.0000 0.1000 0.0290 0.1530 2.5290 2.5000 2.3470 2.5290 0.7600 2.3900 1.5500 1.6000 1.02002015 (3) 2014 0.6900 0.2062 0.0275 0.0619 0.0014 0.0000 1.4400 0.0000 0.1000 0.0290 0.1530 2.7090 2.6800 2.5270 2.7090 0.7600 2.3900 1.5500 1.6000 1.02002016 2015 0.7373 0.0282 0.0448 0.0658 0.0016 0.0000 1.6105 0.0000 0.1063 0.0314 0.1644 2.7903 2.7589 2.5945 2.7903 0.9400 2.5200 1.6709 2.0000 1.32002017 2016 0.7247 0.0282 0.0291 0.0658 0.0019 0.0000 1.6105 0.0280 0.1063 0.0314 0.1644 2.7903 2.7589 2.5945 2.7903 0.9400 2.5200 1.6709 2.0000 1.32002018 2017 0.7527 0.0282 0.0291 0.0658 0.0019 0.0000 1.6105 0.0000 0.1063 0.0314 0.1644 2.7903 2.7589 2.5945 2.7903 0.9400 2.5200 1.6709 2.0000 1.32002019 (7) 2018 0.7520 0.0283 0.0317 0.0669 0.0877 0.0174 1.6105 0.0000 0.0000 0.0314 0.1644 2.7903 2.7589 2.5945 2.7903 0.9400 2.5400 1.6709 2.0000 1.3210

(1) Tax rates are in dollars per $100 of assessed value.(2) City residents pay county taxes in addition to city taxes.(3) In fiscal years 2010 and 2015, county-wide reappraisals of real property were conducted by the State of Tennessee, Division of Property Assessments.(4) Since the implementation of GASB No. 54, the Library and Highway Department had to receive property taxes instead of transfers from the General Fund to remain Special Revenue Funds.(5) The Solid Waste/Sanitation Fund was added to the property tax distribution in 2013 in order to comply with GASB No. 54.(6) The Capital Project Fund was added to the property tax distribution in 2015 to help fund Capital Projects.(7) County commission has strived to maintain a consistent Total Direct Tax Rate of $2.7903. However county commission utilized the rate normally relating to the General Debt Service of $0.1063 to

provide additional funding for other funds including the Highway Dept. Fund, the Capital Projects Fund and the Ambulance Service Fund.

Table 8

Anderson County, TennesseeProperty Tax Rates - Direct and Overlapping Governments (1)


County Direct Rates Overlapping Rates

298

Taxable Percentage of Taxable Percentage of Assessed Total Taxable Assessed Total Taxable

Taxpayer Value Rank Assessed Value (2) Value Rank Assessed Value (3)

SL Corp/SAMLIP 35,705,688$ 1 1.95% 37,781,663$ 1 2.83%Oak Ridge Project, LLC C/O LawlerWood Y-12 35,973,254 2 1.96%Aisin Automotive (4) 29,590,337 3 1.61% 36,357,941 2 2.72%Magna International 19,667,170 4 1.07% 12,638,471 3 0.95%Summit Properties/Hollingsworth 14,217,872 5 0.78% 11,891,237 4 0.89%USEC Inc. (5) - 10,800,546 5R&R Properties/Richard Chinn 12,906,085 6 0.70% 9,998,181 6 0.81%Bell South - 0.00% 9,403,200 7 0.70%Food Lion (6) - 0.00% 8,250,314 8 0.62%Wal-Mart - 0.00% 8,295,349 9 0.62%Methodist Medical Center 11,308,320 7 0.62% 7,556,040 10 0.57%CTP Transportation/The Carlstar Group 10,462,592 8 0.57% 0.00%General Motors LLC 10,068,087 9 0.55% 0.00%TN Oak Ridge Rutgers, LLC 10,669,560 10 0.58%

Totals (5) 190,568,965$ 10.39% 152,972,942$ 10.71%

(1) Taken from the records of the Anderson County Trustee's Office.(2) Total taxable value including real, personal, and public utility property for tax year 2018 (fiscal year 2019) is $1,718,997,674.(3) Total taxable value including real, personal, and public utility property for tax year 2009 (fiscal year 2010) is $1,335,200,161.(4) The taxable value for Aisin Automotive is for personal property tax only. In addition to $816,368 of taxes collected by the Trustee, Aisin Automotive pays an in-lieu-of-tax in the amount of $897,009. See Table 6.(5) USEC was removed from tax roll effective for 2016.(6) Food Lion closed and was not included in taxable assessed value beyond tax year 2016.

2019 2010

Table 9

Anderson County, TennesseePrincipal Property Taxpayers (1)

Current Fiscal Year and Nine Years Ago

299

FiscalYear Total Tax Activity in

Ended Tax Levy for SubsequentJune 30 Year Fiscal Year (1) Amount Percentage of Levy Years (2) Amount Percentage of Levy Amount Percentage of Levy

2010 2009 35,939,486$ 34,723,573$ 96.62% 1,198,385$ 35,921,958$ 99.95% 17,528$ 0.05%2011 2010 36,336,767 35,100,300 96.60% 1,224,370 36,324,670 99.97% 12,097 0.03%2012 2011 39,418,410 (3) 36,853,130 93.49% 2,548,224 39,401,354 99.96% 17,056 0.04%2013 2012 39,767,690 37,296,389 93.79% 2,447,582 39,743,971 99.94% 23,719 0.06%2014 2013 40,226,997 37,697,807 93.71% 2,411,458 40,109,265 99.71% 117,732 0.29%2015 2014 40,044,880 37,953,500 94.78% 1,869,562 39,823,062 99.45% 221,818 0.55%2016 2015 42,877,374 (3) 40,768,406 95.08% 1,898,579 42,666,985 99.51% 210,389 0.49%2017 2016 44,203,194 41,919,681 94.83% 1,994,444 43,914,125 99.35% 289,069 0.65%2018 2017 44,517,403 42,113,903 94.60% 1,867,802 43,981,705 98.80% 535,698 1.20%2019 2018 45,375,560 (4) 42,314,423 93.25% - 42,314,423 93.25% 3,061,137 6.75%

(1) Tax Levy consist of Real and Personal Taxes, Pick Up Taxes, Public Utility Taxes and corrections made before June 30th of the fiscal year.

(2) Activity in subsequent years include two items:Activity include amounts collected and additional corrections by the Trustee prior to submitting the uncollected taxes to the Clerk and Master, Also included are collections and corrections made in the Clerk & Master's Office that relate to each individual tax levy prior to June 30, 2019.

(3) Increases in the total direct tax rates from the prior rates was the primary causes of the tax levy increases for these years. See Table 8.

(4) Increase in the assessed value from prior year was the primary causes of the tax levy increase for this year as Total Direct Tax Rate was $2.7903for both years. See Tables 7 and 8.

Uncollected Taxes to DateFiscal Year of the Levy Collected within the

Total Collections to Date

Table 10

Anderson County, TennesseeProperty Tax Levies and Collections


300

Business-typeActivities

Less Deferred

General Capital Unamortized Amount Total Capital Total PercentageFiscal Obligation Other Outlay Premium on on Capital Governmental Outlay Primary of Personal PerYear Bonds Loans (1) Notes Debt Refunding Leases Activities Notes Government Income (4) Capita (4)

2010 $ 14,345,000 $ 17,382,241 $ 180,000 $ 0 $ (320,871) $ 0 $ 31,586,370 $ 0 $ 31,586,370 $ 1.40% $ 423 2011 27,320,000 3,456,000 140,000 341,830 (370,471) 0 30,887,359 0 30,887,359 1.44% 411 2012 49,860,000 3,232,000 913,880 862,553 (262,802) 645,896 (2) 55,251,527 0 55,251,527 2.56% 735 2013 47,505,000 2,999,000 1,008,425 798,991 (178,320) 599,207 52,732,303 0 52,732,303 2.07% 699 2014 45,740,000 12,565,964 823,217 800,455 (117,061) 545,752 60,358,327 0 60,358,327 3.30% 800 2015 43,850,000 12,013,043 638,009 727,386 (68,019) 928,079 58,088,498 223,225 58,311,723 3.00% 773 2016 41,865,000 11,350,279 1,682,802 654,317 (31,984) 754,664 56,275,078 194,000 56,469,078 1.91% 749 2017 40,500,000 10,663,455 2,630,562 584,387 (550,709) 570,168 54,397,863 163,000 (3) 54,560,863 1.86% 719 2018 37,150,000 9,933,019 2,166,322 1,710,545 (423,456) 373,426 50,909,856 0 50,909,856 1.70% 715 2019 46,070,000 9,123,000 1,527,082 2,069,946 (407,839) 163,134 58,545,323 0 58,545,323 1.87% 765

(1) Includes long-term loans payable financed by PBA loan agreements and USDA loan agreements for Briceville Library (which was retired during fiscal year 2019).(2) Prior to this fiscal year, the capital lease relating to the Headstart Facility was reflected as an obligation of Anderson County School Department (an discretely presented component unit).(3) The Ambulance Service was treated as an Enterprise Fund before being transferred to a Special Revenue Fund effective at the start of the 2018 fiscal year(4) See Table 15 (Demographic and Economical Statistics) for personal income and population data.

Governmental Activities

Table 11

Anderson County, TennesseeRatios of Outstanding Debt by Type


301

Assessed General Less: Amounts Net Ratio of Net Net BondedEstimated Property Obligation Available in Debt Bonded Bonded Debt Debt

Fiscal Year Population Value Bonds (2) Service Funds Debt (3) to Assessed Value Per Capita

2010 74,738 $ 1,335,200,161 $ 31,406,370 $ 4,815,007 $ 26,591,363 1.99% $ 356 2011 75,129 1,587,003,299 30,747,359 4,778,380 25,968,979 1.64% 346 2012 75,129 1,602,827,443 53,691,751 4,923,502 48,768,249 3.04% 649 2013 75,411 1,601,645,211 51,124,671 4,779,193 46,345,478 2.89% 615 2014 75,411 1,629,171,668 58,989,358 5,024,385 53,964,973 3.31% 716 2015 75,411 1,628,568,643 56,522,410 3,001,213 53,521,197 3.29% 710 2016 75,411 1,615,453,515 53,837,612 4,874,788 48,962,824 3.03% 649 2017 75,936 1,634,836,815 51,197,133 5,107,410 46,089,723 2.82% 607 2018 76,257 1,659,253,547 48,370,108 4,752,870 43,617,238 2.63% 572 2019 76,482 1,834,560,274 56,855,107 2,929,729 53,925,378 2.94% 705

(1) Includes long-term loans payable financed by PBA loan agreements and USDA loan agreements as these instruments are in substance the sameas bonded debt and also are primarily funded by local property taxes.

(2) Includes the effect of Deferred Amounts on Refunds and Unamortized Premiums on Debt(3) Net Bonded Debt is the effect of only the Bonded Debt for the county less the funds available in each one of the debt service funds.

Table 12

Anderson County, TennesseeRatios of General Bonded Debt Outstanding (1)


302

Direct General Bonded Debt, Loans, Notes, Total and Capital Leases Payable: Anderson County (Amount from table 11 Debt Ratios) 56,883,216$ (1) Less Debt Issued for the Benefit of School Department (37,854,943) Less: Amount Restricted for Debt Service (1,305,439) (2)Total Direct General Bonded Debt, Loans, Notes, and Capital Leases Payable - Net 17,722,834$

Overlapping General Bonded Debt: City of Oak Ridge 93,806,846$ (2) City of Clinton 8,156,263 (2) City of Rocky Top 191,318 (2) Total Overlapping General Bonded Debt 102,154,427$

TOTAL DIRECT GENERAL BONDED DEBT AND LOANS PAYABLE119,877,261$

Method used to calculate overlapping debt:(1) Information on the county's bonded debt and loans payable is taken from information on Table 11 under the Statistical Schedules section of this audit.

(2) The amount Restricted for Debt Service is taken from Exhibit A.

The overlapping General Bonded Debt is obtained from each individual city in Anderson County. Their totals are then added to the county's direct general bonded debt and loanspayable - net to obtain Total Direct General Bonded Debt and Loans Payable andOverlapping General Bonded Debt.

Table 13

AND OVERLAPPING GENERAL BONDED DEBT

Anderson County, TennesseeDirect and Overlapping Governmental Activities Debt

As of June 30, 2019

303

NOTE:

Section 9-21-103 of the laws of the State of Tennessee providesthat bonds or notes may be issued without regard to any limit onindebtedness for Tennessee counties.

Not Applicable to Anderson County, Tennessee

Table 14

Anderson County, TennesseeLegal Debt Margin Information

June 30, 2019

304

NOTE:

All debt obligations were based on Anderson County's ability to establish ad valorum tax in amounts necessary to cover all future debt service requirements.

Table 15

Anderson County, TennesseePledged Revenue Coverage

June 30, 2019

Not Applicable to Anderson County, Tennessee

305

PersonalIncome Per

(amounts Capitaexpressed in Personal Median School Unemployment

Fiscal Year Population (1) thousands) (1) Income (1) Age (1) Attendance (2) Rate (3)

2010 74,738 $ 2,150,960 $ 28,780 39.2 8,117 9.4%2011 75,129 2,162,213 28,780 39.9 8,186 9.4%2012 75,129 2,543,192 33,851 39.5 8,141 8.6%2013 75,411 1,828,113 24,242 40.5 8,081 8.6%2014 75,411 1,942,437 25,758 43.1 8,096 7.0%2015 75,411 2,952,190 39,148 42.4 8,053 6.4%2016 75,411 3,261,601 43,251 43.1 8,022 5.1%2017 75,936 2,933,939 38,637 43.2 7,739 4.6%2018 76,257 2,991,181 39,225 43.3 7,772 4.5%2019 76,482 3,124,060 40,847 43.3 7,624 4.4%

Data Sources:(1) Tennessee Demographics by Cubit and Fred Economic Data(2) Tennessee Department of Education for Anderson County Schools.(3) Tennessee Department of Labor and Workforce Development.

Table 16

Anderson County, TennesseeDemographic and Economic Statistics


306

Percentage Percentage of County of County

Employer Employees Rank Work Force (1) Employees Rank Work Force (2)

Y12 National Security Complex 4,700 1 13.68% 4,600 1 12.84%UT Battelle(Oak Ridge National Lab) 4,600 2 13.39% 4,200 2 11.73%UCOR (Bechtel Jacobs) 1,640 3 4.77% 1,337 5 3.73%City of Oak Ridge City 1,788 4 5.20% - Anderson County Government 1,472 5 4.28% 1,739 3 4.86%Methodist Medical Center 1,200 6 3.49% 1,350 4 3.77%SiTel 1,001 7 2.91% 500 9 1.40%Oak Ridge Associated Universities 900 8 2.62% 850 8 2.37%Aisin Automotive 882 9 2.57%SL Tennessee 800 10 2.33%SAIC 800 10 2.33% 1,100 6 3.07%Eagle Bend Mfg .Wackenhut-Oak Ridge Team - 902 7 2.52%

City of Oak Ridge 464 10 1.30%Total 19,783 57.58% 17,042 47.58%

Source(s): East Tennessee Economic Development Agency, Anderson County Chamber of Commerce, and Tennessee Department of Economic & Community Development.

(1) The total County Work Force for 2019 is 35,924.(2) The total County Work Force for 2010 was 35,817.

2019 2010

Table 17

Anderson County, TennesseePrincipal Employers

Current Year and Nine Years Ago

307

Function 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

General Government 39.0 51.0 48.0 50.0 48.0 50.0 39.0 35.0 32.0 33.0

Finance 47.0 44.0 44.0 43.0 42.0 46.0 44.0 46.0 45.0 45.0

Administration of Justice 46.0 47.0 49.0 49.0 40.0 46.0 42.0 45.0 48.0 46.0

Public Safety 167.0 164.0 171.0 177.0 179.0 167.0 172.0 173.0 178.0 181.0

Public Health and Welfare 75.0 85.0 86.0 76.0 90.0 91.0 77.0 75.0 74.0 74.0

Social, Cultural, and Recreational Services 6.0 7.0 8.0 5.0 7.0 7.0 8.0 10.0 9.0 10.0

Agriculture and Natural Resources 3.0 3.0 3.0 2.0 2.0 2.0 1.0 1.0 1.0 1.0

Other Operations 4.0 4.0 4.0 3.0 4.0 6.0 5.0 5.0 4.0 3.0

Solid Waste 3.0 1.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 4.0

Highways 30.0 33.0 35.0 31.0 28.0 26.0 25.0 25.0 28.0 25.0

TOTAL 420.0 439.0 451.0 439.0 443.0 444.0 416.0 418.0 422.0 422.0

Source(s): Anderson County Department of Finance used payroll data to classify individuals by function.

Anderson County, TennesseeFull-time Equivalent County Government Employees by Function


Table 18

308

Function: 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Register of Deeds

Documents Filed 12,793 11,114 11,341 14,824 10,969 10,157 10,881 11,096 11,197 11,265Chancery Court

Cases Filed 2,215 2,167 2,102 2,066 2,029 1,753 1,617 1,919 1,861 1,701Case Dispositions 1,889 1,951 1,744 2,293 2,076 1,629 2,292 1,805 1,656 1,639

General Sessions Court ICivil Cases Filed 2,138 2,062 1,959 1,369 2,019 1,761 1,531 1,761 1,607 1,612Criminal Cases Files 7,825 7,491 7,462 5,131 3,120 5,524 5,883 7,054 6,183 4,351

General Sessions Court IICivil Cases Filed 615 607 748 979 1,146 772 984 1,062 1,150 1,835Criminal Cases Files 5,104 5,121 5,158 3,540 3,770 3,982 4,014 4,550 4,728 3,638

Circuit CourtCases Filed 606 571 455 337 458 271 273 225 179 183Case Dispositions 664 655 566 391 325 255 270 301 220 181

Criminal CourtCases Filed 2,441 2,651 2,609 1,084 708 761 1,124 1,049 1,188 1,052Case Dispositions 1,691 1,289 1,337 1,275 1,034 947 1,434 1,177 955 1,129

Sheriff's DepartmentPhysical Arrests 2,779 3,551 3,323 2,371 2,172 2,165 2,027 2,315 2,221 2,454Traffic Violations 674 950 979 790 895 528 441 596 688 383Back-Up Units Required 9,357 9,234 7,680 8,296 7,442 7,819 8,811 9,248 8,209 10,174

Emergency DispatchCalls for Service

Sherriff 36,115 34,357 29,925 27,387 26,558 24,845 26,322 28,699 28,521 54,353Ambulance 29,373 29,982 22,313 32,908 31,882 29,774 29,831 25,975 21,743 17,800Fire and Rescue Calls 4,490 4,158 4,152 5,383 4,894 7,495 4,894 4,706 4,894 4,548

Ambulance ServiceTransports (1) 15,420 17,568 19,209 17,777 17,210 16,250 17,243 17,157 15,030 14,139

Highway DepartmentRoad Resurfacing (miles) 14 4 9.3 13.8 0 8.2 3.1 19.5 16.6 12.48

Sources: Various respective government departments. (1) These numbers only represent actual transports of patients. They do not represent any calls that had no transports or a stand-by.

Anderson County, TennesseeOperating Indicators by Function


Table 19

309

Function 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019General Government

Buildings 5 5 5 5 5 5 5 5 6 6 6Vehicles 6 8 9 9 11 13 10 10 7 7 7

FinanceVehicles 0 0 0 0 0 0 0 4 4 4 5

Administration of JusticeBuildings 0 0 0 0 0 0 0 0 0 0 1Vehicles 1 1 1 1 1 1 1 1 1 1 3

Public SafetyBuildings 4 4 4 5 6 6 6 6 5 5 5Vehicles 110 115 123 137 111 108 112 113 113 113 133Haz-mat Vehicle 1 1 1 1 1 1 1 1 1 1 1

Public Health and WelfareBuildings 3 3 3 3 3 3 4 4 7 8 10Ambulances 21 19 20 22 22 19 21 19 19 19 19Vehicles 9 7 8 8 9 9 10 9 8 8 8

Social, Cultural, and RecreationalBuildings 1 1 1 1 1 2 2 2 2 4 4Parks 7 7 7 7 7 7 7 7 7 7 7

Highway (1)Buildings 1 1 1 1 1 1 1 1 1 1 1Bridges 66 67 68 68 69 69 69 69 69 69 69Roads (miles) 538 504 530 506 506 507 507 507 509 509 509

In Highway Function Vehicles are considered as Equipment which are not reflected on this table.

Sources: Various government departments.


Table 20

Anderson County, TennesseeCapital Assets Statistics by Function

Fiscal Year Ending

310

SINGLE AUDIT SECTION

311

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



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 Anderson County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise Anderson County's basic financial statements, as listed in the table of contents, and have issued our report thereon dated November 27, 2019. Our report includes a reference to other auditors who audited the financial statements of the Anderson County Emergency Communications District, as described in our report on Anderson County's financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Anderson 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 Anderson County's internal control. Accordingly, we do not express an opinion on the effectiveness of Anderson 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,

312

in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control 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 Anderson 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 an instance of noncompliance or other matter that is required to be reported under Government Auditing Standards and is described in the accompanying Schedule of Findings and Questioned Costs as item 2019-001.

Anderson County's Response to Finding

Anderson County's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Anderson County's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Anderson County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Very truly yours,


November 27, 2019

JPW/tg

313

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



Report on Compliance for Each Major Federal Program

We have audited Anderson 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 Anderson County's major federal programs for the year ended June 30, 2019. Anderson 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 Anderson 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

314

examining, on a test basis, evidence about Anderson County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Anderson County's compliance.

Opinion on Each Major Federal Program

In our opinion, Anderson County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019.

Report on Internal Control Over Compliance

Management of Anderson 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 Anderson 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 Anderson 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.

315

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 Anderson County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise Anderson County’s basic financial statements. We issued our report thereon dated November 27, 2019, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Very truly yours,


November 27, 2019

JPW/tg

316

Anderson County, Tennessee, and the Anderson County School DepartmentSchedule of Expenditures of Federal Awards and State Grants (1) (2)For the Year-Ended June 30, 2019

Federal Pass-throughFederal/Pass-Through Agency/State CFDA Entity IdentifyingGrantor Program Title Number Number Expenditures

U.S. Department of Agriculture: Passed-through State Department of Education: Child Nutrition Cluster: (4) School Breakfast Program 10.553 N/A $ 746,498 National School Lunch Program 10.555 N/A 1,918,154 (5) Fresh Fruit and Vegetable Program 10.582 N/A 6,718 Passed-through State Department of Agriculture: Child Nutrition Cluster: (4) National School Lunch Program (Commodities - Noncash Assistance) 10.555 N/A 244,123 (5) Passed-through State Department of Human Services: Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 GG-19-59333 60,474 Child and Adult Care Food Program 10.558 N/A 124,004Total U.S. Department of Agriculture $ 3,099,971

U.S. Department of Interior: Passed-through State Department of Economic and Community Development: Abandoned Mine Land Reclamation (AMLR) Program 15.252 (3) $ 284,582Total U.S. Department of Interior $ 284,582

U.S. Department of Justice: Passed-through State Department of Finance and Administration: Crime Victim Assistance 16.575 (3) $ 52,906 Passed-through Tennessee Bureau of Investigation: Public Safety Partnership and Community Policing Grants 16.710 (3) 13,054 Direct Program: Equitable Sharing Program 16.922 (3) 2,240Total U.S. Department of Justice $ 68,200

U.S. Department of Transportation: Passed-through State Department of Transportation: Highway Planning and Construction Cluster: (4) Highway Planning and Construction 20.205 (3) $ 9,820 Highway Safety Cluster: (4) State and Community Highway Safety 20.600 (3) 12,846Total U.S. Department of Transportation $ 22,666

U.S. Institute of Museums and Library Services: Passed-through Department of State, Tennessee State Library and Archives: Grants to States 45.310 (3) $ 3,165Total U.S. Institute of Museums and Library Services $ 3,165

U.S. Department of Energy: Passed-through State Department of Military: Environmental Monitoring/Cleanup, Cultural and Resource Management, Emergency Response Research, Outreach, Technical Analysis 81.214 (3) $ 14,265Total U.S. Department of Energy $ 14,265

U.S. Department of Education: Passed-through State Department of Education: Title 1 Grants to Local Educational Agencies 84.010 N/A $ 1,726,200 Special Education Cluster: (4) Special Education - Grants to States 84.027 N/A 1,811,380 Special Education - Preschool Grants 84.173 N/A 94,448 Career and Technical Education - Basic Grants to States 84.048 N/A 124,283 Gaining Early Awareness and Readiness for Undergraduate Programs 84.334 N/A 295,608 Improving Teacher Quality State Grants 84.367 N/A 269,542Total U.S. Department of Education $ 4,321,461

U.S. Department of Health and Human Services: Passed-through East Tennessee Human Resource Agency: Aging Cluster: (4) Special Programs for the Aging - Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 N/A $ 47,678 Passed-through State Department of Health: Family Planning Services 93.217 GG-19-59333 21,813 Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 N/A 388,750

(Continued)

317

Anderson County, Tennessee, and the Anderson County School DepartmentSchedule of Expenditures of Federal Awards and State Grants (1) (2) (Cont.)

Federal Pass-throughFederal/Pass-Through Agency/State CFDA Entity IdentifyingGrantor Program Title Number Number Expenditures

U.S. Department of Health and Human Services (Cont.): Passed-through State Department of Health (Cont.): Medicaid Cluster: (4) Medical Assistance Program 93.778 GG-19-59333 $ 28,525 Maternal and Child Health Service Block Grant to the States 93.994 GG-19-59333 27,898 Passed-through State Department of Human Services: CCDF Cluster: (4) Child Care and Development Block Grant 93.575 N/A 46,773 Direct Program: Head Start 93.600 N/A 3,893,790Total U.S. Department of Health and Human Services $ 4,455,227

Executive Office of the President: Passed-through Laurel County, Kentucky Fiscal Court: High Intensity Drug Trafficking Areas Program 95.001 (3) $ 8,970Total Executive Office of the President $ 8,970

U.S. Department of Homeland Security: Passed-through State Department of Military: Hazard Mitigation Grant 97.039 (3) $ 11,943 Emergency Management Performance Grants 97.042 (3) 33,500 Homeland Security Grant Program 97.067 (3) 39,962Total U.S. Department of Homeland Security $ 85,405

Total Expenditures of Federal Grants $ 12,363,912

ContractState Grants Number Juvenile Services Program - State Children's Services Commission N/A (3) $ 4,500 Litter Program - State Department of Transportation N/A (3) 39,270 Drug Court Grant - State Department of Finance and Administration N/A (3) 67,253 Law Enforcement Training Grants N/A (3) 35,400 Health Department Grants - State Department of Health N/A GG-19-59333 166,312 Safety Net Dental Clinic Grant - State Department of Health N/A (3) 9,240 Training Opportunities for the Public (TOP) - TN Secretary of State N/A (3) 600 Healthy Built Environment - State Department of Health N/A (3) 20,000 Read to be Ready Coaching Network Grant - State Department of Education N/A (3) 9,999 Read to be Ready Summer Literacy Grant - State Department of Education N/A (3) 187,091 Convenience Center Grant - State Department of Environment and Conservation N/A (3) 23,594 Aging Program - State Office on Aging N/A (3) 16,074 Tourism Enhancement - Rural Development Division N/A (3) 55,000 Lottery for Education Afterschool Programs - State Department of Education N/A (3) 397,039 Tobacco Cessation Grant - State Department of Health N/A (3) 2,500 Breakfast After the Bell - State Department of Education N/A (3) 1,813 School Safety Grant - State Department of Education N/A (3) 164,780 Coordinated School Health Program N/A (3) 99,816 Family Resource Centers - State Department of Education N/A (3) 59,567 Safe Schools Act - State Department of Education N/A (3) 65,910 Early Childhood Education - State Department of Education N/A (3) 652,465

Total State Grants $ 2,078,223

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) Anderson County elected not to use the 10% de minimis cost rate permitted in the Uniform Guidance.(3) Information not available.(4) Child Nutrition Cluster total $2,908,775; Highway Planning and Construction Cluster total $9,820; Highway Safety Cluster total $12,846; Special Education Cluster total $1,905,828; Aging Cluster total $47,678; Medicaid Cluster total $28,525; CCDF Cluster total $46,773.(5) Total for CFDA No. 10.555 is $2,162,277

SUBRECIPIENTS Federal Amount CFDA Provided to

Program Title Number Subrecipient SubrecipientHead Start 93.600 $817,456 City of Oak Ridge

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Anderson County, TennesseeSummary Schedule of Prior-year FindingsFor the Year Ended June 30, 2019

Fiscal Page Finding CFDAYear Number Number Number

OFFICES OF COUNTY MAYOR AND FINANCE DIRECTOR

2018 308 2018-001 N/A

There were no prior-year federal award findings to report.

Prior-year Federal Awards Findings

Title of Finding Current Status

Government Auditing Standards require auditors to report the status of uncorrected findings from prior audits.In addition, OMB's Uniform Guidance requires auditees to report the status of all prior-year findings whethercorrected or not. Presented below are financial statement findings along with their current status from theAnnual Financial Report for Anderson County, Tennessee, for the year ended June 30, 2019.

Prior-year Financial Statement Findings

CorrectedThe Ambulance Service Fund had a deficit in unassigned fund balance at June 30, 2018

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Financial Statements:

1. Our report on the financial statements of Anderson County is unmodified.

2. Internal Control Over Financial Reporting:

* Material weakness identified? NO

* Significant deficiency identified? NO

3. Noncompliance material to the financial statements noted? NO

Federal Awards:

4. Internal Control Over Major Federal Programs:

* Material weakness identified? NO

* Significant deficiency identified? NONE REPORTED

5. Type of report auditor issued on compliance for major programs. UNMODIFIED

6. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? NO

7. Identification of Major Federal Programs:

* CFDA Numbers: 10.553 and 10.555 Nutrition Cluster: School BreakfastProgram and National School LunchProgram

* CFDA Number 93.600 Head Start

8. Dollar threshold used to distinguish between Type A and Type B Programs. $750,000

9. Auditee qualified as low-risk auditee? NO

ANDERSON COUNTY, TENNESSEE

SCHEDULE OF FINDINGS AND QUESTIONED COSTS


PART I, SUMMARY OF AUDITOR'S RESULTS

320

PART II, FINDINGS RELATING TO THE FINANCIAL STATEMENTS A finding and recommendation, as result of our audit, are presented below. We reviewed this finding and recommendation with management to provide an opportunity for their response. A written response for the finding is paraphrased and presented following the finding and recommendation. Management’s corrective action plan, whether related to the financial statements or federal awards, is presented separately in the Management’s Corrective Action Plan in the Single Audit Section of this report. Findings relating specifically to the audit of federal awards, if any, are separately presented under Part III, Findings and Questioned Costs for Federal Awards. OFFICES OF DIRECTOR OF SCHOOLS AND INTERIM FINANCE DIRECTOR FINDING 2019-001 REVENUE ANTICIPATION NOTES WERE NOT

RETIRED IN COMPLIANCE WITH STATE STATUTE (Noncompliance Under Government Auditing Standards)

During the period under examination, the School Federal Projects Fund borrowed $520,420 from the General Purpose School Fund in the form of revenue anticipation notes to provide cash flow for the payment of federal grant expenditures. Of these notes, only $297,420 was paid back during the fiscal year. The remaining notes totaling $223,000 were not retired by June 30, 2019, due to the lack of available funds. Section 9-21-801, Tennessee Code Annotated, provides that revenue anticipation notes shall mature not later than the close of the fiscal year issued. These notes have been reflected in the financial statements of this report as Due from Other Funds in the General Purpose School Fund and as Due to Other Funds in the School Federal Projects Fund. RECOMMENDATION Revenue anticipation notes should be retired prior to the end of the fiscal year issued as required by state statute. MANAGEMENT’S RESPONSE – DIRECTOR OF SCHOOLS AND SCHOOL’S CHIEF FINANCIAL OFFICER The amount owed to General Purpose School Fund ($223,000) was repaid by School Federal Projects Fund on August 6, 2019, after funds were received from the State of Tennessee for the grant reimbursements. During 2019-2020, we have committed $150,000 to have available to transfer into School Federal Projects Fund as needed. On October 31, 2019, a transfer of $100,000 was posted to the School Federal Projects Fund from the General Purpose School Fund. We want to continue to show a good faith effort to provide a positive cash flow throughout the year for School Federal Projects Fund.

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PART III, FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS There were no findings and questioned costs related to federal awards for the year ended June 30, 2019.

322

FindingNumber

OFFICES OF DIRECTOR OF SCHOOLS AND SCHOOL'S CHIEF FINANCIAL OFFICER

2019-001

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 statement findingsand federal award findings are presented in this section and have been indexed below. The corrective action planswere prepared by management and have been presented as they were submitted.

Anderson County, TennesseeManagement's Corrective Action Plan


Title of Finding

Revenue Anticipation Notes Were Not Retired in Compliance With State Statutes

Corrective ActionPlan Page Number

324

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:" ~" : ~.

Anderson County Schools Every Student, EveryDay

ANDERSON COUNTY SCHOOL DISTRICT 101 South Main Street, Suite 507

Clinton, Tennessee 37716 Office: (865) 463-2800, x 2868

Fax: (865) 457-1336

Julie Minton Chief Financial Officer

Corrective Action Plan

FINDING 2019-001: REVENUE ANTICIPATION NOTES WERE NOT RETIRED IN COMPLIANCE WITH STATE STATUTES

Response and Corrective Action Plan Prepared by: Julie Minton, Chief Financial Officer, Anderson County Schools

Person Responsible for Implementing the Corrective Action: Julie Minton, Chief Financial Officer, Anderson County Schools

Anticipated Completion Date of Corrective Action: August 6, 2019; June 30,2020 and following

Repeat Finding: No

Planned Corrective Action: This finding is a result of our school system's continuing efforts to secure grant funding to enable and enhance our students' performance in the classroom. Often reimbursements for these grants are not received until after the end of the fiscal year.

We have developed a two-step solution to this issue. The first step with immediate results was to repay the $223,000 due to General Purpose School fund. This payment occurred on August 6, 2019, after funds were received from the State of Tennessee.

The second step is to continue the commitment to set aside funds at year end, depending on availability of funds and the need to provide additional funding in Federal Projects fund. We have been fortunate in the past years to have available funds to commit for cash flow purposes in Federal Projects. We plan to continue this

pra~n~~re

Dr. Tim Parrott, Director of Schools

Date: III, 2- , t 1. Date: IIU 2-/;97 I

Ie Minton, Chief

324