ARTSVILLE/TROUSDALE COUNTY GOVERNMENT … COUNTY GOVERNMENT, TENNESSEE FOR THE YEAR ENDED JUNE 30, 2017 COMPTROLLER OF THE TREASURY ... Jerry Ford John Oliver: Don Coker Johnny Kerr

ANNUAL FINANCIAL REPORT

HARTSVILLE/TROUSDALE COUNTY GOVERNMENT, TENNESSEE

FOR THE YEAR ENDED JUNE 30, 2017

DIVISION OF LOCAL GOVERNMENT AUDIT

ANNUAL FINANCIAL REPORT


FOR THE YEAR ENDED JUNE 30, 2017

COMPTROLLER OF THE TREASURY JUSTIN P. WILSON

DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE

Director

JEFF BAILEY, CPA, CGFM, CFE Audit Manager

TERYN McNEAL, CPA KATIE ARMSTRONG, CPA, CGFM, CFE KELLEY McNEAL, CPA, CGFM Auditor 4 State Auditors

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

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Exhibit Page(s)

Summary of Audit Findings 6

INTRODUCTORY SECTION 7

Hartsville/Trousdale County Government Officials 8

FINANCIAL SECTION 9

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

Government-wide Financial Statements:Statement of Net Position A 15-16Statement of Activities B 17-18

Fund Financial Statements:Governmental Funds:

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

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

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

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities C-4 24

Statements of Revenues, Expenditures, and Changes in FundBalances – Actual and Budget:

General Fund C-5 25-26Special Purpose Fund C-6 27

Proprietary Fund:Statement of Net Position D-1 28-29Statement of Revenues, Expenses, and Changes in Net Position D-2 30Statement of Cash Flows D-3 31-32

Fiduciary Funds:Statement of Fiduciary Assets and Liabilities E 33

Index and Notes to the Financial Statements 34-88REQUIRED SUPPLEMENTARY INFORMATION: 89

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 90

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Planof TCRS – Primary Government – Former City of Hartsville Plan F-2 91

TABLE OF CONTENTS

HARTSVILLE/TROUSDALECOUNTY GOVERNMENT, TENNESSEE

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Exhibit Page(s)

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Primary Government F-3 92

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Primary Government – Former City ofHartsville Plan F-4 93

Schedule of Contributions Based on Participation in the TeacherRetirement Plan of TCRS – Discretely Presented Hartsville/TrousdaleCounty School Department F-5 94

Schedule of Contributions Based on Participation in the TeacherLegacy Pension Plan of TCRS – Discretely Presented Hartsville/Trousdale County School Department F-6 95

Schedule of Proportionate Share of the Net Pension Asset in theTeacher Pension Plan of TCRS – Discretely PresentedHartsville/Trousdale County School Department F-7 96

Schedule of Proportionate Share of the Net Pension Asset in theTeacher Legacy Pension Plan of TCRS – Discretely PresentedHartsville/Trousdale County School Department F-8 97

Schedule of Funding Progress – Other Postemployment BenefitsPlans – Primary Government and Discretely Presented Hartsville/Trousdale County School Department F-9 98

Notes to the Required Supplementary Information 99-100COMBINING AND INDIVIDUAL FUND FINANCIAL

STATEMENTS AND SCHEDULES: 101Nonmajor Governmental Funds: 102-103

Combining Balance Sheet G-1 104-109Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances G-2 110-115Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual and Budget:Urban Services Fund G-3 116Solid Waste/Sanitation Fund G-4 117Ambulance Service Fund G-5 118Drug Control Fund G-6 119Highway/Public Works Fund G-7 120General Debt Service Fund G-8 121Education Debt Service Fund G-9 122

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

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

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

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

Balances – Governmental Funds I-4 131

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Exhibit Page(s)

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

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

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

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

Miscellaneous Schedules: 138Schedule of Changes in Long-term Notes, Other Loans,

and Bonds J-1 139-140Schedule of Long-term Debt Requirements by Year J-2 141-143Schedule of Transfers J-3 144Schedule of Salaries and Official Bonds of Principal Officials –

Primary Government and Discretely Presented Hartsville/Trousdale County School Department J-4 145

Schedule of Detailed Revenues – All Governmental Fund Types J-5 146-157Schedule of Detailed Revenues – All Governmental Fund Types –

Discretely Presented Hartsville/Trousdale County School Department J-6 158-161

Schedule of Detailed Expenditures – All Governmental Fund Types J-7 162-185Schedule of Detailed Expenditures – All Governmental Fund Types –

Discretely Presented Hartsville/Trousdale County SchoolDepartment J-8 186-195

Schedule of Detailed Revenue and Expenses - Proprietary Fund J-9 196-197

STATUTORY SECTION Table 198

Demographic and Economic Information:Schedule of Utility Rates 1 199Schedule of Unaccounted for Water 2 200-201

SINGLE AUDIT SECTION 202

Auditor's Report on Internal Control Over Financial Reporting andCompliance and Other Matters Based on an Audit of FinancialStatements Performed in Accordance With GovernmentAuditing Standards 203-204

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 205-207

Schedule of Expenditures of Federal Awards and State Grants 208-209Summary Schedule of Prior-year Findings 210Schedule of Findings and Questioned Costs 211-216Management's Corrective Action Plan 217-222Best Practice 223

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Summary of Audit FindingsAnnual Financial Report

Hartsville/Trousdale County Government, Tennessee For the Year Ended June 30, 2017

Scope

We have audited the basic financial statements of Hartsville/Trousdale County Government as of and for the year ended June 30, 2017.

Results

Our report on Hartsville/Trousdale County Government is unmodified.

Our audit resulted in four findings and recommendations, which we have reviewed with Hartsville/Trousdale County Government management. Detailed findings, recommendations, and management’s responses are included in the Single Audit section of this report.

Findings

The following are summaries of the audit findings:

WATER AND SEWER UTILITY DEPARTMENT

♦ The office had deficiencies in purchasing procedures.♦ The department had deficiencies in cash reconciliation procedures.

SUPERINTENDENT OF ROADS

♦ Competitive bids were not solicited for the purchase of a vehicle.

OFFICE OF CLERK AND MASTER AND THE WATER AND SEWER UTILITY DEPARTMENT

♦ Duties were not segregated adequately.

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INTRODUCTORY SECTION

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Hartsville/Trousdale County OfficialsJune 30, 2017

Officials

Carroll Carman, County MayorBilly Scruggs, Superintendent of RoadsClint Satterfield, Director of SchoolsCindy Carman, TrusteeDewayne Byrd, Assessor of PropertyRita Crowder, County ClerkKim Taylor, Circuit, General Sessions, and Juvenile Courts ClerkShelly Jones, Clerk and MasterLeah Verville, Register of DeedsRay Russell, Sheriff

Hartsville/Trousdale County Government Commissioners

Mark Beeler, Chairman Linda Sue JohnsonJames Falco Richard HarshWayne Brown James McDonaldShane Burton David NollnerJerry Ford John OliverDon Coker Johnny KerrWilliam Fergusson Gary ClaridyTerry Gregory Steve WhittakerAndy Jellison Michael SatterfieldRichard Johnson Kendra Belcher

Highway Commission Board of Education

Carroll Carman, County Mayor, Chairman Regina Waller, ChairmanBilly Scruggs, Superintendent of Roads Anthony CrookBobby Joe Lewis Denice Jackson

David CrabtreeMary Helen McGowan

Audit Committee

Jim Falco, Chairman Mark Beeler, ChairmanWilliam Fergusson Carroll Carman, County MayorMark Beeler Toby WoodmoreJames McDonald Sissie P. HarperJohn Oliver Craig MorelandAndy JellisonJerry Ford

Water and Sewer Board

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FINANCIAL SECTION

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Independent Auditor's Report

Hartsville/Trousdale County Government Mayor and Board of County Commissioners Hartsville/Trousdale 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 business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Hartsville/Trousdale County, Tennessee, as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the county’s basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

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entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the metropolitan government as of June 30, 2017, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and Special Purpose Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

We draw attention to Note I.D.9. to the financial statements, which describes prior-period adjustments to the beginning Governmental Activities net position totaling $1,748,964 and Business-type Activities net position totaling $90,878 on the Government-wide Statement of Activities. These restatements were necessary because debt payments contributed from the General Purpose School Fund to the General Debt Service Fund were not presented accurately in the prior year and pension obligations were overstated in the major enterprise fund in the prior year.

Other Matters

Required Supplementary Information

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

Accounting principles generally accepted in the United States of America require that the schedule of changes in the county’s net pension liability and related ratios, schedule of county contributions, schedule of school’s proportionate share of the net pension liability, and schedule of funding progress - other postemployment benefits plans on pages 90-100 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

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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 the metropolitan government’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds, combining and individual fund financial statements of the Hartsville/Trousdale County School Department (a discretely presented component unit), miscellaneous schedules, and statutory section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds, combining and individual fund financial statements of the Hartsville/Trousdale County School Department (a discretely presented component unit), miscellaneous schedules, and schedule of expenditures of federal awards, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds, combining and individual fund financial statements of the Hartsville/Trousdale County School Department (a discretely presented component unit), miscellaneous schedules, and schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory section and statutory 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.

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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 8, 2017, on our consideration of the metropolitan government’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 the metropolitan government’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 the metropolitan government’s internal control over financial reporting and compliance.

Very truly yours,

Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee

December 8, 2017

JPW/yu

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BASIC FINANCIAL STATEMENTS

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Exhibit A

Hartsville/Trousdale County Government, TennesseeStatement of Net PositionJune 30, 2017

Governmental Business-typeActivities Activities Total

Cash $ 17,635 $ 2,845,559 $ 2,863,194 $ 0Equity in Pooled Cash and Investments 7,326,379 0 7,326,379 4,867,606Accounts Receivable 847,118 1,052,652 1,899,770 392,081Allowance for Uncollectibles (107,046) 0 (107,046) 0Due from Other Governments 4,939,845 0 4,939,845 290,174Due from Other Funds 616 0 616 0Due from Component Units 2,649,573 0 2,649,573 0Property Taxes Receivable 5,211,235 0 5,211,235 1,497,933Allowance for Uncollectible Property Taxes (491,869) 0 (491,869) (141,675)Net Pension Asset - Agent Plan 10,329 0 10,329 3,190Net Pension Asset - Teacher Retirement Plan 0 0 0 13,900Prepaid Items 0 103,506 103,506 0Internal Balances 36,790 (36,790) 0 0Restricted Assets: Revenue Bond Future Debt Service 0 68,357 68,357 0Capital Assets: Assets Not Depreciated: Land 1,190,860 400,043 1,590,903 689,883 Construction in Progress 727,597 10,036,476 10,764,073 3,022,753 Assets Net of Accumulated Depreciation: Buildings and Improvements 3,462,567 23,168 3,485,735 13,424,701 Infrastructure 4,091,349 7,360,876 11,452,225 0 Other Capital Assets 3,143,713 272,517 3,416,230 667,866 Intangibles 0 0 0 57,656Total Assets $ 33,056,691 $ 22,126,364 $ 55,183,055 $ 24,786,068

Pension Changes in Experience $ 294,410 $ 0 $ 294,410 $ 121,967Pension Changes in Investment Earnings 374,151 131,604 505,755 889,365Pension Changes in Other Deferrals 0 0 0 1,448Pension Contributions After Measurement Date 309,445 41,351 350,796 508,381Total Deferred Outflows of Resources $ 978,006 $ 172,955 $ 1,150,961 $ 1,521,161

Accounts Payable $ 4,868,255 $ 827,124 $ 5,695,379 $ 615,841Accrued Payroll 34,672 2,265 36,937 7,928Payroll Deductions Payable 728 6,918 7,646 327,588Accrued Interest Payable 6,373 0 6,373 0Contracts Payable 384,085 0 384,085 0Retainage Payable 20,215 0 20,215 0Due to Primary Government 0 0 0 2,649,573Due to State of Tennessee 1,868 12,211 14,079 0Due to Litigants, Heirs, and Others 314 0 314 0Noncurrent Liabilities: Due Within One Year 1,191,287 831,551 2,022,838 0 Due in More Than One Year 9,079,730 4,787,081 13,866,811 862,439Total Liabilities $ 15,587,527 $ 6,467,150 $ 22,054,677 $ 4,463,369

(Continued)

Primary Government

Department

Component UnitHartsville/Trousdale

CountySchool

ASSETS

LIABILITIES

DEFERRED OUTFLOWS OF RESOURCES

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Exhibit A

Hartsville/Trousdale County Government, TennesseeStatement of Net Position (Cont.)

Governmental Business-typeActivities Activities Total

Deferred Current Property Taxes $ 4,587,237 $ 0 $ 4,587,237 $ 1,319,478Pension Changes in Experience 455,495 92,539 548,034 984,913Pension Other Deferrals 0 0 0 105,810Total Deferred Inflows of Resources $ 5,042,732 $ 92,539 $ 5,135,271 $ 2,410,201

Net Investment in Capital Assets $ 10,428,986 $ 12,503,471 $ 22,932,457 $ 17,862,859Restricted for: General Government 269,451 0 269,451 0 Finance 12,800 0 12,800 0 Administration of Justice 84,712 0 84,712 0 Public Safety 118,272 0 118,272 0 Public Health and Welfare 23,717 0 23,717 0 Highway/Public Works 868,688 0 868,688 0 Debt Service 562,964 193,174 756,138 0 Capital Projects 291,519 0 291,519 0 Pensions 10,329 0 10,329 17,090 Education 0 0 0 150,484 Central Cafeteria 0 0 0 208,394Unrestricted 733,000 3,042,985 3,775,985 1,194,832

Total Net Position $ 13,404,438 $ 15,739,630 $ 29,144,068 $ 19,433,659

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

Primary Government

NET POSITION

Department

DEFERRED INFLOWS OF RESOURCES

Component UnitHartsville/Trousdale

CountySchool

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Exhibit B

Hartsville/Trousdale County Government, TennesseeStatement of ActivitiesFor the Year Ended June 30, 2017

Operating Capital ComponentCharges Grants Grants Unit

for and and Governmental Business-type SchoolFunctions/Programs Expenses Services Contributions Contributions Activities Activities Total Department

Primary Government: Governmental Activities: General Government $ 577,920 $ 244,264 $ 117,188 $ 4,358 $ (212,110) $ 0 $ (212,110) $ 0 Finance 379,833 300,324 0 0 (79,509) 0 (79,509) 0 Administration of Justice 1,292,826 289,375 9,000 0 (994,451) 0 (994,451) 0 Public Safety 53,608,261 50,913,273 20,941 123,111 (2,550,936) 0 (2,550,936) 0 Public Health and Welfare 3,276,553 975,429 88,504 1,384,137 (828,483) 0 (828,483) 0 Social, Cultural, and Recreational Services 258,163 29,070 24,828 0 (204,265) 0 (204,265) 0 Agriculture and Natural Resources 51,431 0 0 0 (51,431) 0 (51,431) 0 Highways/Public Works 2,066,473 0 1,363,297 435,085 (268,091) 0 (268,091) 0 Education 2,012,244 0 0 281,764 (1,730,480) 0 (1,730,480) 0 Interest on Long-term Debt 199,426 0 0 0 (199,426) 0 (199,426) 0Total Governmental Activites $ 63,723,130 $ 52,751,735 $ 1,623,758 $ 2,228,455 $ (7,119,182) $ 0 $ (7,119,182) $ 0

Business-type Activities: Public Utility - Water and Sewer $ 2,230,417 $ 2,703,486 $ 34,890 $ 752,540 $ 0 $ 1,260,499 $ 1,260,499 $ 0Total Business-type Activities $ 2,230,417 $ 2,703,486 $ 34,890 $ 752,540 $ 0 $ 1,260,499 $ 1,260,499 $ 0

Total Primary Government $ 65,953,547 $ 55,455,221 $ 1,658,648 $ 2,980,995 $ (7,119,182) $ 1,260,499 $ (5,858,683) $ 0

Component Unit: School Department $ 11,453,592 $ 167,226 $ 1,684,553 $ 1,994,518 $ 0 $ 0 $ 0 $ (7,607,295)

Total Component Unit $ 11,453,592 $ 167,226 $ 1,684,553 $ 1,994,518 $ 0 $ 0 $ 0 $ (7,607,295)

(Continued)

Program Revenues Changes in Net PositionNet (Expense) Revenue and

Primary Government

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Exhibit B

Hartsville/Trousdale County Government, TennesseeStatement of Activities (Cont.)

Operating Capital ComponentCharges Grants Grants Unit

for and and Governmental Business-type SchoolFunctions/Programs Expenses Services Contributions Contributions Activities Activities Total Department

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 4,698,019 $ 0 $ 4,698,019 $ 1,411,648 Property Taxes Levied for Debt Service 158,764 0 158,764 0 Local Option Sales Tax 541,974 0 541,974 618,124 Wheel Tax 343,122 0 343,122 0 Wholesale Beer Tax 155,800 0 155,800 0 Litigation Tax 165,225 0 165,225 0 Business Tax 41,408 0 41,408 14,100 Interstate Telecommunications Tax 718 0 718 718 Mixed Drink Tax 1,114 0 1,114 880 Adequate Facilities/Development Tax 85,000 0 85,000 0 Grants and Contributions Not Restricted for Specific Programs 432,934 0 432,934 7,697,165 Unrestricted Investment Income 58,635 9,663 68,298 0 Miscellaneous 3,376 90 3,466 21,727Total General Revenues $ 6,686,089 $ 9,753 $ 6,695,842 $ 9,764,362

Change in Net Position $ (433,093) $ 1,270,252 $ 837,159 $ 2,157,067Net Position, July 1, 2016 12,088,567 14,378,500 26,467,067 19,025,556Prior-period Adjustment (See Note I.D.9.) 1,748,964 90,878 1,839,842 (1,748,964)

Net Position, June 30, 2017 $ 13,404,438 $ 15,739,630 $ 29,144,068 $ 19,433,659


Primary Government

Program Revenues Changes in Net PositionNet (Expense) Revenue and

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Exhibit C-1

Hartsville/Trousdale County Government, TennesseeBalance SheetGovernmental FundsJune 30, 2017

OtherGovern- Total

Special mental GovernmentalGeneral Purpose Funds Funds

ASSETS

Cash $ 200 $ 0 $ 17,435 $ 17,635Equity in Pooled Cash and Investments 3,201,508 43,750 4,081,121 7,326,379Accounts Receivable 16,289 0 830,829 847,118Allowance for Uncollectibles 0 0 (107,046) (107,046)Due from Other Governments 214,143 4,454,983 270,719 4,939,845Due from Other Funds 18,829 0 68,928 87,757Due from Component Units 1,225 0 0 1,225Property Taxes Receivable 3,068,498 0 2,142,737 5,211,235Allowance for Uncollectible Property Taxes (295,923) 0 (195,946) (491,869)

Total Assets $ 6,224,769 $ 4,498,733 $ 7,108,777 $ 17,832,279

LIABILITIES

Accounts Payable $ 99,942 $ 4,498,733 $ 269,580 $ 4,868,255Accrued Payroll 2,616 0 32,056 34,672Payroll Deductions Payable 728 0 0 728Contracts Payable 0 0 384,085 384,085Retainage Payable 0 0 20,215 20,215Due to Other Funds 783 0 49,568 50,351Due to State of Tennessee 0 0 1,868 1,868Due to Litigants, Heirs, and Others 0 0 314 314Total Liabilities $ 104,069 $ 4,498,733 $ 757,686 $ 5,360,488

(Continued)

Nonmajor Funds

Major Funds

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Exhibit C-1

Hartsville/Trousdale County Government, TennesseeBalance SheetGovernmental Funds (Cont.)

OtherGovern- Total



Deferred Current Property Taxes $ 2,687,618 $ 0 $ 1,899,619 $ 4,587,237Deferred Delinquent Property Taxes 82,527 0 46,360 128,887Other Deferred/Unavailable Revenue 56,000 0 323,718 379,718Total Deferred Inflows of Resources $ 2,826,145 $ 0 $ 2,269,697 $ 5,095,842

FUND BALANCES

Restricted:Restricted for General Government $ 18,478 $ 0 $ 372,328 $ 390,806Restricted for Finance 12,800 0 0 12,800Restricted for Administration of Justice 84,712 0 0 84,712Restricted for Public Safety 75,987 0 42,285 118,272Restricted for Public Health and Welfare 23,717 0 0 23,717Restricted for Highways/Public Works 0 0 755,086 755,086Restricted for Debt Service 0 0 565,312 565,312Restricted for Capital Projects 0 0 291,519 291,519

Committed:Committed for General Government 0 0 480,041 480,041Committed for Public Safety 1,674 0 0 1,674Committed for Public Health and Welfare 0 0 937,463 937,463Committed for Social, Cultural, and Recreational Services 46,085 0 0 46,085Committed for Debt Service 0 0 637,360 637,360

Unassigned 3,031,102 0 0 3,031,102Total Fund Balances $ 3,294,555 $ 0 $ 4,081,394 $ 7,375,949

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 6,224,769 $ 4,498,733 $ 7,108,777 $ 17,832,279


Major Funds

Nonmajor Funds

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Exhibit C-2

Hartsville/Trousdale County Government, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionJune 30, 2017

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) $ 7,375,949

(1) Capital assets used in governmental activities are notfinancial resources and therefore are not reported inthe governmental funds.Add: land $ 1,190,860Add: construction in progress 727,597Add: buildings and improvements net of accumulated depreciation 3,462,567Add: infrastructure net of accumulated depreciation 4,091,349Add: other capital assets net of accumulated depreciation 3,143,713 12,616,086

(2) Long-term liabilities are not due and payable in thecurrent-period and therefore are not reported in thegovernmental funds. Less: bonds payable $ (82,000) Less: notes payable (1,237,600) Less: other loans payable (8,291,450) Add: debt to be contributed by the School Department 2,648,348 Less: landfill postclosure care costs (193,645) Less: other postemployment benefits liability (378,481) Less: compensated absences payable (82,847) Less: accrued interest on bonds (488) Less: accrued interest on notes (5,885) Less: net pension liability - Former City of Hartsville agent plan (4,994) (7,629,042)

(3) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions will be amortized andrecognized as components of pension expense in future years:Add: deferred outflows of resources related to pensions $ 978,006Less: deferred inflows of resources related to pensions (455,495) 522,511

(4) Net pension assets of the agent plan are not current financialresources and therefore are not reported in the governmental funds 10,329

(5) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 508,605

Net position of governmental activities (Exhibit A) $ 13,404,438


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Exhibit C-3

Hartsville/Trousdale County Government, TennesseeStatement of Revenues, Expenditures,

and Changes in Fund BalancesGovernmental FundsFor the Year Ended June 30, 2017

OtherGovern- Total


RevenuesLocal Taxes $ 4,298,556 $ 0 $ 2,195,477 $ 6,494,033Licenses and Permits 100,967 0 61,480 162,447Fines, Forfeitures, and Penalties 110,643 0 11,079 121,722Charges for Current Services 47,277 0 817,041 864,318Other Local Revenues 120,958 0 158,026 278,984Fees Received From County Officials 513,265 0 0 513,265State of Tennessee 674,594 50,581,828 2,291,357 53,547,779Federal Government 215,355 0 1,030,256 1,245,611Other Governments and Citizens Groups 81,757 0 408,128 489,885

Total Revenues $ 6,163,372 $ 50,581,828 $ 6,972,844 $ 63,718,044

ExpendituresCurrent:

General Government $ 814,393 $ 0 $ 0 $ 814,393Finance 452,198 0 0 452,198Administration of Justice 440,329 0 1,620 441,949Public Safety 2,403,969 50,581,828 319,490 53,305,287Public Health and Welfare 121,272 0 2,002,892 2,124,164Social, Cultural, and Recreational Services 253,780 0 14,000 267,780Agriculture and Natural Resources 54,032 0 0 54,032Other Operations 353,911 0 152,415 506,326Highways 0 0 1,920,155 1,920,155

Debt Service:Principal on Debt 0 0 4,473,877 4,473,877Interest on Debt 0 0 199,798 199,798Other Debt Service 0 0 88,036 88,036

(Continued)

Nonmajor Funds

Major Funds

22

Exhibit C-3

Hartsville/Trousdale County Government, TennesseeStatement of Revenues, Expenditures,

and Changes in Fund BalancesGovernmental Funds (Cont.)

OtherGovern- Total


Expenditures (Cont.)Capital Projects $ 51,423 $ 0 $ 5,492,796 $ 5,544,219

Total Expenditures $ 4,945,307 $ 50,581,828 $ 14,665,079 $ 70,192,214

Excess (Deficiency) of RevenuesOver Expenditures $ 1,218,065 $ 0 $ (7,692,235) $ (6,474,170)

Other Financing Sources (Uses)Notes Issued $ 0 $ 0 $ 148,000 $ 148,000Other Loans Issued 0 0 3,906,058 3,906,058Insurance Recovery 6,081 0 13,300 19,381Transfers In 0 0 395,274 395,274Transfers Out (372,315) 0 (22,959) (395,274)

Total Other Financing Sources (Uses) $ (366,234) $ 0 $ 4,439,673 $ 4,073,439

Net Change in Fund Balances $ 851,831 $ 0 $ (3,252,562) $ (2,400,731)Fund Balance, July 1, 2016 2,442,724 0 7,333,956 9,776,680

Fund Balance, June 30, 2017 $ 3,294,555 $ 0 $ 4,081,394 $ 7,375,949


Nonmajor Funds

Major Funds

23

Exhibit C-4

Hartsville/Trousdale County Government, 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, 2017

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

Net change in fund balances - total governmental funds (Exhibit C-3) $ (2,400,731)

(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 as follows: Add: capital outlays purchased in the current period $ 1,531,224 Less: current-year depreciation expense (800,247) 730,977

(2) The net effect of various miscellaneous transactions involving capitalassets (sales, trade-ins, and donations) is to decrease net position. Add: assets donated and capitalized $ 4,358 Less: book value of capital assets disposed (21,297) (16,939)

(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Less: deferred delinquent property taxes and other deferred June 30, 2016 $ (777,289) Add: deferred delinquent property taxes and other deferred June 30, 2017 508,605 (268,684)

(4) The issuance of long-term debt (e.g., notes, other loans, leases) providescurrent 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. Less: note proceeds $ (148,000) Less: other loan proceeds (3,906,058) Less: contributions from the School Department for other loans payable (157,431) Add: debt contributed to the School Department 1,056,815 Add: principal payments on bonds 26,000 Add: principal payments on notes 204,407 Add: principal payments on other loans 4,243,470 1,319,203

(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 $ 372 Change in landfill postclosure care costs 5,779 Change in other postemployment benefits liability (38,600) Change in compensated absences payable 5,293 Change in net pension liability/asset - county agent plan 84,134 Change in net pension liability/asset - former City of Hartsville agent plan (25,813) Change in deferred outflows of resources related to pensions 298,837 Change in deferred inflows of resources related to pensions (126,921) 203,081

Change in net position of governmental activities (Exhibit B) $ (433,093)


24

Exhibit C-5

Hartsville/Trousdale County Government, TennesseeStatement of Revenues, Expenditures, and Changes

in Fund Balance - Actual and BudgetGeneral FundFor the Year Ended June 30, 2017

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesLocal Taxes $ 4,298,556 $ 4,013,860 $ 4,042,962 $ 255,594Licenses and Permits 100,967 96,250 96,250 4,717Fines, Forfeitures, and Penalties 110,643 83,130 83,130 27,513Charges for Current Services 47,277 39,925 39,925 7,352Other Local Revenues 120,958 114,852 117,403 3,555Fees Received From County Officials 513,265 414,500 414,500 98,765State of Tennessee 674,594 634,620 629,006 45,588Federal Government 215,355 121,664 232,651 (17,296)Other Governments and Citizens Groups 81,757 21,900 83,760 (2,003)

Total Revenues $ 6,163,372 $ 5,540,701 $ 5,739,587 $ 423,785

ExpendituresGeneral Government

County Commission $ 31,372 $ 33,455 $ 38,207 $ 6,835Beer Board 133 399 399 266County Mayor/Executive 250,679 246,651 269,426 18,747County Attorney 24,661 32,500 39,500 14,839Election Commission 106,852 113,622 113,622 6,770Register of Deeds 91,882 92,882 94,882 3,000Planning 82,324 82,851 88,187 5,863Codes Compliance 0 3,000 1,800 1,800County Buildings 223,657 235,654 262,704 39,047Preservation of Records 2,833 1,500 4,100 1,267

FinanceProperty Assessor's Office 116,140 123,851 123,851 7,711County Trustee's Office 114,730 122,748 122,748 8,018County Clerk's Office 114,314 118,951 118,951 4,637Data Processing 107,014 85,000 115,000 7,986

Administration of JusticeCircuit Court 166,101 180,164 180,164 14,063General Sessions Court 90,607 95,271 95,271 4,664Chancery Court 88,135 100,044 100,044 11,909Judicial Commissioners 23,038 24,774 24,774 1,736Courtroom Security 72,448 86,974 86,974 14,526

Public SafetySheriff's Department 1,243,622 1,258,265 1,316,970 73,348Drug Enforcement 47,171 62,545 62,545 15,374Administration of the Sexual Offender Registry 200 2,000 2,000 1,800Jail 844,522 958,115 958,115 113,593Workhouse 66,217 80,514 80,514 14,297Juvenile Services 24,402 29,617 29,617 5,215Fire Prevention and Control 61,960 62,580 62,580 620Rescue Squad 50,167 58,009 64,334 14,167Other Emergency Management 36,867 58,790 66,673 29,806Inspection and Regulation 5,966 6,839 6,839 873County Coroner/Medical Examiner 22,875 15,000 30,000 7,125

Public Health and WelfareLocal Health Center 26,997 32,549 32,549 5,552

(Continued)

Budgeted Amounts

25

Exhibit C-5


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



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

Alcohol and Drug Programs $ 1,926 $ 8,500 $ 8,500 $ 6,574Other Local Health Services 49,260 54,719 76,879 27,619Sanitation Education/Information 33,589 33,700 33,700 111Other Public Health and Welfare 9,500 9,500 9,500 0

Social, Cultural, and Recreational ServicesSenior Citizens Assistance 36,788 41,517 41,517 4,729Libraries 107,684 98,022 117,022 9,338Parks and Fair Boards 109,308 134,690 174,599 65,291

Agriculture and Natural ResourcesAgricultural Extension Service 40,805 44,092 44,092 3,287Soil Conservation 13,227 13,228 13,228 1

Other OperationsVeterans' Services 14,283 14,365 14,365 82Other Charges 312,706 362,750 362,750 50,044Employee Benefits 9,324 5,720 20,720 11,396Miscellaneous 17,598 18,000 18,000 402

Capital ProjectsGeneral Administration Projects 0 20,000 20,000 20,000Other General Government Projects 51,423 0 56,860 5,437

Total Expenditures $ 4,945,307 $ 5,263,917 $ 5,605,072 $ 659,765

Excess (Deficiency) of RevenuesOver Expenditures $ 1,218,065 $ 276,784 $ 134,515 $ 1,083,550

Other Financing Sources (Uses)Notes Issued $ 0 $ 38,000 $ 0 $ 0Insurance Recovery 6,081 0 0 6,081Transfers Out (372,315) (122,316) (372,316) 1

Total Other Financing Sources $ (366,234) $ (84,316) $ (372,316) $ 6,082

Net Change in Fund Balance $ 851,831 $ 192,468 $ (237,801) $ 1,089,632Fund Balance, July 1, 2016 2,442,724 2,026,846 2,026,846 415,878

Fund Balance, June 30, 2017 $ 3,294,555 $ 2,219,314 $ 1,789,045 $ 1,505,510


Budgeted Amounts

26

Exhibit C-6


in Fund Balance - Actual and BudgetSpecial Purpose FundFor the Year Ended June 30, 2017



RevenuesState of Tennessee $ 50,581,828 $ 54,724,450 $ 54,724,450 $ (4,142,622)

Total Revenues $ 50,581,828 $ 54,724,450 $ 54,724,450 $ (4,142,622)

ExpendituresPublic Safety

Other Public Safety $ 50,581,828 $ 54,724,450 $ 54,724,450 $ 4,142,622Total Expenditures $ 50,581,828 $ 54,724,450 $ 54,724,450 $ 4,142,622

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

Net Change in Fund Balance $ 0 $ 0 $ 0 $ 0Fund Balance, July 1, 2016 0 0 0 0

Fund Balance, June 30, 2017 $ 0 $ 0 $ 0 $ 0


Budgeted Amounts

27

Exhibit D-1

Hartsville/Trousdale County Government, TennesseeStatement of Net PositionProprietary FundJune 30, 2017

ASSETS

Current Assets: Cash $ 2,845,559 Accounts Receivable 1,052,652 Due from Other Funds 12,080 Prepaid Items 103,506

Total Current Assets $ 4,013,797

Noncurrent Assets: Restricted Assets: Revenue Bond Future Debt Service $ 68,357 Capital Assets (Net of Accumulated Depreciation):

Land 400,043 Construction in Progress 10,036,476 Buildings and Improvements 23,168 Infrastructure 7,360,876 Other Capital Assets 272,517

Total Noncurrent Assets $ 18,161,437Total Assets $ 22,175,234

DEFERRED OUTFLOWS OF RESOURCES

Pension Changes in Investment Earnings $ 131,604Pension Contributions After Measurement Date 41,351Total Deferred Outflows of Resources $ 172,955

LIABILITIES

Current Liabilities: Accounts Payable $ 827,124 Accrued Payroll 2,265 Payroll Deductions Payable 6,918 Compensated Absences Payable 16,194 Due to Other Funds 48,870 Due to State of Tennessee 12,211 Revenue Bonds Payable 68,357 Other Loans Payable 747,000

Total Current Liabilities $ 1,728,939

Noncurrent Liabilities: Revenue Bonds Payable $ 3,796,963 Other Loans Payable 977,289 Net Pension Liability 12,829

Total Noncurrent Liabilities $ 4,787,081Total Liabilities $ 6,516,020

(Continued)

Business-typeActivities

Sewer Fund

Major FundWater and

28

Exhibit D-1

Hartsville/Trousdale County Government, TennesseeStatement of Net PositionProprietary Fund (Cont.)


Pension Changes in Experience $ 92,539Total Deferred Inflows of Resources $ 92,539

NET POSITION

Net Investment in Capital Assets $ 12,503,471Restricted for Rural Development Bond Covenants 193,174Unrestricted 3,042,985

Total Net Position $ 15,739,630


Sewer Fund


Major FundWater and

29

Exhibit D-2Hartsville/Trousdale County Government, TennesseeStatement of Revenues, Expenses, and Changes in Net PositionProprietary FundFor the Year Ended June 30, 2017

Operating Revenues Charges for Current Services $ 2,644,426 Other Local Revenues 90Total Operating Revenues $ 2,644,516

Operating Expenses Public Health and Welfare $ 1,652,546 Depreciation Expense 433,838Total Operating Expenses $ 2,086,384Operating Income (Loss) $ 558,132

Nonoperating Revenues (Expenses) Contributions $ 426,049 Grant Income 420,441 Insurance Recovery 14,651 Investment Income 9,663 Interest Expense (86,408) Loss on Disposal of Asset (9,980) Other Debt Issuance Costs (62,296)Total Nonoperating Revenues (Expenses) $ 712,120

Change in Net Position $ 1,270,252Net Position, July 1, 2016 14,378,500Prior-period Adjustment 90,878

Net Position, June 30, 2017 $ 15,739,630



Water andSewer Fund

Major Fund

30

Exhibit D-3

Hartsville/Trousdale County Government, TennesseeStatement of Cash FlowsProprietary FundFor the Year Ended June 30, 2017

Cash Flows from Operating Activities Receipts from Customers and Users $ 1,775,170 Payments to Suppliers (636,049) Payments to Employees (709,350) Other Receipts (Payments) (132,229)Net Cash Provided By (Used In) Operating Activities $ 297,542

Cash Flows from Capital and Related Financing Activities Proceeds from Capital Debt $ 5,329,289 Capital Contributions 59,060 Acquisition of Capital Assets (6,596,088) Principal Paid on Capital Debt (36,940) Interest Paid on Capital Debt (86,408) Other Debt Issuance Costs (62,296) Insurance Receovery 14,651Net Cash Provided By (Used For) Capital and Related Financing Activities $ (1,378,732)

Cash Flows from Noncapital Financing Activities Grants Received $ 420,441 Contributions 2,358Net Cash Provided By (Used In) Noncapital Financing Activities $ 422,799

Cash Flows from Investing Activities Investment Income $ 9,663Net Cash Provided By (Used In) Investing Activities $ 9,663

Net Increase (Decrease) in Cash $ (648,728)Cash, July 1, 2016 3,471,766Prior-period Adjustment 90,878

Cash, June 30, 2017 $ 2,913,916

(Continued)

Water and


Major Fund

Sewer Fund

31

Exhibit D-3

Hartsville/Trousdale County Government, TennesseeStatement of Cash FlowsProprietary Fund (Cont.)

Reconciliation of Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ 558,132 Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Depreciation Expense 433,838 Changes in deferred inflows of resources related to pensions (344,289) Changes in deferred outflows of resources related to pensions 97,725 Changes in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (857,266) (Increase) Decrease in Due From Other Funds (12,080) (Increase) Decrease in Prepaid Items (103,506) (Increase) Decrease in Net Pension Asset 101,506 Increase (Decrease) in Net Pension Liability 12,829 Increase (Decrease) in Accounts Payable 358,019 Increase (Decrease) in Payroll Deductions Payable 6,918 Increase (Decrease) in Accrued Payroll (31,559) Increase (Decrease) in Due to Other Funds 48,870 Increase (Decrease) in Due to State of Tennessee 12,211 Increase (Decrease) in Compensated Absences 16,194

Net Cash Provided By (Used In) Operating Activities $ 297,542

Reconciliation of Cash With Statement of Net Position Cash and Cash Equivalents Per Net Position $ 2,845,559 Revenue Bond Future Debt Service Account Per Net Position 68,357

Cash, June 30, 2017 $ 2,913,916


Sewer Fund


Major FundWater and

32

Exhibit E

Hartsville/Trousdale County Government, TennesseeStatement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2017

Agency Funds

Cash $ 928,336Equity in Pooled Cash and Investments 756,461Accounts Receivable 614Due from Other Governments 24,698

Total Assets $ 1,710,109

Accounts Payable $ 30,954Due to Other Funds 616Due to Litigants, Heirs, and Others 1,057,994Due to Joint Ventures 620,545

Total Liabilities $ 1,710,109


ASSETS

LIABILITIES

33

Note Page(s)

I. Summary of Significant Accounting PoliciesA. Reporting Entity 35B. Government-wide and Fund Financial Statements 36C. Measurement Focus, Basis of Accounting, and Financial

Statement Presentation 37D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and

Net Position/Fund Balance1. Deposits and Investments 392. Receivables and Payables 403. Restricted Assets 414. Capital Assets 415. Deferred Outflows/Inflows of Resources 426. Compensated Absences 437. Long-term Obligations 438. Net Position and Fund Balance 449. Prior-period Adjustment 45

E. Pension Plans 46II. Reconciliation of Government-wide and Fund Financial Statements

A. Explanation of Certain Differences Between the Governmental FundBalance Sheet and the Government-wide Statement of Net Position 46

B. Explanation of Certain Differences Between the Governmental FundStatement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 47

III. Stewardship, Compliance, and AccountabilityBudgetary Information 47

IV. Detailed Notes on All FundsA. Deposits and Investments 48B. Capital Assets 49C. Interfund Receivables, Payables, and Transfers 52D. Long-term Obligations 53E. On-Behalf Payments 61

V. Other InformationA. Risk Management 61B. Accounting Changes 62C. Contingent Liabilities 63D. Change in Administration 63E. Landfill Postclosure Care Costs 63F. Joint Venture 64G. Retirement Commitments 64H. Other Postemployment Benefits (OPEB) 85I. Termination Benefits 88J. Purchasing Laws 88

HARTSVILLE/TROUSDALE COUNTY

Index of Notes to the Financial StatementsGOVERNMENT, TENNESSEE

34

35

HARTSVILLE/TROUSDALE COUNTY GOVERNMENT, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended June 30, 2017

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Hartsville/Trousdale County Government’s (the metropolitan government) financialstatements are presented in accordance with generally accepted accounting principles(GAAP). The Governmental Accounting Standards Board (GASB) is responsible forestablishing GAAP for state and local governments.

The following are the more significant accounting policies of the metropolitangovernment:

A. Reporting Entity

The metropolitan government is a public municipal corporation governed byan elected 20-member board. As required by GAAP, these financial statementspresent the metropolitan government (the primary government) and itscomponent units. The financial statements of the Trousdale CountyEmergency Communications District, a component unit requiring discretepresentation, were excluded from this report due to materiality calculations;therefore, the effect of its omission did not affect the independent auditor’sopinion thereon. The component units discussed below are included in themetropolitan government’s reporting entity because of the significance of theiroperational or financial relationships with the metropolitan government.

Discretely Presented Component Units – The following entities meet thecriteria for discretely presented component units of the metropolitangovernment. They are reported in separate columns in the government-widefinancial statements to emphasize that they are legally separate from themetropolitan government.

The Hartsville/Trousdale County School Department (the School Department)operates the public school system in the county, and the voters of TrousdaleCounty elect its board. The School Department is fiscally dependent on themetropolitan government because it may not issue debt, and its budget andproperty tax levy are subject to the metropolitan commission’s approval. TheSchool Department’s taxes are levied under the taxing authority of themetropolitan government and are included as part of the metropolitangovernment’s total tax levy.

The Trousdale County Emergency Communications District provides asimplified means of securing emergency services through a uniform emergencynumber for the residents of Trousdale County, and the MetropolitanCommission appoints its governing body. The district is funded primarilythrough a service charge levied on telephone services. Before the issuance ofmost debt instruments, the district must obtain the Metropolitan

36

Commission’s approval. The financial statements of the Trousdale County Emergency Communications District were not material to the component units’ opinion unit and therefore have been omitted from this report. The School Department does not issue separate financial statements from those of the metropolitan government. 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 Trousdale County Emergency Communications District can be obtained from its administrative office at the following address:

Administrative Office:

Trousdale County Emergency Communications District 210 Broadway Hartsville, TN 37074

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 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 properly included among program revenues are reported instead as general revenues. The metropolitan government issues all debt for the discretely presented School Department. Net debt issues totaling $3,038,558 were contributed by the metropolitan government to the School Department during the year ended June 30, 2017.

37

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. The fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and the major enterprise fund are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial StatementPresentation

The government-wide financial statements are reported using the economicresources measurement focus and the accrual basis of accounting, as are theproprietary fund and fiduciary funds financial statements, except for agencyfunds, which have no measurement focus. Revenues are recorded when earned,and expenses are recorded when a liability is incurred, regardless of the timingof related cash flows. Property taxes are recognized as revenues in the year forwhich they are levied. Grants and similar items are recognized as revenue assoon as all eligibility requirements imposed by the provider have been met.

Fund financial statements of the metropolitan government are organized intofunds, each of which is considered to be a separate accounting entity. Eachfund is accounted for by providing a separate set of self-balancing accounts thatconstitute its assets, deferred outflow of resources, liabilities, deferred inflowof resources, fund equity, revenues, and expenditures/expenses. Funds areorganized into three major categories: governmental, proprietary, andfiduciary. An emphasis is placed on major funds within the governmental andproprietary fund categories. The metropolitan government only reports oneproprietary fund, a major enterprise fund.

Separate financial statements are provided for governmental funds,proprietary funds, and fiduciary funds. Major individual governmental fundsand the major enterprise fund are reported as separate columns in the fundfinancial statements. All other governmental funds are aggregated into asingle column on the fund financial statements. Fiduciary funds in total arereported in a single column.

Governmental fund financial statements are reported using the currentfinancial resources measurement focus and the modified accrual basis ofaccounting. Revenues are recognized as soon as they become both measurableand available. Revenues are considered to be available when they arecollectible within the current period or soon enough thereafter to pay liabilitiesof the current period. For this purpose, the metropolitan government considersrevenues other than grants to be available if they are collected within 30 daysafter year-end. Grants and similar items are recognized as revenue as soon asall eligibility requirements imposed by the provider have been met and therevenues are available. The metropolitan government considers grants andsimilar revenues to be available if they are collected within 60 days after year-end. Expenditures are generally recognized under the modified accrual basisof accounting when the related fund liability is incurred. Principal and intereston long-term debt are recognized as fund liabilities when due or when amounts

38

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 metropolitan government receives cash.

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

The metropolitan government reports the following major governmental funds:

General Fund – This is the metropolitan government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Special Purpose Fund – This special revenue fund accounts for prisoner boarding revenues from the State of Tennessee and contracted expenditures remitted to the Corrections Corporation of America.

The metropolitan government reports the following major proprietary fund:

Water and Sewer Fund – This fund accounts for transactions of the metropolitan government’s Water and Sewer Department.

Additionally, the metropolitan government 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 general obligation and education debt of governmental funds.

Capital Projects Funds – These funds account for the financial resources to be used for the acquisition or construction of major capital resources.

Agency Funds – These funds account for amounts collected in an agency capacity by the constitutional officers, state grants and other restricted revenues held for the benefit of the Fifteenth Judicial District Drug Task Force, and restricted revenues held for the benefit of the

39

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 School Department reports the following major governmental fund:

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

Additionally, the 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 specific 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 metropolitan government has one proprietary fund, an enterprise fund, used to account for the transactions of the Water and Sewer Department. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the enterprise fund are customer fees for water and sewer usage. Operating expenses for the enterprise fund consist primarily of operation and maintenance of the department.

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

Position/Fund Balance

1. Deposits and Investments For purposes of the Statement of Cash Flows, cash includes cash on hand and demand deposits, including cash restricted for future debt service. 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

40

nationally recognized rating service; nonconvertible debt securities of certain federal government sponsored enterprises; and the metropolitan government’s own legally issued bonds or notes.

The metropolitan trustee maintains a cash and internal investment pool that is used by all funds and the discretely presented 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. Most income from these pooled investments is assigned to the General Fund. The metropolitan government 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. State statutes require the state treasurer to administer the pool under the same terms and conditions, including collateral requirements, as prescribed for other funds invested by the state treasurer. All other investments are reported at fair value. No investments required to be reported at fair value were held at the balance sheet date.

2. Receivables and Payables

Activity between funds for remitted current collections outstanding at the end of the fiscal year is referred to as due to/from other funds. All ambulance and property taxes receivables are shown with an allowance for uncollectibles. Ambulance receivables allowance for uncollectibles is based on historical collection data. The allowance for uncollectible property taxes is equal to eight percent of total taxes levied. Property taxes receivable are recognized as of the date an enforceable legal claim to the taxable property arises. This date is January 1 and is referred to as the lien date. However, revenues from property taxes are recognized in the period for which the taxes are levied, which is the ensuing fiscal year. Since the receivable is recognized before the period of revenue recognition, the entire amount of the receivable, less an estimated allowance for uncollectible taxes, is reported as a deferred inflow of resources as of June 30.

Property taxes receivable are also reported as of June 30 for the taxes that are levied, collected, and reported as revenue during the current fiscal year. These property taxes receivable are presented on the balance sheet as a deferred inflow of resources to reflect amounts not available as of June 30. Property taxes collected within 30 days of year-end are considered available and accrued. The allowance for uncollectible taxes represents the estimated amount of the receivable

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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. Retainage payable in the General Capital Projects Fund 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 General Capital Projects Fund.

3. Restricted Assets

Certain resources set aside for the repayment of enterprise fund revenue bonds are classified as restricted assets on the Statement of Net Assets because their use is limited by applicable bond covenants. The Revenue Bond Future Debt Service account is used to report resources set aside to comply with those covenants.

4. Capital Assets

Governmental funds do not capitalize the cost of capital outlays; these funds report capital outlays as expenditures upon acquisition. Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, and similar items), and intangibles (e.g., computer software and similar items) are reported in the governmental and business-type columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of $5,000 (School Department $10,000) or more and an estimated useful life of more than five years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant, equipment, infrastructure, and intangibles of the metropolitan government and the discretely presented School

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Department are depreciated using the straight-line method over the following estimated useful lives:

Assets Years

Buildings and Improvements 7 - 40Other Capital Assets 5 - 30Infrastructure: Roads 20 - 40 Bridges 75 Water and Sewage Lines 40 - 50 Intangibles 12

5. Deferred Outflows/Inflows of Resources

In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The metropolitan government has items that qualify for reporting in this category. Accordingly, the items are reported in the government-wide Statement of Net Position and the governmental funds balance sheet. These items are for pension changes in experience, pension changes in investment earnings, pension changes in proportionate share, and employer contributions made to the pension plan after the measurement date. In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The metropolitan government has items that qualify for reporting in this category. Accordingly, the items are reported in the government-wide Statement of Net Position and the governmental funds balance sheet. These revenues are from the following sources: current and delinquent property taxes, pension changes in experience, pension changes in proportionate share, and various receivables for revenues, which do not meet the availability criteria in governmental funds. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

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6. Compensated Absences

Primary Government It is the metropolitan government’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the metropolitan government does not have a policy to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government-wide financial statements for the metropolitan government. 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. Discretely Presented School Department The School Department does not allow for the accumulation of unused vacation and sick days beyond year-end, except for professional personnel of the School Department. The School Department allows professional personnel (teachers) to accumulate an unlimited amount of unused sick leave. The granting of sick leave has no guaranteed payment attached and therefore is not required to be accrued or recorded.

7. Long-term Obligations

In the government-wide financial statements and the proprietary fund type in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities or proprietary fund type Statement of Net Position. Debt premiums and discounts are deferred and amortized over the life of the new debt using the straight-line method. Debt issuance costs are expensed in the period incurred. In refunding transactions, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources or a deferred inflow of resources and recognized as a component of interest expense in a systematic and rational manner over the remaining life of the refunded debt or the life of the new debt issued, whichever is shorter. In the fund financial statements, governmental funds recognize debt premiums and discounts, as well as debt issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

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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, other postemployment benefits, pension liabilities, and landfill closure/postclosure care costs, are recognized to the extent that the liabilities have matured (come due for payment) each period.

8. Net Position and Fund Balance

In the government-wide financial statements and the proprietary fund in the fund financial statements, equity is classified as net position and displayed in three components:

a. Net investment in capital assets – Consists of capital assets,

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

b. Restricted net position – Consists of net position with constraints

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

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

the definition of restricted or net investment in capital assets.

As of June 30, 2017, the metropolitan government had $7,423,950 in outstanding debt for capital purposes for the discretely presented School Department. This debt is a liability of the metropolitan government, but the capital assets acquired are reported in the financial statements of the School Department. Therefore, the metropolitan government has incurred a liability significantly decreasing its unrestricted net position with no corresponding increase in the metropolitan government’s capital assets. It is the county’s policy that restricted amounts would be reduced first followed by unrestricted amounts when expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available. Also, it is the county’s policy that committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of these unrestricted fund balance classifications could be used. In the fund financial statements, governmental funds report fund balance in classifications that comprise a hierarchy based primarily on

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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 metropolitan commission, the metropolitan government’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 metropolitan government’s intent to be used for specific purposes, but are neither restricted nor committed (excluding stabilization arrangements). The metropolitan commission has authorized by resolution the metropolitan government’s Finance/Budget Committee to make assignments for the general government. The Board of Education makes assignments for the School Department.

Unassigned Fund Balance – the residual classification of the General and General Purpose School funds. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General and General Purpose School funds.

9. Prior-period Adjustments

Pension obligations were restated by $90,878 from the prior year in themajor enterprise fund because Former City of Hartsville employeeobligations were included in error.

Debt obligations were restated by an increase of $1,748,964 in themetropolitan government and a decrease of $1,748,964 in the discretelypresented School Department because debt payments contributed fromthe General Purpose School Fund to the General Debt Service Fundwere not presented accurately in prior years.

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E. Pension Plans

Primary Government

For purposes of measuring the net pension liability, deferred outflows ofresources and deferred inflows of resources related to pensions, and pensionexpense, information about the fiduciary net position of Hartsville/TrousdaleCounty’s participation in the Public Employee Retirement Plan of theTennessee Consolidated Retirement System (TCRS), and additionsto/deductions from Hartsville/Trousdale County’s fiduciary net position havebeen determined on the same basis as they are reported by the TCRS for thePublic Employee Retirement Plan. For this purpose, benefits (includingrefunds of employee contributions) are recognized when due and payable inaccordance with the benefit terms of the Public Employee Retirement Plan ofTCRS. Investments are reported at fair value.

Discretely Presented School Department

For purposes of measuring the net pension liability, deferred outflows ofresources and deferred inflows of resources related to pensions, and pensionexpense, information about the fiduciary net position of the TeacherRetirement Plan and the Teacher Legacy Pension Plan in the TennesseeConsolidated Retirement System, and additions to/deductions from fiduciarynet position have been determined on the same basis as they are reported bythe TCRS. For this purpose, benefits (including refunds of employeecontributions) are recognized when due and payable in accordance with thebenefit terms of the Teacher Retirement Plan and the Teacher Legacy PensionPlan. Investments are reported at fair value.

II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIALSTATEMENTS

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

Primary Government

Exhibit C-2 includes explanations of the nature of individual elements of itemsrequired to reconcile the balance sheet of governmental funds with thegovernment-wide Statement of Net Position.


Exhibit I-3 includes explanations of the nature of individual elements of itemsrequired to reconcile the balance sheet of governmental funds with thegovernment-wide Statement of Net Position.

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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 School Department Exhibit I-5 includes explanations of the nature of individual elements of items required to reconcile the net change in fund balances – total governmental funds with the change in net position of governmental activities reported in the government-wide Statement of Activities.

III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

Budgetary Information

Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all governmental funds except the Constitutional Officers - Fees Fund (Special Revenue Fund), which is not budgeted, and the General Capital Projects Fund, which adopts project length budgets. All annual appropriations lapse at fiscal year-end.

The metropolitan government 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 Metropolitan 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, Beer Board, County Mayor/Executive, County Attorney, etc.). Management may make revisions within major categories, but only the metropolitan commission may transfer appropriations between major categories. During the year, several supplementary appropriations were necessary.

The metropolitan government's budgetary basis of accounting is consistent with GAAP, except instances in which encumbrances are treated as budgeted expenditures. The difference between the budgetary basis and GAAP basis is presented on the face of each budgetary schedule.

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IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments The metropolitan government and the discretely presented School Department participate in an internal cash and investment pool through the Office of Trustee. The metropolitan trustee is the treasurer of the metropolitan government and in this capacity is responsible for receiving, disbursing, and investing most county funds. Each fund’s portion of this pool is displayed on the balance sheets or statements of net position as Equity in Pooled Cash and Investments. Cash reflected on the balance sheets or statements of net position represents nonpooled amounts held separately by individual funds. Deposits Legal Provisions. All deposits with financial institutions must be secured by one of two methods. One method involves financial institutions that participate in the bank collateral pool administered by the state treasurer. Participating banks determine the aggregate balance of their public fund accounts for the State of Tennessee and its political subdivisions. The amount of collateral required to secure these public deposits must equal at least 105 percent of the average daily balance of public deposits held. Collateral securities required to be pledged by the participating banks to protect their public fund accounts are pledged to the state treasurer on behalf of the bank collateral pool. The securities pledged to protect these accounts are pledged in the aggregate rather than against each account. The members of the pool may be required by agreement to pay an assessment to cover any deficiency. Under this additional assessment agreement, public fund accounts covered by the pool are considered to be insured for purposes of credit risk disclosure. For deposits with financial institutions that do not participate in the bank collateral pool, state statutes require that all deposits be collateralized with collateral whose market value is equal to 105 percent of the uninsured amount of the deposits. The collateral must be placed by the depository bank in an escrow account in a second bank for the benefit of the metropolitan government. 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 metropolitan government’s own legally issued bonds or notes. These investments may not have a maturity greater than two years. The metropolitan government may make investments with longer maturities if various restrictions set out in state law are followed. Counties are also

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authorized to make investments in the State Treasurer’s Investment Pool and in repurchase agreements. Repurchase agreements must be approved by the state Comptroller’s Office and executed in accordance with procedures established by the State Funding Board. Securities purchased under a repurchase agreement must be obligations of the U.S. government or obligations guaranteed by the U.S. government or any of its agencies. When repurchase agreements are executed, the purchase of the securities must be priced at least two percent below the fair value of the securities on the day of purchase.

The metropolitan government had no pooled and nonpooled investments as of June 30, 2017.

B. Capital Assets

Capital assets activity for the year ended June 30, 2017, was as follows:

Primary Government – Governmental Activities:

Balance Balance7-1-16 Increases Decreases 6-30-17

Capital Assets Not Depreciated:Land $ 1,186,501 $ 4,359 $ 0 $ 1,190,860Construction in Progress 595,000 727,597 (595,000) 727,597Total Capital Assets Not Depreciated $ 1,781,501 $ 731,956 $ (595,000) $ 1,918,457

Capital Assets Depreciated:Buildings and Improvements $ 3,734,631 $ 681,897 $ 0 $ 4,416,528Roads and Bridges 14,818,444 34,613 0 14,853,057Other Capital Assets 6,563,680 682,116 (107,075) 7,138,721Total Capital Assets Depreciated $ 25,116,755 $ 1,398,626 $ (107,075) $ 26,408,306

Less Accumulated Depreciation for:Buildings and Improvements $ 860,341 $ 93,620 $ 0 $ 953,961Roads and Bridges 10,629,024 132,684 0 10,761,708Other Capital Assets 3,506,843 573,943 (85,778) 3,995,008Total Accumulated Depreciation $ 14,996,208 $ 800,247 $ (85,778) $ 15,710,677

Total Capital Assets Depreciated, Net $ 10,120,547 $ 598,379 $ (21,297) $ 10,697,629

Governmental Activities Capital Assets, Net $ 11,902,048 $ 1,330,335 $ (616,297) $ 12,616,086

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Business-type Activities:

Balance Balance7-1-16 Increases Decreases 6-30-17

Capital Assets Not Depreciated:Land $ 332,043 $ 68,000 $ 0 $ 400,043Construction in Progress 3,965,363 6,071,113 0 10,036,476Total Capital Assets Not Depreciated $ 4,297,406 $ 6,139,113 $ 0 $ 10,436,519

Capital Assets Depreciated:Buildings and Improvements $ 9,000 $ 17,000 $ 0 $ 26,000Infrastructure 16,581,122 285,405 0 16,866,527Other Capital Assets 630,901 154,570 (15,817) 769,654Total Capital Assets Depreciated $ 17,221,023 $ 456,975 $ (15,817) $ 17,662,181

Less Accumulated Depreciation for:Buildings and Improvements $ 2,288 $ 544 $ 0 $ 2,832Infrastructure 9,099,310 406,341 0 9,505,651Other Capital Assets 476,021 26,953 (5,837) 497,137Total Accumulated Depreciation $ 9,577,619 $ 433,838 $ (5,837) $ 10,005,620

Total Capital Assets Depreciated, Net $ 7,643,404 $ 23,137 $ (9,980) $ 7,656,561

Governmental Activities Capital Assets, Net $ 11,940,810 $ 6,162,250 $ (9,980) $ 18,093,080

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

General Government $ 45,276Finance 19,886Public Safety 409,880Public Health and Welfare 148,899Social, Cultural, and Recreational Services 23,382Highways/Public Works 152,924

Total Depreciation Expense - Governmental Activities $ 800,247

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Business-type Activities:

Water and Sewer $ 433,838

Discretely Presented School Department- Governmental Activities:

Balance Balance7-1-16 Increases 6-30-17

Capital Assets Not Depreciated:Land $ 689,883 $ 0 $ 689,883Construction in Progress 0 3,022,753 3,022,753Total Capital Assets Not Depreciated $ 689,883 $ 3,022,753 $ 3,712,636

Capital Assets Depreciated:Buildings and Improvements $ 23,044,273 $ 0 $ 23,044,273Other Capital Assets 1,346,971 102,381 1,449,352Intangibles 118,756 0 118,756Total Capital Assets Depreciated $ 24,510,000 $ 102,381 $ 24,612,381

Less Accumulated Depreciation for:Buildings and Improvements $ 9,126,367 $ 493,205 $ 9,619,572Other Capital Assets 695,911 85,575 781,486Intangibles 51,204 9,896 61,100Total Accumulated Depreciation $ 9,873,482 $ 588,676 $ 10,462,158

Total Capital Assets Depreciated, Net $ 14,636,518 $ (486,295) $ 14,150,223

Governmental Activities Capital Assets, Net $ 15,326,401 $ 2,536,458 $ 17,862,859

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

Governmental Activities:

Instruction $ 503,368Support Services 85,308

Total Depreciation Expense - Governmental Activities $ 588,676

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C. Interfund Receivables, Payables, and Transfers

The composition of interfund balances as of June 30, 2017, was as follows:

Due to/from Other Funds:

Receivable Fund Payable Fund Amount

Primary Government:General Nonmajor governmental $ 14,910 " Judical District Drug (agency fund) 616 " Water and Sewer (enterprise fund) 3,303 Water and Sewer Nonmajor governmental 12,080 Nonmajor governmental General 783 " Water and Sewer (enterprise fund) 45,567 " Nonmajor governmental 22,578

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

Due to/from Primary Government and Component Unit:

Receivable Fund Payable Fund Amount

Primary Government: Component Unit: School Department:

General Governmental Activities $ 1,225 Governmental Activities " 2,648,348Interfund Transfers:

Interfund transfers for the year ended June 30, 2017, consisted of the following amounts:

Primary Government

Transfers Out

General Fund $ 372,315Nonmajor governmental 22,959

Total $ 395,274

NonmajorGovernmental

Funds

Transfers In

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Discretely Presented Hartsville/Trousdale County School Department

Transfers Out

General Purpose School Fund $ 17,400

Transfers InNonmajor

GovernmentalFund

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

D. Long-term Obligations

Primary Government

General Obligation Bonds, Notes and Other Loans

The metropolitan government issues other loans to provide funds for theacquisition and construction of major capital facilities for the primarygovernment and the discretely presented School Department. In addition,general obligation bonds have been issued to refund other general capitaloutlay notes. Capital outlay notes are also issued to fund capital facilities andother capital outlay purchases, such as equipment.

General obligation bonds, capital outlay notes, and other loans are directobligations and pledge the full faith and credit of the government. Generalobligation bonds, capital outlay notes, and other loans outstanding were issuedfor original terms of up to seven years for bonds, up to ten years for notes, andup to 20 years for other loans. Repayment terms are generally structured withincreasing amounts of principal maturing as interest requirements decreaseover the term of the debt. As of June 30, 2017, all bonds outstanding will beretired from the General Debt Service Fund, all capital outlay notesoutstanding will be retired from the Urban Services and General Debt Servicefunds, and other loans outstanding will be retired from the General DebtService and Education Debt Service funds.

General obligation bonds, capital outlay notes, and other loans outstanding asof June 30, 2017, for governmental activities are as follows:

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OriginalInterest Final Amount Balance

Type Rate Maturity of Issue 6-30-17

General Obligation Bonds - Refunding 2.85 % 10-1-19 $ 180,000 $ 82,000Capital Outlay Notes 2.49 to 3.04 6-1-25 1,601,745 1,237,600Other Loans Variable 5-25-33 14,929,058 8,291,450

In prior years, the metropolitan government entered into a loan agreement with the Montgomery County Public Building Authority. Under this agreement, the authority loaned the metropolitan government $8,500,000 for the construction of a new high school. This loan is repayable at a variable interest rate based on the daily LIBOR. In addition, the government pays various other fees (trustee, debt remarketing, etc.) in connection with this loan. At June 30, 2017, the variable interest rate was .94 percent, and other fees totaled approximately .57 percent (letter of credit) and .08 percent (remarketing) of the outstanding loan principal. A trustee fee of $85 per month is also included on this loan. Also, in prior years, the metropolitan government entered into a loan agreement with the Tennessee State School Board Authority. Under this loan agreement, the authority loaned the metropolitan government $2,523,000 for rehabilitation and repairs of county school buildings. This loan earns interest monthly based upon the local government investment pool rate, which is netted against the annual principal payment. The metropolitan government pays an annual administrative fee of $2,018 under this agreement. The loan retirement schedule also includes equal monthly payments of interest; however, the county will receive a federal interest subsidy semi-annually, which will offset these payments. During the year, the metropolitan government entered into a loan agreement with the Tennessee Energy Efficient Schools Council. This loan agreement provides for the council to make $1,342,896 available for loan to the metropolitan government on an as-needed basis for energy efficiency upgrades. As of June 30, 2017, the metropolitan government had borrowed $1,056,815 of these loan proceeds. This loan is repayable at a one percent interest rate. Also during the year, the metropolitan government entered into a loan agreement with the City of Clarksville Public Building Authority. This loan agreement provides the authority to make $2,650,062 available for loan to the metropolitan government on an as-needed basis for energy saving improvements and renovations for the elementary school. This loan is repayable at a variable interest rate based on the daily LIBOR. In addition, the government pays various other fees (trustee, debt remarketing, etc.) in connection with this loan. At June 30, 2017, the variable interest rate was 1.05 percent, and other fees totaled approximately .13 percent (administration fee). A trustee fee of $125 per month is also included on this loan.

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Also during the year, the metropolitan government entered into another loan agreement with the City of Clarksville Public Building Authority. This loan agreement provides the authority to make $1,750,000 available for loan to the metropolitan government on an as-needed basis for renovation of a county owned building for use as a criminal justice center. This loan is repayable at a variable interest rate based on the daily LIBOR. In addition, the government pays various other fees (trustee, debt remarketing, etc.) in connection with this loan. At June 30, 2017, the variable interest rate was 1.05 percent, and other fees totaled approximately .08 percent (administration fee). A trustee fee of $125 per month is also included on this loan.

The annual requirements to amortize all general obligation bonds, notes, and other loans outstanding as of June 30, 2017, including interest payments and other loan fees, are presented in the following tables:

Year EndingJune 30 Total

2018 $ 27,000 $ 1,952 $ 28,9522019 27,000 1,183 28,1832020 28,000 399 28,399

Total $ 82,000 $ 3,534 $ $85,534

BondsPrincipal Interest


2018 $ 202,600 $ 33,722 $ 236,3222019 208,000 28,121 236,1212020 213,400 22,361 235,7612021 196,900 16,768 213,6682022 121,700 11,927 133,6272023-2025 295,000 15,269 310,269

Total $ 1,237,600 $ 128,168 $ $1,365,768

Principal InterestNotes

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Year EndingJune 30 Principal Interest (1) Other Fees Total

2018 $ 917,419 $ 184,398 $ 27,169 $ 1,128,9862019 994,283 183,474 23,534 1,201,2912020 1,018,283 175,314 19,763 1,213,3602021 1,043,283 166,911 15,854 1,226,0482022 1,021,142 158,293 11,830 1,191,2652023-2027 2,371,638 718,819 33,972 3,124,4292028-2032 828,721 29,811 12,588 871,1202033 96,681 931 1,491 99,103

Total $ 8,291,450 $ 1,617,951 $ 146,201 $ 10,055,602

(1) Includes interest requirements on Qualified School Construction Bonds,

Other Loans

There is $266,395 available in the General Debt Service Fund and $936,277 available in the Education Debt Service Fund to service long-term debt. Bonded debt per capita (net of unamortized debt premiums) totaled $10, based on the 2010 federal census. Total debt per capita, including bonds, notes, and other loans (net of unamortized debt premiums) totaled $1,221, based on the 2010 federal census.

The School Department is currently contributing funds to service some of the debt issued on their behalf by the primary government as noted in the table below. This debt is reflected in the government-wide financial statements as Due to the Primary Government in the financial statements of the School Department and as Due from Component Units in the government-wide financial statements of the Primary Government.

OutstandingDescription of Indebtedness 6-30-17

Other Loans Contributions from the General Purpose School Fund Qualified School Construction Bonds, Series 2010 $ 1,591,533 Energy Efficient School Improvements 1,056,815

Total $ 2,648,348

Changes in Long-term Obligations

Long-term obligations activity for the year ended June 30, 2017, was as follows:

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OtherBonds Notes Loans

Balance, July 1, 2016 $ 108,000 $ 1,294,007 $ 8,628,862Additions 0 148,000 3,906,058Reductions (26,000) (204,407) (4,243,470)

Balance, June 30, 2017 $ 82,000 $ 1,237,600 $ 8,291,450

Balance Due Within One Year $ 27,000 $ 202,600 $ 917,419

Landfill

PostclosureCare Cost

Balance, July 1, 2016 $ 88,140 $ 199,424Additions 135,603 2,485Reductions (140,896) (8,264)

Balance, June 30, 2017 $ 82,847 $ 193,645

Balance Due Within One Year $ 13,068 $ 31,200

CompensatedAbsences

Net PensionLiability - Former OtherCity Employees Postemployment

Agent Plan* Benefits

Balance, July 1, 2016 $ (20,819) $ 339,881Additions 128,402 45,949Reductions (102,589) (7,349)

Balance, June 30, 2017 $ 4,994 $ 378,481

Balance Due Within One Year $ 0 $ 0

*At July 1, 2016, the agent plan had a net pension asset. Analysis of Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2017 $ 10,271,017Less: Balance Due Within One Year (1,191,287)

Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 9,079,730

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Compensated absences and other postemployment benefits will be paid from the employing funds, primarily the General and Urban Services funds. Landfill postclosure care costs will be paid from the Solid Waste/Sanitation Fund. Hartsville/Trousdale County Government Water and Sewer Fund (enterprise fund) Revenue Bonds and Other Loans Revenue bonds and other loans outstanding were issued for original terms of up to 40 years for bonds and up to five years for other loans. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. All bonds and other loans included in long-term debt as of June 30, 2017, will be retired from the Water and Sewer Fund. Revenue bonds and other loans outstanding as of June 30, 2017, for business-type activities are as follows:

Original

Interest Final Amount BalanceType Rate Maturity of Issue 6-30-17

Revenue Bonds 1.88 to 4.25 % 11-28-56 $ 3,955,000 $ 3,865,320Other Loans Variable 5-25-20 1,724,289 1,724,289

In prior years, the metropolitan government entered into a loan agreement with the City of Clarksville Public Building Authority. This loan agreement provides the authority to make $7,000,000 available for loan to the metropolitan government on an as-needed basis for public utility projects. This loan is repayable at a variable interest rate based on the daily LIBOR. In addition, the government pays various other fees (trustee, debt remarketing, etc.) in connection with this loan. At June 30, 2017, the variable interest rate was 1.05 percent, and other fees totaled approximately .08 percent (administration fee). A trustee fee of $125 per month is also included on this loan. The annual requirements to amortize all revenue bonds and other loans outstanding as of June 30, 2017, including interest payments and other loan fees, are presented in the following tables:

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2018 $ 68,357 $ 78,739 $ 147,0962019 69,805 77,291 147,0962020 71,287 75,809 147,0962021 72,805 74,291 147,0962022 74,358 72,738 147,0962023-2027 396,425 339,055 735,4802028-2032 441,278 294,204 735,4822033-2037 491,935 243,545 735,4802038-2042 549,299 186,181 735,4802043-2047 528,193 128,433 656,6262048-2052 564,738 77,681 642,4192053-2057 536,840 22,658 559,498

Total $ 3,865,320 $ 1,670,625 $ $5,535,945

BondsPrincipal Interest

Year EndingJune 30 Principal Interest Other Fees Total

2018 $ 747,000 $ 17,451 $ 2,803 $ 767,2542019 757,000 9,599 2,217 768,8162020 220,289 2,120 1,533 223,942

Total $ 1,724,289 $ 29,170 $ 6,553 $ 1,760,012

Other Loans

Changes in Long-term Obligations

Long-term obligations activity for the year ended June 30, 2017, was as follows:

OtherBonds Loans

Balance, July 1, 2016 $ 297,260 $ 0Additions 3,605,000 1,724,289Reductions (36,940) 0

Balance, June 30, 2017 $ 3,865,320 $ 1,724,289

Balance Due Within One Year $ 68,357 $ 747,000

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Net PensionLiability -

Agent Plan*

Balance, July 1, 2016 $ 0 $ (101,506)Additions 20,369 329,848Reductions (4,175) (215,513)

Balance, June 30, 2017 $ 16,194 $ 12,829

Balance Due Within One Year $ 16,194 $ 0

*At July 1, 2016, the agent plan had a net pension asset.

CompensatedAbsences

Analysis of Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2017 $ 5,618,632Less: Balance Due Within One Year (831,551)

Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 4,787,081

Discretely Presented School Department Changes in Long-term Obligations Long-term obligations activity for the discretely presented School Department for the year ended June 30, 2017, was as follows:

Other Net PensionPostemployment Liability -

Benefits Legacy Plan

Balance, July 1, 2016 $ 179,384 $ 49,094Additions 61,973 1,806,239Reductions (84,095) (1,150,156)

Balance, June 30, 2017 $ 157,262 $ 705,177

Balance Due Within One Year $ 0 $ 0

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Analysis of Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2017 $ 862,439Less: Due Within One Year 0

Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 862,439

Other postemployment benefits will be paid from the General Purpose School and School Federal Projects funds.

E. On-Behalf Payments


The State of Tennessee pays health insurance premiums for retired teacherson-behalf of the School Department. These payments are made by the state tothe Local Education Group Insurance Plan and the Medicare SupplementPlan. Both of these plans are administered by the State of Tennessee andreported in the state’s Comprehensive Annual Financial Report. Payments bythe state to the Local Education Group Insurance Plan and the MedicareSupplement Plan for the year ended June 30, 2017, were $17,736 and $8,125,respectively. The School Department has recognized these on-behalf paymentsas revenues and expenditures in the General Purpose School Fund.

V. OTHER INFORMATION

A. Risk Management

Primary Government

The metropolitan government is exposed to various risks related to generalliability, property, and casualty losses. The metropolitan government decidedit was more economically feasible to join a public entity risk pool instead ofpurchasing commercial insurance for general liability, property, and casualtycoverage. The metropolitan government participates in the Tennessee RiskManagement Trust (TN-RMT), which is a public entity risk pool created underthe auspices of the Tennessee Governmental Tort Liability Act to providegovernmental insurance coverage. The metropolitan government pays anannual premium to the TN-RMT for its general liability, property, casualty,and workers’ compensation insurance coverage. The creation of the TN-RMTprovides for it to be self-sustaining through member premiums.

The metropolitan government participates in the Local Government GroupInsurance Fund (LGGIF), a public entity risk pool established to provide aprogram of health insurance coverage for employees of local governments andquasi-governmental entities that was established for the primary purpose of

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providing services for or on behalf of state and local governments. In accordance with Section 8-27-207, Tennessee Code Annotated (TCA), all local governments and quasi-governmental entities described above are eligible to participate. The LGGIF is included in the Comprehensive Annual Financial Report of the State of Tennessee, but the state does not retain any risk for losses by the fund. The state statute provides for the LGGIF to be self-sustaining through member premiums.


The discretely presented School Department participates in the Tennessee Risk Management Trust (TN-RMT), which is a public entity risk pool created under the auspices of the Tennessee Governmental Tort Liability Act to provide governmental insurance coverage. The School Department pays an annual premium to the TN-RMT for its general liability, property, casualty, and workers’ compensation insurance coverage. The creation of the TN-RMT provides for it to be self-sustaining through member premiums.

The discretely presented 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, 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.

B. Accounting Changes

Provisions of Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans; Statement No. 77, Tax Abatement Disclosures; Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans; Statement No. 80, Blending Requirements for Certain Component Units; and Statement No. 82, Pension Issues an amendment of GASB Statements No. 67, No. 68, and No. 73, became effective for the year ended June 30, 2017.

GASB Statement No. 74, establishes accounting and reporting requirements for postemployment benefits other than pensions (other postemployment benefits or OPEB) which are included in the general purpose external financial reports of state and local governmental OPEB plans. This statement replaces GASB Statements No. 43 and No. 57. It also includes requirements for defined contribution OPEB plans that replace the requirements in statements No. 25, No. 43, and No. 50. The scope of this statement includes OPEB plans, both defined benefit and defined contribution, administered through trusts meeting the necessary criteria as well as reporting assets accumulated through OPEB plans that are not administered through trusts that meet the specified criteria.

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GASB Statement No. 77, establishes reporting requirements for tax abatements. This standard requires the disclosure of information about the nature and magnitude of tax abatement agreements entered into by state and local governments that reduce the government’s tax revenues.

GASB Statement No. 78, amends Statement No. 68 to exclude certain pensions provided to employees of state or local governments through a cost-sharing multiple-employer pension plans that are not state or local plans and meet specific other criteria. This statement establishes recognition, measurement, and reporting criteria for these plans.

GASB Statement No. 80, amends the blending requirements of paragraph 53 of Statement No. 14. This standard adds additional blending criterion which requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member.

GASB Statement No. 82 amends Statements No. 67, No. 68, and No. 73. This standard establishes covered payroll as the payroll on which contributions to a pension plan are based in the Required Supplementary Information. In addition, this standard clarifies that employer paid member contributions should be considered plan member contributions for purposes of applying Statement No. 67, and employee contributions for the purposes of applying Statement No. 68. This standard further states that an employer’s expense and expenditures for employer paid member contributions should be recognized in the period for which the contribution is assessed and classified in the same manner that the employer classifies similar compensation other than pensions (for example, as salaries and wages or as fringe benefits).

C. Contingent Liabilities

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

D. Change in Administration

On December 31, 2016, Mary Holder left the Office of Register of Deeds and was succeeded by Leah Verville.

E. Landfill Postclosure Care Costs

The metropolitan government has an active permit on file with the state Department of Environment and Conservation for a sanitary landfill. The metropolitan government has provided financial assurances for estimated postclosure liabilities as required by the State of Tennessee. These financial assurances are on file with the Department of Environment and Conservation.

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State and federal laws and regulations require the metropolitan government to place a final cover on its sanitary landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the metropolitan government reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The metropolitan government closed its sanitary landfill in 1996. The $193,645 reported as postclosure care liability at June 30, 2017, represents amounts based on what it would cost to perform all postclosure care in 2017. Actual costs may be higher due to inflation, changes in technology, or changes in regulations.

F. Joint Venture

The Fifteenth Judicial District Drug Task Force (DTF) is a joint venture formed by an interlocal agreement between the district attorney general of the Fifteenth Judicial District, Jackson, Smith, Trousdale, and Wilson counties, and various cities within these counties. The purpose of the DTF is to provide multi-jurisdictional law enforcement to promote the investigation and prosecution of drug-related activities. Funds for the operations of the DTF come primarily from federal grants, drug fines, and the forfeiture of drug-related assets to the DTF. The DTF is overseen by the district attorney general and is governed by a board of directors including the district attorney general, sheriffs, and police chiefs of participating law enforcement agencies within each judicial district. The metropolitan government made no contributions to the DTF for the year ended June 30, 2017. The metropolitan government does not have any equity interest in this joint venture. Complete financial statements for the DTF can be obtained from its administrative office at the following address:

Administrative Office:

Office of District Attorney General Fifteenth Judicial District 210 Broadway Hartsville, TN 37074

G. Retirement Commitments

1. Tennessee Consolidated Retirement System (TCRS)

Primary Government General Information About the Pension Plan Plan Description – Metropolitan Government. Employees of the metropolitan government and non-certified employees of the discretely

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presented Trousdale 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 comprised 76.40 percent and the non-certified employees of the discretely presented School Department comprised 23.60 percent of the plan based on contribution data. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/tcrs.

Plan Description – Former City of Hartsville. Former City of Hartsville employees and Water Department employees are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The former City of Hartsville employees comprised 28.02 percent and the Water Department employees comprised 71.98 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/tcrs.

Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with five years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. Reduced benefits for early retirement are available to vested members at age 55. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria.

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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, 2016, the following employees were covered by the benefit terms: Metropolitan Government Plan: Inactive Employees or Beneficiaries Currently Receiving Benefits 65Inactive Employees Entitled to But Not Yet Receiving Benefits 145Active Employees 148

Total 358

Former City of Hartsville Plan: Inactive Employees or Beneficiaries Currently Receiving Benefits 32Inactive Employees Entitled to But Not Yet Receiving Benefits 22Active Employees 17

Total 71

Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Metropolitan government employees contribute five percent of salary, while former City of Hartsville employees are non-contributory. The metropolitan government makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2017, the employer contribution for the Metropolitan Government Plan was $361,711 based on a rate of 7.92 percent of covered payroll and the Former City of Hartsville Plan was $75,324 based on a rate of 10.77 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept the metropolitan government’s state shared taxes if required employer contributions are not remitted.

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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) The metropolitan government’s net pension liability (asset) was measured as of June 30, 2016, 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, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 3%Salary Increases Graded Salary Ranges from 8.97%

to 3.71% Based on Age, IncludingInflation, Averaging 4.25%

Investment Rate of Return 7.5%, Net of Pension Plan Investment Expenses, Including Inflation

Cost-of-Living Adjustment 2.50%

Mortality rates were based on actual experience from the June 30, 2012, actuarial experience study, adjusted for some of the expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2016, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008, through June 30, 2012. 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, 2012, actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rate of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established the long-term expected rate of return by weighting the expected future real rate

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of return by the target asset allocation percentage and by adding inflation of three percent. The target allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:

PercentageLong-termExpected PercentageReal Rate Target

Asset Class of Return Allocations

U.S. Equity 6.46 % 33 %Developed Market International Equity 6.26 17Emerging Market International Equity 6.40 5Private Equity and Strategic Lending 4.61 8U.S. Fixed Income 0.98 29Real Estate 4.73 7Short-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 7.5 percent based on a blending of the three factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.5 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 the metropolitan government 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) Metropolitan Government Plan:

Total Plan NetPension Fiduciary PensionLiability Net Position Liability

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

Balance, July 1, 2015 $ 12,408,748 $ 12,315,087 $ 93,661

Changes for the year: Service Cost $ 333,310 $ 0 $ 333,310 Interest 935,040 0 935,040 Differences Between Expected and Actual Experience (464,127) 0 (464,127) Contributions-Employer 0 350,935 (350,935) Contributions-Employees 0 221,552 (221,552) Net Investment Income 0 327,041 (327,041) Benefit Payments, Including Refunds of Employee Contributions (549,717) (549,717) 0 Administrative Expense 0 (11,404) 11,404 Other Changes 0 23,279 (23,279)Net Changes $ 254,506 $ 361,686 $ (107,180)

Balance, June 30, 2016 $ 12,663,254 $ 12,676,773 $ (13,519)

Increase (Decrease)

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Former City of Hartsville Plan:

Total Plan NetPension Fiduciary PensionLiability Net Position Liability

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

Balance, July 1, 2015 $ 5,386,790 $ 5,488,296 $ (101,506)

Changes for the year: Service Cost $ 69,318 $ 0 $ 69,318 Interest 399,569 0 399,569 Differences Between Expected and Actual Experience (56,988) 0 (56,988) Contributions-Employer 0 149,759 (149,759) Contributions-Employees 0 0 0 Net Investment Income 0 144,097 (144,097) Benefit Payments, Including Refunds of Employee Contributions (257,048) (257,048) 0 Administrative Expense 0 (1,286) 1,286 Other Changes 0 0 0Net Changes $ 154,851 $ 35,522 $ 119,329

Balance, June 30, 2016 $ 5,541,641 $ 5,523,818 $ 17,823

Increase (Decrease)

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

Plan NetTotal Fiduciary Pension

Pension Net LiabilityLiability Position (Asset)

Primary Government 76.40% $ 9,674,726 $ 9,685,055 $ (10,329)School Department 23.60% 2,988,528 2,991,718 (3,190)

Total $ 12,663,254 $ 12,676,773 $ (13,519)

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

Plan NetTotal Fiduciary Pension

Pension Net LiabilityLiability Position (Asset)

Primary Government 28.02% $ 1,552,768 $ 1,547,774 $ 4,994Water Department 71.98% 3,988,873 3,976,044 12,829

Total $ 5,541,641 $ 5,523,818 $ 17,823

Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the net pension liability (asset) of the metropolitan government calculated using the discount rate of 7.5 percent, as well as what the net pension liability (asset) would be if it was calculated using a discount rate that is one percentage point lower (6.5%) or one percentage point higher (8.5%) than the current rate:

Current1% Discount 1%

Metropolitan Decrease Rate Increase Government Plan: 6.5% 7.5% 8.5%

Net Pension Liability $ 1,650,931 $ (13,519) $ (1,396,360)

Current1% Discount 1%

Former City of Decrease Rate Increase Hartsville Plan: 6.5% 7.5% 8.5%

Net Pension Liability $ 628,954 $ 17,823 $ (505,258)

Pension Expense (Income) and Deferred Outflows of Resources and Deferred Inflows of Resources to Pensions Pension Expense. For the year ended June 30, 2017, the Metropolitan Government Plan recognized pension expense of $113,727 and the former City of Hartsville Plan recognized negative pension expense of $31,973.

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Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2017, the metropolitan government reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Metropolitan Government Plan:

Deferred DeferredOutflows Inflows

of of Resources Resources

Difference Between Expected and Actual Experience $ 385,354 $ 549,047Net Difference Between Projected and Actual Earnings on Pension Plan Investments 422,671 0Contributions Subsequent to the Measurement Date of June 30, 2016 (1) 361,711 N/A

Total $ 1,169,736 $ 549,047




Difference Between Expected and Actual Experience $ 0 $ 128,562Net Difference Between Projected and Actual Earnings on Pension Plan Investments 182,834 0Contributions Subsequent to the Measurement Date of June 30, 2016 (1) 75,324 N/A

Total $ 258,158 $ 128,562

(1) The amount shown above for “Contributions Subsequent to the

Measurement Date of June 30, 2016,” will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period.

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Metropolitan Government Plan: Allocation of Agent Plan Deferred Outflows of Resources and Deferred Inflows of Resources

Deferred DeferredOutflows of Inflows ofResources Resources

Primary Government $ 892,803 $ 419,472School Department 276,933 129,575

Total $ 1,169,736 $ 549,047

Former City of Hartsville Plan: Allocation of Agent Plan Deferred Outflows of Resources and Deferred Inflows of Resources

Deferred DeferredOutflows of Inflows ofResources Resources

Former City Employees $ 85,203 $ 36,023Water and Sewer Fund 172,955 92,539

Total $ 258,158 $ 128,562

Amounts reported as deferred outflows of resources, with the exception of contributions subsequent to the measurement date, and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

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Metropolitan Government Plan:

Year EndingJune 30 Amount

2018 $ 3,7352019 3,7352020 190,3002021 138,5622022 (77,355)Thereafter 0



2018 $ (94,595)2019 (4,025)2020 100,2012021 52,6912022 0Thereafter 0

In the tables shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense. Discretely Presented Trousdale County School Department Non-certified Employees General Information About the Pension Plan Plan Description. As noted above under the primary government, employees of the metropolitan government and non-certified employees of the discretely presented metropolitan government 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 76.40 percent and the non-certified employees of the discretely presented School Department comprise 23.60 percent of the plan based on contribution data.

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Certified Employees Teacher Retirement Plan General Information About the Pension Plan Plan Description. Teachers of the metropolitan government 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 publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members are eligible to retire with an unreduced benefit at age 65 with five years of service credit or pursuant to the rule of 90 in which the member’s age and service credit total 90. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 60 or pursuant to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. Members who leave employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Retirement Plan, benefit terms and conditions, including COLA, can be

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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, 2017, to the Teacher Retirement Plan were $36,330, which is four percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Liabilities (Assets). At June 30, 2017, the metropolitan government School Department reported an asset of $13,900 for its proportionate share of the net pension asset. The net pension asset was measured as of June 30, 2016, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of that date. The Trousdale County School Department’s proportion of the net pension asset was based on the Trousdale County 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, 2016, the Trousdale County School Department’s proportion was .133525 percent. The revised proportion measured at June 30, 2015, was .185142 percent. Pension Expense. For the year ended June 30, 2017, the metropolitan government School Department recognized pension expense of $11,758. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2017, the metropolitan government School Department reported deferred outflows of resources related to pensions from the following sources:

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Difference Between Expected and Actual Experience $ 1,347 $ 1,603Net Difference Between Projected and Actual Earnings on Pension Plan Investments 2,276 0Changes in Proportion of Net Pension Liability (Asset) 1,448 0LEA's Contributions Subsequent to the Measurement Date of June 30, 2016 36,330 0

Total $ 41,401 $ 1,603

The metropolitan government School Department’s employer contributions of $36,330, reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as an increase of net pension liability (asset) in the year ending June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:


2018 $ 6832019 6832020 6832021 5752022 87Thereafter 756

Actuarial Assumptions. The total pension liability in the June 30, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

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Investment Rate of Return 7.5%, Net of Pension Plan Investment Expenses, Including Inflation

Cost of Living Adjustment 2.5%

Mortality rates are customized based on the June 30, 2012, actuarial experience study and some included adjustment for expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2016, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008, through June 30, 2012. 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, 2012, actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rate of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established the long-term expected rate of return by weighting the expected future real rate of return by the target asset allocation percentage and by adding inflation of three percent. The target allocation and best estimates of arithmetic real rates of return 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 7.5 percent based on a blending of the three factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.5 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 metropolitan government County School Department’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.5 percent, as well as what the School Department’s proportionate share of the net pension liability (asset) would be if it was calculated using a discount rate that is one percentage point lower (6.5%) or one percentage point higher (8.5%) 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) 6.5% 7.5% 8.5%

Net Pension Liability $ 6,564 $ (13,900) $ (28,978)

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Teacher Legacy Pension Plan General Information About the Pension Plan Plan Description. Teachers of the metropolitan government 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 publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible to retire with an unreduced benefit at age 60 with five years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 55. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living

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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 metropolitan government School Department for the year ended June 30, 2017, to the Teacher Legacy Pension Plan were $385,812, which is 9.04 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, 2017, the metropolitan government School Department reported a liability of $705,177 for its proportionate share of the net pension liability. The net pension liability (asset) was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. The metropolitan government School Department’s proportion of the net pension liability (asset) was based on the Trousdale County School Department’s long-term share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2016, the School Department’s proportion was .112838 percent. The proportion measured at June 30, 2015, was .119848 percent.

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Pension Expense. For the year ended June 30, 2017, the metropolitan government School Department recognized pension expense of $59,310. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2017, the metropolitan government 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 $ 29,676 $ 853,735Net Difference Between Projected and Actual Earnings on Pension Plan Investments 787,339 0Changes in Proportion and Differences Between LEA's Contributions and Proportionate Share of Contributions 0 105,810Changes in Proportion of Net Pension Laibility (Asset)LEA's Contributions Subsequent to the Measurement Date of June 30, 2016 385,812 N/A

Total $ 1,202,827 $ 959,545

The metropolitan government School Department’s employer contributions of $385,812 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, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:


2018 $ (155,744)2019 (155,744)2020 221,9422021 13,2842022 (66,267)Thereafter 0

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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, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:



Investment Rate of Return 7.5%, Net of Pension PlanInvestment Expenses, IncludingInflation


Mortality rates are customized based on the June 30, 2012, actuarial experience study and some included adjustments for expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2015, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008, through June 30, 2012. 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, 2012, actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rate of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established the long-term expected rate of return by weighting the expected future real rate of return by the target asset allocation percentage and by adding inflation of three percent. The target allocation and best estimates of arithmetic real rates of return 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 7.5 percent based on a blending of the three factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.5 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 metropolitan government School Department’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.5 percent, as well as what the School Department’s proportionate share of the net pension liability (asset) would be if it was calculated using a discount rate that is one percentage point lower (6.5%) or one percentage point higher (8.5%) 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) 6.5% 7.5% 8.5%

Net Pension Liability $ 3,872,247 $ 705,177 $ (1,918,281)

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

2. Deferred Compensation

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

H. Other Postemployment Benefits (OPEB)

Plan Description The metropolitan government and the School Department participate in the state-administered Local Education Group Insurance Plan, Local Government Group Insurance Plan, and Medicare Supplement Plan for healthcare benefits. For accounting purposes, the plans are agent multiple-employer defined benefit OPEB plans. Benefits are established and amended by an insurance committee created by Section 8-27-302, Tennessee Code Annotated (TCA), for local education employees, Section 8-27-207, TCA, for local governments, and Section 8-27-701, TCA, for Medicare Supplement. Prior to reaching the age of 65, all members have the option of choosing between the standard or partnership preferred provider organization plan for healthcare benefits. Subsequent to age 65, members who are also in the state’s retirement system may participate in a state-administered Medicare Supplement Plan that does not include pharmacy. The plans are reported in the State of Tennessee Comprehensive Annual Financial Report (CAFR). The CAFR is available on the state’s website at http://tn.gov/finance/article/fa-accfin-cafr. Funding Policy The premium requirements of plan members are established and may be amended by the insurance committee. The plans are self-insured and financed on a pay-as-you-go basis with the risk shared equally among the participants. Claims liabilities of the plan are periodically computed using actuarial and

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statistical techniques to establish premium rates. The employers in each plan develop a contribution policy in terms of subsidizing active employees or retired employees’ premiums since the committee is not prescriptive on that issue. The state does not provide a subsidy for local government participants; however, the state does provide a partial subsidy to Local Education Agency pre-65 teachers and a full subsidy based on years of service for post-65 teachers in the Medicare Supplement Plan. During the year ended June 30, 2017, the metropolitan government and the discretely presented School Department made contributions totaling $6,448 and $84,095, respectively, for other postemployment benefits. Annual OPEB Cost and Net OPEB Obligation

Local LocalEducation Government Medicare

Group Group SupplementPlan Plan Plan

ARC $ 62,000 $ 32,000 $ 14,000Interest on the NOPEBO 6,727 8,001 4,744Adjustment to the ARC (6,754) (8,033) (4,763)Annual OPEB cost $ 61,973 $ 31,968 $ 13,981Amount of contribution (84,095) (4,435) (2,013)Adjustment to Align ARC with AAL 0 (901) 0Increase/decrease in NOPEBO $ (22,122) $ 26,632 $ 11,968Net OPEB obligation, 7-1-16 179,384 213,368 126,513

Net OPEB obligation, 6-30-17 $ 157,262 $ 240,000 $ 138,481

Percentage

Fiscal Annual of Annual Net OPEBYear OPEB OPEB Cost Obligation

Ended Plans Cost Contributed at Year End

6-30-15 Local Education Group $ 58,172 95.83 % $ 169,543 6-30-16 " 59,975 83.59 179,384 6-30-17 " 61,973 135.70 157,262 6-30-15 Local Government Group 19,176 27.47 185,045 6-30-16 " 30,972 8.55 213,368 6-30-17 " 31,968 13.87 240,000 6-30-15 Medicare Supplement 8,111 22.19 114,030 6-30-16 " 13,983 10.73 126,513 6-30-17 " 13,981 14.40 138,481

http://tn.gov/finance/article/fa-accfin-cafr

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Funded Status and Funding Progress

The funded status of the plan as of July 1, 2017, was as follows:

LocalEducation Medicare

Group SupplementPlan Plan

Actuarial valuation date 7-1-15 7-1-15 7-1-15Actuarial accrued liability (AAL) $ 478,000 $ 240,000 $ 144,000Actuarial value of plan assets $ 0 $ 0 $ 0Unfunded actuarial accrued liability (UAAL) $ 478,000 $ 240,000 $ 144,000Actuarial value of assets as a % of the AAL 0% 0% 0%Covered payroll (active plan members) $ 5,882,553 $ 3,934,772 $ N/AUAAL as a % of covered payroll 8% 6% N/A

LocalGovernment

GroupPlan

Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The Schedule of Funding Progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial Methods and Assumptions Calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. In the July 1, 2015, actuarial valuation for the Local Government Plan and the Local Education Plan, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 3.75 percent investment rate of return (net of administrative expenses) and an annual health care cost trend rate of six percent in fiscal year 2017, and then be reduced by decrements to an ultimate rate of 4.645 percent by fiscal year 2050. The annual health care cost trend rate for the Medicare Supplement Plan was six percent in fiscal year 2017 and then will be reduced by decrements to an ultimate rate of 4.345 percent by fiscal year 2050. Both rates include a 2.5 percent inflation assumption. The unfunded actuarial accrued liability is being amortized as a

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level percentage of payroll on a closed basis over a 35-year period beginning with July 1, 2007. Payroll is assumed to grow at a rate of three percent.

I. Termination Benefits In August 2005, the Board of Education initiated a voluntary retirement incentive program for certified employees who retire from the system with at least 15 years of service with the School Department. This incentive consists of a cash payment of $10 per day for each sick and professional day held by the employee at their retirement date. During the year, three employees retired who were eligible for the program and received payments totaling $5,155. The director of schools stated there is no limit to the number of accumulated days that employees can be paid under the program. The employees are entitled to this benefit when they formally notify the School Department of their retirement date.

J. Purchasing Laws Office of County Mayor

Purchasing procedures for the Office of County Mayor are governed by the County Purchasing Law of 1983, Section 5-14-201, Tennessee Code Annotated (TCA). This act provides for all purchases exceeding $10,000 (excluding emergency purchases) to be made based on competitive bids solicited through newspaper advertisement.

Office of Superintendent of Roads

Purchasing procedures for the Highway Department are governed by provisions of the Uniform Road Law, Section 54-7-113, TCA, which requires all purchases exceeding $10,000 to be made on the basis of publicly advertised competitive bids. Office of Director of Schools Purchasing procedures for the School Department are governed by purchasing laws applicable to the schools as set forth in Section 49-2-203, TCA, which provides for the county Board of Education, through its executive committee (director of schools and chairman of the Board of Education), to make all purchases. This statute also requires competitive bids to be solicited through newspaper advertisement on all purchases exceeding $10,000.

REQUIRED SUPPLEMENTARYINFORMATION

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Exhibit F-1

Hartsville/Trousdale County Government, TennesseeSchedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on

Participation in the Public Employee Pension Plan of TCRSPrimary Government - Metropolitan GovernmentFor the Fiscal Year Ended June 30

2014 2015 2016

Total Pension LiabilityService Cost $ 324,033 $ 322,705 $ 333,310Interest 823,533 846,208 935,040Changes in Benefit Terms 0 0 0Differences Between Actual and Expected Experience (324,548) 578,032 (464,127)Changes in Assumptions 0 0 0Benefit Payments, Including Refunds of Employee Contributions (442,202) (596,531) (549,717)Net Change in Total Pension Liability $ 380,816 $ 1,150,414 $ 254,506Total Pension Liability, Beginning 10,877,518 11,258,334 12,408,748

Total Pension Liability, Ending (a) $ 11,258,334 $ 12,408,748 $ 12,663,254

Plan Fiduciary Net PositionContributions - Employer $ 339,027 $ 333,061 $ 350,935Contributions - Employee 222,366 208,932 221,552Net Investment Income 1,701,552 369,129 327,041Benefit Payments, Including Refunds of Employee Contributions (442,202) (596,531) (549,717)Administrative Expense (5,638) (7,542) (11,404)Other 0 0 23,279Net Change in Plan Fiduciary Net Position $ 1,815,105 $ 307,049 $ 361,686Plan Fiduciary Net Position, Beginning 10,192,933 12,008,038 12,315,087

Plan Fiduciary Net Position, Ending (b) $ 12,008,038 $ 12,315,087 $ 12,676,773

Net Pension Liability (Asset), Ending (a - b) $ (749,704) $ 93,661 $ (13,519)

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 106.66% 99.25% 100.11%Covered Payroll $ 4,201,073 $ 4,205,311 $ 4,431,001Net Pension Liability (Asset) as a Percentage of Covered Payroll 17.85% 2.23% (0.31)%

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

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

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Exhibit F-2

Hartsville/Trousdale County Government, TennesseeSchedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRSPrimary Government - Former City of HartsvilleFor the Fiscal Year Ended June 30

2014 2015 2016

Total Pension LiabilityService Cost $ 68,313 $ 69,023 $ 69,318Interest 389,623 398,659 399,569Changes in Benefit Terms 0 0 0Differences Between Actual and Expected Experience (93,087) (201,895) (56,988)Changes in Assumptions 0 0 0Benefit Payments, Including Refunds of Employee Contributions (239,305) (250,855) (257,048)Net Change in Total Pension Liability $ 125,544 $ 14,932 $ 154,851Total Pension Liability, Beginning 5,246,314 5,371,858 5,386,790

Total Pension Liability, Ending (a) $ 5,371,858 $ 5,386,790 $ 5,541,641

Plan Fiduciary Net PositionContributions - Employer $ 153,731 $ 150,371 $ 149,759Contributions - Employee 10,663 0 0Net Investment Income 777,497 165,465 144,097Benefit Payments, Including Refunds of Employee Contributions (239,305) (250,855) (257,048)Administrative Expense (958) (904) (1,286)Net Change in Plan Fiduciary Net Position $ 701,628 $ 64,077 $ 35,522Plan Fiduciary Net Position, Beginning 4,722,591 5,424,219 5,488,296

Plan Fiduciary Net Position, Ending (b) $ 5,424,219 $ 5,488,296 $ 5,523,818

Net Pension Liability (Asset), Ending (a - b) $ (52,361) $ (101,506) $ 17,823

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 100.97% 101.88% 99.68%Covered Payroll $ 764,071 $ 757,537 $ 754,454Net Pension Liability (Asset) as a Percentage of Covered Payroll 6.85% (13.40%) 2.36%


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Exhibit F-3

Hartsville/Trousdale County Government, TennesseeSchedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRSPrimary Government - Metropolitan GovernmentFor the Fiscal Year Ended June 30

2014 2015 2016 2017

Actuarially Determined Contribution $ 339,027 $ 333,061 $ 350,935 $ 361,711Less Contributions in Relation to the Actuarially Determined Contribution (339,027) (333,061) (350,935) (361,711)Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0

Covered Payroll $ 4,201,073 $ 4,205,311 $ 4,431,001 $ 4,541,120

Contributions as a Percentage of Covered Payroll 8.07% 7.92% 7.92% 7.92%


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

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Exhibit F-4

Hartsville/Trousdale County Government, TennesseeSchedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRSPrimary Government - Former City of HartsvilleFor the Fiscal Year Ended June 30

2014 2015 2016 2017

Actuarially Determined Contribution $ 153,731 $ 150,371 $ 149,759 $ 75,324Less Contributions in Relation to the Actuarially Determined Contribution (153,731) (150,371) (149,759) (75,324)Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0

Covered Payroll $ 764,071 $ 757,537 $ 754,454 $ 699,535



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Exhibit F-5

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

2015 2016 2017

Contractually Required Contribution $ 15,712 $ 23,501 $ 36,330Less Contributions in Relation to the Contractually Required Contribution (15,712) (23,501) (36,330)Contribution Deficiency (Excess) $ 0 $ 0 $ 0

Covered Payroll $ 392,786 $ 587,518 $ 908,260

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


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Exhibit F-6

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

2014 2015 2016 2017

Contractually Required Contribution $ 434,589 $ 405,580 $ 368,220 $ 385,812Less Contributions in Relation to the Contractually Required Contribution (434,589) (405,580) (368,220) (385,812)Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0

Covered Payroll $ 4,894,020 $ 4,486,506 $ 4,072,232 $ 4,157,868



95

Exhibit F-7

Hartsville/Trousdale County Government, TennesseeSchedule of Proportionate Share of the Net Pension Asset in the Teacher Pension Plan of TCRSDiscretely Presented Hartsville/Trousdale County School DepartmentFor the Fiscal Year Ended June 30 *

2016 2017

School Department's Proportion of the Net Pension Liability (Asset) 0.189044% 0.133525%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (7,605) $ (13,900)

Covered Payroll $ 392,786 $ 587,518

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

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

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


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Exhibit F-8

Hartsville/Trousdale County Government, TennesseeSchedule of Proportionate Share of the Net Pension Asset in the Teacher Legacy Pension Plan of TCRSDiscretely Presented Hartsville/Trousdale County School DepartmentFor the Fiscal Year Ended June 30 *

2015 2016 2017

School Department's Proportion of the Net Pension Liability/Asset 0.124689% 0.119848% 0.112838%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (20,261) $ 49,094 $ 705,177

Covered Payroll $ 4,894,020 $ 4,486,506 $ 4,073,232

School Department's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (0.414002)% 1.094254% 17.31%

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

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


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Exhibit F-9

Hartsville/Trousdale County Government, TennesseeSchedule of Funding Progress – Other Postemployment Benefits PlansPrimary Government and Discretely Presented Hartsville/Trousdale

County School DepartmentJune 30, 2017

(Dollar amounts in thousands)

ActuarialAccrued Liability

(AAL)Actuarial Projected Unfunded

Actuarial Value of Unit AAL Covered Valuation Assets Credit (UAAL) Payroll

Plans Date (a) (b) (b)-(a) (c)

PRIMARY GOVERNMENT

Local Government Group 7-1-11 $ 0 $ 270 $ 270 0 % $ 2,529 11 % " 7-1-13 0 138 138 0 2,809 5 " 7-1-15 0 240 240 0 3,316 6

Medicare Supplement 7-1-11 0 16 160 0 N/A N/A " 7-1-13 0 137 137 0 N/A N/A " 7-1-15 0 144 144 0 N/A N/A

DISCRETELY PRESENTED HARTSVILLE/TROUSDALE COUNTY SCHOOL DEPARTMENT

Local Education Group 7-1-11 0 987 987 0 5,834 17 " 7-1-13 0 538 538 0 5,925 9 " 7-1-15 0 478 478 0 5,882 8

UAAL as a Percentage

Ratio Payroll(a/b) ((b-a)/c)

Funded of Covered

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HARTSVILLE/TROUSDALE COUNTY GOVERNMENT, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION


TENNESSEE CONSOLIDATED RETIREMENT SYSTEM Valuation Date: Actuarially determined contribution rates for 2017 were calculated based on the July 1, 2015, actuarial valuation. Methods and assumptions used to determine contribution rates:

Primary Government - Metropolitam Government Plan:

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

Corridor to Market ValueInflation 3%Salary Increases Graded Salary Ranges from 8.97% to

3.71% Based on Age, Including Inflation, Averaging 4.25%

Investment Rate of Return 7.5%, Net of Investment Expense, Including Inflation

Retirement Age Pattern of Retirement Determined by Experience Study

Mortality Customized Table Based on Actual Experience Including an Adjustment for Some Anticipated Improvement


(Continued)

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Primary Government - Former City of Hartsville Plan:

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

Corridor to Market ValueInflation 3%Salary Increases Graded Salary Ranges from 8.97% to

3.71% Based on Age, Including Inflation, Averaging 4.25%

Investment Rate of Return 7.5%, Net of Investment Expense, Including Inflation

Retirement Age Pattern of Retirement Determined by Experience Study

Mortality Customized Table Based on Actual Experience Including an Adjustment for Some Anticipated Improvement

Cost of Living Adjustments 2.5%

100

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

101

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.

____________________________

Urban Services Fund – The Urban Services Fund is used to account for the financial activity of the Urban Services District. Solid Waste/Sanitation Fund – The Solid Waste/Sanitation Fund is used to account for transactions relating to the disposal of solid waste. Ambulance Service Fund – The Ambulance Service Fund is used to account for transactions of the Ambulance Service. Drug Control Fund – The Drug Control Fund is used to account for revenues received from drug-related fines, forfeitures, and seizures. Constitutional Officers - Fees Fund – The Constitutional Officers - Fees Fund is used to account for operating expenses paid directly from the fee and commission accounts of the trustee, clerks, register of deeds, and sheriff. Highway/Public Works Fund – The Highway/Public Works Fund is used to account for transactions of the metropolitan government’s Highway Department.

102

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 and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. Education Debt Service Fund – The Education Debt Service Fund is used to account for the resources accumulated and payments made for principal and interest on long-term education general obligation debt of governmental funds.

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. Education Capital Projects Fund – The Education Capital Projects Fund accounts for debt issued by the Hartsville/Trousdale County Government that is subsequently contributed to the discretely presented Hartsville/Trousdale County School Department for general capital expenditures of the school system.

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Exhibit G-1

Hartsville/Trousdale County Government, TennesseeCombining Balance SheetNonmajor Governmental FundsJune 30, 2017

Constitu -Solid tional

Urban Waste / Ambulance Drug Officers -Services Sanitation Service Control Fees

ASSETS

Cash $ 0 $ 0 $ 17,121 $ 0 $ 314Equity in Pooled Cash and Investments 865,407 438,863 455,889 46,437 0Accounts Receivable 4,123 38,938 316,191 0 0Allowance for Uncollectibles 0 0 (107,046) 0 0Due from Other Governments 0 19 29 0 0Due from Other Funds 14,483 1,718 0 0 0Property Taxes Receivable 485,580 401,783 614,192 0 0Allowance for Uncollectible Property Taxes (45,526) (37,373) (57,441) 0 0

Total Assets $ 1,324,067 $ 843,948 $ 1,238,935 $ 46,437 $ 314

LIABILITIES

Accounts Payable $ 7,575 $ 19,590 $ 1,477 $ 4,152 $ 0Accrued Payroll 0 0 0 0 0Contracts Payable 0 0 0 0 0Retainage Payable 0 0 0 0 0Due to Other Funds 24,069 2,392 1,070 0 0Due to State of Tennessee 0 0 0 0 0Due to Litigants, Heirs, and Others 0 0 0 0 314Total Liabilities $ 31,644 $ 21,982 $ 2,547 $ 4,152 $ 314

(Continued)

Special Revenue Funds

104

Exhibit G-1

Hartsville/Trousdale County Government, TennesseeCombining Balance SheetNonmajor Governmental Funds (Cont.)




Deferred Current Property Taxes $ 422,928 $ 355,604 $ 542,764 $ 0 $ 0Deferred Delinquent Property Taxes 17,126 8,555 13,587 0 0Other Deferred/Unavailable Revenue 0 0 200,381 0 0Total Deferred Inflows of Resources $ 440,054 $ 364,159 $ 756,732 $ 0 $ 0

FUND BALANCES

Restricted:Restricted for General Government $ 372,328 $ 0 $ 0 $ 0 $ 0Restricted for Public Safety 0 0 0 42,285 0Restricted for Highways/Public Works 0 0 0 0 0Restricted for Debt Service 0 0 0 0 0Restricted for Capital Projects 0 0 0 0 0

Committed:Committed for General Government 480,041 0 0 0 0Committed for Public Health and Welfare 0 457,807 479,656 0 0Committed for Debt Service 0 0 0 0 0

Total Fund Balances $ 852,369 $ 457,807 $ 479,656 $ 42,285 $ 0

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,324,067 $ 843,948 $ 1,238,935 $ 46,437 $ 314

(Continued)


105

Exhibit G-1


Highway / General EducationPublic Debt DebtWorks Total Service Service Total

ASSETS

Cash $ 0 $ 17,435 $ 0 $ 0 $ 0Equity in Pooled Cash and Investments 803,346 2,609,942 267,685 936,277 1,203,962Accounts Receivable 62,177 421,429 0 0 0Allowance for Uncollectibles 0 (107,046) 0 0 0Due from Other Governments 259,941 259,989 26 0 26Due from Other Funds 21,971 38,172 5,454 0 5,454Property Taxes Receivable 125,411 1,626,966 515,771 0 515,771Allowance for Uncollectible Property Taxes (11,879) (152,219) (43,727) 0 (43,727)

Total Assets $ 1,260,967 $ 4,714,668 $ 745,209 $ 936,277 $ 1,681,486

LIABILITIES

Accounts Payable $ 225,172 $ 257,966 $ 5,514 $ 0 $ 5,514Accrued Payroll 32,056 32,056 0 0 0Contracts Payable 0 0 0 0 0Retainage Payable 0 0 0 0 0Due to Other Funds 9,957 37,488 1,376 0 1,376Due to State of Tennessee 1,868 1,868 0 0 0Due to Litigants, Heirs, and Others 0 314 0 0 0Total Liabilities $ 269,053 $ 329,692 $ 6,890 $ 0 $ 6,890

(Continued)

Special Revenue Funds (Cont.) Debt Service Funds

106

Exhibit G-1


Highway / General EducationPublic Debt DebtWorks Total Service Service Total


Deferred Current Property Taxes $ 110,424 $ 1,431,720 $ 467,899 $ 0 $ 467,899Deferred Delinquent Property Taxes 3,067 42,335 4,025 0 4,025Other Deferred/Unavailable Revenue 123,337 323,718 0 0 0Total Deferred Inflows of Resources $ 236,828 $ 1,797,773 $ 471,924 $ 0 $ 471,924

FUND BALANCES

Restricted:Restricted for General Government $ 0 $ 372,328 $ 0 $ 0 $ 0Restricted for Public Safety 0 42,285 0 0 0Restricted for Highways/Public Works 755,086 755,086 0 0 0Restricted for Debt Service 0 0 1,278 564,034 565,312Restricted for Capital Projects 0 0 0 0 0

Committed:Committed for General Government 0 480,041 0 0 0Committed for Public Health and Welfare 0 937,463 0 0 0Committed for Debt Service 0 0 265,117 372,243 637,360

Total Fund Balances $ 755,086 $ 2,587,203 $ 266,395 $ 936,277 $ 1,202,672

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,260,967 $ 4,714,668 $ 745,209 $ 936,277 $ 1,681,486

(Continued)


107

Exhibit G-1


TotalGeneral NonmajorCapital GovernmentalProjects Funds

ASSETS

Cash $ 0 $ 17,435Equity in Pooled Cash and Investments 267,217 4,081,121Accounts Receivable 409,400 830,829Allowance for Uncollectibles 0 (107,046)Due from Other Governments 10,704 270,719Due from Other Funds 25,302 68,928Property Taxes Receivable 0 2,142,737Allowance for Uncollectible Property Taxes 0 (195,946)

Total Assets $ 712,623 $ 7,108,777

LIABILITIES

Accounts Payable $ 6,100 $ 269,580Accrued Payroll 0 32,056Contracts Payable 384,085 384,085Retainage Payable 20,215 20,215Due to Other Funds 10,704 49,568Due to State of Tennessee 0 1,868Due to Litigants, Heirs, and Others 0 314Total Liabilities $ 421,104 $ 757,686

(Continued)

Capital Projects Fund

108

Exhibit G-1


TotalGeneral NonmajorCapital GovernmentalProjects Funds


Deferred Current Property Taxes $ 0 $ 1,899,619Deferred Delinquent Property Taxes 0 46,360Other Deferred/Unavailable Revenue 0 323,718Total Deferred Inflows of Resources $ 0 $ 2,269,697

FUND BALANCES

Restricted:Restricted for General Government $ 0 $ 372,328Restricted for Public Safety 0 42,285Restricted for Highways/Public Works 0 755,086Restricted for Debt Service 0 565,312Restricted for Capital Projects 291,519 291,519

Committed:Committed for General Government 0 480,041Committed for Public Health and Welfare 0 937,463Committed for Debt Service 0 637,360

Total Fund Balances $ 291,519 $ 4,081,394

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 712,623 $ 7,108,777

Capital Projects Fund

109

Exhibit G-2

Hartsville/Trousdale County Government, TennesseeCombining Statement of Revenues, Expenditures,

and Changes in Fund BalancesNonmajor Governmental FundsFor the Year Ended June 30, 2017



RevenuesLocal Taxes $ 564,487 $ 344,539 $ 547,667 $ 0 $ 0Licenses and Permits 61,480 0 0 0 0Fines, Forfeitures, and Penalties 0 0 0 11,079 0Charges for Current Services 162,987 207,887 444,547 0 1,620Other Local Revenues 525 90,121 0 0 0State of Tennessee 5,700 4,117 0 0 0Federal Government 0 0 0 0 0Other Governments and Citizens Groups 0 0 0 25 0

Total Revenues $ 795,179 $ 646,664 $ 992,214 $ 11,104 $ 1,620


Administration of Justice $ 0 $ 0 $ 0 $ 0 $ 1,620Public Safety 310,181 0 0 9,309 0Public Health and Welfare 263,895 699,738 1,039,259 0 0Social, Cultural, and Recreational Services 14,000 0 0 0 0Other Operations 113,605 38,810 0 0 0Highways 62,908 0 0 0 0

Debt Service:Principal on Debt 28,000 0 0 0 0Interest on Debt 6,475 0 0 0 0Other Debt Service 0 0 0 0 0

Capital Projects 75,788 0 0 0 0Total Expenditures $ 874,852 $ 738,548 $ 1,039,259 $ 9,309 $ 1,620

(Continued)


110

Exhibit G-2


and Changes in Fund BalancesNonmajor Governmental Funds (Cont.)



Excess (Deficiency) of RevenuesOver Expenditures $ (79,673) $ (91,884) $ (47,045) $ 1,795 $ 0

Other Financing Sources (Uses)Notes Issued $ 0 $ 148,000 $ 0 $ 0 $ 0Other Loans Issued 0 0 0 0 0Insurance Recovery 0 3,833 9,467 0 0Transfers In 0 0 0 0 0Transfers Out (22,959) 0 0 0 0

Total Other Financing Sources (Uses) $ (22,959) $ 151,833 $ 9,467 $ 0 $ 0

Net Change in Fund Balances $ (102,632) $ 59,949 $ (37,578) $ 1,795 $ 0Fund Balance, July 1, 2016 955,001 397,858 517,234 40,490 0

Fund Balance, June 30, 2017 $ 852,369 $ 457,807 $ 479,656 $ 42,285 $ 0

(Continued)


111

Exhibit G-2



Highway / General Education GeneralPublic Debt Debt CapitalWorks Total Service Service Total Projects

RevenuesLocal Taxes $ 115,018 $ 1,571,711 $ 195,644 $ 428,122 $ 623,766 $ 0Licenses and Permits 0 61,480 0 0 0 0Fines, Forfeitures, and Penalties 0 11,079 0 0 0 0Charges for Current Services 0 817,041 0 0 0 0Other Local Revenues 6,994 97,640 1,458 4,968 6,426 53,960State of Tennessee 1,786,974 1,796,791 0 0 0 494,566Federal Government 7,251 7,251 0 0 0 1,023,005Other Governments and Citizens Groups 0 25 209,928 0 209,928 198,175

Total Revenues $ 1,916,237 $ 4,363,018 $ 407,030 $ 433,090 $ 840,120 $ 1,769,706


Administration of Justice $ 0 $ 1,620 $ 0 $ 0 $ 0 $ 0Public Safety 0 319,490 0 0 0 0Public Health and Welfare 0 2,002,892 0 0 0 0Social, Cultural, and Recreational Services 0 14,000 0 0 0 0Other Operations 0 152,415 0 0 0 0Highways 1,857,247 1,920,155 0 0 0 0

Debt Service:Principal on Debt 0 28,000 3,937,877 508,000 4,445,877 0Interest on Debt 0 6,475 166,233 27,090 193,323 0Other Debt Service 0 0 50,751 26,785 77,536 10,500

Capital Projects 0 75,788 0 0 0 2,378,450Total Expenditures $ 1,857,247 $ 4,520,835 $ 4,154,861 $ 561,875 $ 4,716,736 $ 2,388,950

(Continued)


Capital Projects Funds

112

Exhibit G-2



Highway / General Education GeneralPublic Debt Debt CapitalWorks Total Service Service Total Projects

Excess (Deficiency) of RevenuesOver Expenditures $ 58,990 $ (157,817) $ (3,747,831) $ (128,785) $ (3,876,616) $ (619,244)

Other Financing Sources (Uses)Notes Issued $ 0 $ 148,000 $ 0 $ 0 $ 0 $ 0Other Loans Issued 0 0 0 0 0 867,500Insurance Recovery 0 13,300 0 0 0 0Transfers In 0 0 145,274 0 145,274 250,000Transfers Out 0 (22,959) 0 0 0 0

Total Other Financing Sources (Uses) $ 0 $ 138,341 $ 145,274 $ 0 $ 145,274 $ 1,117,500

Net Change in Fund Balances $ 58,990 $ (19,476) $ (3,602,557) $ (128,785) $ (3,731,342) $ 498,256Fund Balance, July 1, 2016 696,096 2,606,679 3,868,952 1,065,062 4,934,014 (206,737)

Fund Balance, June 30, 2017 $ 755,086 $ 2,587,203 $ 266,395 $ 936,277 $ 1,202,672 $ 291,519

(Continued)


Capital Projects Funds

113

Exhibit G-2



TotalEducation Nonmajor

Capital GovernmentalProjects Total Funds

RevenuesLocal Taxes $ 0 $ 0 $ 2,195,477Licenses and Permits 0 0 61,480Fines, Forfeitures, and Penalties 0 0 11,079Charges for Current Services 0 0 817,041Other Local Revenues 0 53,960 158,026State of Tennessee 0 494,566 2,291,357Federal Government 0 1,023,005 1,030,256Other Governments and Citizens Groups 0 198,175 408,128

Total Revenues $ 0 $ 1,769,706 $ 6,972,844


Administration of Justice $ 0 $ 0 $ 1,620Public Safety 0 0 319,490Public Health and Welfare 0 0 2,002,892Social, Cultural, and Recreational Services 0 0 14,000Other Operations 0 0 152,415Highways 0 0 1,920,155

Debt Service:Principal on Debt 0 0 4,473,877Interest on Debt 0 0 199,798Other Debt Service 0 10,500 88,036

Capital Projects 3,038,558 5,417,008 5,492,796Total Expenditures $ 3,038,558 $ 5,427,508 $ 14,665,079

(Continued)

Capital Projects Funds (Cont.)

114

Exhibit G-2



TotalEducation Nonmajor

Capital GovernmentalProjects Total Funds

Excess (Deficiency) of RevenuesOver Expenditures $ (3,038,558) $ (3,657,802) $ (7,692,235)

Other Financing Sources (Uses)Notes Issued $ 0 $ 0 $ 148,000Other Loans Issued 3,038,558 3,906,058 3,906,058Insurance Recovery 0 0 13,300Transfers In 0 250,000 395,274Transfers Out 0 0 (22,959)

Total Other Financing Sources (Uses) $ 3,038,558 $ 4,156,058 $ 4,439,673

Net Change in Fund Balances $ 0 $ 498,256 $ (3,252,562)Fund Balance, July 1, 2016 0 (206,737) 7,333,956

Fund Balance, June 30, 2017 $ 0 $ 291,519 $ 4,081,394

Capital Projects Funds (Cont.)

115

Exhibit G-3

Hartsville/Trousdale County Government, TennesseeSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Actual and BudgetUrban Services FundFor the Year Ended June 30, 2017



RevenuesLocal Taxes $ 564,487 $ 553,432 $ 553,432 $ 11,055Licenses and Permits 61,480 17,000 27,000 34,480Charges for Current Services 162,987 165,000 165,000 (2,013)Other Local Revenues 525 0 0 525State of Tennessee 5,700 2,400 5,100 600

Total Revenues $ 795,179 $ 737,832 $ 750,532 $ 44,647


Sheriff's Department $ 307,633 $ 375,884 $ 375,884 $ 68,251Fire Prevention and Control 2,548 3,800 3,800 1,252

Public Health and WelfareRabies and Animal Control 16,133 23,002 25,702 9,569Waste Pickup 247,762 283,382 283,382 35,620

Social, Cultural, and Recreational ServicesParks and Fair Boards 10,000 10,000 10,000 0Other Social, Cultural, and Recreational 4,000 4,000 4,000 0

Other OperationsOther Charges 111,593 155,500 141,500 29,907Employee Benefits 2,012 2,400 2,400 388

HighwaysHighway and Bridge Maintenance 62,908 100,000 100,000 37,092

Principal on DebtGeneral Government 28,000 28,000 28,000 0

Interest on DebtGeneral Government 6,475 6,476 6,476 1

Capital ProjectsOther General Government Projects 44,000 0 44,000 0Highway and Street Capital Projects 31,788 0 157,000 125,212

Total Expenditures $ 874,852 $ 992,444 $ 1,182,144 $ 307,292

Excess (Deficiency) of RevenuesOver Expenditures $ (79,673) $ (254,612) $ (431,612) $ 351,939

Other Financing Sources (Uses)Notes Issued $ 0 $ 38,000 $ 0 $ 0Transfers Out (22,959) (180,653) (23,653) 694

Total Other Financing Sources $ (22,959) $ (142,653) $ (23,653) $ 694

Net Change in Fund Balance $ (102,632) $ (397,265) $ (455,265) $ 352,633Fund Balance, July 1, 2016 955,001 904,452 904,452 50,549

Fund Balance, June 30, 2017 $ 852,369 $ 507,187 $ 449,187 $ 403,182

Budgeted Amounts

116

Exhibit G-4


in Fund Balance - Actual and BudgetSolid Waste/Sanitation FundFor the Year Ended June 30, 2017



RevenuesLocal Taxes $ 344,539 $ 335,405 $ 340,405 $ 4,134Charges for Current Services 207,887 160,000 160,000 47,887Other Local Revenues 90,121 17,000 69,751 20,370State of Tennessee 4,117 4,000 4,000 117

Total Revenues $ 646,664 $ 516,405 $ 574,156 $ 72,508

ExpendituresPublic Health and Welfare

Convenience Centers $ 469,435 $ 494,156 $ 496,907 $ 27,472Recycling Center 61,446 75,735 90,735 29,289Other Waste Disposal 160,593 150,000 164,000 3,407Postclosure Care Costs 8,264 6,000 11,000 2,736

Other OperationsOther Charges 38,810 33,800 41,800 2,990

Total Expenditures $ 738,548 $ 759,691 $ 804,442 $ 65,894


Other Financing Sources (Uses)Notes Issued $ 148,000 $ 165,000 $ 148,000 $ 0Insurance Recovery 3,833 0 0 3,833

Total Other Financing Sources $ 151,833 $ 165,000 $ 148,000 $ 3,833

Net Change in Fund Balance $ 59,949 $ (78,286) $ (82,286) $ 142,235Fund Balance, July 1, 2016 397,858 336,474 336,474 61,384


Budgeted Amounts

117

Exhibit G-5


in Fund Balance - Actual and BudgetAmbulance Service FundFor the Year Ended June 30, 2017



RevenuesLocal Taxes $ 547,667 $ 537,655 $ 537,655 $ 10,012Charges for Current Services 444,547 380,000 380,000 64,547State of Tennessee 0 0 1,403 (1,403)

Total Revenues $ 992,214 $ 917,655 $ 919,058 $ 73,156

ExpendituresPublic Health and Welfare

Ambulance/Emergency Medical Services $ 1,039,259 $ 1,063,995 $ 1,102,398 $ 63,139Total Expenditures $ 1,039,259 $ 1,063,995 $ 1,102,398 $ 63,139


Other Financing Sources (Uses)Notes Issued $ 0 $ 90,000 $ 0 $ 0Insurance Recovery 9,467 0 0 9,467

Total Other Financing Sources $ 9,467 $ 90,000 $ 0 $ 9,467



Budgeted Amounts

118

Exhibit G-6


in Fund Balance - Actual and BudgetDrug Control FundFor the Year Ended June 30, 2017



RevenuesFines, Forfeitures, and Penalties $ 11,079 $ 7,000 $ 7,000 $ 4,079Other Governments and Citizens Groups 25 0 0 25

Total Revenues $ 11,104 $ 7,000 $ 7,000 $ 4,104


Drug Enforcement $ 9,309 $ 40,250 $ 40,250 $ 30,941Total Expenditures $ 9,309 $ 40,250 $ 40,250 $ 30,941

Excess (Deficiency) of RevenuesOver Expenditures $ 1,795 $ (33,250) $ (33,250) $ 35,045



Budgeted Amounts

119

Exhibit G-7


in Fund Balance - Actual and BudgetHighway/Public Works FundFor the Year Ended June 30, 2017



RevenuesLocal Taxes $ 115,018 $ 108,000 $ 115,170 $ (152)Other Local Revenues 6,994 500 500 6,494State of Tennessee 1,786,974 1,670,868 1,965,489 (178,515)Federal Government 7,251 0 7,251 0

Total Revenues $ 1,916,237 $ 1,779,368 $ 2,088,410 $ (172,173)

ExpendituresHighways

Administration $ 154,808 $ 168,501 $ 170,566 $ 15,758Highway and Bridge Maintenance 877,995 931,565 946,132 68,137Operation and Maintenance of Equipment 178,026 204,410 213,760 35,734Other Charges 55,054 66,500 58,600 3,546Employee Benefits 62,429 69,000 69,000 6,571Capital Outlay 528,935 530,868 861,828 332,893

Total Expenditures $ 1,857,247 $ 1,970,844 $ 2,319,886 $ 462,639

Excess (Deficiency) of RevenuesOver Expenditures $ 58,990 $ (191,476) $ (231,476) $ 290,466



Budgeted Amounts

120

Exhibit G-8


in Fund Balance - Actual and BudgetGeneral Debt Service FundFor the Year Ended June 30, 2017



RevenuesLocal Taxes $ 195,644 $ 186,220 $ 186,220 $ 9,424Other Local Revenues 1,458 20,000 20,000 (18,542)Other Governments and Citizens Groups 209,928 268,150 249,421 (39,493)

Total Revenues $ 407,030 $ 474,370 $ 455,641 $ (48,611)

ExpendituresPrincipal on Debt

General Government $ 3,780,446 $ 235,050 $ 3,807,407 $ 26,961Education 157,431 281,768 157,432 1

Interest on DebtGeneral Government 35,528 0 45,766 10,238Education 130,705 0 155,618 24,913

Other Debt ServiceGeneral Government 47,035 105,000 88,187 41,152Education 3,716 0 3,718 2

Total Expenditures $ 4,154,861 $ 621,818 $ 4,258,128 $ 103,267

Excess (Deficiency) of RevenuesOver Expenditures $ (3,747,831) $ (147,448) $ (3,802,487) $ 54,656

Other Financing Sources (Uses)Transfers In $ 145,274 $ 136,346 $ 136,346 $ 8,928

Total Other Financing Sources $ 145,274 $ 136,346 $ 136,346 $ 8,928

Net Change in Fund Balance $ (3,602,557) $ (11,102) $ (3,666,141) $ 63,584Fund Balance, July 1, 2016 3,868,952 338,061 3,916,100 (47,148)


Budgeted Amounts

121

Exhibit G-9


in Fund Balance - Actual and BudgetEducation Debt Service FundFor the Year Ended June 30, 2017



RevenuesLocal Taxes $ 428,122 $ 380,000 $ 380,000 $ 48,122Other Local Revenues 4,968 5,000 5,000 (32)

Total Revenues $ 433,090 $ 385,000 $ 385,000 $ 48,090

ExpendituresPrincipal on Debt

Education $ 508,000 $ 508,000 $ 508,000 $ 0Interest on Debt

Education 27,090 50,000 27,532 442Other Debt Service

Education 26,785 5,500 27,968 1,183Total Expenditures $ 561,875 $ 563,500 $ 563,500 $ 1,625


Net Change in Fund Balance $ (128,785) $ (178,500) $ (178,500) $ 49,715Fund Balance, July 1, 2016 1,065,062 1,054,771 1,054,771 10,291


Budgeted Amounts

122

Fiduciary Funds ________________________

Agency Funds are used to account for assets held by the government 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.

_________________________ 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. Other Agency Fund – The Other Agency Fund is used to account for restricted revenue previously held by the City of Lebanon for the benefit of the Office of the District Attorney General. Judicial District Drug Fund – The Judicial District Drug Fund is used to account for grants and other restricted revenues for the benefit of the multi-jurisdictional drug task force, which was created by contract (mutual aid agreement) between the participating city and county governments. District Attorney General Fund – The District Attorney General Fund is used to account for restricted revenue held for the benefit of the Office of the District Attorney General.

123

Exhibit H-1

Hartsville/Trousdale County Government, TennesseeCombining Statement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2017

Judicial DistrictOther District Attorney

Agency Drug General Total

ASSETS

Cash $ 810,034 $ 0 $ 118,302 $ 0 $ 928,336Equity in Pooled Cash and Investments 0 130,810 613,771 11,880 756,461Accounts Receivable 601 0 13 0 614Due from Other Governments 0 0 24,698 0 24,698

Total Assets $ 810,635 $ 130,810 $ 756,784 $ 11,880 $ 1,710,109

LIABILITIES

Accounts Payable $ 0 $ 0 $ 30,954 $ 0 $ 30,954Due to Other Funds 0 0 616 0 616Due to Litigants, Heirs, and Others 810,635 130,810 104,669 11,880 1,057,994Due to Joint Ventures 0 0 620,545 0 620,545

Total Liabilities $ 810,635 $ 130,810 $ 756,784 $ 11,880 $ 1,710,109

tionalOfficers -Agency

Constitu-Agency Funds

124

Exhibit H-2

Hartsville/Trousdale County Government, TennesseeCombining Statement of Changes in Assets and

Liabilities - All Agency FundsFor the Year Ended June 30, 2017

Constitutional Officers - Agency FundAssets Cash $ 517,479 $ 3,068,529 $ 2,775,974 $ 810,034 Accounts Receivable 1,108 601 1,108 601

Total Assets $ 518,587 $ 3,069,130 $ 2,777,082 $ 810,635

Liabilities Due to Litigants, Heirs, and Others $ 518,587 $ 3,069,130 $ 2,777,082 $ 810,635

Total Liabilities $ 518,587 $ 3,069,130 $ 2,777,082 $ 810,635

Other Agency FundAssets Equity in Pooled Cash and Investments $ 0 $ 130,812 $ 2 $ 130,810 Due from Other Governments 130,538 0 130,538 0

Total Assets $ 130,538 $ 130,812 $ 130,540 $ 130,810

Liabilities Due to Litigants, Heirs, and Others $ 130,538 $ 130,812 $ 130,540 $ 130,810

Total Liabilities $ 130,538 $ 130,812 $ 130,540 $ 130,810

Judicial District Drug FundAssets Cash $ 311,235 $ 0 $ 192,933 $ 118,302 Equity in Pooled Cash and Investments 558,151 110,854 55,234 613,771 Accounts Receivable 0 13 0 13 Due from Other Governments 13,000 11,698 0 24,698

Total Assets $ 882,386 $ 122,565 $ 248,167 $ 756,784

Liabilities Accounts Payable $ 26,306 $ 30,954 $ 26,306 $ 30,954 Due to Other Funds 3,849 616 3,849 616 Due to Litigants, Heirs, and Others 289,469 0 184,800 104,669 Due to Joint Ventures 562,762 90,995 33,212 620,545


(Continued)

Beginning Ending Balance Additions Deductions Balance

125

Exhibit H-2

Hartsville/Trousdale County Government, TennesseeCombining Statement of Changes in Assets and

Liabilities - All Agency Funds (Cont.)

District Attorney General FundAssets Equity in Pooled Cash and Investments $ 8,834 $ 24,894 $ 21,848 $ 11,880

Total Assets $ 8,834 $ 24,894 $ 21,848 $ 11,880

Liabilities Due to Litigants, Heirs, and Others $ 8,834 $ 24,894 $ 21,848 $ 11,880


Totals - All Agency FundsAssets Cash $ 828,714 $ 3,068,529 $ 2,968,907 $ 928,336 Equity in Pooled Cash and Investments 566,985 266,560 77,084 756,461 Accounts Receivable 1,108 614 1,108 614 Due from Other Governments 143,538 11,698 130,538 24,698

Total Assets $ 1,540,345 $ 3,347,401 $ 3,177,637 $ 1,710,109

Liabilities Accounts Payable $ 26,306 $ 30,954 $ 26,306 $ 30,954 Due to Other Funds 3,849 616 3,849 616 Due to Litigants, Heirs, and Others 947,428 3,224,836 3,114,270 1,057,994 Due to Joint Ventures 562,762 90,995 33,212 620,545

Total Liabilities $ 1,540,345 $ 3,347,401 $ 3,177,637 $ 1,710,109

Beginning Ending Balance Additions Deductions Balance

126

Hartsville/Trousdale County School Department ____________________________

This section presents fund financial statements for the Hartsville/Trousdale County School Department, a discretely presented component unit. The School Department uses a General Fund and two Special Revenue Funds.

____________________________ General Purpose School Fund – The General Purpose School Fund is used to account for general operations of the School Department. School Federal Projects Fund – The School Federal Projects Fund is used to account for restricted federal revenues, which must be expended on specific education programs. Central Cafeteria Fund – The Central Cafeteria Fund is used to account for the cafeteria operations in each of the schools.

127

Exhibit I-1

Hartsville/Trousdale County Government, TennesseeStatement of ActivitiesDiscretely Presented Hartsville/Trousdale County School DepartmentFor the Year Ended June 30, 2017

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 $ 6,590,682 $ 23,013 $ 1,034,950 $ 1,994,518 $ (3,538,201) Support Services 3,827,239 11,349 39,784 0 (3,776,106) Operation of Non-instructional Services 1,035,671 132,864 609,819 0 (292,988)

Total Governmental Activities $ 11,453,592 $ 167,226 $ 1,684,553 $ 1,994,518 $ (7,607,295)

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 1,411,648 Local Option Sales Tax 618,124 Business Tax 14,100 Interstate Telecommunications Tax 718 Mixed Drink Tax 880 Grants and Contributions Not Restricted to Specific Programs 7,697,165 Miscellaneous 21,727Total General Revenues $ 9,764,362

Change in Net Position $ 2,157,067Net Position, July 1, 2016 19,025,556Prior-period Adjustment (See Note I.D.9.) (1,748,964)

Net Position, June 30, 2017 $ 19,433,659

Program Revenues

128

Exhibit I-2

Hartsville/Trousdale County Government, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Hartsville/Trousdale County School DepartmentJune 30, 2017

OtherGeneral Govern- TotalPurpose mental GovernmentalSchool Funds Funds

ASSETS

Equity in Pooled Cash and Investments $ 4,547,170 $ 320,436 $ 4,867,606Accounts Receivable 392,081 0 392,081Due from Other Governments 269,195 20,979 290,174Property Taxes Receivable 1,497,933 0 1,497,933Allowance for Uncollectible Property Taxes (141,675) 0 (141,675)

Total Assets $ 6,564,704 $ 341,415 $ 6,906,119

LIABILITIES

Accounts Payable $ 614,996 $ 845 $ 615,841Accrued Payroll 7,582 346 7,928Payroll Deductions Payable 295,082 31,830 326,912Due to Primary Government 1,225 0 1,225Alimony/Child Support 676 0 676Total Liabilities $ 919,561 $ 33,021 $ 952,582


Deferred Current Property Taxes $ 1,319,478 $ 0 $ 1,319,478Deferred Delinquent Property Taxes 36,290 0 36,290Other Deferred/Unavailable Revenue 136,832 0 136,832Total Deferred Inflows of Resources $ 1,492,600 $ 0 $ 1,492,600

FUND BALANCES

Restricted:Restricted for Education $ 150,484 $ 208,394 $ 358,878

Committed:Committed for Education 2,504,558 100,000 2,604,558

Assigned:Assigned for Education 11,474 0 11,474

Unassigned 1,486,027 0 1,486,027Total Fund Balances $ 4,152,543 $ 308,394 $ 4,460,937

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 6,564,704 $ 341,415 $ 6,906,119

Nonmajor Funds

Major Fund

129

Exhibit I-3

Hartsville/Trousdale County Government, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionDiscretely Presented Hartsville/Trousdale County School DepartmentJune 30, 2017

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

Total fund balances - balance sheet - governmental funds (Exhibit I-2) $ 4,460,937

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 689,883 Add: construction in progress 3,022,753 Add: buildings and improvements net of accumulated depreciation 13,424,701 Add: other capital assets net of accumulated depreciation 667,866 Add: intangibles net of accumulated depreciation 57,656 17,862,859

(2) Long-term liabilities are not due and payable in the currentperiod and therefore are not reported in the governmental funds Less: other postemployment benefits liability $ (157,262) Less: contributions due on primary government debt for loans (2,648,348) Less: net pension liability - teacher legacy plan (705,177) (3,510,787)

(3) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions will be amortized and recognized as components of pension expense in future years: Add: deferred outflows of resources related to pensions $ 1,521,161 Less: deferred inflows of resources related to pensions (1,090,723) 430,438

(4) Net pension assets of the teacher retirement and agent plans are not currentfinancial resources and therefore are not reported in the governmental funds Add: net pension assets - agent plan $ 3,190 Add: net pension assets - teacher retirement plan 13,900 17,090

(5) Other long term assets are not available to pay for current-periodexpenditures and therefore are deferred in the governmental funds. 173,122

Net position of governmental activities (Exhibit A) $ 19,433,659

130

Exhibit I-4Hartsville/Trousdale County Government, TennesseeStatement of Revenues, Expenditures,

and Changes in Fund Balances - Governmental Funds

Discretely Presented Hartsville/Trousdale County School DepartmentFor the Year Ended June 30, 2017

OtherGeneral Govern- TotalPurpose mental GovernmentalSchool Funds Funds

RevenuesLocal Taxes $ 2,272,879 $ 0 $ 2,272,879Licenses and Permits 598 0 598Charges for Current Services 31,487 132,864 164,351Other Local Revenues 72,808 11,997 84,805State of Tennessee 7,672,743 6,801 7,679,544Federal Government 0 1,346,040 1,346,040Other Governments and Citizens Groups 3,038,558 0 3,038,558

Total Revenues $ 13,089,073 $ 1,497,702 $ 14,586,775


Instruction $ 5,471,909 $ 605,100 $ 6,077,009Support Services 3,757,815 137,922 3,895,737Operation of Non-Instructional Services 243,916 815,013 1,058,929Capital Outlay 3,492,032 0 3,492,032

Debt Service:Other Debt Service 183,634 0 183,634

Total Expenditures $ 13,149,306 $ 1,558,035 $ 14,707,341

Excess (Deficiency) of RevenuesOver Expenditures $ (60,233) $ (60,333) $ (120,566)

Other Financing Sources (Uses)Insurance Recovery $ 138,386 $ 939 $ 139,325Transfers In 0 17,400 17,400Transfers Out (17,400) 0 (17,400)

Total Other Financing Sources (Uses) $ 120,986 $ 18,339 $ 139,325

Net Change in Fund Balances $ 60,753 $ (41,994) $ 18,759Fund Balance, July 1, 2016 4,091,790 350,388 4,442,178

Fund Balance, June 30, 2017 $ 4,152,543 $ 308,394 $ 4,460,937

Nonmajor Funds

Major Fund

131

Exhibit I-5

Hartsville/Trousdale County Government, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesDiscretely Presented Hartsville/Trousdale County School DepartmentFor the Year Ended June 30, 2017

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

Net change in fund balances - total governmental funds (Exhibit I-4) $ 18,759

(1) Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of these assets is allocated over their useful lives and reported as depreciation expense. The difference between capital outlays and depreciation is itemized as follows: Add: capital assets purchased in the current period $ 3,112,359 Less: current-year depreciation expense (588,676) 2,523,683

(2) The net effect of various miscellaneous transactions involving capitalassets (sales, trade-ins, and donations) is to increase net position. Add: assets donated and capitalized 12,775

(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Less: deferred delinquent property taxes and other deferred June 30, 2016 $ (105,198) Add: deferred delinquent property taxes and other deferred June 30, 2017 173,122 67,924

(5) The contributions of long-term debt (e.g., notes, bonds, leases, loans) by the primary government provide current financial resources to governmentalfunds, while the contributions by the School Department of the principalof long-term debt consume the current financial resources of governmentalfunds. Neither transaction, however, has any effect on net position. Less: loan proceeds contributed from primary government $ (1,056,815) Add: principal contributions on loans to primary government 157,431 (899,384)

(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 other postemployment benefits liability $ 22,122 Change in net pension liability/asset - agent plan 23,046 Change in net pension liability/asset - teacher retirement plan 6,295 Change in net pension liability/asset - teacher legacy plan (656,083) Change in deferred outflows of resources related to pensions 905,084 Change in deferred inflows of resources related to pensions 132,846 433,310

Change in net position of governmental activities (Exhibit B) $ 2,157,067

132

Exhibit I-6

Hartsville/Trousdale County Government, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Hartsville/Trousdale County School DepartmentJune 30, 2017

TotalSchool Nonmajor

Federal Central GovernmentalProjects Cafeteria Funds

ASSETS

Equity in Pooled Cash and Investments $ 109,750 $ 210,686 $ 320,436Due from Other Governments 19,356 1,623 20,979

Total Assets $ 129,106 $ 212,309 $ 341,415

LIABILITIES

Accounts Payable $ 536 $ 309 $ 845Accrued Payroll 346 0 346Payroll Deductions Payable 28,224 3,606 31,830Total Liabilities $ 29,106 $ 3,915 $ 33,021

FUND BALANCES

Restricted:Restricted for Education $ 0 $ 208,394 $ 208,394

Committed:Committed for Education 100,000 0 100,000

Total Fund Balances $ 100,000 $ 208,394 $ 308,394

Total Liabilities and Fund Balances $ 129,106 $ 212,309 $ 341,415


133

Exhibit I-7Hartsville/Trousdale County Government, TennesseeCombining Statement of Revenues, Expenditures,

and Changes in Fund Balances - Nonmajor Governmental Funds

Discretely Presented Hartsville/Trousdale County School DepartmentFor the Year Ended June 30, 2017

TotalSchool NonmajorFederal Central GovernmentalProjects Cafeteria Funds

RevenuesCharges for Current Services $ 0 $ 132,864 $ 132,864Other Local Revenues 0 11,997 11,997State of Tennessee 0 6,801 6,801Federal Government 743,022 603,018 1,346,040

Total Revenues $ 743,022 $ 754,680 $ 1,497,702


Instruction $ 605,100 $ 0 $ 605,100Support Services 137,922 0 137,922Operation of Non-Instructional Services 0 815,013 815,013

Total Expenditures $ 743,022 $ 815,013 $ 1,558,035

Excess (Deficiency) of RevenuesOver Expenditures $ 0 $ (60,333) $ (60,333)

Other Financing Sources (Uses)Insurance Recovery $ 0 $ 939 $ 939Transfers In 0 17,400 17,400

Total Other Financing Sources (Uses) $ 0 $ 18,339 $ 18,339

Net Change in Fund Balances $ 0 $ (41,994) $ (41,994)Fund Balance, July 1, 2016 100,000 250,388 350,388

Fund Balance, June 30, 2017 $ 100,000 $ 208,394 $ 308,394


134

Exhibit I-8


in Fund Balance - Actual and BudgetDiscretely Presented Hartsville/Trousdale County School DepartmentGeneral Purpose School FundFor the Year Ended June 30, 2017



RevenuesLocal Taxes $ 2,272,879 $ 2,156,929 $ 2,156,929 $ 115,950Licenses and Permits 598 700 700 (102)Charges for Current Services 31,487 7,000 7,000 24,487Other Local Revenues 72,808 10,500 57,189 15,619State of Tennessee 7,672,743 7,584,888 7,669,199 3,544Other Governments and Citizens Groups 3,038,558 0 3,992,958 (954,400)

Total Revenues $ 13,089,073 $ 9,760,017 $ 13,883,975 $ (794,902)

ExpendituresInstruction

Regular Instruction Program $ 4,333,945 $ 4,516,467 $ 4,467,472 $ 133,527Alternative Instruction Program 78,655 92,730 92,730 14,075Special Education Program 840,657 781,310 849,365 8,708Career and Technical Education Program 218,652 226,700 231,060 12,408

Support ServicesAttendance 13,025 26,970 26,970 13,945Health Services 177,628 172,870 182,145 4,517Other Student Support 196,831 219,296 222,719 25,888Regular Instruction Program 360,219 447,675 394,895 34,676Special Education Program 90,479 89,975 92,309 1,830Career and Technical Education Program 32,115 32,330 32,330 215Technology 131,868 0 132,240 372Other Programs 25,861 0 25,861 0Board of Education 149,131 151,985 162,285 13,154Director of Schools 196,825 211,825 211,825 15,000Office of the Principal 681,504 653,095 689,018 7,514Fiscal Services 119,474 122,750 122,750 3,276Operation of Plant 772,032 868,700 868,700 96,668Maintenance of Plant 316,418 183,750 322,136 5,718Transportation 494,405 525,150 514,850 20,445

Operation of Non-Instructional ServicesCommunity Services 141,618 133,396 154,396 12,778Early Childhood Education 102,298 103,535 103,535 1,237

Capital OutlayRegular Capital Outlay 3,492,032 185,000 4,412,529 920,497

Principal on DebtEducation 0 170,142 0 0

Other Debt ServiceEducation 183,634 0 185,947 2,313

Total Expenditures $ 13,149,306 $ 9,915,651 $ 14,498,067 $ 1,348,761


Other Financing Sources (Uses)Insurance Recovery $ 138,386 $ 0 $ 138,386 $ 0Transfers Out (17,400) (17,400) (17,400) 0

Total Other Financing Sources $ 120,986 $ (17,400) $ 120,986 $ 0

Net Change in Fund Balance $ 60,753 $ (173,034) $ (493,106) $ 553,859Fund Balance, July 1, 2016 4,091,790 2,955,467 2,955,467 1,136,323

Fund Balance, June 30, 2017 $ 4,152,543 $ 2,782,433 $ 2,462,361 $ 1,690,182

Budgeted Amounts

135

Exhibit I-9


in Fund Balance - Actual and BudgetDiscretely Presented Hartsville/Trousdale County School DepartmentSchool Federal Projects FundFor the Year Ended June 30, 2017



RevenuesFederal Government $ 743,022 $ 733,221 $ 933,257 $ (190,235)

Total Revenues $ 743,022 $ 733,221 $ 933,257 $ (190,235)

ExpendituresInstruction

Regular Instruction Program $ 314,335 $ 320,761 $ 382,869 $ 68,534Special Education Program 271,677 257,063 339,425 67,748Career and Technical Education Program 19,088 16,455 19,088 0

Support ServicesOther Student Support 2,151 4,982 2,724 573Regular Instruction Program 109,544 101,968 156,670 47,126Special Education Program 25,256 29,792 30,656 5,400Career and Technical Education Program 325 700 325 0Transportation 646 1,500 1,500 854

Total Expenditures $ 743,022 $ 733,221 $ 933,257 $ 190,235

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

Net Change in Fund Balance $ 0 $ 0 $ 0 $ 0Fund Balance, July 1, 2016 100,000 100,000 100,000 0

Fund Balance, June 30, 2017 $ 100,000 $ 100,000 $ 100,000 $ 0

Budgeted Amounts

136

Exhibit I-10


in Fund Balance - Actual and BudgetDiscretely Presented Hartsville/Trousdale County School DepartmentCentral Cafeteria FundFor the Year Ended June 30, 2017



RevenuesCharges for Current Services $ 132,864 $ 114,000 $ 114,000 $ 18,864Other Local Revenues 11,997 500 500 11,497State of Tennessee 6,801 7,000 7,000 (199)Federal Government 603,018 586,000 592,534 10,484

Total Revenues $ 754,680 $ 707,500 $ 714,034 $ 40,646

ExpendituresOperation of Non-Instructional Services

Food Service $ 815,013 $ 789,400 $ 817,144 $ 2,131Total Expenditures $ 815,013 $ 789,400 $ 817,144 $ 2,131


Other Financing Sources (Uses)Insurance Recovery $ 939 $ 0 $ 0 $ 939Transfers In 17,400 17,400 17,400 0

Total Other Financing Sources $ 18,339 $ 17,400 $ 17,400 $ 939



Budgeted Amounts

137

MISCELLANEOUS SCHEDULES

138

Exhibit J-1

Hartsville/Trousdale County Government, TennesseeSchedule of Changes in Long-term Notes, Other Loans, and BondsFor the Year Ended June 30, 2017

Original Date Last Issued MaturedAmount Interest of Maturity Outstanding During During Outstandingof Issue Rate Issue Date 7-1-16 Period Period 6-30-17

GOVERNMENTAL ACTIVITIES

NOTES PAYABLEPayable through General Debt Service Fund

Solid Waste Garbage Truck $ 140,193 2.77 % 12-3-13 12-1-19 $ 84,000 $ 0 $ 20,000 $ 64,000Ambulance 80,000 2.42 6-7-14 4-18-17 28,000 0 28,000 0Public Works Building Acquisition 650,000 2.98 5-28-15 6-1-25 596,000 0 59,000 537,000Sheriff's Vehicle Acquisition 222,000 2.49 9-9-15 9-1-20 222,000 0 40,900 181,100Solid Waste Truck Acquisition 151,007 2.48 2-3-16 2-1-21 151,007 0 28,507 122,500Solid Waste Garbage Truck Acquisition 148,000 2.61 9-21-16 10-1-23 0 148,000 0 148,000

Total Payable through General Debt Service Fund $ 1,081,007 $ 148,000 $ 176,407 $ 1,052,600

Payable through Urban Services FundGarbage Truck Acquisition 290,545 3.04 5-30-13 5-1-23 $ 213,000 $ 0 $ 28,000 $ 185,000

Total Payable through Urban Services Fund $ 213,000 $ 0 $ 28,000 $ 185,000

Total Notes Payable $ 1,294,007 $ 148,000 $ 204,407 $ 1,237,600

OTHER LOANS PAYABLEContributions Due by the School Department Contributions from the General Purpose School Fund to the General Debt Service Fund

Qualified School Construction Bonds, Series 2010 2,523,000 (1) 10-1-10 9-15-26 $ 1,748,964 $ 0 $ 157,431 $ 1,591,533Energy Efficient School Improvements (3) 1.00 12-12-16 1-1-28 0 1,056,815 0 1,056,815

Total Payable through School Department Contributions from the General Purpose School Fund to the General Debt Service Fund $ 1,748,964 $ 1,056,815 $ 157,431 $ 2,648,348

Payable through General Debt Service FundPublic Utility Projects (2) Variable 6-11-15 5-23-17 $ 3,578,039 $ 0 $ 3,578,039 $ 0Energy Efficient School Loan (4) Variable 10-28-16 5-25-33 0 1,981,743 0 1,981,743Criminal Justice Center Acquisition and Renovation (5) Variable 12-16-16 5-25-28 0 867,500 0 867,500

Total Payable through General Debt Service Fund $ 3,578,039 $ 2,849,243 $ 3,578,039 $ 2,849,243

Payable through Education Debt Service FundSchool Construction 8,500,000 Variable 8-30-02 5-25-22 $ 3,301,859 $ 0 $ 508,000 $ 2,793,859

Total Payable through Education Debt Service Fund $ 3,301,859 $ 0 $ 508,000 $ 2,793,859

Total Other Loans Payable $ 8,628,862 $ 3,906,058 $ 4,243,470 $ 8,291,450

(Continued)

139

Exhibit J-1

Hartsville/Trousdale County Government, TennesseeSchedule of Changes in Long-term Notes, Other Loans, and Bonds (Cont.)For the Year Ended June 30, 2017

Original Date Last Issued MaturedAmount Interest of Maturity Outstanding During During Outstandingof Issue Rate Issue Date 7-1-16 Period Period 6-30-17

GOVERNMENTAL ACTIVITIES (Cont.)

BONDS PAYABLEPayable through General Debt Service Fund

General Obligation Refunding Bonds, Series 2012 $ 180,000 2.85 % 10-12-12 10-1-19 $ 108,000 $ 0 $ 26,000 $ 82,000Total Payable through General Debt Service Fund $ 108,000 $ 0 $ 26,000 $ 82,000

Total Bonds Payable $ 108,000 $ 0 $ 26,000 $ 82,000

BUSINESS-TYPE ACTIVITIES

BONDS PAYABLEPayable through Water and Sewer Fund

Water and Sewer Revenue, Series 2004 350,000 4.25 5-24-05 4-24-43 $ 297,260 $ 0 $ 6,096 $ 291,164Water and Sewer Revenue, Series 2016 3,605,000 1.88 12-29-16 11-28-56 0 3,605,000 30,844 3,574,156

Total Bonds Payable $ 297,260 3,605,000 36,940 3,865,320

OTHER LOANS PAYABLEPayable through Water and Sewer Fund

Public Utility Projects (2) Variable 6-11-15 5-25-20 $ 0 $ 1,724,289 $ 0 $ 1,724,289

Total Other Loans Payable $ 0 $ 1,724,289 $ 0 $ 1,724,289

(1) Interest rate of approximately 4.85 percent is offset by a federal interest subsidy.(2) Total amount approved was $7,000,000, of which $1,697,672 remains available for draws as of June 30, 2017.(3) Total amount approved was $1,342,896, of which $286,081 remains available for draws as of June 30, 2017.(4) Total amount approved was $2,650,062, of which $668,319 remains available for draws as of June 30, 2017.(5) Total amount approved was $1,750,000, of which $882,500 remains available for draws as of June 30, 2017.

140

Exhibit J-2

Hartsville/Trousdale County Government, TennesseeSchedule of Long-term Debt Requirements by Year

GOVERNMENTAL ACTIVITIES

YearEndingJune 30 Principal Interest Total

2018 $ 202,600 $ 33,722 $ 236,3222019 208,000 28,121 236,1212020 213,400 22,361 235,7612021 196,900 16,768 213,6682022 121,700 11,927 133,6272023 125,200 8,356 133,5562024 94,800 4,678 99,4782025 75,000 2,235 77,235

Total $ 1,237,600 $ 128,168 $ 1,365,768

YearEndingJune 30 Principal Interest (1) Other Fees Total

2018 $ 917,419 $ 184,398 $ 27,169 $ 1,128,9862019 994,283 183,474 23,534 1,201,2912020 1,018,283 175,314 19,763 1,213,3602021 1,043,283 166,911 15,854 1,226,0482022 1,021,142 158,293 11,830 1,191,2652023 462,283 150,295 7,243 619,8212024 467,284 147,085 7,023 621,3922025 470,284 143,813 6,799 620,8962026 475,284 140,501 6,570 622,3552027 496,503 137,125 6,337 639,9652028 268,721 11,404 4,293 284,4182029 136,000 6,776 2,345 145,1212030 139,000 5,346 2,167 146,5132031 141,000 3,884 1,984 146,8682032 144,000 2,401 1,799 148,2002033 96,681 931 1,491 99,103

Total $ 8,291,450 $ 1,617,951 $ 146,201 $ 10,055,602

(1) Includes interest requirements on Qualified School Construction Bonds, Series 2010, before federal interest rate subsidy.

(Continued)

Notes

Other Loans

141

Exhibit J-2

Hartsville/Trousdale County Government, TennesseeSchedule of Long-term Debt Requirements by Year (Cont.)


2018 $ 27,000 $ 1,952 $ 28,9522019 27,000 1,183 28,1832020 28,000 399 28,399

Total $ 82,000 $ 3,534 $ 85,534

BUSINESS-TYPE ACTIVITIES


2018 $ 68,357 $ 78,739 $ 147,0962019 69,805 77,291 147,0962020 71,287 75,809 147,0962021 72,805 74,291 147,0962022 74,358 72,738 147,0962023 75,948 71,148 147,0962024 77,577 69,519 147,0962025 79,245 67,851 147,0962026 80,953 66,143 147,0962027 82,702 64,394 147,0962028 84,494 62,603 147,0972029 86,329 60,768 147,0972030 88,209 58,887 147,0962031 90,136 56,960 147,0962032 92,110 54,986 147,0962033 94,134 52,962 147,0962034 96,208 50,888 147,0962035 98,333 48,763 147,0962036 100,513 46,583 147,0962037 102,747 44,349 147,0962038 105,039 42,057 147,0962039 107,388 39,708 147,0962040 109,798 37,298 147,0962041 112,269 34,827 147,096

(Continued)

Bonds

Bonds

142

Exhibit J-2

Hartsville/Trousdale County Government, TennesseeSchedule of Long-term Debt Requirements by Year (Cont.)

BUSINESS-TYPE ACTIVITIES (Cont.)


2042 $ 114,805 $ 32,291 $ 147,0962043 112,985 29,705 142,6902044 100,903 27,581 128,4842045 102,812 25,672 128,4842046 104,756 23,728 128,4842047 106,737 21,747 128,4842048 108,756 19,728 128,4842049 110,812 17,671 128,4832050 112,908 15,576 128,4842051 115,043 13,441 128,4842052 117,219 11,265 128,4842053 119,436 9,048 128,4842054 121,695 6,789 128,4842055 123,980 4,488 128,4682056 126,324 2,143 128,4672057 45,405 190 45,595

Total $ 3,865,320 $ 1,670,625 $ 5,535,945

YearEndingJune 30 Principal Interest Other Fees Total

2018 $ 747,000 $ 17,451 $ 2,803 $ 767,2542019 757,000 9,599 2,217 768,8162020 220,289 2,120 1,533 223,942

Total $ 1,724,289 $ 29,170 $ 6,553 $ 1,760,012

Other Loans

Bonds (Cont.)

143

Exhibit J-3

Hartsville/Trousdale County Government, TennesseeSchedule of TransfersPrimary Government and Discretely Presented Hartsville/Trousdale County School DepartmentFor the Year Ended June 30, 2017

From Fund To Fund Purpose Amount

PRIMARY GOVERNMENT

General General Debt Service QSCB subsidy payment $ 122,315" General Capital Projects Operations 250,000Urban Services General Debt Service Debt contribution 21,832" " Vehicle 1,127

Total Transfers Primary Government $ 395,274

DISCRETELY PRESENTED HARTSVILLE/TROUSDALE COUNTY SCHOOL DEPARTMENT

General Purpose School Central Cafeteria Salaries $ 17,400

Total Transfers Discretely Presented Hartsville/ Trousdale County School Department $ 17,400

144

Exhibit J-4

Hartsville/Trousdale County Government, TennesseeSchedule of Salaries and Official Bonds of Principal OfficialsPrimary Government and Discretely Presented Hartsville/Trousdale County School DepartmentFor the Year Ended June 30, 2017

Salary Paid

DuringOfficial Authorization for Salary Period Bond Surety

County Mayor Section 8-24-102, TCA $ 69,577 (1) $ 100,000 (5) The Cincinnati Insurance CompanySuperintendent of Roads Section 8-24-102, TCA 65,693 (6)Director of Schools State Board of Education

and Hartsville/Trousdale County Government Board of Education 97,391 (2) 100,000 Auto-Owners (Mutual) Insurance Company

Trustee Section 8-24-102, TCA 59,721 559,193 (5) The Cincinnati Insurance CompanyAssessor of Property Section 8-24-102, TCA 59,721 50,000 (5) State Automobile Mutual Insurance CompanyCounty Clerk Section 8-24-102, TCA 59,721 50,000 (5) The Cincinnati Insurance CompanyCircuit, General Sessions, and Juvenile Courts Clerk Section 8-24-102, TCA 59,721 60,000 (5) "Clerk and Master Section 8-24-102, TCA , and

Chancery Court Judge 61,341 (3) 35,000 (5) State Automobile Mutual Insurance CompanyRegister of Deeds: Mary Holder (7-1-16 through 12-31-16) Section 8-24-102, TCA 31,468 50,000 (5) The Cincinnati Insurance Company Leah Verville (1-1-17 through 6-30-17) Section 8-24-102, TCA 28,253 (6)Sheriff Section 8-24-102, TCA 66,293 (4) 100,000 (5) "

Employee Blanket Bond Coverage: General County, Water Department, and Highway Employees 400,000 Tennessee Risk Management Trust School Employees 400,000 "

(1) Includes $600 for serving as chairman of the Highway Commission.(2) Includes $1,000 as a chief executive officer training supplement, $1,740 as secretary of the Board of Education, and $4,651 for a performance bonus.(3) Includes special commissioner fees of $1,620.(4) Includes a law enforcement training supplement of $600.(5) Officials are additionally covered by the employe blanket bond pursuant to Section 8-19-101, TCA.(6) Officials are covered by the employe blanket bond pursuant to Section 8-19-101, TCA.

145

Exhibit J-5

Hartsville/Trousdale County Government, TennesseeSchedule of Detailed Revenues -

All Governmental Fund TypesFor the Year Ended June 30, 2017

SolidUrban Waste / Ambulance Special Drug

General Services Sanitation Service Purpose Control

Local TaxesCounty Property Taxes

Current Property Tax $ 3,136,520 $ 433,944 $ 324,903 $ 516,013 $ 0 $ 0Discount on Property Taxes (35,117) (3,002) (3,640) (5,782) 0 0Trustee's Collections - Prior Year 107,202 26,305 13,744 21,990 0 0Circuit Clerk/Clerk and Master Collections - Prior Years 32,095 11,247 4,003 6,640 0 0Interest and Penalty 18,842 5,135 2,362 3,777 0 0Payments in-Lieu-of Taxes - T.V.A. 26,729 0 0 0 0 0Payments in-Lieu-of Taxes - Other 0 6,834 0 0 0 0

County Local Option TaxesLocal Option Sales Tax 541,974 0 0 0 0 0Wheel Tax 0 0 0 0 0 0Litigation Tax - General 35,421 0 0 0 0 0Litigation Tax - Special Purpose 95,942 0 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 0 0 0 0 0 0Business Tax 30,513 0 3,167 5,029 0 0Mixed Drink Tax 1,114 0 0 0 0 0Adequate Facilities/Development Tax 0 0 0 0 0 0Other County Local Option Taxes 40,339 40,339 0 0 0 0

Statutory Local TaxesBank Excise Tax 110,464 0 0 0 0 0Wholesale Beer Tax 155,800 0 0 0 0 0Interstate Telecommunications Tax 718 0 0 0 0 0Other Statutory Local Taxes 0 43,685 0 0 0 0

Total Local Taxes $ 4,298,556 $ 564,487 $ 344,539 $ 547,667 $ 0 $ 0

(Continued)


146

Exhibit J-5


All Governmental Fund Types (Cont.)



Licenses and PermitsLicenses

Cable TV Franchise $ 1,224 $ 18,271 $ 0 $ 0 $ 0 $ 0Permits

Building Permits 99,728 43,209 0 0 0 0Other Permits 15 0 0 0 0 0

Total Licenses and Permits $ 100,967 $ 61,480 $ 0 $ 0 $ 0 $ 0

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 190 $ 0 $ 0 $ 0 $ 0 $ 0Officers Costs 3,154 0 0 0 0 0Data Entry Fee - Circuit Court 604 0 0 0 0 0

General Sessions CourtFines 12,952 0 0 0 0 0Officers Costs 31,271 0 0 0 0 0Game and Fish Fines 493 0 0 0 0 0Drug Control Fines 0 0 0 0 0 5,651Jail Fees 4,919 0 0 0 0 0DUI Treatment Fines 3,697 0 0 0 0 0Data Entry Fee - General Sessions Court 7,928 0 0 0 0 0Courtroom Security Fee 37,931 0 0 0 0 0

Juvenile CourtFines 151 0 0 0 0 0Officers Costs 1,415 0 0 0 0 0DUI Treatment Fines 2,565 0 0 0 0 0Data Entry Fee - Juvenile Court 104 0 0 0 0 0

(Continued)


147

Exhibit J-5





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

Officers Costs $ 962 $ 0 $ 0 $ 0 $ 0 $ 0Data Entry Fee - Chancery Court 618 0 0 0 0 0

Judicial District Drug ProgramDrug Task Force Forfeitures and Seizures 0 0 0 0 0 5,428

Other Fines, Forfeitures, and PenaltiesOther Fines, Forfeitures, and Penalties 1,689 0 0 0 0 0

Total Fines, Forfeitures, and Penalties $ 110,643 $ 0 $ 0 $ 0 $ 0 $ 11,079

Charges for Current ServicesGeneral Service Charges

Commercial and Industrial Waste Collection Charge $ 0 $ 0 $ 207,887 $ 0 $ 0 $ 0Residential Waste Collection Charge 0 162,987 0 0 0 0Patient Charges 0 0 0 444,547 0 0Zoning Studies 900 0 0 0 0 0Other General Service Charges 18,184 0 0 0 0 0

FeesCopy Fees 5,867 0 0 0 0 0Telephone Commissions 15,304 0 0 0 0 0Constitutional Officers' Fees and Commissions 0 0 0 0 0 0Data Processing Fee - Register 3,732 0 0 0 0 0Data Processing Fee - Sheriff 83 0 0 0 0 0Sexual Offender Registration Fee - Sheriff 2,100 0 0 0 0 0Data Processing Fee - County Clerk 1,107 0 0 0 0 0

Total Charges for Current Services $ 47,277 $ 162,987 $ 207,887 $ 444,547 $ 0 $ 0

(Continued)


148

Exhibit J-5





Other Local RevenuesRecurring Items

Investment Income $ 51,824 $ 0 $ 0 $ 0 $ 0 $ 0Lease/Rentals 24,657 0 0 0 0 0Sale of Materials and Supplies 0 525 0 0 0 0Commissary Sales 10,441 0 0 0 0 0Sale of Gasoline 19,728 0 0 0 0 0Sale of Recycled Materials 0 0 90,121 0 0 0Miscellaneous Refunds 1,917 0 0 0 0 0

Nonrecurring ItemsSale of Equipment 1,000 0 0 0 0 0Damages Recovered from Individuals 100 0 0 0 0 0

Other Local RevenuesOther Local Revenues 11,291 0 0 0 0 0

Total Other Local Revenues $ 120,958 $ 525 $ 90,121 $ 0 $ 0 $ 0

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 102,100 $ 0 $ 0 $ 0 $ 0 $ 0Circuit Court Clerk 31,196 0 0 0 0 0General Sessions Court Clerk 105,923 0 0 0 0 0Clerk and Master 26,814 0 0 0 0 0Register 40,804 0 0 0 0 0Sheriff 9,311 0 0 0 0 0Trustee 197,117 0 0 0 0 0

Total Fees Received From County Officials $ 513,265 $ 0 $ 0 $ 0 $ 0 $ 0

(Continued)


149

Exhibit J-5





State of TennesseeGeneral Government Grants

Juvenile Services Program $ 9,000 $ 0 $ 0 $ 0 $ 0 $ 0Aging Programs 12,550 0 0 0 0 0

Public Safety GrantsLaw Enforcement Training Programs 8,400 3,000 0 0 0 0

Health and Welfare GrantsOther Health and Welfare Grants 10,000 2,700 0 0 0 0

Public Works GrantsState Aid Program 0 0 0 0 0 0Litter Program 33,700 0 0 0 0 0

Other State RevenuesIncome Tax 26,832 0 0 0 0 0Beer Tax 19,558 0 0 0 0 0Vehicle Certificate of Title Fees 6,224 0 0 0 0 0Alcoholic Beverage Tax 17,693 0 0 0 0 0Emergency Hospital - Prisoners 7,616 0 0 0 0 0Contracted Prisoner Boarding 270,100 0 0 0 50,581,828 0Gasoline and Motor Fuel Tax 0 0 0 0 0 0Petroleum Special Tax 0 0 0 0 0 0Registrar's Salary Supplement 15,164 0 0 0 0 0State Shared Sales Tax - Cities 196,408 0 0 0 0 0Other State Grants 3,047 0 232 0 0 0Other State Revenues 38,302 0 3,885 0 0 0

Total State of Tennessee $ 674,594 $ 5,700 $ 4,117 $ 0 $ 50,581,828 $ 0

(Continued)


150

Exhibit J-5





Federal GovernmentFederal Through State

Community Development $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Disaster Relief 0 0 0 0 0 0Homeland Security Grants 52,106 0 0 0 0 0Law Enforcement Grants 5,000 0 0 0 0 0Other Federal through State 28,126 0 0 0 0 0

Direct Federal RevenuePolice Service (Lake Area) 6,710 0 0 0 0 0Tax Credit Bond Rebate 113,936 0 0 0 0 0Other Direct Federal Revenue 9,477 0 0 0 0 0

Total Federal Government $ 215,355 $ 0 $ 0 $ 0 $ 0 $ 0

Other Governments and Citizens GroupsOther Governments

Contributions $ 57,153 $ 0 $ 0 $ 0 $ 0 $ 0Contracted Services 5,220 0 0 0 0 0

Citizens GroupsDonations 14,073 0 0 0 0 25

OtherOther 5,311 0 0 0 0 0

Total Other Governments and Citizens Groups $ 81,757 $ 0 $ 0 $ 0 $ 0 $ 25

Total $ 6,163,372 $ 795,179 $ 646,664 $ 992,214 $ 50,581,828 $ 11,104

(Continued)


151

Exhibit J-5



Constitu -tional Highway / General Education General

Officers - Public Debt Debt CapitalFees Works Service Service Projects Total


Current Property Tax $ 0 $ 115,041 $ 152,925 $ 0 $ 0 $ 4,679,346Discount on Property Taxes 0 (1,294) (1,714) 0 0 (50,549)Trustee's Collections - Prior Year 0 0 6,185 0 0 175,426Circuit Clerk/Clerk and Master Collections - Prior Years 0 0 1,811 0 0 55,796Interest and Penalty 0 79 1,068 0 0 31,263Payments in-Lieu-of Taxes - T.V.A. 0 0 0 0 0 26,729Payments in-Lieu-of Taxes - Other 0 0 0 0 0 6,834

County Local Option TaxesLocal Option Sales Tax 0 0 0 0 0 541,974Wheel Tax 0 0 0 343,122 0 343,122Litigation Tax - General 0 0 0 0 0 35,421Litigation Tax - Special Purpose 0 0 0 0 0 95,942Litigation Tax - Jail, Workhouse, or Courthouse 0 0 33,862 0 0 33,862Business Tax 0 1,192 1,507 0 0 41,408Mixed Drink Tax 0 0 0 0 0 1,114Adequate Facilities/Development Tax 0 0 0 85,000 0 85,000Other County Local Option Taxes 0 0 0 0 0 80,678

Statutory Local TaxesBank Excise Tax 0 0 0 0 0 110,464Wholesale Beer Tax 0 0 0 0 0 155,800Interstate Telecommunications Tax 0 0 0 0 0 718Other Statutory Local Taxes 0 0 0 0 0 43,685

Total Local Taxes $ 0 $ 115,018 $ 195,644 $ 428,122 $ 0 $ 6,494,033

(Continued)

Special Revenue Funds Debt Service FundsCapital

Projects Fund

152

Exhibit J-5






Cable TV Franchise $ 0 $ 0 $ 0 $ 0 $ 0 $ 19,495Permits

Building Permits 0 0 0 0 0 142,937Other Permits 0 0 0 0 0 15

Total Licenses and Permits $ 0 $ 0 $ 0 $ 0 $ 0 $ 162,447

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 0 $ 0 $ 0 $ 0 $ 0 $ 190Officers Costs 0 0 0 0 0 3,154Data Entry Fee - Circuit Court 0 0 0 0 0 604

General Sessions CourtFines 0 0 0 0 0 12,952Officers Costs 0 0 0 0 0 31,271Game and Fish Fines 0 0 0 0 0 493Drug Control Fines 0 0 0 0 0 5,651Jail Fees 0 0 0 0 0 4,919DUI Treatment Fines 0 0 0 0 0 3,697Data Entry Fee - General Sessions Court 0 0 0 0 0 7,928Courtroom Security Fee 0 0 0 0 0 37,931

Juvenile CourtFines 0 0 0 0 0 151Officers Costs 0 0 0 0 0 1,415DUI Treatment Fines 0 0 0 0 0 2,565Data Entry Fee - Juvenile Court 0 0 0 0 0 104

(Continued)


Projects Fund

153

Exhibit J-5





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

Officers Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 962Data Entry Fee - Chancery Court 0 0 0 0 0 618

Judicial District Drug ProgramDrug Task Force Forfeitures and Seizures 0 0 0 0 0 5,428

Other Fines, Forfeitures, and PenaltiesOther Fines, Forfeitures, and Penalties 0 0 0 0 0 1,689

Total Fines, Forfeitures, and Penalties $ 0 $ 0 $ 0 $ 0 $ 0 $ 121,722

Charges for Current ServicesGeneral Service Charges

Commercial and Industrial Waste Collection Charge $ 0 $ 0 $ 0 $ 0 $ 0 $ 207,887Residential Waste Collection Charge 0 0 0 0 0 162,987Patient Charges 0 0 0 0 0 444,547Zoning Studies 0 0 0 0 0 900Other General Service Charges 0 0 0 0 0 18,184

FeesCopy Fees 0 0 0 0 0 5,867Telephone Commissions 0 0 0 0 0 15,304Constitutional Officers' Fees and Commissions 1,620 0 0 0 0 1,620Data Processing Fee - Register 0 0 0 0 0 3,732Data Processing Fee - Sheriff 0 0 0 0 0 83Sexual Offender Registration Fee - Sheriff 0 0 0 0 0 2,100Data Processing Fee - County Clerk 0 0 0 0 0 1,107

Total Charges for Current Services $ 1,620 $ 0 $ 0 $ 0 $ 0 $ 864,318

(Continued)


Projects Fund

154

Exhibit J-5






Investment Income $ 0 $ 385 $ 1,458 $ 4,968 $ 0 $ 58,635Lease/Rentals 0 0 0 0 0 24,657Sale of Materials and Supplies 0 0 0 0 0 525Commissary Sales 0 0 0 0 0 10,441Sale of Gasoline 0 0 0 0 0 19,728Sale of Recycled Materials 0 0 0 0 0 90,121Miscellaneous Refunds 0 0 0 0 0 1,917

Nonrecurring ItemsSale of Equipment 0 0 0 0 0 1,000Damages Recovered from Individuals 0 6,609 0 0 0 6,709

Other Local RevenuesOther Local Revenues 0 0 0 0 53,960 65,251

Total Other Local Revenues $ 0 $ 6,994 $ 1,458 $ 4,968 $ 53,960 $ 278,984

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 0 $ 0 $ 0 $ 0 $ 0 $ 102,100Circuit Court Clerk 0 0 0 0 0 31,196General Sessions Court Clerk 0 0 0 0 0 105,923Clerk and Master 0 0 0 0 0 26,814Register 0 0 0 0 0 40,804Sheriff 0 0 0 0 0 9,311Trustee 0 0 0 0 0 197,117

Total Fees Received From County Officials $ 0 $ 0 $ 0 $ 0 $ 0 $ 513,265

(Continued)


Projects Fund

155

Exhibit J-5






Juvenile Services Program $ 0 $ 0 $ 0 $ 0 $ 0 $ 9,000Aging Programs 0 0 0 0 0 12,550

Public Safety GrantsLaw Enforcement Training Programs 0 0 0 0 0 11,400

Health and Welfare GrantsOther Health and Welfare Grants 0 0 0 0 0 12,700

Public Works GrantsState Aid Program 0 435,085 0 0 0 435,085Litter Program 0 0 0 0 0 33,700

Other State RevenuesIncome Tax 0 0 0 0 0 26,832Beer Tax 0 0 0 0 0 19,558Vehicle Certificate of Title Fees 0 0 0 0 0 6,224Alcoholic Beverage Tax 0 0 0 0 0 17,693Emergency Hospital - Prisoners 0 0 0 0 0 7,616Contracted Prisoner Boarding 0 0 0 0 0 50,851,928Gasoline and Motor Fuel Tax 0 1,326,102 0 0 0 1,326,102Petroleum Special Tax 0 10,466 0 0 0 10,466Registrar's Salary Supplement 0 0 0 0 0 15,164State Shared Sales Tax - Cities 0 0 0 0 0 196,408Other State Grants 0 15,321 0 0 494,566 513,166Other State Revenues 0 0 0 0 0 42,187

Total State of Tennessee $ 0 $ 1,786,974 $ 0 $ 0 $ 494,566 $ 53,547,779

(Continued)


Projects Fund

156

Exhibit J-5






Community Development $ 0 $ 0 $ 0 $ 0 $ 66,005 $ 66,005Disaster Relief 0 7,251 0 0 0 7,251Homeland Security Grants 0 0 0 0 0 52,106Law Enforcement Grants 0 0 0 0 0 5,000Other Federal through State 0 0 0 0 0 28,126

Direct Federal RevenuePolice Service (Lake Area) 0 0 0 0 0 6,710Tax Credit Bond Rebate 0 0 0 0 0 113,936Other Direct Federal Revenue 0 0 0 0 957,000 966,477

Total Federal Government $ 0 $ 7,251 $ 0 $ 0 $ 1,023,005 $ 1,245,611


Contributions $ 0 $ 0 $ 209,928 $ 0 $ 198,175 $ 465,256Contracted Services 0 0 0 0 0 5,220

Citizens GroupsDonations 0 0 0 0 0 14,098

OtherOther 0 0 0 0 0 5,311

Total Other Governments and Citizens Groups $ 0 $ 0 $ 209,928 $ 0 $ 198,175 $ 489,885

Total $ 1,620 $ 1,916,237 $ 407,030 $ 433,090 $ 1,769,706 $ 63,718,044


Projects Fund

157

Exhibit J-6


All Governmental Fund TypesDiscretely Presented Hartsville/Trousdale County School DepartmentFor the Year Ended June 30, 2017

General SchoolPurpose Federal CentralSchool Projects Cafeteria Total


Current Property Tax $ 1,360,507 $ 0 $ 0 $ 1,360,507Discount on Property Taxes (15,202) 0 0 (15,202)Trustee's Collections - Prior Year 59,261 0 0 59,261Circuit Clerk/Clerk and Master Collections - Prior Years 17,112 0 0 17,112Interest and Penalty 10,878 0 0 10,878Payments in-Lieu-of Taxes - T.V.A. 210,501 0 0 210,501

County Local Option TaxesLocal Option Sales Tax 614,124 0 0 614,124Business Tax 14,100 0 0 14,100Mixed Drink Tax 880 0 0 880

Statutory Local TaxesInterstate Telecommunications Tax 718 0 0 718

Total Local Taxes $ 2,272,879 $ 0 $ 0 $ 2,272,879


Marriage Licenses $ 598 $ 0 $ 0 $ 598Total Licenses and Permits $ 598 $ 0 $ 0 $ 598

Charges for Current ServicesEducation Charges

Tuition - Other $ 23,013 $ 0 $ 0 $ 23,013Lunch Payments - Children 0 0 75,888 75,888Lunch Payments - Adults 0 0 18,056 18,056

(Continued)


158

Exhibit J-6


All Governmental Fund TypesDiscretely Presented Hartsville/Trousdale County School Department (Cont.)


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

Income from Breakfast $ 0 $ 0 $ 9,179 $ 9,179Special Milk Sales 0 0 2,402 2,402A la Carte Sales 0 0 27,298 27,298Receipts from Individual Schools 8,474 0 0 8,474Other Charges for Services 0 0 41 41

Total Charges for Current Services $ 31,487 $ 0 $ 132,864 $ 164,351


Lease/Rentals $ 2,100 $ 0 $ 0 $ 2,100Sale of Recycled Materials 775 0 0 775E-Rate Funding 13,923 0 0 13,923Commodity Rebates 0 0 3,572 3,572Miscellaneous Refunds 7,062 0 8,425 15,487

Nonrecurring ItemsDamages Recovered from Individuals 2,306 0 0 2,306Contributions and Gifts 46,642 0 0 46,642

Total Other Local Revenues $ 72,808 $ 0 $ 11,997 $ 84,805


On-behalf Contributions for OPEB $ 25,861 $ 0 $ 0 $ 25,861State Education Funds

Basic Education Program 7,112,002 0 0 7,112,002

(Continued)


159

Exhibit J-6




State of Tennessee (Cont.)State Education Funds (Cont.)

Early Childhood Education $ 102,297 $ 0 $ 0 $ 102,297School Food Service 0 0 6,801 6,801Other State Education Funds 181,065 0 0 181,065Career Ladder Program 31,668 0 0 31,668

Other State RevenuesOther State Grants 219,850 0 0 219,850

Total State of Tennessee $ 7,672,743 $ 0 $ 6,801 $ 7,679,544


USDA School Lunch Program $ 0 $ 0 $ 365,108 $ 365,108USDA - Commodities 0 0 52,083 52,083Breakfast 0 0 174,708 174,708USDA - Other 0 0 11,119 11,119Vocational Education - Basic Grants to States 0 21,564 0 21,564Title I Grants to Local Education Agencies 0 327,422 0 327,422Special Education - Grants to States 0 297,179 0 297,179Special Education Preschool Grants 0 400 0 400Rural Education 0 16,208 0 16,208Eisenhower Professional Development State Grants 0 60,464 0 60,464Other Federal through State 0 19,785 0 19,785

Total Federal Government $ 0 $ 743,022 $ 603,018 $ 1,346,040

(Continued)


160

Exhibit J-6





Contributions $ 3,038,558 $ 0 $ 0 $ 3,038,558Total Other Governments and Citizens Groups $ 3,038,558 $ 0 $ 0 $ 3,038,558

Total $ 13,089,073 $ 743,022 $ 754,680 $ 14,586,775


161

Exhibit J-7

Hartsville/Trousdale County Government, TennesseeSchedule of Detailed Expenditures -

All Governmental Fund TypesFor the Year Ended June 30, 2017

General FundGeneral Government

County CommissionBoard and Committee Members Fees $ 11,950Other Per Diem and Fees 11,820Social Security 1,474Employer Medicare 345Audit Services 2,833Dues and Memberships 1,000Legal Notices, Recording, and Court Costs 1,138Postal Charges 49Travel 384In Service/Staff Development 350Other Charges 29

Total County Commission $ 31,372

Beer BoardBoard and Committee Members Fees $ 90Social Security 2Employer Medicare 1Legal Notices, Recording, and Court Costs 40

Total Beer Board 133

County Mayor/ExecutiveCounty Official/Administrative Officer $ 68,977Assistant(s) 50,602Clerical Personnel 52,458Part-time Personnel 9,904Overtime Pay 9,008Social Security 10,573Pensions 7,088Medical Insurance 17,860Employer Medicare 2,473Data Processing Services 11,953Dues and Memberships 1,050Evaluation and Testing 204Legal Notices, Recording, and Court Costs 40Maintenance and Repair Services - Office Equipment 172Printing, Stationery, and Forms 1,149Travel 1,217Office Supplies 2,721Premiums on Corporate Surety Bonds 224In Service/Staff Development 880Other Charges 12Office Equipment 2,114

Total County Mayor/Executive 250,679

County AttorneyCounty Official/Administrative Officer $ 24,661

Total County Attorney 24,661

(Continued)

162

Exhibit J-7



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

Election CommissionCounty Official/Administrative Officer $ 53,749Deputy(ies) 4,797Overtime Pay 47Election Commission 4,050Election Workers 9,465Social Security 3,876Pensions 4,257Employer Medicare 906Data Processing Services 3,012Dues and Memberships 175Evaluation and Testing 54Legal Notices, Recording, and Court Costs 3,226Maintenance and Repair Services - Equipment 14,057Postal Charges 614Printing, Stationery, and Forms 951Travel 448Office Supplies 757In Service/Staff Development 1,065Other Charges 848Office Equipment 498

Total Election Commission $ 106,852

Register of DeedsCounty Official/Administrative Officer $ 59,721Deputy(ies) 9,959Social Security 4,186Pensions 4,730Medical Insurance 4,560Employer Medicare 979Data Processing Services 3,461Dues and Memberships 95Printing, Stationery, and Forms 880Other Contracted Services 2,000Office Supplies 1,311

Total Register of Deeds 91,882

PlanningCounty Official/Administrative Officer $ 48,710Part-time Personnel 1,224Overtime Pay 4,340Social Security 3,160Pensions 4,201Medical Insurance 4,560Employer Medicare 739Dues and Memberships 235Evaluation and Testing 179Legal Notices, Recording, and Court Costs 370

(Continued)

163

Exhibit J-7



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

Planning (Cont.)Printing, Stationery, and Forms $ 33Travel 4,242Other Contracted Services 9,075Office Supplies 430In Service/Staff Development 155Other Charges 671

Total Planning $ 82,324

County BuildingsAttendants $ 14,569Custodial Personnel 11,990Overtime Pay 447Social Security 1,642Pensions 1,238Medical Insurance 6,840Employer Medicare 395Communication 1,171Evaluation and Testing 51Maintenance and Repair Services - Buildings 62,823Maintenance and Repair Services - Equipment 355Pest Control 2,289Custodial Supplies 7,234Electricity 44,522Food Supplies 4Natural Gas 18,693Office Supplies 40Water and Sewer 5,116Other Supplies and Materials 1,117Other Charges 5,066Furniture and Fixtures 17,539Site Development 20,516

Total County Buildings 223,657

Preservation of RecordsOffice Supplies $ 330Office Equipment 1,790Other Equipment 713

Total Preservation of Records 2,833

FinanceProperty Assessor's Office

County Official/Administrative Officer $ 59,721Deputy(ies) 25,575Overtime Pay 9Board and Committee Members Fees 1,050Social Security 4,979Pensions 6,756

(Continued)

164

Exhibit J-7



General Fund (Cont.)Finance (Cont.)

Property Assessor's Office (Cont.)Medical Insurance $ 9,120Employer Medicare 1,165Dues and Memberships 1,000Legal Notices, Recording, and Court Costs 138Maintenance and Repair Services - Vehicles 47Printing, Stationery, and Forms 2,525Travel 235Other Contracted Services 2,300Gasoline 487Office Supplies 586Premiums on Corporate Surety Bonds 62In Service/Staff Development 385

Total Property Assessor's Office $ 116,140

County Trustee's OfficeCounty Official/Administrative Officer $ 59,721Deputy(ies) 22,515Overtime Pay 167Social Security 4,952Pensions 5,234Medical Insurance 9,500Employer Medicare 1,158Data Processing Services 7,335Dues and Memberships 522Evaluation and Testing 108Printing, Stationery, and Forms 2,162Travel 315Office Supplies 741In Service/Staff Development 300

Total County Trustee's Office 114,730

County Clerk's OfficeCounty Official/Administrative Officer $ 59,721Deputy(ies) 26,333Overtime Pay 38Social Security 5,068Pensions 6,818Medical Insurance 9,120Employer Medicare 1,185Data Processing Services 4,065Dues and Memberships 502Printing, Stationery, and Forms 628Office Supplies 788Office Equipment 48

Total County Clerk's Office 114,314

(Continued)

165

Exhibit J-7



General Fund (Cont.)Finance (Cont.)

Data ProcessingAudit Services $ 8,000Communication 6,380Consultants 1,420Internet Connectivity 4,144Other Contracted Services 2,801Communication Equipment 24,740Site Development 59,529

Total Data Processing $ 107,014

Administration of JusticeCircuit Court

County Official/Administrative Officer $ 59,721Deputy(ies) 59,630Overtime Pay 79Jury and Witness Expense 3,357Social Security 6,952Pensions 9,455Medical Insurance 13,680Employer Medicare 1,626Data Processing Services 8,251Dues and Memberships 60Legal Notices, Recording, and Court Costs 179Printing, Stationery, and Forms 1,843Office Supplies 1,026Periodicals 242

Total Circuit Court 166,101

General Sessions CourtJudge(s) $ 68,798Social Security 4,060Pensions 5,449Medical Insurance 4,560Employer Medicare 950Legal Services 6,610Other Contracted Services 180

Total General Sessions Court 90,607

Chancery CourtCounty Official/Administrative Officer $ 59,721Deputy(ies) 10,769Social Security 4,149Pensions 4,730Medical Insurance 4,560Employer Medicare 970Data Processing Services 1,445Printing, Stationery, and Forms 542Office Supplies 222

(Continued)

166

Exhibit J-7



General Fund (Cont.)Administration of Justice (Cont.)

Chancery Court (Cont.)Periodicals $ 18Premiums on Corporate Surety Bonds 200Office Equipment 809

Total Chancery Court $ 88,135

Judicial CommissionersSocial Security $ 1,167Employer Medicare 273Dues and Memberships 150Travel 2,619Other Contracted Services 18,829

Total Judicial Commissioners 23,038

Courtroom SecurityDeputy(ies) $ 56,300Overtime Pay 4,063Social Security 3,697Pensions 2,606Medical Insurance 3,040Employer Medicare 865Evaluation and Testing 460Printing, Stationery, and Forms 18Uniforms 792In Service/Staff Development 200Law Enforcement Equipment 407

Total Courtroom Security 72,448

Public SafetySheriff's Department

County Official/Administrative Officer $ 65,693Deputy(ies) 490,670Salary Supplements 8,400Dispatchers/Radio Operators 111,442Overtime Pay 79,582Social Security 43,772Pensions 53,049Medical Insurance 76,000Employer Medicare 10,237Communication 3,173Data Processing Services 1,845Dues and Memberships 2,318Evaluation and Testing 6,219Legal Notices, Recording, and Court Costs 509Maintenance and Repair Services - Buildings 6,563Maintenance and Repair Services - Equipment 6,096Maintenance and Repair Services - Office Equipment 567Maintenance and Repair Services - Vehicles 21,825

(Continued)

167

Exhibit J-7



General Fund (Cont.)Public Safety (Cont.)

Sheriff's Department (Cont.)Medical and Dental Services $ 734Postal Charges 269Printing, Stationery, and Forms 1,834Rentals 9,470Towing Services 1,060Travel 1,248Custodial Supplies 97Electricity 1,107Gasoline 31,947Law Enforcement Supplies 10,965Office Supplies 3,865Periodicals 434Uniforms 13,371Other Supplies and Materials 955Premiums on Corporate Surety Bonds 186In Service/Staff Development 14,717Other Charges 985Furniture and Fixtures 1,077Law Enforcement Equipment 63,316Motor Vehicles 73,523Office Equipment 19,502Other Equipment 5,000

Total Sheriff's Department $ 1,243,622

Drug EnforcementDeputy(ies) $ 35,407Overtime Pay 835Social Security 2,202Pensions 3,286Medical Insurance 3,420Employer Medicare 99Gasoline 1,922

Total Drug Enforcement 47,171

Administration of the Sexual Offender RegistryOther Supplies and Materials $ 200

Total Administration of the Sexual Offender Registry 200

JailGuards $ 401,832Cafeteria Personnel 60,725Overtime Pay 9,837Social Security 28,523Pensions 33,406Medical Insurance 59,960Employer Medicare 6,671Audit Services 2,230

(Continued)

168

Exhibit J-7




Jail (Cont.)Communication $ 644Data Processing Services 4,990Dues and Memberships 45Legal Notices, Recording, and Court Costs 170Maintenance and Repair Services - Buildings 9,265Maintenance and Repair Services - Equipment 4,045Medical and Dental Services 135,035Pest Control 240Printing, Stationery, and Forms 1,172Travel 2,234Other Contracted Services 30Custodial Supplies 8,662Electricity 13,279Food Supplies 38,901Law Enforcement Supplies 177Natural Gas 3,881Office Supplies 889Prisoners Clothing 319Uniforms 3,609Water and Sewer 3,948Other Supplies and Materials 1,063Premiums on Corporate Surety Bonds 50In Service/Staff Development 1,100Other Charges 200Furniture and Fixtures 2,098Office Equipment 229Site Development 2,142Other Equipment 2,921

Total Jail $ 844,522

WorkhouseGuards $ 44,522Overtime Pay 978Social Security 2,769Pensions 3,604Medical Insurance 8,265Employer Medicare 647Maintenance and Repair Services - Equipment 1,204Maintenance and Repair Services - Vehicles 459Gasoline 2,896Other Supplies and Materials 850Other Charges 23

Total Workhouse 66,217

Juvenile ServicesOther Salaries and Wages $ 21,201Social Security 1,314

(Continued)

169

Exhibit J-7




Juvenile Services (Cont.)Employer Medicare $ 307Evaluation and Testing 36Office Supplies 233Other Supplies and Materials 261Other Charges 1,050

Total Juvenile Services $ 24,402

Fire Prevention and ControlContributions $ 22,195Evaluation and Testing 1,089Legal Notices, Recording, and Court Costs 158Maintenance and Repair Services - Equipment 1,211Maintenance and Repair Services - Vehicles 14,056Pest Control 300Electricity 1,737Gasoline 893Natural Gas 1,134Uniforms 5,899Water and Sewer 498Other Supplies and Materials 90Workers' Compensation Insurance 2,460In Service/Staff Development 3,635Other Equipment 6,605

Total Fire Prevention and Control 61,960

Rescue SquadOther Per Diem and Fees $ 14,996Communication 1Contributions 197Evaluation and Testing 450Maintenance and Repair Services - Buildings 7,984Maintenance and Repair Services - Equipment 591Maintenance and Repair Services - Vehicles 2,359Travel 1,334Custodial Supplies 54Electricity 1,324Equipment and Machinery Parts 14Gasoline 1,205Natural Gas 1,229Uniforms 11,420In Service/Staff Development 3,503Other Charges 197Communication Equipment 2,828Other Equipment 481

Total Rescue Squad 50,167

(Continued)

170

Exhibit J-7




Other Emergency ManagementSupervisor/Director $ 14,048Social Security 871Pensions 1,113Employer Medicare 204Communication 37Legal Notices, Recording, and Court Costs 40Maintenance and Repair Services - Buildings 466Maintenance and Repair Services - Equipment 16Maintenance and Repair Services - Vehicles 915Travel 484Gasoline 97Uniforms 1,472Other Supplies and Materials 88Communication Equipment 881Other Equipment 16,135

Total Other Emergency Management $ 36,867

Inspection and RegulationSupervisor/Director $ 4,424Social Security 236Pensions 350Employer Medicare 55Drugs and Medical Supplies 880Other Supplies and Materials 21

Total Inspection and Regulation 5,966

County Coroner/Medical ExaminerOther Contracted Services $ 21,675Other Charges 1,200

Total County Coroner/Medical Examiner 22,875

Public Health and WelfareLocal Health Center

Communication $ 1,530Contributions 13,004Maintenance and Repair Services - Buildings 4,721Pest Control 180Postal Charges 624Electricity 3,962Natural Gas 1,736Office Supplies 593Periodicals 35Water and Sewer 399Other Supplies and Materials 63Other Charges 150

Total Local Health Center 26,997

(Continued)

171

Exhibit J-7



General Fund (Cont.)Public Health and Welfare (Cont.)

Alcohol and Drug ProgramsSocial Security $ 55Pensions 71Employer Medicare 13Drug Treatment 595Other Contracted Services 900Instructional Supplies and Materials 292

Total Alcohol and Drug Programs $ 1,926

Other Local Health ServicesContracts with Government Agencies $ 40,892Other Contracted Services 8,368

Total Other Local Health Services 49,260

Sanitation Education/InformationEducation Media Personnel $ 9,681Guards 10,631Social Security 1,224Pensions 1,295Employer Medicare 286Advertising 121Travel 48Custodial Supplies 1,071Gasoline 585Instructional Supplies and Materials 6,671Other Supplies and Materials 1,976

Total Sanitation Education/Information 33,589

Other Public Health and WelfareContributions $ 9,500

Total Other Public Health and Welfare 9,500

Social, Cultural, and Recreational ServicesSenior Citizens Assistance

Supervisor/Director $ 17,909Part-time Personnel 7,441Social Security 1,530Pensions 1,450Employer Medicare 358Communication 400Contributions 204Evaluation and Testing 259Legal Notices, Recording, and Court Costs 97Postal Charges 95Travel 47Electricity 2,178Food Supplies 64Gasoline 672

(Continued)

172

Exhibit J-7



General Fund (Cont.)Social, Cultural, and Recreational Services (Cont.)

Senior Citizens Assistance (Cont.)Office Supplies $ 452Water and Sewer 328Other Supplies and Materials 3,085In Service/Staff Development 218Office Equipment 1

Total Senior Citizens Assistance $ 36,788

LibrariesAssistant(s) $ 28,683Librarians 28,080Social Security 3,519Pensions 3,883Employer Medicare 823Communication 3,562Contributions 20,761Data Processing Services 1,100Evaluation and Testing 54Legal Notices, Recording, and Court Costs 60Licenses 351Maintenance and Repair Services - Buildings 1Pest Control 120Travel 86Other Contracted Services 1,880Custodial Supplies 85Electricity 3,703Library Books/Media 6,019Natural Gas 2,323Office Supplies 946Water and Sewer 399Other Supplies and Materials 1,000Office Equipment 246

Total Libraries 107,684

Parks and Fair BoardsSupervisor/Director $ 8,829Laborers 19,831Temporary Personnel 18,787Overtime Pay 1,291Social Security 2,968Pensions 1,557Medical Insurance 4,180Employer Medicare 694Contributions 400Evaluation and Testing 1,275Legal Notices, Recording, and Court Costs 73Maintenance and Repair Services - Buildings 1,929Maintenance and Repair Services - Equipment 3,054

(Continued)

173

Exhibit J-7



General Fund (Cont.)Social, Cultural, and Recreational Services (Cont.)

Parks and Fair Boards (Cont.)Maintenance and Repair Services - Vehicles $ 436Travel 88Permits 890Custodial Supplies 1,701Electricity 11,645Fertilizer, Lime, and Seed 311Food Supplies 2,445Gasoline 388Office Supplies 31Uniforms 448Water and Sewer 1,866Chemicals 3,194Other Supplies and Materials 801Refunds 2,358In Service/Staff Development 1,840Other Charges 65Quarry Equipment 2,700Site Development 13,158Other Equipment 75

Total Parks and Fair Boards $ 109,308

Agriculture and Natural ResourcesAgricultural Extension Service

Salary Supplements $ 14,905Secretary(ies) 8,708Social Security 1,683Pensions 3,417Medical Insurance 490Communication 3,558Contributions 3,875Dues and Memberships 180Travel 883Office Supplies 880Workers' Compensation Insurance 6In Service/Staff Development 195Other Charges 3Office Equipment 1,897Other Equipment 125

Total Agricultural Extension Service 40,805

Soil ConservationContributions $ 13,227

Total Soil Conservation 13,227

Other OperationsVeterans' Services

Other Salaries and Wages $ 8,970

(Continued)

174

Exhibit J-7



General Fund (Cont.)Other Operations (Cont.)

Veterans' Services (Cont.)Social Security $ 556Employer Medicare 130Communication 619Data Processing Services 399Dues and Memberships 68Evaluation and Testing 54Travel 1,226Other Contracted Services 1,000Office Supplies 208Periodicals 113Office Equipment 940

Total Veterans' Services $ 14,283

Other ChargesCommunication $ 34,795Dues and Memberships 102Evaluation and Testing 379Legal Notices, Recording, and Court Costs 286Maintenance Agreements 14,308Postal Charges 10,369Rentals 17,314Other Contracted Services 1,856Electricity 550Fuel Oil 18,493Other Supplies and Materials 10Liability Insurance 76,504Trustee's Commission 81,427Workers' Compensation Insurance 53,023Other Charges 2,369Other Equipment 921

Total Other Charges 312,706

Employee BenefitsHandling Charges and Administrative Costs $ 710Unemployment Compensation 8,614

Total Employee Benefits 9,324

MiscellaneousContributions $ 15,000Dues and Memberships 2,598

Total Miscellaneous 17,598

Capital ProjectsOther General Government Projects

Other Construction $ 51,423Total Other General Government Projects 51,423

Total General Fund $ 4,945,307

(Continued)

175

Exhibit J-7



Urban Services FundPublic Safety

Sheriff's DepartmentDeputy(ies) $ 142,231Salary Supplements 2,400Dispatchers/Radio Operators 35,371Overtime Pay 10,037Social Security 11,783Pensions 20,423Medical Insurance 14,820Employer Medicare 2,756Maintenance Agreements 21,466Maintenance and Repair Services - Vehicles 1,105Gasoline 5,305Law Enforcement Equipment 11,473Motor Vehicles 28,463

Total Sheriff's Department $ 307,633

Fire Prevention and ControlGasoline $ 146Other Charges 2,402

Total Fire Prevention and Control 2,548

Public Health and WelfareRabies and Animal Control

Other Salaries and Wages $ 6,232Social Security 382Pensions 494Medical Insurance 855Employer Medicare 89Evaluation and Testing 25Maintenance and Repair Services - Buildings 279Veterinary Services 3,616Animal Food and Supplies 460Custodial Supplies 79Electricity 2,516Gasoline 325Water and Sewer 449Other Supplies and Materials 332

Total Rabies and Animal Control 16,133

Waste PickupSupervisor/Director $ 17,680Truck Drivers 54,652Laborers 67,248Overtime Pay 5,777Social Security 8,865Pensions 10,315Medical Insurance 17,480Employer Medicare 2,073

(Continued)

176

Exhibit J-7



Urban Services Fund (Cont.)Public Health and Welfare (Cont.)

Waste Pickup (Cont.)Evaluation and Testing $ 111Maintenance and Repair Services - Equipment 552Maintenance and Repair Services - Vehicles 13,741Disposal Fees 28,395Gasoline 13,184Other Supplies and Materials 6Motor Vehicles 6,800Office Equipment 883

Total Waste Pickup $ 247,762

Social, Cultural, and Recreational ServicesParks and Fair Boards

Legal Notices, Recording, and Court Costs $ 17Site Development 9,983

Total Parks and Fair Boards 10,000

Other Social, Cultural, and RecreationalOther Charges $ 4,000

Total Other Social, Cultural, and Recreational 4,000

Other OperationsOther Charges

Legal Notices, Recording, and Court Costs $ 102Electricity 56,795Liability Insurance 14,358Trustee's Commission 12,857Workers' Compensation Insurance 27,058Other Charges 156Site Development 267


Employee BenefitsPensions $ 2,012


HighwaysHighway and Bridge Maintenance

Other Contracted Services $ 34,614Asphalt - Hot Mix 22,172Road Signs 132Highway Equipment 5,990

Total Highway and Bridge Maintenance 62,908

Principal on DebtGeneral Government

Principal on Notes $ 28,000Total General Government 28,000

(Continued)

177

Exhibit J-7



Urban Services Fund (Cont.)Interest on Debt

General GovernmentInterest on Notes $ 6,475

Total General Government $ 6,475

Capital ProjectsOther General Government Projects

Site Development $ 44,000Total Other General Government Projects 44,000

Highway and Street Capital ProjectsEngineering Services $ 13,380Legal Notices, Recording, and Court Costs 908Matching Share 17,500

Total Highway and Street Capital Projects 31,788

Total Urban Services Fund $ 874,852

Solid Waste/Sanitation FundPublic Health and Welfare

Convenience CentersSupervisor/Director $ 17,776Truck Drivers 44,127Laborers 27,131Attendants 45,822Part-time Personnel 21,750Overtime Pay 7,000Social Security 10,080Pensions 16,702Medical Insurance 14,060Employer Medicare 2,357Advertising 203Data Processing Services 2,545Evaluation and Testing 713Legal Notices, Recording, and Court Costs 188Maintenance and Repair Services - Buildings 4,899Maintenance and Repair Services - Equipment 25,813Maintenance and Repair Services - Vehicles 19,309Pest Control 240Postal Charges 300Printing, Stationery, and Forms 222Travel 307Electricity 4,589Gasoline 20,199Office Supplies 445Water and Sewer 529Other Supplies and Materials 1,569In Service/Staff Development 205Motor Vehicles 148,000

(Continued)

178

Exhibit J-7



Solid Waste/Sanitation Fund (Cont.)Public Health and Welfare (Cont.)

Convenience Centers (Cont.)Site Development $ 207Solid Waste Equipment 29,655Other Equipment 2,493

Total Convenience Centers $ 469,435

Recycling CenterLaborers $ 24,486Overtime Pay 45Social Security 1,491Pensions 1,943Medical Insurance 4,560Employer Medicare 349Maintenance and Repair Services - Equipment 10,641Maintenance and Repair Services - Vehicles 626Rentals 1,140Electricity 1,684Gasoline 1,613Propane Gas 389Wire 2,394Other Supplies and Materials 42Other Charges 124Site Development 9,919

Total Recycling Center 61,446

Other Waste DisposalDisposal Fees $ 160,593

Total Other Waste Disposal 160,593

Postclosure Care CostsEngineering Services $ 3,100Contracts for Postclosure Care Costs 1,700Landfill Closure/Postclosure Care Costs 1,737Site Development 1,727

Total Postclosure Care Costs 8,264

Other OperationsOther Charges

Liability Insurance $ 12,119Trustee's Commission 9,566Workers' Compensation Insurance 17,125


Total Solid Waste/Sanitation Fund $ 738,548

(Continued)

179

Exhibit J-7



Ambulance Service FundPublic Health and Welfare

Ambulance/Emergency Medical ServicesSupervisor/Director $ 52,150Medical Personnel 368,845Clerical Personnel 27,810Overtime Pay 167,150Social Security 37,274Pensions 42,156Medical Insurance 41,800Employer Medicare 8,717Bank Charges 679Communication 8,451Contracts with Private Agencies 1,800Dues and Memberships 360Evaluation and Testing 856Legal Notices, Recording, and Court Costs 76Licenses 1,250Maintenance and Repair Services - Buildings 1,330Maintenance and Repair Services - Equipment 2,155Maintenance and Repair Services - Vehicles 11,692Pest Control 480Postal Charges 960Printing, Stationery, and Forms 193Rentals 3,164Towing Services 315Travel 683Custodial Supplies 886Drugs and Medical Supplies 22,880Electricity 5,009Gasoline 8,955Natural Gas 2,705Office Supplies 765Uniforms 4,369Water and Sewer 1,282Liability Insurance 15,394Trustee's Commission 15,417Workers' Compensation Insurance 42,663In Service/Staff Development 2,077Furniture and Fixtures 265Motor Vehicles 125,829Office Equipment 8,108Other Equipment 2,309

Total Ambulance/Emergency Medical Services $ 1,039,259

Total Ambulance Service Fund $ 1,039,259

(Continued)

180

Exhibit J-7



Special Purpose FundPublic Safety

Other Public SafetyContracts with Private Agencies $ 50,581,828

Total Other Public Safety $ 50,581,828

Total Special Purpose Fund $ 50,581,828

Drug Control FundPublic Safety

Drug EnforcementMaintenance and Repair Services - Equipment $ 250Instructional Supplies and Materials 135Trustee's Commission 119Other Charges 18Law Enforcement Equipment 8,787

Total Drug Enforcement $ 9,309

Total Drug Control Fund 9,309

Constitutional Officers - Fees FundAdministration of Justice

Chancery CourtSpecial Commissioner Fees/Special Master Fees $ 1,620

Total Chancery Court $ 1,620

Total Constitutional Officers - Fees Fund 1,620

Highway/Public Works FundHighways

AdministrationCounty Official/Administrative Officer $ 65,693Assistant(s) 38,976Other Salaries and Wages 2,201Board and Committee Members Fees 1,200In-service Training 890Social Security 6,055Pensions 8,281Employer Medicare 1,416Communication 4,721Data Processing Services 8,348Dues and Memberships 2,201Legal Services 500Legal Notices, Recording, and Court Costs 144Maintenance and Repair Services - Buildings 453Pest Control 210Postal Charges 633Printing, Stationery, and Forms 1,156Travel 563Custodial Supplies 403

(Continued)

181

Exhibit J-7



Highway/Public Works Fund (Cont.)Highways (Cont.)

Administration (Cont.)Data Processing Supplies $ 882Drugs and Medical Supplies 714Electricity 3,875Natural Gas 2,402Office Supplies 726Water and Sewer 1,318Other Charges 4Furniture and Fixtures 750Office Equipment 93

Total Administration $ 154,808

Highway and Bridge MaintenanceForemen $ 122,489Equipment Operators 92,304Truck Drivers 195,837Laborers 25,965Social Security 26,867Pensions 29,911Employer Medicare 6,284Asphalt - Cold Mix 1,071Asphalt - Hot Mix 317,830Asphalt - Liquid 6,399Concrete 231Crushed Stone 41,144Electricity 423General Construction Materials 865Other Road Materials 333Pipe 3,804Propane Gas 59Road Signs 3,208Small Tools 852Wood Products 873Chemicals 280Other Supplies and Materials 261Other Charges 705

Total Highway and Bridge Maintenance 877,995

Operation and Maintenance of EquipmentMechanic(s) $ 29,951Social Security 1,731Pensions 1,153Employer Medicare 405Maintenance and Repair Services - Equipment 1,203Maintenance and Repair Services - Vehicles 1,693Diesel Fuel 21,449Equipment and Machinery Parts 47,493Garage Supplies 2,391

(Continued)

182

Exhibit J-7



Highway/Public Works Fund (Cont.)Highways (Cont.)

Operation and Maintenance of Equipment (Cont.)Gasoline $ 39,021Lubricants 6,213Small Tools 291Tires and Tubes 22,479Other Supplies and Materials 719Other Charges 30Other Equipment 1,804

Total Operation and Maintenance of Equipment $ 178,026

Other ChargesEvaluation and Testing $ 646Other Contracted Services 4,537Trustee's Commission 15,707Vehicle and Equipment Insurance 16,902Workers' Compensation Insurance 16,749Other Charges 513


Employee BenefitsMedical Insurance $ 56,682Unemployment Compensation 5,747


Capital OutlayEngineering Services $ 39,916Building Improvements 4,044Communication Equipment 1,479Data Processing Equipment 12,948Motor Vehicles 50,633State Aid Projects 373,418Other Construction 46,497

Total Capital Outlay 528,935

Total Highway/Public Works Fund $ 1,857,247

General Debt Service FundPrincipal on Debt

General GovernmentPrincipal on Bonds $ 26,000Principal on Notes 176,407Principal on Other Loans 3,578,039

Total General Government $ 3,780,446

EducationPrincipal on Other Loans $ 157,431

Total Education 157,431

(Continued)

183

Exhibit J-7



General Debt Service Fund (Cont.)Interest on Debt

General GovernmentInterest on Bonds $ 2,707Interest on Notes 31,271Interest on Other Loans 1,550


EducationInterest on Other Loans $ 130,705


Other Debt ServiceGeneral Government

Trustee's Commission $ 3,558Other Debt Issuance Charges 15,000Other Debt Service 28,477

Total General Government 47,035

EducationOther Debt Service $ 3,716


Total General Debt Service Fund $ 4,154,861

Education Debt Service FundPrincipal on Debt

EducationPrincipal on Other Loans $ 508,000

Total Education $ 508,000

Interest on DebtEducation

Interest on Other Loans $ 27,090Total Education 27,090

Other Debt ServiceEducation

Trustee's Commission $ 4,317Other Debt Service 22,468


Total Education Debt Service Fund 561,875

General Capital Projects FundOther Debt Service

General GovernmentOther Debt Issuance Charges $ 10,500


(Continued)

184

Exhibit J-7



General Capital Projects Fund (Cont.)Capital Projects

Administration of Justice ProjectsEngineering Services $ 133,700Legal Notices, Recording, and Court Costs 254Building Construction 723,300

Total Administration of Justice Projects $ 857,254

Public Safety ProjectsEngineering Services $ 11,799Matching Share 57,394Building Construction 24,455

Total Public Safety Projects 93,648

Public Utility ProjectsConsultants $ 5,000Engineering Services 93,910Matching Share 174,114Other Construction 1,154,524

Total Public Utility Projects 1,427,548

Total General Capital Projects Fund $ 2,388,950

Education Capital Projects FundCapital Projects

Education Capital ProjectsContributions $ 3,038,558

Total Education Capital Projects $ 3,038,558

Total Education Capital Projects Fund 3,038,558

Total Governmental Funds - Primary Government $ 70,192,214

185

Exhibit J-8


All Governmental Fund TypesDiscretely Presented Hartsville/Trousdale County School DepartmentFor the Year Ended June 30, 2017

General Purpose School FundInstruction

Regular Instruction ProgramTeachers $ 2,839,947Career Ladder Program 9,000Career Ladder Extended Contracts 1,731Homebound Teachers 677Educational Incentive - Other County Employees 188,899Other Salaries and Wages 500Certified Substitute Teachers 9,482Non-certified Substitute Teachers 30,043Social Security 178,192Pensions 274,244Medical Insurance 274,639Unemployment Compensation 8,062Employer Medicare 41,698Travel 596Instructional Supplies and Materials 275,051Textbooks - Bound 70,897Regular Instruction Equipment 130,287

Total Regular Instruction Program $ 4,333,945

Alternative Instruction ProgramTeachers $ 46,909Educational Assistants 19,307Social Security 4,050Pensions 5,758Medical Insurance 1,524Unemployment Compensation 160Employer Medicare 947

Total Alternative Instruction Program 78,655

Special Education ProgramTeachers $ 483,416Career Ladder Program 4,000Educational Assistants 33,209Speech Pathologist 46,072Educational Incentive - Other County Employees 29,141Non-certified Substitute Teachers 2,800Social Security 34,841Pensions 52,936Medical Insurance 39,617Unemployment Compensation 1,920Employer Medicare 8,148Contracts with Private Agencies 104,557

Total Special Education Program 840,657

Career and Technical Education ProgramTeachers $ 145,814

(Continued)

186

Exhibit J-8



General Purpose School Fund (Cont.)Instruction (Cont.)

Career and Technical Education Program (Cont.)Career Ladder Program $ 1,000Educational Incentive - Other County Employees 3,634Social Security 8,942Pensions 13,600Medical Insurance 12,390Unemployment Compensation 240Employer Medicare 2,091Other Contracted Services 23,000Instructional Supplies and Materials 7,941

Total Career and Technical Education Program $ 218,652

Support ServicesAttendance

Supervisor/Director $ 6,000Clerical Personnel 4,000Social Security 558Pensions 772Employer Medicare 131Other Contracted Services 615In Service/Staff Development 949

Total Attendance 13,025

Health ServicesSupervisor/Director $ 49,178Medical Personnel 63,450Clerical Personnel 15,026Non-certified Substitute Teachers 1,200Social Security 7,508Pensions 9,990Medical Insurance 11,487Unemployment Compensation 320Employer Medicare 1,756Communication 1,135Travel 1,698Other Contracted Services 1,500Drugs and Medical Supplies 495Instructional Supplies and Materials 4,582Other Supplies and Materials 3,956In Service/Staff Development 771Other Charges 2,290Health Equipment 1,286

Total Health Services 177,628

Other Student SupportCareer Ladder Program $ 3,000Accountants/Bookkeepers 24,630

(Continued)

187

Exhibit J-8



General Purpose School Fund (Cont.)Support Services (Cont.)

Other Student Support (Cont.)Guidance Personnel $ 76,452Educational Incentive - Other County Employees 2,933Other Salaries and Wages 5,344Social Security 6,623Pensions 9,670Medical Insurance 14,739Unemployment Compensation 160Employer Medicare 1,549Contracts with Government Agencies 46,382Other Contracted Services 5,145Other Charges 204

Total Other Student Support $ 196,831

Regular Instruction ProgramSupervisor/Director $ 150,040Career Ladder Program 6,310Librarians 138,169Educational Incentive - Other County Employees 8,366Social Security 10,078Pensions 13,876Medical Insurance 7,545Unemployment Compensation 560Employer Medicare 4,337Library Books/Media 18,668In Service/Staff Development 2,270

Total Regular Instruction Program 360,219

Special Education ProgramSupervisor/Director $ 36,488Career Ladder Program 1,000Psychological Personnel 36,488Educational Incentive - Other County Employees 2,000Social Security 4,688Pensions 6,868Unemployment Compensation 80Employer Medicare 1,096Travel 40Other Supplies and Materials 1,731


Career and Technical Education ProgramSupervisor/Director $ 27,590Social Security 1,646Pensions 2,494Employer Medicare 385

Total Career and Technical Education Program 32,115

(Continued)

188

Exhibit J-8




TechnologyInstructional Computer Personnel $ 55,036Social Security 3,213Pensions 4,375Medical Insurance 5,400Unemployment Compensation 80Employer Medicare 751Internet Connectivity 17,940Cabling 45,073

Total Technology $ 131,868

Other ProgramsOn-behalf Payments to OPEB $ 25,861

Total Other Programs 25,861

Board of EducationSecretary to Board $ 1,740Board and Committee Members Fees 4,550Social Security 383Pensions 157Unemployment Compensation 60Employer Medicare 90Advertising 1,876Dues and Memberships 8,298Legal Services 6,840Travel 94Other Contracted Services 3,875Office Supplies 425Trustee's Commission 51,362Workers' Compensation Insurance 52,951Refund to Applicant for Criminal Investigation 2,750Other Charges 13,680

Total Board of Education 149,131

Director of SchoolsCounty Official/Administrative Officer $ 90,000Career Ladder Program 1,000Salary Supplements 4,651Secretary(ies) 19,888Social Security 6,671Pensions 10,242Medical Insurance 13,347Unemployment Compensation 160Employer Medicare 1,560Communication 29,803Travel 1,067Other Contracted Services 16,050

(Continued)

189

Exhibit J-8




Director of Schools (Cont.)Office Supplies $ 686In Service/Staff Development 1,131Other Charges 123Administration Equipment 446

Total Director of Schools $ 196,825

Office of the PrincipalPrincipals $ 206,336Career Ladder Program 2,000Accountants/Bookkeepers 100,456Assistant Principals 177,605Secretary(ies) 20,284Educational Incentive - Other County Employees 25,986Social Security 30,443Pensions 46,800Medical Insurance 56,549Unemployment Compensation 1,040Employer Medicare 7,120Other Supplies and Materials 3,837Administration Equipment 3,048

Total Office of the Principal 681,504

Fiscal ServicesAccountants/Bookkeepers $ 82,581Social Security 5,014Pensions 6,540Unemployment Compensation 160Employer Medicare 1,173Postal Charges 3,632Travel 218Other Contracted Services 15,989Office Supplies 3,872Other Charges 295

Total Fiscal Services 119,474

Operation of PlantCustodial Personnel $ 143,608Social Security 8,089Pensions 8,985Medical Insurance 20,856Unemployment Compensation 720Employer Medicare 1,892Disposal Fees 35,000Other Contracted Services 3,120Custodial Supplies 32,516Electricity 316,279

(Continued)

190

Exhibit J-8




Operation of Plant (Cont.)Natural Gas $ 79,631Water and Sewer 27,453Building and Contents Insurance 93,883

Total Operation of Plant $ 772,032

Maintenance of PlantSupervisor/Director $ 58,159Social Security 3,410Pensions 4,606Medical Insurance 9,122Unemployment Compensation 160Employer Medicare 797Maintenance and Repair Services - Buildings 199,010Other Contracted Services 23,002Other Supplies and Materials 2,998Other Charges 34Maintenance Equipment 15,120

Total Maintenance of Plant 316,418

TransportationSupervisor/Director $ 3,100Mechanic(s) 33,994Bus Drivers 194,580Other Salaries and Wages 14,735Social Security 13,197Pensions 15,212Medical Insurance 12,550Unemployment Compensation 1,200Employer Medicare 3,467Contracts with Other School Systems 282Contracts with Parents 3,068Maintenance and Repair Services - Vehicles 11,095Other Contracted Services 21,540Diesel Fuel 39,930Gasoline 9,413Lubricants 856Tires and Tubes 13,144Vehicle Parts 7,982In Service/Staff Development 650Other Charges 4,804Transportation Equipment 89,606

Total Transportation 494,405

Operation of Non-Instructional ServicesCommunity Services

Supervisor/Director $ 12,025

(Continued)

191

Exhibit J-8



General Purpose School Fund (Cont.)Operation of Non-Instructional Services (Cont.)

Community Services (Cont.)Teachers $ 45,865Clerical Personnel 9,100Educational Assistants 30,053Part-time Personnel 3,570Other Salaries and Wages 9,032Social Security 6,785Pensions 8,328Unemployment Compensation 400Employer Medicare 1,587Other Contracted Services 1,975Food Supplies 622Instructional Supplies and Materials 11,187Other Supplies and Materials 514In Service/Staff Development 575

Total Community Services $ 141,618

Early Childhood EducationSupervisor/Director $ 7,915Teachers 37,262Educational Assistants 13,114Certified Substitute Teachers 70Non-certified Substitute Teachers 420Social Security 3,313Pensions 5,122Medical Insurance 9,683Unemployment Compensation 160Employer Medicare 775Food Supplies 57Instructional Supplies and Materials 18,257Textbooks - Bound 125Other Supplies and Materials 2,147In Service/Staff Development 200Regular Instruction Equipment 3,678

Total Early Childhood Education 102,298

Capital OutlayRegular Capital Outlay

Other Contracted Services $ 4,985Building Improvements 3,300,847Furniture and Fixtures 162,683Regular Instruction Equipment 10,742Other Capital Outlay 12,775

Total Regular Capital Outlay 3,492,032

(Continued)

192

Exhibit J-8



General Purpose School Fund (Cont.)Other Debt Service

EducationDebt Service Contribution to Primary Government $ 167,829Other Debt Service 15,805

Total Education $ 183,634

Total General Purpose School Fund $ 13,149,306

School Federal Projects FundInstruction

Regular Instruction ProgramSupervisor/Director $ 2,371Teachers 114,939Educational Assistants 44,115Other Salaries and Wages 967Certified Substitute Teachers 3,535Non-certified Substitute Teachers 1,112Social Security 10,094Pensions 14,262Medical Insurance 16,079Employer Medicare 2,361Instructional Supplies and Materials 38,792Other Charges 544Regular Instruction Equipment 65,164

Total Regular Instruction Program $ 314,335

Special Education ProgramTeachers $ 86,995Homebound Teachers 1,998Educational Assistants 107,097Social Security 11,034Pensions 15,334Medical Insurance 29,184Employer Medicare 2,580Instructional Supplies and Materials 6,328Other Supplies and Materials 259Special Education Equipment 10,868


Career and Technical Education ProgramMaintenance and Repair Services - Equipment $ 53Instructional Supplies and Materials 6,708Vocational Instruction Equipment 12,327

Total Career and Technical Education Program 19,088

Support ServicesOther Student Support

Other Salaries and Wages $ 600

(Continued)

193

Exhibit J-8



School Federal Projects Fund (Cont.)Support Services (Cont.)

Other Student Support (Cont.)Social Security $ 37Pensions 54Employer Medicare 9Travel 1,042In Service/Staff Development 409

Total Other Student Support $ 2,151

Regular Instruction ProgramSupervisor/Director $ 46,009Social Security 2,797Pensions 4,159Employer Medicare 654Other Contracted Services 14,764Food Supplies 171Other Supplies and Materials 113In Service/Staff Development 36,337Other Charges 4,540

Total Regular Instruction Program 109,544

Special Education ProgramAssessment Personnel $ 14,000Social Security 868Pensions 1,266Employer Medicare 203Other Supplies and Materials 943In Service/Staff Development 7,976


Career and Technical Education ProgramTravel $ 325

Total Career and Technical Education Program 325

TransportationTires and Tubes $ 302Vehicle Parts 344

Total Transportation 646

Total School Federal Projects Fund $ 743,022

Central Cafeteria FundOperation of Non-Instructional Services

Food ServiceSupervisor/Director $ 18,976Accountants/Bookkeepers 6,000Materials Supervisor 13,887Clerical Personnel 66,775

(Continued)

194

Exhibit J-8



Central Cafeteria Fund (Cont.)Operation of Non-Instructional Services (Cont.)

Food Service (Cont.)Cafeteria Personnel $ 171,852Social Security 16,655Pensions 17,857Medical Insurance 13,678Employer Medicare 3,944Communication 907Legal Notices, Recording, and Court Costs 294Maintenance and Repair Services - Equipment 6,051Travel 255Other Contracted Services 4,575Food Supplies 419,318Office Supplies 145USDA - Commodities 52,082Other Supplies and Materials 14Other Charges 1,329Food Service Equipment 419

Total Food Service $ 815,013

Total Central Cafeteria Fund $ 815,013

Total Governmental Funds - Hartsville/Trousdale County School Department $ 14,707,341

195

Exhibit J-9

Hartsville/Trousdale County Government, TennesseeSchedule of Detailed Revenues and ExpensesProprietary FundFor the Year Ended June 30, 2017

Revenues Operating Revenues Charges for Current Services Other General Service Charges $ 685,974 Water Sales 1,896,186 Water Tap Sales 22,940 Service Charges 39,326 Total Charges for Current Services $ 2,644,426

Other Local Revenues Miscellaneous Refunds $ 90 Total Other Local Revenues $ 90

Total Operating Revenues $ 2,644,516

Nonoperating Revenues Investment Income $ 9,663 Insurance Recovery 14,651 Contributions 426,049 Other State Grants 6,525 Community Development 51,920 Other Federal through State 28,365 Other Direct Federal Revenue 333,631Total Nonoperating Revenues $ 870,804

Total Revenues $ 3,515,320

Expenses Operating Expenses Other Public Health and Welfare Supervisor/Director $ 62,536 Accountants/Bookkeepers 4,071 Materials Supervisor 3,750 Secretary(ies) 1,950 Clerical Personnel 84,844 Overtime Pay 59,017 Other Salaries and Wages 377,684 In-service Training 6,301 Social Security 42,625

(Continued)

Sewer Fund

FundMajor

EnterpriseFund

Water and

196

Exhibit J-9

Hartsville/Trousdale County Government, TennesseeSchedule of Detailed Revenues and ExpensesProprietary Fund (Cont.)

Operating Expenses (Cont.) Other Public Health and Welfare Pensions 155 Medical Insurance 57,970 Communication 45,730 Data Processing Services 25,472 Dues and Memberships 5,626 Engineering Services 1,593 Legal Notices, Recording, and Court Costs 3,014 Maintenance and Repair Services - Buildings 2,919 Maintenance and Repair Services - Equipment 183,548 Maintenance and Repair Services - Office Equipment 219 Maintenance and Repair Services - Vehicles 17,926 Postal Charges 15,070 Rentals 537 Travel 199 Other Contracted Services 64,928 Electricity 235,556 Gasoline 24,406 Natural Gas 4,227 Office Supplies 10,733 Tires and Tubes 1,866 Vehicle Parts 212 Testing 13,708 Chemicals 138,417 Other Supplies and Materials 49,613 Liability Insurance 78,975 Depreciation 433,838 Other Charges 21,627 Office Equipment 2,993 Other Equipment 2,529Total Operating Expenses $ 2,086,384

Nonoperating Expenses Loss on Disposal of Property $ 9,980 Interest on Bonds 45,915 Interest on Other Loans 40,493 Other Debt Issuance Charges 15,000 Other Debt Service 47,296Total Nonoperating Expenses $ 158,684

Total Expenses $ 2,245,068

Water andSewer Fund

MajorFund

EnterpriseFund

197

STATUTORY SECTION

This part of Hartsville/Trousdale County Government’s annual financial report presents detailed information required by state statute for the Hartsville/Trousdale County Government Water and Sewer Department. This information is presented solely for the purposes of statutory compliance and additional analysis and is not a required part of the financial statements. This information is unaudited. It has not been subjected to any auditing procedures. Table(s) Page(s) Demographic and Economic Information: These schedules offer water rates and water loss reports required

by state statute to help the reader understand how well the utility is performing.

1-2

199-201 Source: Hartsville/Trousdale County Government Water and Sewer Department Management.

198

Table 1

Hartsville/Trousdale County Government, TennesseeSchedule of Utility RatesWater and Sewer Department June 30, 2017

Utility Rates in Effect

Water Inside Town: First 2,000 gallons $ 16.63 per month All over 2,000 gallons 5.42 per 1,000 gallons

Water Outside Town-Rural: First 2,000 gallons $ 27.94 per month All over 2,000 gallons 8.73 per 1,000 gallons

Number of Customers 2,950

199

Table 2

Hartsville/Trousdale County Government, TennesseeSchedule of Unaccounted for WaterWater and Sewer Department June 30, 2017

Water Audit Report for:Reporting Year:

All volumes to be entered as: MILLION GALLONS (US) PER YEAR

Master Meter and Supply Error Adjustments

WATER SUPPLIED Pcnt: Value:Volume from own sources: 9 373.693 MG/Yr 7 25.00% MG/Yr

Water imported: MG/Yr MG/YrWater exported: 9 43.389 MG/Yr 7 25.00% MG/Yr

Enter negative % or value for under-registrationWATER SUPPLIED: 264.243 MG/Yr Enter positive % or value for over-registration

.AUTHORIZED CONSUMPTION

Billed metered: 8 226.534 MG/YrBilled unmetered: n/a MG/YrUnbilled metered: 8 4.448 MG/Yr Pcnt: Value:

Unbilled unmetered: 3.303 MG/Yr 1.25% MG/Yr06

AUTHORIZED CONSUMPTION: 234.285 MG/Yr

WATER LOSSES (Water Supplied - Authorized Consumption) 29.958 MG/Yr

Apparent Losses Pcnt: Value:Unauthorized consumption: 0.661 MG/Yr 0.25% MG/Yr

Customer metering inaccuracies: 9 12.157 MG/Yr 5.00% MG/YrSystematic data handling errors: 0.566 MG/Yr 0.25% MG/Yr

Apparent Losses: 13.384 MG/Yr

Real Losses (Current Annual Real Losses or CARL)Real Losses = Water Losses - Apparent Losses: 16.574 MG/Yr

WATER LOSSES: 29.958 MG/Yr

NON-REVENUE WATERNON-REVENUE WATER: 37.709 MG/Yr

= Water Losses + Unbilled Metered + Unbilled Unmetered

SYSTEM DATA

Length of mains: 8 240.0 milesNumber of active AND inactive service connections: 8 3,750

Service connection density: 16 conn./mile main

YesAverage length of customer service line: 10 10.0 ft

Average operating pressure: 6 75.0 psi

COST DATA

Total annual cost of operating water system: 7 $1,200,500 $/YearCustomer retail unit cost (applied to Apparent Losses): 6 $5.50

Variable production cost (applied to Real Losses): 7 $1,700.00 $/Million gallons

WATER AUDIT DATA VALIDITY SCORE:

PRIORITY AREAS FOR ATTENTION:

1: Customer retail unit cost (applied to Apparent Losses)

2: Unauthorized consumption

3: Systematic data handling errors

Default option selected for Systematic data handling errors - a grading of 5 is applied but not displayed

Average length of customer service line has been set to zero and a data grading score of 10 has been applied

Are customer meters typically located at the curbstop or property line?

AWWA Free Water Audit Software: Reporting Worksheet

Default option selected for Unbilled unmetered - a grading of 5 is applied but not displayed7.376

2016/2017 7/2016 - 6/2017HARTSVILLE-TROUSDALE WATER UTILITY DISTRICT (0000291)

<----------- Enter grading in column 'E' and 'J' ---------->

Based on the information provided, audit accuracy can be improved by addressing the following components:

$/1000 gallons (US)

Default option selected for unauthorized consumption - a grading of 5 is applied but not displayed

*** YOUR SCORE IS: 76 out of 100 ***

A weighted scale for the components of consumption and water loss is included in the calculation of the Water Audit Data Validity Score

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Please enter data in the white cells below. Where available, metered values should be used; if metered values are unavailable please estimate a value. Indicate your confidence in the accuracy of the input data by grading each component (n/a or 1-10) using the drop-down list to the left of the input cell. Hover the mouse over the cell to obtain a description of the grades

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(length of service line, beyond the property boundary, that is the responsibility of the utility)

Use buttons to selectpercentage of water

suppliedOR

value

?Click here: for help using option buttons below

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+ Click to add a comment

WAS v5.0

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American Water Works Association.Copyright © 2014, All Rights Reserved.

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To select the correct data grading for each input, determine the highest grade where the utility meets or exceeds all criteria for that grade and all grades below

200

Table 2Hartsville/Trousdale County Government, TennesseeSchedule of Unaccounted for WaterWater and Sewer Department June 30, 2017

Water Audit Report for: HARTSVILLE-TROUSDALE WATER UTILITY DISTRICT (0000291)Reporting Year:

System Attributes:Apparent Losses: 13.384 MG/Yr

+ Real Losses: 16.574 MG/Yr= Water Losses: 29.958 MG/Yr

Unavoidable Annual Real Losses (UARL): 50.94 MG/Yr

Annual cost of Apparent Losses: $73,611Annual cost of Real Losses: $91,158 Valued at Customer Retail Unit Cost

Performance Indicators:Non-revenue water as percent by volume of Water Supplied: 14.3%

Non-revenue water as percent by cost of operating system: 17.3% Real Losses valued at Customer Retail Unit Cost

Apparent Losses per service connection per day: 9.78 gallons/connection/day

Real Losses per service connection per day: N/A gallons/connection/day

Real Losses per length of main per day*: 189.20 gallons/mile/day

Real Losses per service connection per day per psi pressure: N/A gallons/connection/day/psi

From Above, Real Losses = Current Annual Real Losses (CARL): 16.57 million gallons/year

0.33

* This performance indicator applies for systems with a low service connection density of less than 32 service connections/mile of pipeline

AWWA Free Water Audit Software: System Attributes and Performance Indicators

*** YOUR WATER AUDIT DATA VALIDITY SCORE IS: 76 out of 100 ***

Infrastructure Leakage Index (ILI) [CARL/UARL]:

2016/2017 7/2016 - 6/2017

Return to Reporting Worksheet to change this assumpiton

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American Water Works Association.Copyright © 2014, All Rights Reserved.

WAS v5.0

Financial:

Operational Efficiency:

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SINGLE AUDIT SECTION

202

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on

an Audit of Financial Statements Performed in Accordance With Government Auditing Standards



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 business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Hartsville/Trousdale County, Tennessee, as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the metropolitan government’s basic financial statements, and have issued our report thereon dated December 8, 2017.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the metropolitan government’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 the metropolitan government’s internal control. Accordingly, we do not express an opinion on the effectiveness of the metropolitan government’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs that we consider to be significant deficiencies: 2017-001(B,C), 2017-002, and 2017-004.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the metropolitan government’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying Schedule of Findings and Questioned Costs as items: 2017-001(A), and 2017-003.

Hartsville/Trousdale County Government’s Response to Findings

The metropolitan government’s response to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. The metropolitan government’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 result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the metropolitan government’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Very truly yours,


December 8, 2017

JPW/yu

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Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance and on the Schedule of Expenditures of

Federal Awards Required by the Uniform Guidance



Report on Compliance for Each Major Federal Program

We have audited Hartsville/Trousdale 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 the metropolitan government’s major federal programs for the year ended June 30, 2017. The metropolitan government’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 requirements of laws, regulations, contracts, and grants applicable to its federal programs.

Auditor's Responsibility

Our responsibility is to express an opinion on compliance for each of the metropolitan government’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the metropolitan government’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

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We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the metropolitan government’s compliance.

Opinion on Each Major Federal Program

In our opinion, the metropolitan government 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, 2017.

Report on Internal Control Over Compliance

Management of the metropolitan government 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 the metropolitan government’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 the metropolitan government’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

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Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Hartsville/Trousdale County, Tennessee, as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the metropolitan government’s basic financial statements. We issued our report thereon dated December 8, 2017, 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,


December 8, 2017

JPW/yu

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Hartsville/Trousdale County Government, TennesseeSchedule of Expenditures of Federal Awards and State Grants (1) (2)For the Year Ended June 30, 2017

Federal Pass-throughFederal/Pass-through Agency/State CFDA Entity IdentifyingGrantor Program Title Number Number Expenditures

U.S. Department of Agriculture: Direct Program: Water and Waste Disposal Systems for Rural Communities 10.760 N/A $ 2,681,289 (4) Passed-through State Department of Agriculture: National School Lunch Program (Commodities - Noncash Assistance) (5) 10.555 (3) 52,083 (6) Cooperative Forestry Assistance 10.664 (3) 3,000 Passed-through State Department of Education: Child Nutrition Cluster: (5) School Breakfast Program 10.553 (3) 174,708 National School Lunch Program 10.555 (3) 367,276 (6) After-school Snack 10.555 (3) 8,951 (6)Total U.S. Department of Agriculture $ 3,287,307

U.S. Department of Commerce: Direct Program: Economic Adjustment Assistance 11.307 N/A $ 333,631Total U.S. Department of Commerce $ 333,631

U.S. Department of Housing and Urban Development: Passed-through State Department of Economic and Community Development: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii 14.228 (3) $ 117,925Total U.S. Department of Housing and Urban Development $ 117,925

U.S. Department of the Interior: Direct Program: Payments in-lieu-of Taxes 15.226 N/A $ 8,077Total U.S. Department of the Interior $ 8,077

U.S. Department of Transportation: Passed-through State Department of Transportation: Highway Planning and Construction 20.205 104685 $ 137,200 Alcohol Open Container Requirements 20.607 Z-17-THS351 5,000Total U.S. Department of Transportation $ 142,200

U.S. Department of Education: Passed-through State Department of Education: Title I Grants to Local Educational Agencies 84.010 (3) $ 327,422 Special Education Cluster: (5) Special Education - Grants to States 84.027 (3) 297,179 Special Education - Preschool Grants 84.173 (3) 400 Career and Technical Education - Basic Grants to States 84.048 (3) 21,564 Rural Education 84.358 (3) 16,208 Improving Teacher Quality State Grants 84.367 (3) 60,464Total U.S. Department of Education $ 723,237

(Continued)

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Hartsville/Trousdale County Government, TennesseeSchedule 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: Passed-through Greater Nashville Regional Council: Special Programs for the Aging Title III, Part D Disease Prevention and Health Promotion Services 93.043 (3) $ 4,000 Special Programs for the Aging Title III, Part B Grants for Supportive Services and Senior Centers 93.044 (3) 12,550 Passed-through State Department of Education: Child Care and Development Block Grant 93.575 (3) 19,785 Passed-through State Department of Health: Maternal and Child Health Services Block Grant to the States 93.994 GG-14-40532-00 8,576Total U.S. Department of Health and Human Services $ 44,911

U.S. Department of Homeland Security: Passed-through State Department of Military: Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 (3) $ 35,616 Homeland Security Grant Program 97.067 (3) 52,106Total U.S. Department of Homeland Security $ 87,722

Total Expenditures of Federal Awards $ 4,745,010

ContractState Grants Number Archives Development Grant - Secretary of State - Library & Archives N/A (3) $ 2,558 Juvenile Services Program - State Commission on Children and Youth N/A (3) 9,000 Aging Programs - State Commission on Aging N/A (3) 12,550 Access to Health and Healthy Active Built Environments - State Department of Health N/A Z-17-151726 10,000 Lottery for Education: Afterschool Programs - State Department of Education N/A (3) 104,191 Early Childhood Education - State Department of Education N/A (3) 102,297 Disaster Relief - State Department of Military N/A Z-08-212862-00 22,567 Community Transportation Planning Grant - State Department of Transportation N/A 104-685 17,150 Coordinated School Health - State Department of Education N/A (3) 90,000 Law Enforcement Training - State Department of Safety N/A (3) 11,400 Low Cost Spay and Neuter Procedures - State Department of Health N/A 34339-16517 2,700 CCA Wastewater Improvement FasTrack Grant - State Department of Economic and Community Development N/A (3) 494,566 ThreeStar Grant Program - State Department of Economic and Community Development N/A (3) 7,976 Student Ticket Subsidy (STS) Grant - Tennessee Arts Commission N/A (3) 1,850 Read to be Ready State Grant - State Department of Education N/A (3) 5,000 ACT-EXP - Internet Connectivity - State Department of Education N/A (3) 3,333 Safe Schools - State Department of Education N/A (3) 7,500 Litter Program - State Department of Transportation N/A Z-17-LIT085 33,700

Total State Grants $ 938,338

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) Hartsville/Trousdale County Government elected not to use the 10% de minimus cost rate permitted in the Uniform Guidance.(3) Information not available.

Building Authority of the City of Clarksville that will be paid back with loan proceeds from the U.S. Department of Agriculture for water and waste disposal systems. The government expended $1,724,289 during the year ended June 30, 2017, and had an outstanding loan payable balance of $1,724,289 on June 30, 2017.(5) Child Nutrition Cluster total $603,018; Special Education Cluster total $297,579.(6) Total for CFDA No. 10.555 is $428,310.

(4) During the current year, the Hartsville/Trousdale County Government received loan proceeds of $1,724,289 from the Public

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Hartsville/Trousdale County Government, TennesseeSummary Schedule of Prior-year FindingsFor the Year Ended June 30, 2017

Fiscal Page Finding CFDAYear Number Number Number

OFFICE OF COUNTY MAYOR

2016 192-193 2016-001 N/A Corrected

2016 194 2016-002 N/A Corrected

2016 194-195 2016-003 N/A Corrected

2016 195-196 2016-004 N/A Corrected

2016 196-197 2016-005 N/A Corrected

2016 197-198 2016-006 N/A Corrected

2016 197-198 2016-006 N/A

There were no prior-year federal award findings to report.

Government Auditing Standards require auditors to report the status of uncorrected findings from prior audits. Inaddition, OMB's Uniform Guidance requires auditees to report the status of all prior-year findings whethercorrected or not. Presented below are financial statement findings along with their current status from the AnnualFinancial Report for Hartsville/Trousdale County Government, Tennessee, for the year ended June 30, 2017.

Prior-year Financial Statement Findings

Material audit adjustment were required for proper financial statement presentation

Amounts withheld from contractor payments were not deposited into an escrow account

The office did not maintain adequate controls over fuel

Bids were not awarded in compliance with state statutes

The General Capital Projects Fund had a deficit in unassigned fund balance

Prior-year Federal Awards Findings

Duties were not segregated adequately Not Corrected - See Explanation on Corrective Action Plan

OFFICE OF CLERK AND MASTER

Title of Finding Current Status

Duties were not segregated adequately

OFFICES OF COUNTY CLERK; CIRCUIT, GENERAL SESSIONS, AND JUVENILE COURTS CLERK; REGISTER OF DEEDS; AND SHERIFF

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Financial Statements:

1. Our report on the financial statements of Hartsville/Trousdale County Government is unmodified.

2. Internal Control Over Financial Reporting:

* Material weakness identified? NO

* Significant deficiency identified? YES

3. Noncompliance material to the financial statements noted? NO

Federal Awards:

4. Internal Control Over Major Federal Programs:

* Material weakness identified? NO

* Significant deficiency identified? NONE REPORTED

5. Type of report auditor issued on compliance for major programs. UNMODIFIED

6. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? NO

7. Identification of Major Federal Programs:

* CFDA Number 10.760 Water and Waste Disposal Systemsfor Rural Communities

8. Dollar threshold used to distinguish between Type A and Type B Programs. $750,000

9. Auditee qualified as low-risk auditee? NO


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


PART I, SUMMARY OF AUDITOR'S RESULTS

211

PART II, FINDINGS RELATING TO THE FINANCIAL STATEMENTS

Findings and recommendations, as a result of our audit, are presented below. We reviewed these findings and recommendations with management to provide an opportunity for their response. Written responses for all findings are paraphrased and presented following each finding and recommendation. Management’s corrective action plans, whether related to the financial statements or federal awards, are presented separately in the Management’s Corrective Action Plan in the Single Audit Section of this report. Findings relating specifically to the audit of federal awards, if any, are separately presented under Part III, Findings and Questioned Costs for Federal Awards.


FINDING 2017-001 THE OFFICE HAD DEFICIENCIES IN PURCHASING PROCEDURES (A. – Noncompliance Under Government Auditing Standards; B. and C. – Internal Control – Significant Deficiencies Under Government Auditing Standards)

As part of our audit procedures for determining whether the purchasing process was operating as designed, we selected a sample of 28 disbursements totaling $402,435 from a population of 215 vendor checks totaling $3,866,929. Our examination revealed the following deficiencies:

A. In three of seven applicable purchases, competitive bids were not solicited for thepurchase of vehicles totaling $178,017. Purchasing procedures for the Water andSewer Utility Department are governed by the County Purchasing Law of 1983,Section 5-14-201 Tennessee Code Annotated, which requires all purchasesexceeding $10,000 to be made on the basis of publicly advertised competitivebids. The failure to solicit competitive bids could result in the county payingmore than the most competitive price. This deficiency exists becausemanagement believed the vendor was awarded a state contract, when in fact, thevendor made a false claim.

B. In ten of 16 applicable instances, purchase orders were not issued, and in five of16 applicable instances, purchase orders were not signed by management. Aspart of the Hartsville/Trousdale County government, the Water and SewerUtility Department is required to follow the purchasing procedures ofHartville/Trousdale County, which require purchase orders for all purchasesexceeding $100. Purchase orders are necessary to control who has purchasingauthority for the county and to document purchase commitments. The failure toissue purchase orders increases the risks of unauthorized purchases. Thisdeficiency exists because management failed to adhere to adopted policies.

C. In three of 25 applicable instances, supporting documentation on file forpurchases consisted of photo copies rather than original documents. Auditorswere advised that original documentation had been thrown away. The failure to

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maintain adequate documentation increases the risks of unauthorized purchases. This deficiency exists because management failed to adhere to sound business practices related to the retention of original supporting documentation.

RECOMMENDATION

Purchases exceeding $10,000 should be competitively bid as required by state statute. The Water and Sewer Utility Department should issue purchase orders for all applicable purchases and the purchase orders should be authorized by appropriate signatures to strengthen internal controls over purchasing procedures and to document purchasing commitments. Adequate documentation should be maintained to support all disbursements.

MANAGEMENT’S RESPONSE – WATER AND SEWER UTILITY DEPARTMENT GENERAL MANAGER

We agree with the finding. _________________________________

FINDING 2017-002 THE DEPARTMENT HAD DEFICIENCIES IN CASH RECONCILIATION PROCEDURES (Internal Control – Significant Deficiency Under Government Auditing Standards)

Employees did not accurately reconcile their cash drawer collections with the daily computer receipt reports. Instead of identifying differences between daily receipts and collections, the differences were adjusted through the cash drawers resulting in a variance between actual cash on hand and cash on hand reported in the financial statements. Sound business practices dictate that receipts should be reconciled with collections daily and any differences identified and corrected. The failure to reconcile collections with receipt reports allows errors to remain undiscovered and uncorrected and increases the risks of fraud and abuse. This deficiency can be attributed to a lack of understanding of internal controls and sound business practices.

RECOMMENDATION

Employees should reconcile their cash drawer collections with the daily computer receipt reports, and any errors discovered should be corrected promptly.


We agree with the finding. _________________________________

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FINDING 2017-003 COMPETITIVE BIDS WERE NOT SOLICITED FOR THE PURCHASE OF A VEHICLE (Noncompliance Under Government Auditing Standards)

As part of our audit procedures for determining whether the purchasing process was operating as designed, we selected a sample of 25 disbursements totaling $121,622 from a population of 400 vendor checks totaling $1,087,556. Our examination revealed that in one of five applicable purchases, competitive bids were not solicited for the purchase of a vehicle totaling $31,483. Purchasing procedures for the Highway Department are governed by provisions of the Uniform Road Law, Section 54-7-113 Tennessee Code Annotated, which requires all purchases exceeding $10,000 to be made on the basis of publicly advertised competitive bids. The failure to solicit competitive bids could result in the department paying more than the most competitive price. This deficiency exists because management believed the vendor was awarded a state contract, when in fact, the vendor made a false claim.

RECOMMENDATION

Purchases exceeding $10,000 should be competitively bid as required by state statute.

MANAGEMENT’S RESPONSE – SUPERINTENDENT OF ROADS

We agree with this finding. Going forward we will verify state contracts and vendors before purchasing.

_________________________________

OFFICE OF CLERK AND MASTER AND THE WATER AND SEWER UTILITY DEPARTMENT

FINDING 2017-004 DUTIES WERE NOT SEGREGATED ADEQUATELY (Internal Control – Significant Deficiency Under Government Auditing Standards)

Duties were not segregated adequately among the officials and employees in the Office of Clerk and Master and the Water and Sewer Utility Department. Employees responsible for maintaining accounting records were also involved in receipting, depositing, and/or disbursing funds. Sound business practices provide that internal controls be designed to provide reasonable assurance of the reliability of financial reporting and of the effectiveness and efficiency of operations. This lack of segregation of duties is the result of management’s decisions based on the availability of financial resources and is a significant deficiency in internal controls that increases the risk of unauthorized transactions. Also, this deficiency is the result of management’s failure to correct the finding noted in the prior-year audit report.

214

RECOMMENDATION

Management should segregate duties to the extent possible using available resources.

MANAGEMENT’S RESPONSE – CLERK AND MASTER

I only have a part time employee and did not realize that there was a corrective action plan that would work to resolve this matter immediately and completely. I will implement a plan immediately to get the corrective action in place in my office.


We agree with the finding.

215

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, 2017.

216

FindingNumber

WATER AND SEWER UTILTIY DEPARTMENT

2017-001 218

2017-002 219


2017-003 220

OFFICE OF CLERK AND MASTER

2017-004 Duties were not segregated adequately 221


2017-004 Duties were not segregated adequately 222

Competitive bids were not solicited for the purchase of a vehicle

We reviewed the financial statement and federal award findings and recommendations withmanagement to provide an opportunity for their response as required by the auditee requirementswithin Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Management’s correctiveaction plans for all financial statement findings and federal award findings are presented in thissection and have been indexed below. The corrective action plans were prepared by management andhave been presented as they were submitted.

Hartsville/Trousdale County Government, TennesseeManagement's Corrective Action Plan


Title of FindingCorrective Action

Plan Page Number

The office had deficiencies in purchasing procedures

The department had deficiencies in cash reconciliation procedures

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November 14, 2017

Hartsville/Trousdale Water/Sewer Utility District P. 0. Box 66 • 328 Broadway • Hartsville, Tennessee 37074-0066

Phone: 615-374-3484 • Fax: 615-374-0558 www.hartsvillewater.com

Tommy McFarland General Manager

Corrective Action Plan

FINDING : Deficiencies in Purchasing Procedures

Response and Corrective Action Plan Prepared by: Mary Dale Welch, Bookkeeper

Person Responsible for lmplementi,�g the Corrective Action: Tommy McFarland

Anticipated Completion Date of Corrective Action:

Date 11/17/2017

Planned Corrective Action:

In the future the General Manager will review and sign all purchase orders.

Signature: ft(� To my McFarland

Mark Beeler Chairman

Carroll Carman Commissioner

COMMISSIONERS

Toby Woodmore Co-Chairman

Sissie Parker Harper Secretary

Craig Moreland Commissioner

218

Hartsville/Trousdale ====-=== Water/Se,ver Utility District

November 14, 2017

P. 0. Box 66 • 328 Broadway • Hartsville, Tennessee 37074-0066Phone: 615-374-3484 • Fax: 615-374-0558

www.hartsvillewater.com



FINDING: Deficiencies in cash reconciliation


Person Responsible for Implementing the Corrective Action: Mary Dale Welch, Bookkeeper


Date 11/17/2017


On the batch reports given to the bookkeeper, each clerk will note the amounts that are in their cash drawer. The Bookkeeper will keep a daily record of the over/short amounts.

Signature:��Tommy McFarland



COMMfSSfONERS

Toby Woodmore Co-Chaitman

Sissie Parker Harper · Secretary


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November 14, 2017

Hartsville/Trousdale Water/Sewer Utility District P. 0. Box 66 • 328 Broadway • Hartsville, Tennessee 37074-0066

Phone: 615-374-3484 • Fax: 615-374-0558 www.hartsvillewater.com



FINDING: DUTIES WERE NOT SEGREGATED ADEQUATELY


Person Responsible for Implementing the Corrective Action :Mary Dale Welch


Being used now

Repeat Finding:

Yes

Reason Corrective Action was Not Taken in the Prior Year:

Personnel changes were made prior year, Current personnel were not aware of the needed action


Clerks will receive money and credit customers' accounts. At the end of the day the clerk will generate a

batch report showing total receipts with a breakdown of cash, credit cards, checks, and money orders.

The clerk will make a bank deposit based on this information, A copy of the batch report will be given to

the bookkeeper who will verify the bank deposit using the online banking application.

s;gnature S�--/



Tommy McFarland

CO1\.1MISSIONERS

Toby Woodmo.re Co-Chairman

Sissie Parker Harper Secretary


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BEST PRACTICE

Accounting literature describes a best practice as a recommended policy, procedure, or technique that aids management in improving financial performance. Historically, a best practice has consistently shown superior results over conventional methods.

The Division of Local Government Audit strongly believes that the item noted below is a best practice that should be adopted by the governing body as a means of significantly improving accountability and the quality of services provided to the citizens of Hartsville/Trousdale County Government.

HARTSVILLE/TROUSDALE COUNTY GOVERNMENT SHOULD ADOPT A CENTRAL SYSTEM OF

ACCOUNTING, BUDGETING, AND PURCHASING

Hartsville/Trousdale County Government does not have a central system of accounting, budgeting, and purchasing. Sound business practices dictate that establishing a central system would significantly improve internal controls over the accounting, budgeting, and purchasing processes. The absence of a central system of accounting, budgeting, and purchasing has been a management decision by the county commission resulting in decentralization and some duplication of effort. The Division of Local Government Audit strongly believes that the adoption of a central system of accounting, budgeting, and purchasing is a best practice that would significantly improve accountability and the quality of services provided to the citizens of the Hartsville/Trousdale County Government. Therefore, we recommend the adoption of the County Financial Management System of 1981 or a private act, which would provide for a central system of accounting, budgeting, and purchasing covering all county departments.

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Documents

ARTSVILLE/TROUSDALE COUNTY GOVERNMENT … COUNTY GOVERNMENT, TENNESSEE FOR THE YEAR ENDED JUNE 30, 2017 COMPTROLLER OF THE TREASURY ... Jerry Ford John Oliver: Don Coker Johnny Kerr