DYER COUNTY TENNESSEE - · PDF fileannual financial report dyer county, tennessee for the year ended june 30, 2017 comptroller of the treasury justin p. wilson division of local government

ANNUAL FINANCIAL REPORT

DYER COUNTY, TENNESSEE FOR THE YEAR ENDED JUNE 30, 2017

DIVISION OF LOCAL GOVERNMENT AUDIT

ANNUAL FINANCIAL REPORT

DYER COUNTY, TENNESSEE

FOR THE YEAR ENDED JUNE 30, 2017

COMPTROLLER OF THE TREASURY JUSTIN P. WILSON

DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE

Director

LEE ANN WEST, CPA, CGFM Audit Manager LAUREN LEWIS MELISSA DARBY, CPA, CFE B. KEITH RICE, CGFM ELISHA CROWELL, CISA, CFE 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 6-7

INTRODUCTORY SECTION 8

Dyer County Officials 9

FINANCIAL SECTION 10

Independent Auditor's Report 11-14BASIC FINANCIAL STATEMENTS: 15

Government-wide Financial Statements:Statement of Net Position A 16-17Statement of Activities B 18-19

Fund Financial Statements:Governmental Funds:

Balance Sheet C-1 20-21Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position C-2 22Statement of Revenues, Expenditures, and Changes in

Fund Balances C-3 23-24Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities C-4 25

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

General Fund C-5 26-27Highway/Public Works Fund C-6 28

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

Fiduciary Funds:Statement of Fiduciary Assets and Liabilities E 32

Index and Notes to the Financial Statements 33-78REQUIRED SUPPLEMENTARY INFORMATION: 79

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 80

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Primary Government F-2 81

Schedule of Contributions Based on Participation in the TeacherRetirement Pension Plan of TCRS – Discretely Presented DyerCounty School Department F-3 82

DYER COUNTY, TENNESSEETABLE OF CONTENTS

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Exhibit Page(s)

Schedule of Contributions Based on Participation in the TeacherLegacy Pension Plan of TCRS – Discretely Presented DyerCounty School Department F-4 83

Schedule of Proportionate Share of the Net Pension Asset in theTeacher Retirement Pension Plan of TCRS – Discretely PresentedDyer County School Department F-5 84

Schedule of Proportionate Share of the Net Pension Asset in theTeacher Legacy Pension Plan of TCRS – Discretely PresentedDyer County School Department F-6 85

Schedule of Funding Progress – Other Postemployment BenefitsPlan – Discretely Presented Dyer County School Department F-7 86

Notes to the Required Supplementary Information 87COMBINING AND INDIVIDUAL FUND FINANCIAL

STATEMENTS AND SCHEDULES: 88Nonmajor Governmental Funds: 89

Combining Balance Sheet G-1 90Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances G-2 91Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual and Budget:Law Library Fund G-3 92Solid Waste/Sanitation Fund G-4 93Drug Control Fund G-5 94

Major Governmental Fund: 95Schedule of Revenues, Expenditures, and Changes in Fund

Balance – Actual and Budget:General Debt Service Fund H 96

Fiduciary Funds: 97Combining Statement of Fiduciary Assets and Liabilities I-1 98Combining Statement of Changes in Assets and Liabilities –

All Agency Funds I-2 99-100Component Unit:

Discretely Presented Dyer County School Department: 101Statement of Activities J-1 102Balance Sheet – Governmental Funds J-2 103-104Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position J-3 105Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds J-4 106Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities J-5 107

Combining Balance Sheet – Nonmajor Governmental Funds J-6 108Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances – Nonmajor Governmental Funds J-7 109Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual (Budgetary Basis) and Budget:General Purpose School Fund J-8 110-111School Federal Projects Fund J-9 112Central Cafeteria Fund J-10 113School Transportation Fund J-11 114

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Exhibit Page(s)

Miscellaneous Schedules: 115Schedule of Changes in Long-term Other Loans and Bonds K-1 116Schedule of Long-term Debt Requirements by Year K-2 117Schedule of Notes Receivable K-3 118Schedule of Transfers – Discretely Presented

Dyer County School Department K-4 119Schedule of Salaries and Official Bonds of Principal Officials –

Primary Government and Discretely Presented DyerCounty School Department K-5 120

Schedule of Detailed Revenues – All Governmental Fund Types K-6 121-132Schedule of Detailed Revenues – All Governmental Fund Types –

Discretely Presented Dyer County School Department K-7 133-136Schedule of Detailed Expenditures – All Governmental Fund Types K-8 137-154Schedule of Detailed Expenditures – All Governmental Fund Types –

Discretely Presented Dyer County School Department K-9 155-166Schedule of Detailed Receipts, Disbursements, and Changes in

Cash Balances – City Agency Funds K-10 167

SINGLE AUDIT SECTION 168

Auditor's Report on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of FinancialStatements Performed in Accordance With GovernmentAuditing Standards 169-170

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 171-173

Schedule of Expenditures of Federal Awards and State Grants 174-175Summary Schedule of Prior-year Findings 176Schedule of Findings and Questioned Costs 177-183Management's Corrective Action Plan 184-190Best Practice 191

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Summary of Audit Findings Annual Financial Report Dyer County, Tennessee

For the Year Ended June 30, 2017

Scope We have audited the basic financial statements of Dyer County as of and for the year ended June 30, 2017.

Results Our report on Dyer County’s financial statements is unmodified. Our audit resulted in five findings and recommendations, which we have reviewed with Dyer County 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: OFFICE OF COUNTY MAYOR ♦ The office had deficiencies in budget operations. OFFICE OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK ♦ Unclaimed funds were not reported and paid to the state. ♦ The office did not provide documentation of the review of its software audit logs. OFFICE OF SHERIFF ♦ Some receipts were not issued at the time of collection, and some funds were not

deposited within three days of collection.

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OFFICES OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK AND SHERIFF ♦ Duties were not segregated adequately.

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INTRODUCTORY SECTION

8

Dyer County OfficialsJune 30, 2017

Officials

Chris Young, County MayorJeff Jones, Road SupervisorLarry Lusk, Director of SchoolsNancy Broadstone, TrusteeSheila Holmes, Assessor of PropertyDiane Moore, County ClerkTom Jones, Circuit and General Sessions Courts ClerkSteve Walker, Clerk and MasterDanny Fowlkes, Register of DeedsJeff Box, Sheriff

Board of County Commissioners

John Uitendaal, Chairman Steve MooreJeff Branham, III Pamela NewellJames T. Cobb Kim PeckenpaughBrandon Dodds Debra RobersonRusty Grills Steve SartinDebbie Bradshaw Hart Larry ShawverJimmy Hester Doug SingletearyDob Johnson Benny SpainRobert Kirby Vernita TurnerTerry McCreight Greg Vestal

Board of Education

LeAnn Childress, Chairman Jeremy GatlinKeith Anderson William MaySherrell Armstrong Mike McLaughlinSteve Dodds Wade NewbillCarol Feather Maria Starks

Audit Committee

John Uitendaal, ChairmanBrandon DoddsDebbie Bradshaw HartJimmy HesterDebra Roberson

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FINANCIAL SECTION

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STATE OF TENNESSEE COMPTROLLER OF THE TREASURY

DEPARTMENT OF AUDIT DIVISION OF LOCAL GOVERNMENT AUDIT

SUITE 1500 JAMES K. POLK STATE OFFICE BUILDING

NASHVILLE, TENNESSEE 37243-1402 PHONE (615) 401-7841

Independent Auditor's Report Dyer County Mayor and Board of County Commissioners Dyer County, Tennessee To the County Mayor and Board of County Commissioners: Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Dyer 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.

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An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Dyer County, Tennessee, 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 and Highway/Public Works funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information 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 rations, schedules of county and school contributions, schedules of school’s proportionate share of the net pension asset or liability, and schedule of funding progress – other postemployment benefits plans on pages 80-87 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our

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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 Dyer County’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service Fund, combining and individual fund financial statements of the Dyer County School Department (a discretely presented component unit), and miscellaneous schedules 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 and the General Debt Service Fund, combining and individual fund financial statements of the Dyer 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 and the General Debt Service Fund, combining and individual fund financial statements of the Dyer 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 has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 30, 2017, on our consideration of Dyer County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Dyer

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County’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Dyer County’s internal control over financial reporting and compliance. Very truly yours, Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee October 30, 2017 JPW/sb

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BASIC FINANCIAL STATEMENTS

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Exhibit A

Dyer County, TennesseeStatement of Net PositionJune 30, 2017

ASSETS

Cash $ 1,598 $ 880Equity in Pooled Cash and Investments 25,414,790 8,259,428Accounts Receivable 2,755 20,941Due from Other Governments 622,107 1,007,855Property Taxes Receivable 9,961,227 4,477,385Allowance for Uncollectible Property Taxes (116,810) (52,504)Accrued Interest Receivable 101,280 0Notes Receivable - Long-term 389,599 0Net Pension Asset - Teacher Retirement Plan 0 22,263Capital Assets: Assets Not Depreciated: Land 3,656,702 1,374,381 Construction in Progress 0 1,338,572 Assets Net of Accumulated Depreciation: Buildings and Improvements 8,724,562 41,815,851 Infrastructure 8,686,449 238,976 Other Capital Assets 3,390,736 4,141,487Total Assets $ 60,834,995 $ 62,645,515

DEFERRED OUTFLOWS OF RESOURCES

Deferred Amount on Refunding $ 974,742 $ 0Pension Changes in Experience 65,311 92,106Pension Changes in Investment Earnings 87,345 2,390,075Pension Other Deferrals 0 214,919Pension Contributions After Measurement Date 58,359 1,268,325Total Deferred Outflows of Resources $ 1,185,757 $ 3,965,425

LIABILITIESAccounts Payable $ 20,495 $ 466,650Accrued Payroll 0 14,365Payroll Deductions Payable 4,598 822,088Accrued Interest Payable 65,976 0Other Collections 28 0Health Insurance Payments 3,414 0Cafeteria Salaries and Benefits 0 26,855Noncurrent Liabilities: Due Within One Year 2,948,076 5,648 Due in More Than One Year 33,913,903 7,042,636Total Liabilities $ 36,956,490 $ 8,378,242

(Continued)

ComponentUnitDyer

County

Activities Department

PrimaryGovernment

Governmental School

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Exhibit A

Dyer County, TennesseeStatement of Net Position (Cont.)

DEFERRED INFLOWS OF RESOURCES

Deferred Current Property Taxes $ 9,569,887 $ 4,301,485Pension Changes in Experience 77,099 2,590,244Total Deferred Inflows of Resources $ 9,646,986 $ 6,891,729

NET POSITION

Net Investment in Capital Assets $ 19,321,374 $ 48,909,267Restricted for:

General Government 446,102 0Finance 31,246 0Administration of Justice 36,404 0Public Safety 78,072 0Highway/Public Works 4,093,017 0Education 0 16,280Support Services 0 23,240Operation of Non-instructional Services 0 1,017,425Debt Service 954,970 0Pensions 0 22,263

Unrestricted (9,543,909) 1,352,494

Total Net Position $ 15,417,276 $ 51,340,969

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

Governmental SchoolActivities Department

ComponentUnit

Primary DyerGovernment County

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Exhibit B

Dyer County, TennesseeStatement of ActivitiesFor the Year Ended June 30, 2017

Operating CapitalCharges Grants Grants

for and andFunctions/Programs Expenses Services Contributions Contributions

Primary Government: Governmental Activities: General Government $ 3,743,294 $ 315,980 $ 59,164 $ 1,812,546 $ (1,555,604) $ 0 Finance 1,390,161 988,828 0 0 (401,333) 0 Administration of Justice 1,398,504 716,856 17,338 0 (664,310) 0 Public Safety 5,607,063 1,863,768 127,695 270,283 (3,345,317) 0 Public Health and Welfare 819,534 50,499 460,865 0 (308,170) 0 Social, Cultural, and Recreational Services 759,229 0 405,643 0 (353,586) 0 Agriculture and Natural Resources 209,727 0 0 0 (209,727) 0 Highways 3,345,079 53,684 2,004,241 539,103 (748,051) 0 Education 89,493 132,228 0 0 42,735 0 Interest on Long-term Debt 1,230,843 0 290,821 0 (940,022) 0

Total Primary Government $ 18,592,927 $ 4,121,843 $ 3,365,767 $ 2,621,932 $ (8,483,385) $ 0

Component Unit: Dyer County School Department $ 35,964,141 $ 683,298 $ 5,096,565 $ 0 $ 0 $ (30,184,278)

Total Component Unit $ 35,964,141 $ 683,298 $ 5,096,565 $ 0 $ 0 $ (30,184,278)

(Continued)

Net (Expense) Revenue andChanges in Net Position

TotalGovernmental


Program RevenuesComponent

UnitGovernment

School

DyerCounty

Primary

18

Exhibit B

Dyer County, TennesseeStatement of Activities (Cont.)

Operating CapitalCharges Grants Grants

for and andFunctions/Programs Expenses Services Contributions Contributions

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 8,153,734 $ 4,648,470 Property Taxes Levied for Debt Service 2,183,568 0 Local Option Sales Taxes 64,860 4,047,677 Wheel Tax 0 1,185,094 Litigation Tax 292,878 0 Business Tax 450,106 0 Wholesale Beer Tax 80,185 0 Interstate Telecommunications Tax 0 2,718 Grants and Contributions Not Restricted to Specific Programs 1,471,514 20,280,933 Unrestricted Investment Income 184,659 58,101 Miscellaneous 177,090 300,255Total General Revenues $ 13,058,594 $ 30,523,248

Change in Net Position $ 4,575,209 $ 338,970Net Position, July 1, 2016 10,842,067 51,001,999

Net Position, June 30, 2017 $ 15,417,276 $ 51,340,969


Program Revenues UnitPrimary

Changes in Net PositionNet (Expense) Revenue and


DyerTotal County

Governmental School

Government

Component

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Exhibit C-1

Dyer County, TennesseeBalance SheetGovernmental FundsJune 30, 2017

OtherHighway / General Govern- Total

Public Debt mental GovernmentalGeneral Works Service Funds Funds

ASSETS

Cash $ 0 $ 0 $ 0 $ 1,598 $ 1,598Equity in Pooled Cash and Investments 19,180,232 3,956,873 1,449,322 141,255 24,727,682Accounts Receivable 2,755 0 0 0 2,755Due from Other Governments 266,896 336,605 12,394 6,212 622,107Due from Other Funds 1,598 0 0 4,198 5,796Property Taxes Receivable 6,135,862 1,724,915 2,100,450 0 9,961,227Allowance for Uncollectible Property Taxes (71,952) (20,227) (24,631) 0 (116,810)Accrued Interest Receivable 0 0 101,280 0 101,280Notes Receivable - Long-term 389,599 0 0 0 389,599

Total Assets $ 25,904,990 $ 5,998,166 $ 3,638,815 $ 153,263 $ 35,695,234

LIABILITIES

Accounts Payable $ 1,741 $ 0 $ 0 $ 18,754 $ 20,495Payroll Deductions Payable 4,474 124 0 0 4,598Due to Other Funds 4,198 0 0 1,598 5,796Other Collections 28 0 0 0 28Health Insurance Payments 3,340 74 0 0 3,414Total Liabilities $ 13,781 $ 198 $ 0 $ 20,352 $ 34,331


Deferred Current Property Taxes $ 5,894,806 $ 1,657,150 $ 2,017,931 $ 0 $ 9,569,887Deferred Delinquent Property Taxes 135,045 37,940 46,204 0 219,189Other Deferred/Unavailable Revenue 0 168,302 7,000 0 175,302Total Deferred Inflows of Resources $ 6,029,851 $ 1,863,392 $ 2,071,135 $ 0 $ 9,964,378

(Continued)

Major FundsNonmajor

Funds

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Exhibit C-1

Dyer County, TennesseeBalance SheetGovernmental Funds (Cont.)



FUND BALANCES

Nonspendable:Long-term Notes Receivable $ 389,599 $ 0 $ 0 $ 0 $ 389,599

Restricted:Restricted for General Government 56,503 0 0 0 56,503Restricted for Finance 31,246 0 0 0 31,246Restricted for Administration of Justice 183 0 0 36,221 36,404Restricted for Public Safety 13,891 0 0 64,181 78,072Restricted for Highways/Public Works 0 3,886,775 0 0 3,886,775

Committed:Committed for Public Health and Welfare 0 0 0 32,509 32,509Committed for Highways/Public Works 0 247,801 0 0 247,801Committed for Debt Service 0 0 1,567,680 0 1,567,680

Unassigned 19,369,936 0 0 0 19,369,936Total Fund Balances $ 19,861,358 $ 4,134,576 $ 1,567,680 $ 132,911 $ 25,696,525

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 25,904,990 $ 5,998,166 $ 3,638,815 $ 153,263 $ 35,695,234


Major FundsNonmajor

Funds

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Exhibit C-2

Dyer County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position

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

Total fund balances - balance sheet - governmental funds (Exhibit C-1) $ 25,696,525

(1) Capital assets used in governmental activities are not financial resourcesand therefore are not reported in the governmental funds. Add: land $ 3,656,702 Add: buildings and improvements net of accumulated depreciation 8,724,562 Add: infrastructure net of accumulated depreciation 8,686,449 Add: other capital assets net of accumulated depreciation 3,390,736 24,458,449

(2) Internal service funds are used by management to charge the costs ofworkers' compensation benefits to individual funds. The assets andliabilities of the internal service fund are included in governmentalactivities in the statement of net position. 687,108

(3) Long-term liabilities are not due and payable in the current period andtherefore are not reported in the governmental funds. Less: other loans payable $ (8,671,549) Less: bonds payable (27,675,000) Less: accrued interest on bonds (65,976) Less: other deferred revenue - premium on debt (407,945) Add: deferred amount on unamortized debt discount 27,703 Add: deferred amount on refunding 974,742 Less: net pension liability - agent plan (135,188) (35,953,213)

(4) Amounts reported as deferred outflows of resources and deferred inflows ofresources related to pensions will be amortized and recognized ascomponents of pension expense in future years. Add: deferred outflows of resources related to pensions $ 211,015 Less: deferred inflows of resources related to pensions (77,099) 133,916

(5) Other long-term assets are not available to pay for current-periodexpenditures and therefore are deferred in the governmental funds. 394,491

Net position of governmental activities (Exhibit A) $ 15,417,276


June 30, 2017

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Exhibit C-3

Dyer County, TennesseeStatement of Revenues, Expenditures,

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



RevenuesLocal Taxes $ 7,211,971 $ 1,795,311 $ 3,442,648 $ 84,845 $ 12,534,775Licenses and Permits 127,235 0 0 0 127,235Fines, Forfeitures, and Penalties 143,434 0 0 84,648 228,082Charges for Current Services 295,025 0 0 43,004 338,029Other Local Revenues 297,222 81,449 151,836 22,806 553,313Fees Received From County Officials 1,661,809 0 0 0 1,661,809State of Tennessee 4,136,628 2,012,625 0 0 6,149,253Federal Government 309,107 0 256,188 0 565,295Other Governments and Citizens Groups 47,914 0 0 0 47,914

Total Revenues $ 14,230,345 $ 3,889,385 $ 3,850,672 $ 235,303 $ 22,205,705

ExpendituresCurrent:

General Government $ 3,428,162 $ 0 $ 0 $ 0 $ 3,428,162Finance 1,413,277 0 0 1,839 1,415,116Administration of Justice 1,392,382 0 0 819 1,393,201Public Safety 5,314,724 0 0 65,692 5,380,416Public Health and Welfare 654,105 0 0 132,005 786,110Social, Cultural, and Recreational Services 742,320 0 0 0 742,320Agriculture and Natural Resources 208,973 0 0 0 208,973Other Operations 176,991 0 0 0 176,991Highways 0 3,515,698 0 0 3,515,698

Debt Service:Principal on Debt 0 0 2,885,647 0 2,885,647Interest on Debt 0 0 1,166,925 0 1,166,925Other Debt Service 0 0 227,514 0 227,514

Total Expenditures $ 13,330,934 $ 3,515,698 $ 4,280,086 $ 200,355 $ 21,327,073

(Continued)

Major FundsNonmajor

Funds

23

Exhibit C-3


and Changes in Fund BalancesGovernmental Funds (Cont.)



Excess (Deficiency) of RevenuesOver Expenditures $ 899,411 $ 373,687 $ (429,414) $ 34,948 $ 878,632

Other Financing Sources (Uses)Refunding Debt Issued $ 0 $ 0 $ 9,975,000 $ 0 $ 9,975,000Premiums on Debt Sold 0 0 189,989 0 189,989Insurance Recovery 39,446 0 0 0 39,446Payments to Refunded Debt Escrow Agent 0 0 (10,087,808) 0 (10,087,808)

Total Other Financing Sources (Uses) $ 39,446 $ 0 $ 77,181 $ 0 $ 116,627

Net Change in Fund Balances $ 938,857 $ 373,687 $ (352,233) $ 34,948 $ 995,259Fund Balance, July 1, 2016 18,922,501 3,760,889 1,919,913 97,963 24,701,266

Fund Balance, June 30, 2017 $ 19,861,358 $ 4,134,576 $ 1,567,680 $ 132,911 $ 25,696,525


Major FundsNonmajor

Funds

24

Exhibit C-4

Dyer County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesFor the Year Ended June 30, 2017

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

Net change in fund balances - total governmental funds (Exhibit C-3) $ 995,259

(1) Governmental funds report capital outlays as expenditures. However, in thestatement of activities, the cost of these assets is allocated over their useful lives andreported as depreciation expense. The difference between capital outlays anddepreciation is itemized as follows: Add: capital assets purchased in the current period $ 1,788,854 Less: current-year depreciation expense (1,778,509) 10,345

(2) The net effect of various miscellaneous transactions involving capital assets (sales,trade-ins, and donations) is to increase net position. Add: assets donated and capitalized 809,386

(3) Internal service funds are used by management to charge the costs of workers'benefits to individual funds. The net revenue (expense) of certain activities of theinternal service fund is reported with governmental activities in the statement ofactivities. (2,330)

(4) Revenues in the statement of activities that do not provide current financialresources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2017 $ 394,491 Less: deferred delinquent property taxes and other deferred June 30, 2016 (408,307) (13,816)

(5) The issuance of long-term debt (e.g., bonds) provides current financial resources togovernmental funds, while the repayment of the principal of long-term debtconsumes the current financial resources of governmental funds. Neithertransaction, however, has any effect on net position. Also, governmental funds reportthe effect of premiums, discounts, and similar items when debt is first issued,whereas, these amounts are deferred and amortized in the statement of activities.This amount is the net effect of these differences in the treatment of long-term debtand related items. Less: refunding bond proceeds $ (9,975,000) Add: refunded bond principal 9,200,000 Add: principal payments on other loans 921,038 Add: principal payments on bonds 1,955,000 Add: change in deferred amount on refunding debt 809,313 Less: change in premium on debt issuances (155,356) Less: change in discount on debt issuances (3,113) 2,751,882

(6) Some expenses reported in the statement of activities do not require the use ofcurrent financial resources and therefore are not reported as expenditures in thegovernmental funds. Change in accrued interest payable $ 17,690 Change in net pension liability - agent plan (3,176) Change in deferred outflows related to pensions 56,904 Change in deferred inflows related to pensions (46,935) 24,483

Change in net position of governmental activities (Exhibit B) $ 4,575,209


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Exhibit C-5

Dyer County, 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 $ 7,211,971 $ 7,076,220 $ 7,076,220 $ 135,751Licenses and Permits 127,235 126,800 126,800 435Fines, Forfeitures, and Penalties 143,434 156,458 156,458 (13,024)Charges for Current Services 295,025 218,800 218,800 76,225Other Local Revenues 297,222 220,990 270,359 26,863Fees Received From County Officials 1,661,809 1,556,000 1,586,000 75,809State of Tennessee 4,136,628 2,240,799 4,168,745 (32,117)Federal Government 309,107 344,000 344,000 (34,893)Other Governments and Citizens Groups 47,914 27,000 27,000 20,914

Total Revenues $ 14,230,345 $ 11,967,067 $ 13,974,382 $ 255,963

ExpendituresGeneral Government

County Commission $ 103,399 $ 105,518 $ 105,518 $ 2,119Board of Equalization 1,953 3,000 3,000 1,047Other Boards and Committees 3,240 3,500 3,500 260County Mayor/Executive 226,336 229,322 229,322 2,986County Attorney 32,030 51,293 41,293 9,263Election Commission 332,956 355,751 365,251 32,295Register of Deeds 180,128 212,270 186,610 6,482Planning 143,368 137,410 149,271 5,903County Buildings 383,602 461,902 392,432 8,830Other General Administration 1,987,308 239,079 2,023,265 35,957Preservation of Records 33,842 55,000 61,183 27,341

FinanceAccounting and Budgeting 170,488 167,723 176,608 6,120Property Assessor's Office 285,357 308,397 293,397 8,040Reappraisal Program 54,362 55,629 55,629 1,267County Trustee's Office 235,010 251,879 251,879 16,869County Clerk's Office 390,912 451,105 451,105 60,193Other Finance 277,148 46,940 287,028 9,880

Administration of JusticeCircuit Court 470,178 463,083 486,194 16,016General Sessions Court 213,646 215,875 215,875 2,229Drug Court 48,585 70,000 70,000 21,415Chancery Court 345,840 344,357 354,357 8,517Juvenile Court 252,555 310,741 273,655 21,100Other Administration of Justice 61,578 70,340 68,840 7,262

Public SafetySheriff's Department 2,340,391 2,357,389 2,425,397 85,006Drug Enforcement 6,566 10,348 10,348 3,782Jail 2,307,872 2,394,860 2,376,779 68,907Workhouse 325,492 388,254 388,754 63,262Fire Prevention and Control 274,859 294,698 294,698 19,839Disaster Relief 40,562 49,288 49,288 8,726County Coroner/Medical Examiner 9,540 13,000 13,000 3,460Other Public Safety 9,442 9,547 10,147 705

(Continued)

Budgeted Amounts

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Exhibit C-5


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



Expenditures (Cont.)Public Health and Welfare

Local Health Center $ 94,888 $ 105,372 $ 111,372 $ 16,484Rabies and Animal Control 94,750 94,750 94,750 0Alcohol and Drug Programs 16,584 16,965 25,325 8,741Crippled Children Services 1,240 1,240 1,240 0Other Local Health Services 120,146 135,703 135,703 15,557General Welfare Assistance 84,738 92,932 92,932 8,194Aid to Dependent Children 120,449 155,400 155,400 34,951Other Local Welfare Services 29,586 65,300 65,300 35,714Sanitation Education/Information 81,724 96,136 90,436 8,712Other Public Health and Welfare 10,000 0 10,000 0

Social, Cultural, and Recreational ServicesAdult Activities 56,620 50,931 59,531 2,911Senior Citizens Assistance 422,616 370,427 440,427 17,811Libraries 144,500 144,500 144,500 0Parks and Fair Boards 2,295 2,295 2,295 0Other Social, Cultural, and Recreational 116,289 119,946 122,446 6,157

Agriculture and Natural ResourcesAgricultural Extension Service 153,149 159,700 159,700 6,551Soil Conservation 24,125 28,210 28,210 4,085Flood Control 31,699 33,619 33,619 1,920

Other OperationsIndustrial Development 0 50,000 0 0Veterans' Services 25,158 21,435 25,635 477Miscellaneous 151,833 146,500 176,500 24,667

Total Expenditures $ 13,330,934 $ 12,018,859 $ 14,088,944 $ 758,010

Excess (Deficiency) of RevenuesOver Expenditures $ 899,411 $ (51,792) $ (114,562) $ 1,013,973

Other Financing Sources (Uses)Insurance Recovery $ 39,446 $ 0 $ 29,660 $ 9,786Transfers In 0 105,448 138,558 (138,558)

Total Other Financing Sources $ 39,446 $ 105,448 $ 168,218 $ (128,772)

Net Change in Fund Balance $ 938,857 $ 53,656 $ 53,656 $ 885,201Fund Balance, July 1, 2016 18,922,501 18,940,160 18,940,160 (17,659)

Fund Balance, June 30, 2017 $ 19,861,358 $ 18,993,816 $ 18,993,816 $ 867,542


Budgeted Amounts

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Exhibit C-6


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

Actual VarianceRevenues/ with Final

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

RevenuesLocal Taxes $ 1,795,311 $ 0 $ 1,795,311 $ 1,747,420 $ 1,747,420 $ 47,891Other Local Revenues 81,449 0 81,449 63,527 63,527 17,922State of Tennessee 2,012,625 0 2,012,625 2,477,202 2,851,591 (838,966)

Total Revenues $ 3,889,385 $ 0 $ 3,889,385 $ 4,288,149 $ 4,662,538 $ (773,153)

ExpendituresHighways

Administration $ 174,776 $ 0 $ 174,776 $ 202,657 $ 180,397 $ 5,621Highway and Bridge Maintenance 2,219,414 0 2,219,414 3,190,014 3,348,857 1,129,443Operation and Maintenance of Equipment 459,625 0 459,625 660,926 552,243 92,618Other Charges 162,173 0 162,173 175,000 183,565 21,392Employee Benefits 214,411 0 214,411 294,500 230,775 16,364Capital Outlay 285,299 749,138 1,034,437 599,767 1,470,196 435,759

Total Expenditures $ 3,515,698 $ 749,138 $ 4,264,836 $ 5,122,864 $ 5,966,033 $ 1,701,197

Excess (Deficiency) of RevenuesOver Expenditures $ 373,687 $ (749,138) $ (375,451) $ (834,715) $ (1,303,495) $ 928,044

Net Change in Fund Balance $ 373,687 $ (749,138) $ (375,451) $ (834,715) $ (1,303,495) $ 928,044Fund Balance, July 1, 2016 3,760,889 0 3,760,889 2,521,583 2,521,583 1,239,306

Fund Balance, June 30, 2017 $ 4,134,576 $ (749,138) $ 3,385,438 $ 1,686,868 $ 1,218,088 $ 2,167,350


Budgeted Amounts

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Exhibit D-1Dyer County, TennesseeStatement of Net PositionProprietary FundJune 30, 2017

ASSETS

Current Assets:Equity in Pooled Cash and Investments $ 687,108

Total Assets $ 687,108

NET POSITION

Unrestricted $ 687,108

Total Net Position $ 687,108


Governmental Activities -

Internal Service Fund

Workers' Compensation

Fund

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

Operating Revenues Self-Insurance Premiums $ 161,216Total Operating Revenues $ 161,216

Operating Expenses Workers' Compensation Insurance $ 96,860 Other Self-Insured Claims 66,686Total Operating Expenses $ 163,546Operating Income (Loss) $ (2,330)

Change in Net Position $ (2,330)Net Position, July 1, 2016 689,438

Net Position, June 30, 2017 $ 687,108





Fund

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Exhibit D-3Dyer County, TennesseeStatement of Cash FlowsProprietary FundFor the Year Ended June 30, 2017

Cash Flows from Operating Activities Receipts from Self-Insurance Premiums $ 161,216 Payments for Workers' Compensation Insurance (96,860) Payments for Claims (66,686)Net Cash Provided By (Used In) Operating Activities $ (2,330)

Net Decrease in Cash $ (2,330)Cash, July 1, 2016 689,438

Cash, June 30, 2017 $ 687,108

Reconciliation of Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ (2,330)

Net Cash Provided By (Used In) Operating Activities $ (2,330)

Reconciliation of Cash With the Statement of Net PositionCash Per Net Position $ 687,108

Cash, June 30, 2017 $ 687,108





Fund

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Exhibit EDyer County, TennesseeStatement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2017

ASSETS

Cash $ 2,001,880Equity in Pooled Cash and Investments 241,656Due from Other Governments 1,075,279Property Taxes Receivable 2,396,817Allowance for Uncollectible Property Taxes (28,106)

Total Assets $ 5,687,526

LIABILITIES

Due to Other Taxing Units $ 3,680,947Due to Litigants, Heirs, and Others 2,006,579

Total Liabilities $ 5,687,526


AgencyFunds

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Note Page(s)

I. Summary of Significant Accounting PoliciesA. Reporting Entity 34B. Government-wide and Fund Financial Statements 35C. Measurement Focus, Basis of Accounting, and Financial

Statement Presentation 36D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and

Net Position/Fund Balance1. Deposits and Investments 382. Receivables and Payables 393. Capital Assets 404. Deferred Outflows/Inflows of Resources 405. Compensated Absences 416. Long-term Obligations 417. Net Position and Fund Balance 428. Stabilization Arrangement 43

E. Pension Plans 44II. 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 44

B. Explanation of Certain Differences Between the Governmental FundStatement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 45

III. Stewardship, Compliance, and AccountabilityA. Budgetary Information 45B. Expenditures Exceeded Appropriations 46

IV. Detailed Notes on All FundsA. Deposits and Investments 46B. Notes Receivable – Long-term 49C. Capital Assets 49D. Construction Commitments 51E. Interfund Receivables, Payables, and Transfers 51F. Long-term Obligations 52G. On-Behalf Payments 55

V. Other InformationA. Risk Management 56B. Accounting Changes 57C. Contingent Liabilities 58D. Change in Administration 58E. Joint Ventures 58F. Retirement Commitments 60G. Other Postemployment Benefits (OPEB) 75H. Purchasing Laws 78

DYER COUNTY, TENNESSEEIndex of Notes to the Financial Statements

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DYER COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS


I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Dyer County’s financial statements are presented in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments. The following are the more significant accounting policies of Dyer County:

A. Reporting Entity

Dyer County is a public municipal corporation governed by an elected 20-member board. As required by GAAP, these financial statements present Dyer County (the primary government) and its component units. The financial statements of the Dyer County Emergency Communications District, a component unit requiring discrete presentation, were excluded from this report due to materiality calculations; therefore, the effect of the omission did not affect the independent auditor’s opinion thereon. The component units discussed below are included in the county's reporting entity because of the significance of their operational or financial relationships with the county. Discretely Presented Component Units – The following entities meet the criteria for discretely presented component units of the county. They are reported in separate columns in the government-wide financial statements to emphasize that they are legally separate from the county. The Dyer County School Department operates the public school system in the county, and the voters of Dyer County elect its board. The School Department is fiscally dependent on the county because it may not issue debt, and its budget and property tax levy are subject to the county commission’s approval. The School Department’s taxes are levied under the taxing authority of the county and are included as part of the county’s total tax levy. The Dyer County Emergency Communications District provides a simplified means of securing emergency services through a uniform emergency number for the residents of Dyer County, and the Dyer County Commission appoints its governing body. The district is funded primarily through a service charge levied on telephone services. Before the issuance of most debt instruments, the district must obtain the county commission’s approval. The financial statements of the Dyer County Emergency Communications District were not material to the component units’ opinion unit and therefore have been omitted from this report. The Dyer County School Department does not issue separate financial statements from those of the county. Therefore, basic financial statements of

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the School Department are included in this report as listed in the table of contents. Complete financial statements of the Dyer County Emergency Communications District can be obtained from its administrative office at the following address:

Administrative Office: Dyer County Emergency Communications District P.O. Box 367 Dyersburg, TN 38024

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. However, the primary government of Dyer County does not have any business-type activities to report. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The Dyer County School Department component unit only reports governmental activities in the government-wide financial statements. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Dyer County issues all debt for the discretely presented Dyer County School Department. There were no debt issues contributed by the county to the School Department during the year ended June 30, 2017. Separate financial statements are provided for governmental funds, the proprietary fund (internal service), and fiduciary funds. The internal service fund is reported with the governmental activities in the government-wide financial statements, and the fiduciary funds are excluded from the

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government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary funds financial statements, except for agency funds, which have no measurement focus. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Fund financial statements of Dyer County are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, deferred outflow of resources, liabilities, deferred inflow of resources, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental category. Dyer County only reports one proprietary fund, an internal service fund. It has no enterprise funds to report. Separate financial statements are provided for governmental funds, the proprietary fund, and fiduciary funds. Major individual governmental funds are reported as separate columns in the fund financial statements. All other governmental funds are aggregated into a single column on the fund financial statements. The internal service fund and the fiduciary funds in total are reported in single columns by fund type. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they become both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the county considers revenues other than grants to be available if they are collected within 30 days after year-end. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met and the revenues are available. Dyer County considers grants and similar revenues to be available if they are collected within 60 days after year-end. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Principal and interest on long-term debt are recognized as fund liabilities when due or when amounts have been accumulated in the General Debt Service Fund for payments to be made early in the following year.

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Property taxes for the period levied, in-lieu-of tax payments, sales taxes, interest, and miscellaneous taxes are all considered to be susceptible to accrual and have been recognized as revenues of the current period. Applicable business taxes, litigation taxes, state-shared excise taxes, fines, forfeitures, and penalties are not susceptible to accrual since they are not measurable (reasonably estimable). All other revenue items are considered to be measurable and available only when the county receives cash. Proprietary fund and fiduciary 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. Dyer County reports the following major governmental funds:

General Fund – This is the county’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Highway/Public Works Fund – This special revenue fund accounts for transactions of the county’s Highway Department. Local and state gasoline/fuel taxes are the foundational revenues of this fund. General Debt Service Fund – This fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds.

Additionally, Dyer County reports the following fund types: Internal Service Fund – The Workers’ Compensation Fund is used to account for the self-insured workers’ compensation programs managed by the county for the primary government and the discretely presented Dyer County School Department. Premiums charged to the various funds are placed in this fund for the payment of claims of employees. Agency Funds – These funds account for local sales taxes received by the state to be forwarded to the various cities in Dyer County, assets held in a custodial capacity for two watershed districts, the city school system’s share of educational revenues, amounts collected in an agency capacity by the constitutional officers, and restricted revenues held for the benefit of the Office of District Attorney General. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. They do, however, use the accrual basis of accounting to recognize receivables and payables.

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The discretely presented Dyer County School Department reports the following major governmental funds:

General Purpose School Fund – This fund is the primary operating fund for the School Department. It is used to account for general operations of the School Department. School Transportation Fund – This special revenue fund is used to account for the transportation of students in the school system. Local taxes are the foundational revenues of this fund.

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

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

1. Deposits and Investments

For purposes of the Statement of Cash Flows, cash includes cash on deposit with the county trustee. State statutes authorize the government to make direct investments in bonds, notes, or treasury bills of the U.S. government and obligations guaranteed by the U.S. government or any of its agencies; deposit accounts at state and federal chartered banks and savings and loan associations; repurchase agreements; the State Treasurer’s Investment Pool; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; nonconvertible debt securities of certain federal government sponsored enterprises; and the county’s own legally issued bonds or notes. The county trustee maintains a cash and internal investment pool that is used by all funds and the discretely presented Dyer County School Department. Each fund’s portion of this pool is displayed on the balance sheets or statements of net position as Equity in Pooled Cash and Investments. Most income from these pooled investments is assigned

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to the General Debt Service Fund. Dyer County and the School Department have adopted a policy of reporting U.S. Treasury obligations, U.S. agency obligations, and repurchase agreements with maturities of one year or less when purchased on the balance sheet at amortized cost. Certificates of deposit are reported at cost. Investments in the State Treasurer’s Investment Pool are reported at amortized cost using a stable net asset value. State statutes require the state treasurer to administer the pool under the same terms and conditions, including collateral requirements, as prescribed for other funds invested by the state treasurer. All other investments are reported at fair value.

2. Receivables and Payables Activity between funds for unremitted current collections outstanding at the end of the fiscal year is referred to as due to/from other funds. Property taxes receivable are shown with an allowance for uncollectibles. The allowance for uncollectible property taxes is equal to .59 percent of total taxes levied. Property taxes receivable are recognized as of the date an enforceable legal claim to the taxable property arises. This date is January 1 and is referred to as the lien date. However, revenues from property taxes are recognized in the period for which the taxes are levied, which is the ensuing fiscal year. Since the receivable is recognized before the period of revenue recognition, the entire amount of the receivable, less an estimated allowance for uncollectible taxes, is reported as a deferred inflow of resources as of June 30. Property taxes receivable are also reported as of June 30 for the taxes that are levied, collected, and reported as revenue during the current fiscal year. These property taxes receivable are presented on the balance sheet as a deferred inflow of resources to reflect amounts not available as of June 30. Property taxes collected within 30 days of year-end are considered available and accrued. The allowance for uncollectible taxes represents the estimated amount of the receivable that will be filed in court for collection. Delinquent taxes filed in court for collection are not included in taxes receivable since they are neither measurable nor available. 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.

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3. Capital Assets Governmental funds do not capitalize the cost of capital outlays; these funds report capital outlays as expenditures upon acquisition. Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, and similar items), are reported in the governmental column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $15,000 and an estimated useful life of more than one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant, equipment, and infrastructure of the primary government and the discretely presented School Department are depreciated using the straight-line method over the following estimated useful lives:

Assets Years

Buildings and Improvements 20 - 50Other Capital Assets 3 - 15Infrastructure: Roads 5 - 10 Bridges 20 - 50

4. Deferred Outflows/Inflows of Resources

In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has items that qualify for reporting in this category. Accordingly, the items are reported in the government-wide Statement of Net Position. These items are for the deferred charge on refunding, pension changes in experience and changes in investment earnings, pension changes in proportion of net pension liability (asset), and employer contributions made to the pension plan after the measurement date.

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

5. Compensated Absences The general policy of Dyer County does not allow employees to accumulate vacation days beyond the employee’s anniversary date. The discretely presented Dyer County School Department allows employees to accumulate a limited amount of earned but unused vacation benefits, which will be paid to employees upon separation from service. All vacation leave is accrued when incurred in the government-wide statements for the School Department. A liability for vacation benefits is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The granting of sick leave has no guaranteed payment attached and therefore is not required to be accrued or recorded.

6. Long-term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities Statement of Net Position. Debt premiums and discounts are deferred and 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

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withheld from the actual debt proceeds received, are reported as debt service expenditures. Only the matured portion (the portion that has come due for payment) of long-term indebtedness, including bonds payable, is recognized as a liability and expenditure in the governmental fund financial statements. Liabilities and expenditures for other long-term obligations, including compensated absences, other postemployment benefits, and pension liabilities are recognized to the extent that the liabilities have matured (come due for payment) each period.

7. Net Position and Fund Balance In the government-wide financial statements and the proprietary fund (internal service 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, Dyer County had $31,436,549 in outstanding debt issued for capital purposes for the discretely presented Dyer County School Department. In accordance with state statutes, certain county school debt proceeds must be shared with other public school systems in the county (City of Dyersburg School System) based on the average daily attendance proration. This debt is a liability of Dyer County, but the capital assets acquired are reported in the financial statements of the School Department and the City of Dyersburg School System. Therefore, Dyer County has incurred a liability, significantly decreasing its unrestricted net position with no corresponding increase in the county’s capital assets. It is the county’s policy that restricted amounts would be reduced first followed by unrestricted amounts when expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available. Also, it is the county’s policy that committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which

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

Nonspendable Fund Balance – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund Balance – includes amounts that have constraints placed on the use of the resources that are either (a) externally imposed by creditors, grantors, contributors or laws and regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal resolutions of the county commission, the county’s highest level of decision-making authority and the Board of Education, the School Department’s highest level of decision-making authority, and shall remain binding unless removed in the same manner. Assigned Fund Balance – includes amounts that are constrained by the county’s intent to be used for specific purposes, but are neither restricted nor committed (excluding stabilization arrangements). The county commission has by resolution authorized the county’s Budget/Finance 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.

8. Stabilization Arrangement

Dyer County sold its hospital in a prior year. The county commission adopted a resolution to retain the principal intact and appropriate the interest income earned on the investment of these funds annually through the budgetary process. The principal balance in this stabilization arrangement totaled $18,000,000 at June 30, 2017. Of this

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amount, $389,599 is a long-term note receivable and is offset by nonspendable fund balance. However, the remaining balance of $17,610,401 is included in the General Fund’s unassigned fund balance account since this arrangement does not meet the criteria for restricted or committed fund balance as defined by GASB Statement No. 54.

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

II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

A. Explanation of certain differences between the governmental fund

balance sheet and the government-wide Statement of Net Position Primary Government Exhibit C-2 includes explanations of the nature of individual elements of items required to reconcile the balance sheet of governmental funds with the government-wide Statement of Net Position.

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Discretely Presented Dyer County School Department Exhibit J-3 includes explanations of the nature of individual elements of items required to reconcile the balance sheet of governmental funds with the government-wide Statement of Net Position.

B. Explanation of certain differences between the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the government-wide Statement of Activities Primary Government Exhibit C-4 includes explanations of the nature of individual elements of items required to reconcile the net change in fund balances – total governmental funds with the changes in net position of governmental activities reported in the government-wide Statement of Activities. Discretely Presented Dyer County School Department Exhibit J-5 includes explanations of the nature of individual elements of items required to reconcile the net change in fund balances – total governmental funds with the change in net position of governmental activities reported in the government-wide Statement of Activities.

III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information

Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all governmental funds except the Constitutional Officers - Fees Fund (special revenue fund), which is not budgeted. All annual appropriations lapse at fiscal year end. The county is required by state statute to adopt annual budgets. Annual budgets are prepared on the basis in which current available funds must be sufficient to meet current expenditures. Expenditures and encumbrances may not legally exceed appropriations authorized by the county commission and any authorized revisions. Unencumbered appropriations lapse at the end of each fiscal year. The budgetary level of control is at the major category level established by the County Uniform Chart of Accounts, as prescribed by the Comptroller of the Treasury of the State of Tennessee. Major categories are at the department level (examples of General Fund major categories: County Commission, Board of Equalization, Other Boards and Committees, County Mayor/Executive, etc.). Management may make revisions within major categories, but only the county commission may transfer appropriations between major categories. During the year, several supplementary appropriations were necessary.

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The county's budgetary basis of accounting is consistent with GAAP, except instances in which encumbrances are treated as budgeted expenditures. The difference between the budgetary basis and GAAP basis is presented on the face of each budgetary schedule. At June 30, 2017, Dyer County and the Dyer County School Department reported the following significant encumbrances: Fund Description Amount

Primary Government: Major Fund: Highway/Public Works Road Paving $ 749,138

School Department: Major Fund: General Purpose School School Renovations 63,455 " Roofing 1,074,750 " Engineering Lab 108,996 School Transportation Buses 200,998 Nonmajor Fund: Central Cafeteria Cafeteria Furniture 92,599

B. Expenditures Exceeded Appropriations Expenditures exceeded total appropriations approved by the county commission in the Solid Waste/Sanitation Fund by $2,540. Expenditures that exceed appropriations are a violation of state statutes. These expenditures in excess of appropriations were funded by available fund balance.

IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments

Dyer County and the Dyer County School Department participate in an internal cash and investment pool through the Office of Trustee. The county trustee is the treasurer of the county and in this capacity is responsible for receiving, disbursing, and investing most county funds. Each fund’s portion of this pool is displayed on the balance sheets or statements of net position as Equity in Pooled Cash and Investments. Cash 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.

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Participating banks determine the aggregate balance of their public fund accounts for the State of Tennessee and its political subdivisions. The amount of collateral required to secure these public deposits must equal at least 105 percent of the average daily balance of public deposits held. Collateral securities required to be pledged by the participating banks to protect their public fund accounts are pledged to the state treasurer on behalf of the bank collateral pool. The securities pledged to protect these accounts are pledged in the aggregate rather than against each account. The members of the pool may be required by agreement to pay an assessment to cover any deficiency. Under this additional assessment agreement, public fund accounts covered by the pool are considered to be insured for purposes of credit risk disclosure. For deposits with financial institutions that do not participate in the bank collateral pool, state statutes require that all deposits be collateralized with collateral whose market value is equal to 105 percent of the uninsured amount of the deposits. The collateral must be placed by the depository bank in an escrow account in a second bank for the benefit of the county. Investments Legal Provisions. Counties are authorized to make direct investments in bonds, notes, or treasury bills of the U.S. government and obligations guaranteed by the U.S. government or any of its agencies; deposits at state and federal chartered banks and savings and loan associations; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; nonconvertible debt securities of certain federal government sponsored enterprises; and the county’s own legally issued bonds or notes. These investments may not have a maturity greater than two years. The county may make investments with longer maturities if various restrictions set out in state law are followed. Counties are also authorized to make investments in the State Treasurer’s Investment Pool and in repurchase agreements. Repurchase agreements must be approved by the state Comptroller’s Office and executed in accordance with procedures established by the State Funding Board. Securities purchased under a repurchase agreement must be obligations of the U.S. government or obligations guaranteed by the U.S. government or any of its agencies. When repurchase agreements are executed, the purchase of the securities must be priced at least two percent below the fair value of the securities on the day of purchase. Investment Balances. As of June 30, 2017, Dyer County had the following investments carried at fair value within the fair value hierarchy established by generally accepted accounting principles. Separate disclosures concerning pooled investments cannot be made for Dyer County and the discretely presented Dyer County School Department since both pool their deposits and investments through the county trustee.

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Investment Maturities Fair Value

Municipal Bonds 3-1-18 to 9-1-31 9,832,915$

Fair Value

Measurement Using

QuotedPrices in

ActiveMarkets for

Identical Fair Value Assets

Investment by fair value level 6-30-17 (Level 1)

Municipal Bonds $ 9,832,915 $ 9,832,915

Total $ 9,832,915 $ 9,832,915

Fair value investments classified at Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Fair value investments classified as Level 2 of the fair value hierarchy are valued using the active market rates for the underlying securities. Fair value investments classified as Level 3 of the fair value hierarchy are valued using non-observable inputs. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. State statutes limit the maturities of certain investments as previously disclosed. Dyer County does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State statutes limit the ratings of certain investments as previously explained. Dyer County has no investment policy that would further limit its investment choices. Dyer County investments in municipal bonds were rated from Aaa to A2 by Moody’s Investor’s Service and from AAA to A+ by Standard and Poor’s ratings. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of the county’s investment in a single issuer. Dyer County places no limit on the amount the county may invest in one issuer. More than five percent of the county’s investments are in municipal bonds. These investments are 100 percent of the county’s total investments.

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B. Notes Receivable – Long-term Notes receivable of $389,599 in the General Fund represent a long-term loan made to the Dyer County Industrial Development Board for industrial purposes and are offset by nonspendable fund balance.

C. 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 $ 3,656,702 $ 0 $ 0 $ 3,656,702Total Capital Assets Not Depreciated $ 3,656,702 $ 0 $ 0 $ 3,656,702

Capital Assets Depreciated:Buildings and Improvements $ 13,109,068 $ 182,925 $ 0 $ 13,291,993Infrastructure 23,816,319 1,590,006 0 25,406,325Other Capital Assets 8,078,633 825,309 (199,621) 8,704,321Total Capital Assets Depreciated $ 45,004,020 $ 2,598,240 $ (199,621) $ 47,402,639

Less Accumulated Depreciation For:Buildings and Improvements $ 4,225,598 $ 341,833 $ 0 $ 4,567,431Infrastructure 15,797,771 922,105 0 16,719,876Other Capital Assets 4,998,635 514,571 (199,621) 5,313,585Total Accumulated Depreciation $ 25,022,004 $ 1,778,509 $ (199,621) $ 26,600,892

Total Capital Assets Depreciated, Net $ 19,982,016 $ 819,731 $ 0 $ 20,801,747

Governmental Activities Capital Assets, Net $ 23,638,718 $ 819,731 $ 0 $ 24,458,449

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

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Governmental Activities:

General Government $ 157,233 Finance 1,896 Administration of Justice 3,350 Public Safety 376,981 Public Health and Welfare 32,615 Social, Cultural, and Recreational Services 15,905 Agriculture and Natural Resources 618 Highways 1,189,911

Total Depreciation Expense - Governmental Activities $ 1,778,509

Discretely Presented Dyer County School Department - Governmental Activities

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

Capital Assets Not Depreciated:Land $ 1,374,381 $ 0 $ 0 $ 1,374,381Construction in Progress 2,127,935 1,338,572 (2,127,935) 1,338,572Total Capital Assets Not Depreciated $ 3,502,316 $ 1,338,572 $ (2,127,935) $ 2,712,953

Capital Assets Depreciated:Buildings and Improvements $ 55,687,285 $ 1,631,234 $ 0 $ 57,318,519Infrastructure 0 804,631 (539,103) 265,528Other Capital Assets 7,440,695 733,256 (397,319) 7,776,632Total Capital Assets Depreciated $ 63,127,980 $ 3,169,121 $ (936,422) $ 65,360,679

Less Accumulated Depreciation For:Buildings and Improvements $ 14,376,094 $ 1,126,574 $ 0 $ 15,502,668 Infrastructure 0 31,045 (4,493) 26,552Other Capital Assets 3,477,224 547,024 (389,103) 3,635,145Total Accumulated Depreciation $ 17,853,318 $ 1,704,643 $ (393,596) $ 19,164,365

Total Capital Assets Depreciated, Net $ 45,274,662 $ 1,464,478 $ (542,826) $ 46,196,314

Governmental Activities Capital Assets, Net $ 48,776,978 $ 2,803,050 $ (2,670,761) $ 48,909,267

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

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Governmental Activities:

Instruction $ 1,031,869 Support Services 585,132 Operation of Non-instructional Services 87,642 Total Depreciation Expense - Governmental Activities $ 1,704,643

D. Construction Commitments

At June 30, 2017, the Highway/Public Works Fund had uncompleted construction contracts of approximately $749,138 for road paving. Also, at June 30, 2017, the School Department’s General Purpose School Fund had uncompleted construction contracts of approximately $1,138,205 for school renovations and improvements. Funding has been received for these future expenditures.

E. 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

General Nonmajor governmental $ 1,598 Nonmajor governmental General 4,198 These balances resulted from the time lag between dates that interfund goods and services are provided or reimbursable expenditures occur and payments between funds are made. Interfund Transfers: Interfund transfers for the year ended June 30, 2017, consisted of the following amount: Discretely Presented Dyer County School Department

GeneralPurposeSchool

Transfer Out Fund

Nonmajor governmental fund $ 20,714

Transfer In

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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.

F. Long-term Obligations Primary Government General Obligation Bonds and Other Loans Dyer County issues general obligation bonds and other loans to provide funds for the acquisition and construction of major capital facilities for the primary government and the discretely presented School Department. In addition, general obligation bonds have been issued to refund other general obligation bonds. General obligation bonds and other loans are direct obligations and pledge the full faith and credit of the government. General obligation bonds and other loans outstanding were issued for original terms of up to 17 years for bonds and up to 16 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 General Debt Service Fund. General obligation bonds and other loans outstanding as of June 30, 2017, for governmental activities are as follows:

OriginalInterest Final Amount Balance

Type Rate Maturity of Issue 6-30-17

General Obligation Refunding Bonds 2 to 4 % 6-1-29 $ 15,790,000 $ 14,835,000School Refunding Bonds 2 to 4.1 6-1-26 30,240,000 12,840,000Other Loans 0 to 1.515 9-15-26 14,633,000 8,671,549

In the 2009-10 year, Dyer County entered into a loan agreement with the Tennessee State School Bond Authority. This loan agreement represents $8,960,000 in Qualified School Construction Bonds, which were issued through the Tennessee State School Bond Authority. The county pays interest of 1.515 percent on its share of the bonds and also pays a monthly administrative fee to the Tennessee School Bond Authority. The administrative fee totals $747 per month. The county and the other borrowers of the bond proceeds are required to comply with federal regulations established for the Qualified School Construction Bond program. Failure to comply with those requirements may result in the loss of the tax credit status on the bonds. This would result in further charges to the borrowers including the requirement to pay the

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tax-credit rate (5.86 percent) in addition to the 1.515 percent for a total rate of 7.375 percent. During the 2010-11 year, Dyer County entered into a loan agreement with the Tennessee State School Bond Authority. Under this loan agreement, the authority loaned Dyer County $5,673,000 for construction of the Newbern Grammar School. This loan earns interest monthly based upon the local government investment pool rate, which is netted against the annual principal payment. The county pays an annual administrative fee of $378 under this agreement. The loan retirement schedule also includes equal monthly payments of interest; however, the county will semi-annually receive a federal interest subsidy, which will offset these payments resulting in a zero percent interest rate. The annual requirements to amortize the bonds 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 $ 2,035,000 $ 802,713 $ 2,837,7132019 2,105,000 734,850 2,839,8502020 2,225,000 662,394 2,887,3942021 2,280,000 581,454 2,861,4542022 2,335,000 506,954 2,841,9542023-2027 12,170,000 1,420,776 13,590,7762028-2029 4,525,000 136,200 4,661,200

Total $ 27,675,000 $ 4,845,341 $ 32,520,341

BondsPrincipal Interest

Year Ending OtherJune 30 Fees Total

2018 $ 913,076 $ 410,771 $ 13,498 $ 1,337,3452019 913,076 410,771 13,498 1,337,3452020 913,076 410,771 13,498 1,337,3452021 913,076 410,771 13,498 1,337,3452022 913,076 410,771 13,498 1,337,3452023-2027 4,106,169 1,929,424 59,277 6,094,870

Total $ 8,671,549 $ 3,983,279 $ 126,767 $ 12,781,595

Principal

Other Loans

Interest

There is $1,567,680 available in the General Debt Service Fund to service long-term debt. Bonded debt per capita totaled $722, based on the 2010 federal census. Total debt per capita, including bonds and other loans (net of

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unamortized debt premiums and discounts), totaled $958, based on the 2010 federal census. Changes in Long-term Obligations Long-term obligations activity for the year ended June 30, 2017, was as follows: Governmental Activities:

Balance, July 1, 2016 $ 28,855,000 $ 9,592,587 $ 132,012Additions 9,975,000 0 283,371Reductions (11,155,000) (921,038) (280,195)

Balance, June 30, 2017 $ 27,675,000 $ 8,671,549 $ 135,188

Balance Due Within One Year $ 2,035,000 $ 913,076 $ 0

BondsOtherLoans

Net PensionLiability -Agent Plan

Analysis of Noncurrent Liabilities Presented on Exhibit A: Total Noncurrent Liabilities, June 30, 2017 $ 36,481,737 Add: Unamortized Premium on Debt 407,945 Less: Unamortized Discount on Debt (27,703) Less: Balance Due Within One Year (2,948,076)

Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 33,913,903

The net pension liability will be paid from the employing funds, primarily the General and Highway/Public Works funds. Advance Refunding On November 18, 2016, Dyer County advance refunded a portion of School Refunding Bonds, Series 2009A with a separate general obligation refunding bond issue. The county issued $9,975,000 of general obligation refunding bonds to provide resources to purchase U.S. government securities that were placed in an irrevocable trust to generate resources for future debt service payments of the refunded debt. As a result, the refunded bonds are considered defeased, and the liability has been removed from the county’s long-term debt. As a result of the advance refunding, total debt service payments over the next 12 years will be reduced by $274,196, and an economic gain (difference between the present value of the debt service payments of the refunded and refunding bonds) of $636,449 was obtained.

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

Net PensionLiability -

Teacher LegacyPension Plan

Balance, July 1, 2016 $ 86,781 $ 4,423,862 $ 133,675Additions 95,196 758,334 5,481,145Reductions (69,014) (384,270) (3,477,425)

Balance, June 30, 2017 $ 112,963 $ 4,797,926 $ 2,137,395

Balance Due Within One Year $ 5,648 $ 0 $ 0

CompensatedAbsences

OtherPostemployment

Benefits

Analysis of Noncurrent Liabilities Presented on Exhibit A: Total Noncurrent Liabilities, June 30, 2017 $ 7,048,284 Less: Balance Due Within One Year (5,648)

Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 7,042,636

Compensated absences, other postemployment benefits, and the net pension liability will be paid from the employing funds, primarily the General Purpose School Fund.

G. On-Behalf Payments – Discretely Presented Dyer County School Department The State of Tennessee pays health insurance premiums for retired teachers on-behalf of the Dyer County School Department. These payments are made by the state to the Local Education Group Insurance Plan and the Medicare Supplement Plan. Both of these plans are administered by the State of Tennessee and reported in the state’s Comprehensive Annual Financial Report. Payments by the state to the Local Education Group Insurance Plan and the Medicare Supplement Plan for the year ended June 30, 2017, were $94,592 and $29,463, respectively. The School Department has recognized these on-behalf payments as revenues and expenditures in the General Purpose School Fund.

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V. OTHER INFORMATION

A. Risk Management Dyer County carries commercial insurance for active employee’s health insurance. Pre-65 age retirees are not allowed to remain in the program. Settled claims have not exceeded this commercial insurance coverage in any of the past three fiscal years. Dyer County participates in the Local Government Property and Casualty Fund (LGPCF), which is a public entity risk pool established by the Tennessee County Services Association, an association of member counties. The county pays an annual premium to the LGPCF for its general liability, property, and casualty insurance coverage. The creation of the LGPCF provides for it to be self-sustaining through member premiums. The LGPCF reinsures through commercial insurance companies for claims exceeding $100,000 for each insured event. The county and the discretely presented Dyer County School Department have chosen to fund risks associated with employee on-the-job injuries through the Workers’ Compensation Fund. The Workers’ Compensation Fund is accounted for as an internal service fund in which assets are set aside for claim settlements. The county is self-insured to a limit of $50,000 for a single occurrence. The county carries Occupational Accident Insurance through a commercial insurance carrier for on-the-job injuries that exceed the single occurrence limit. All full-time employees of the primary government and the discretely presented School Department are eligible to participate in the Workers’ Compensation Fund. Premium charges are allocated to the General, Highway/Public Works, and General Purpose School funds. These charges are based on the current year’s commercial insurance premium prorated to the funds based on the percentage of the prior-year’s claims. Liabilities of the fund are reported when losses are probable and the amounts of the losses can be reasonably estimated. The Workers’ Compensation Fund establishes claims liabilities based on estimates of the ultimate cost of claims that have been reported. Claims liabilities include incremental claim adjustment expenditures/expenses, if any. In addition, estimated recoveries, if any, on settled claims have been deducted from the liability for unpaid claims. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the past three fiscal years for the Workers’ Compensation Fund are as follows:

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Workers' Compensation Fund

Beginning Currentof Fiscal Year Balance

Year Claims and at FiscalLiability Estimates Payments Year-end

2014-15 $ 0 $ 163,118 $ 163,118 $ 02015-16 0 111,168 111,168 02016-17 0 163,546 163,546 0

The discretely presented Dyer County School Department participates in the Local Education Group Insurance Fund (LEGIF), a public entity risk pool established to provide a program of health insurance coverage for employees of local education agencies. In accordance with Section 8-27-301, Tennessee Code Annotated (TCA), all local education agencies are eligible to participate. The LEGIF is included in the Comprehensive Annual Financial Report of the State of Tennessee, but the state does not retain any risk for losses by this fund. Section 8-27-303, TCA, provides for the LEGIF to be self-sustaining through member premiums. The discretely presented Dyer County School Department carries commercial insurance for the risks of losses to which it is exposed. These risks include general liability, property, and casualty losses. Settled claims have not exceeded this commercial coverage in any of the past three years.

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, established 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 requirements 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 county attorney advised that there were no pending lawsuits, unasserted claims, or assessments that would materially affect the county or School Department’s financial statements.

D. Change in Administration

On June 30, 2016, Director of Schools Dwight Hedge left office and was succeeded by Larry Lusk.

E. Joint Ventures The McIver's Grant Public Library Board is a joint venture in which the county and the City of Dyersburg participate in the operation of the library facility. The board comprises 14 members, seven of whom are appointed by the Dyer County Commission and seven are appointed by the City of Dyersburg. The library generates its operating revenue from appropriations from the county and city, fines, interest, and copy fees. Dyer County contributed $104,188 to

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the operations of the board during the year ended June 30, 2017. Dyer County is responsible for funding 50 percent of any deficits from operations; however, the county and city do not retain an equity interest in the library. Complete financial statements for the McIver's Grant Public Library can be obtained from its administrative office at the following address:

Administrative Office: McIver's Grant Public Library 204 Mill Avenue Dyersburg, TN 38024

Dyer County is a participant with Obion and Lake counties in a multi-county entity known as the Northwest Tennessee Regional Port Authority. This entity was created to operate and maintain a port to be located in Lake County on the Mississippi River. A board is appointed by the participating counties with the mayors of each county serving as ex-officio members. The board comprises eight members, four of whom are appointed by the Lake County Commission, two by the Obion County Commission, and two by the Dyer County Commission. Dyer County has control over budgeting and financing the joint venture only to the extent of representation by the two board members appointed. In April 2007, the port authority borrowed $410,000 without interest for construction costs of the port with payments of $4,271 due in 96 monthly installments beginning in April 2009. The Dyer County Commission had approved making payments of 25 percent of this debt issuance and made their final payment on March 1, 2017. The port authority has yet to begin operations. Their administrative office can be contacted at P.O. Box 267, Dyersburg, TN 38025. Dyer County is a participant with Lake County and the cities of Tiptonville, Ridgely, and Dyersburg in an entity known as the TennKen Railroad Authority. The governing board for the authority consists of the mayors of both counties and all three cities. This entity was created to facilitate active involvement by all affected local governments in Tennessee regarding a section of railroad track commonly known as the TennKen Railroad. The TennKen Railroad is owned by the Hickman River City Development Corporation (HRCDC), a public entity chartered in Kentucky. The HRCDC had previously purchased the line from Illinois Central Railroad to ensure rail access to the river port in Hickman, Kentucky. All funding for the TennKen Railroad Authority comes from the State of Tennessee through the Tennessee Department of Transportation as grants, which are used for the maintenance and rehabilitation of the TennKen Railroad track and the necessary engineering services for said maintenance and rehabilitation. The Lake County Mayor’s Office handles the administration of these grant funds and passes them through to the HRCDC for disbursement.

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F. Retirement Commitments

1. Tennessee Consolidated Retirement System (TCRS) Primary Government General Information About the Pension Plan Plan Description. Certain county employees are provided a defined benefit pension plan (Dyer County Judges, Executives, and Officials Plan) through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The primary government employees comprise 100 percent of the Dyer County Judges, Executives, and Officials 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 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. 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.

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Employees Covered by Benefit Terms. At the measurement date of June 30, 2016, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 10Inactive Employees Entitled to But Not Yet Receiving Benefits 2Active Employees 10

Total 22

Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees contribute five percent of salary. Dyer County makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2017, the employer contribution for Dyer County was $58,359 based on a rate of 6.90 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept Dyer County’s state shared taxes if required employer contributions are not remitted. The employer’s actuarially determined contributions (ADC) and member contributions are expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Net Pension Liability (Asset) Dyer County’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, Including Inflation, Averaging 4.25%

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

Cost of Living Adjustment 2.5%

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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 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 %

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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 Dyer County will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Changes in the Net Pension Liability (Asset)

Total Plan NetPension Fiduciary PensionLiability Net Position Liability

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

Balance, July 1, 2015 $ 2,702,934 $ 2,570,922 $ 132,012

Changes for the Year: Service Cost $ 78,562 $ 0 $ 78,562 Interest 204,052 0 204,052 Differences Between Expected and Actual Experience (114,825) 0 (114,825) Contributions-Employer 0 56,040 (56,040) Contributions-Employees 0 41,573 (41,573) Net Investment Income 0 67,757 (67,757) Benefit Payments, Including Refunds of Employee Contributions (121,608) (121,608) 0 Administrative Expense 0 (757) 757Net Changes $ 46,181 $ 43,005 $ 3,176

Balance, June 30, 2016 $ 2,749,115 $ 2,613,927 $ 135,188

Increase (Decrease)

Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the net pension liability (asset) of Dyer County 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:

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Current1% Discount 1%

Decrease Rate IncreaseDyer County 6.5% 7.5% 8.5%

Net Pension Liability (Asset) $ 435,597 $ 135,188 $ (123,094)

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources to Pensions Pension Expense. For the year ended June 30, 2017, Dyer County recognized pension expense of $51,462. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2017, Dyer County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred DeferredOutflows Inflows

of of Resources Resources

Difference Between Expected and Actual Experience $ 65,311 $ 77,099Net Difference Between Projected and Actual Earnings on Pension Plan Investments 87,345 0Contributions Subsequent to the Measurement Date of June 30, 2016 (1) 58,359 N/A

Total $ 211,015 $ 77,099

(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.

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

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Year EndingJune 30 Amount

2018 $ 1,5552019 2,1042020 47,0772021 24,8212022 0Thereafter 0

In the table shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense. Discretely Presented Dyer County School Department Teacher Retirement Plan General Information About the Pension Plan Plan Description. Teachers of the Dyer County School Department with membership in the TCRS before July 1, 2014, are provided with pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan is closed to new membership. Teachers with membership in the TCRS after June 30, 2014, are provided with pensions through a legally separate plan referred to as the Teacher Retirement Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/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

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disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. Members who leave employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Retirement Plan, benefit terms and conditions, including COLA, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly or by automatic cost controls set out in law. Teachers are required to contribute five percent of their salary to the plan. The Local Education Agencies (LEAs) make employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. Per the statutory provisions governing TCRS, the employer contribution rate cannot be less than four percent, except for 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 $53,132, 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. At June 30, 2017, the Dyer County School Department reported an asset of $22,263 for its proportionate share of the net pension asset. The net pension asset was measured as of June 30, 2016, and the total pension asset used to calculate the net pension asset was determined by an actuarial valuation as of that date. The Dyer County School Department’s proportion of the net pension asset was based on the Dyer County School Department’s share of

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contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2016, the Dyer County School Department’s proportion was .213858 percent. The revised proportion measured as of June 30, 2015, was .221718 percent. Pension Expense. For the year ended June 30, 2017, the Dyer County School Department recognized pension expense of $18,658. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2017, the Dyer County 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 $ 2,157 $ 2,567Net Difference Between Projected and Actual Earnings on Pension Plan Investments 3,645 0Changes in Proportion of Net Pension Liability (Asset) 220LEA's Contributions Subsequent to the Measurement Date of June 30, 2016 53,132 N/A

Total $ 59,154 $ 2,567

The Dyer County School Department’s employer contributions of $53,132 reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as an increase of net pension liability (assets) 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:

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2018 $ 9202019 9202020 9202021 7462022 (35)Thereafter (16)

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:


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

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 adjustment 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

68

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:

PercentageLong-termExpected PercentageReal Rate Target

Asset Class of Return Allocations


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 Dyer County School Department’s proportionate share of the net pension liability

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(asset) calculated using the discount rate of 7.5 percent, as well as what the Dyer County 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: 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 (Asset) $ 10,513 $ (22,263) $ (46,413)

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 Dyer County School Department with membership in the TCRS before July 1, 2014, are provided with pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30, 2014, but will continue providing benefits to existing members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by LEAs after June 30, 2014. The Teacher Retirement Plan is a separate cost-sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/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

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service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Legacy Pension Plan, benefit terms and conditions, including COLAs, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Teachers are required to contribute five percent of their salaries. The Local Education Agencies (LEAs) make employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. By law, employer contributions for the Teacher Legacy Pension Plan are required to be paid. The TCRS may intercept the state shared taxes of the sponsoring governmental entity of the LEA if the required employer contributions are not remitted. Employer contributions by the Dyer County School Department for the year ended June 30, 2017, to the Teacher Legacy Pension Plan were $1,215,193, 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 Assets. At June 30, 2017, the Dyer County School Department reported a liability of $2,137,395 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Dyer County School Department’s proportion of the net pension liability was based on the Dyer County School Department’s share of contributions to the pension plan relative to the contributions

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of all participating LEAs. At the measurement date of June 30, 2016, the Dyer County School Department’s proportion was .342013 percent. The proportion measured as of June 30, 2015, was .326327 percent. Pension Expense. For the year ended June 30, 2017, the Dyer County School Department recognized pension expense of $299,616. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2017, the Dyer County 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 $ 89,949 $ 2,587,677Net Difference Between Projected and Actual Earnings on Pension Plan Investments 2,386,430 0Changes in Proportion of Net Pension Liability (Asset) 214,699 0LEA's Contributions Subsequent to the Measurement Date of June 30, 2016 1,215,193 N/A

Total $ 3,906,271 $ 2,587,677

The Dyer County School Department’s employer contributions of $1,215,193 reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as an increase in 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 $ (352,216)2019 (352,216)2020 792,5542021 160,1102022 (144,831)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:


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

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


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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PercentageLong-termExpectedReal Rate

Asset Class of Return


Total 100 %

PercentageTarget

Allocations

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 four 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 Dyer 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 Dyer County 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 Proportionate Share of the Net Pension Liability (Asset)

Net Pension Liability (Asset) $ 11,736,803 $ 2,137,395 $ (5,814,322)

1%Decrease

6.5%

1%Increase

8.5%

CurrentDiscount

Rate7.5%

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 Dyer County Highway Department offers its employees a deferred compensation plan established pursuant to IRC Section 457. The Highway/Public Works Fund will match employee contributions up to 2.5 percent of gross payroll. All costs of administering and funding this program are the responsibility of plan participants. The Section 457 plan assets remain the property of the contributing employees and are not presented in the accompanying financial statements. IRC Section 457 establishes participation, contribution, and withdrawal provisions for the plan.

G. Other Postemployment Benefits (OPEB)

Plan Description The Dyer County School Department participates in the state-administered Local Education Group Insurance Plan for healthcare benefits. For accounting purposes, the plan is an agent multiple-employer defined benefit OPEB plan. Benefits are established and amended by an insurance committee created by Section 8-27-302, Tennessee Code Annotated, for local education employees. Prior to reaching the age of 65, all members had 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://www.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 plan is self-insured and financed on a pay-as-you-go basis with the risk shared equally among the participants. Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premium rates. The employer in the plan

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

develops its own contribution policy in terms of subsidizing active employees or retired employees’ premiums since the committee is not prescriptive on that issue. The state provides 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. The School Department makes a contribution toward the health insurance premium of the School Department’s group medical plan for all employees who accumulate sick leave and meet length of employment and age criteria of 20 years of service with the Dyer County School System at age 55, or 30 years of service regardless of age. Currently, 34 retirees meet those eligibility requirements. The School Department pays 100 percent of single coverage for all certified teachers. The School Department pays 67.42 percent of the medical insurance premium for single coverage for non-certified employees with the former employees continuing contributions at their opted level of coverage until Medicare becomes available. Retirees’ contributions vary depending on the insurance options they select. During the year ended June 30, 2017, the Dyer County School Department contributed $384,270 for postemployment benefits. Annual OPEB Cost and Net OPEB Obligation

LocalEducation

GroupPlan

ARC $ 759,000Interest on the NOPEBO 165,895Adjustment to the ARC (166,561)Annual OPEB cost $ 758,334Less: Amount of contribution (384,270)Increase/decrease in NOPEBO $ 374,064Net OPEB obligation, 7-1-16 4,423,862

Net OPEB obligation, 6-30-17 $ 4,797,926

PercentageFiscal Annual of Annual Net OPEBYear OPEB OPEB Cost ObligationEnded Plan Cost Contributed at Year End

6-30-15 Local Education Group $ 701,777 47 % $ 4,036,3226-30-16 " 733,392 47 4,423,8626-30-17 " 758,334 51 4,797,926

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Funded Status and Funding Progress

The funded status of the plan as of July 1, 2015, was as follows:

LocalEducation

GroupPlan

Actuarial valuation date 7-1-15Actuarial accrued liability (AAL) $ 6,178,000Actuarial value of plan assets $ 0Unfunded actuarial accrued liability (UAAL) $ 6,178,000Actuarial value of assets as a % of the AAL 0%Covered payroll (active plan members) $ 18,242,083UAAL as a % of covered payroll 34%

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 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 Education Group 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 rate includes a 2.5 percent inflation assumption. The unfunded actuarial accrued liability is being amortized as a 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.

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H. Purchasing Laws Office of County Mayor Purchasing procedures for the County Mayor’s Office are governed by the County Purchasing Law of 1983, Sections 5-14-201 through 5-14-206, Tennessee Code Annotated (TCA). This act provides for all purchases exceeding $10,000 to be competitively bid through newspaper advertisement. Office of Road Supervisor Chapter 421, Private Acts of 1929, as amended, and the Uniform Road Law, Section 54-7-113, TCA, govern purchasing procedures for the Highway Department. These statutes provide for the road supervisor to make all purchases and for competitive bids to be solicited through public advertisement on all purchases exceeding $10,000. Office of Director of Schools Purchasing procedures for the discretely presented Dyer County School Department are governed by purchasing laws applicable to schools as set forth in Section 49-2-203, TCA, which provides for the county Board of Education, through its executive committee (director of schools and chairman of the Board of Education), to make all purchases. This statute also requires competitive bids to be solicited through newspaper advertisement on all purchases exceeding $10,000.

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REQUIRED SUPPLEMENTARY INFORMATION

79

Exhibit F-1

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

2014 2015 2016

Total Pension Liability (Asset)Service Cost $ 60,604 $ 61,587 $ 78,562Interest 174,769 184,221 204,052Differences Between Actual and Expected Experience (2,196) 130,623 (114,825)Benefit Payments, Including Refunds of Employee Contributions (79,914) (136,371) (121,608)Net Change in Total Pension Liability (Asset) $ 153,263 $ 240,060 $ 46,181Total Pension Liability (Asset), Beginning 2,309,611 2,462,874 2,702,934

Total Pension Liability (Asset), Ending (a) $ 2,462,874 $ 2,702,934 $ 2,749,115

Plan Fiduciary Net PositionContributions - Employer $ 55,678 $ 55,071 $ 56,040Contributions - Employee 39,942 40,854 41,573Net Investment Income 359,343 77,309 67,757Benefit Payments, Including Refunds of Employee Contributions (79,914) (136,371) (121,608)Administrative Expense (491) (508) (757)Net Change in Plan Fiduciary Net Position $ 374,558 $ 36,355 $ 43,005Plan Fiduciary Net Position, Beginning 2,160,009 2,534,567 2,570,922

Plan Fiduciary Net Position, Ending (b) $ 2,534,567 $ 2,570,922 $ 2,613,927

Net Pension Liability (Asset), Ending (a - b) $ (71,693) $ 132,012 $ 135,188

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 102.91% 95.12% 95.08%Covered Payroll $ 798,831 $ 817,075 $ 831,456Net Pension Liability (Asset) as a Percentage of Covered Payroll 8.97% 16.16% 16.26%

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

80

Exhibit F-2

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

2014 2015 2016 2017

Actuarially Determined Contribution $ 55,678 $ 55,071 $ 56,040 $ 58,359Less Contributions in Relation to the Actuarially Determined Contribution (55,678) (55,071) (56,040) (58,359)

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

Covered Payroll $ 798,831 $ 817,075 $ 831,456 $ 845,783

Contributions as a Percentage of Covered Payroll 6.97% 6.74% 6.74% 6.90%


81

Exhibit F-3

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

2015 2016 2017

Contractually Required Contribution $ 18,815 $ 37,639 $ 53,132Less Contributions in Relation to the Contractually Required Contribution (18,815) (37,639) (53,132)

Contribution Deficiency (Excess) $ 0 $ 0 $ 0

Covered Payroll $ 470,388 $ 940,985 $ 1,328,300

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


82

Exhibit F-4

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

2014 2015 2016 2017

Contractually Required Contribution $ 1,128,581 $ 1,104,333 $ 1,116,078 $ 1,215,193Less Contributions in Relation to the Contractually Required Contribution (1,128,581) (1,104,333) (1,116,078) (1,215,193)

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

Covered Payroll $ 12,709,247 $ 12,216,087 $ 12,345,998 $ 13,442,400

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


83

Exhibit F-5Dyer County, TennesseeSchedule of Proportionate Share of the Net Pension Asset in the Teacher Retirement Pension Plan of TCRSDiscretely Presented Dyer County School DepartmentFor the Fiscal Year Ended June 30 *

2016 2017

School Department's Proportion of the Net Pension Liability (Asset) 0.226391% 0.213858%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (9,108) $ (22,263)

Covered Payroll $ 470,388 $ 940,985

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.


84

Exhibit F-6

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

2015 2016 2017

School Department's Proportion of the Net Pension Liability (Asset) 0.323803% 0.326327% 0.342013%

School Department's Proportionate Share of the Net Pension Liability (Asset) $ (52,617) $ 133,675 $ 2,137,395

Covered Payroll $ 12,709,247 $ 12,216,087 $ 12,345,998

School Department's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (.414002)% 1.094252% 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.


85

Exhibit F-7Dyer County, TennesseeSchedule of Funding Progress – Other Postemployment Benefits PlanDiscretely Presented Dyer County School DepartmentJune 30, 2017

(Dollar amounts in thousands)

ActuarialAccruedLiability

(AAL) UAAL as aActuarial Projected Unfunded Percentage

Actuarial Value of Unit AAL Funded Covered of CoveredValuation Assets Credit (UAAL) Ratio Payroll Payroll

Plan Date (a) (b) (b)-(a) (a/b) (c) ((b-a)/c)

Local Education Group 7-1-11 $ 0 $ 7,204 $ 7,204 0% $ 15,676 46%" 7-1-13 0 5,613 5,613 0 16,789 33" 7-1-15 0 6,178 6,178 0 18,242 34

86

DYER COUNTY, 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:

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

Corridor to Market ValueInflation 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%

87

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

88

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.

________________________________________ Law Library Fund – The Law Library Fund is used to account for a special tax levied by private act on litigation. Proceeds of the tax must be expended for the benefit of the county’s law library. Solid Waste/Sanitation Fund – The Solid Waste/Sanitation Fund is used to account for Dyer County’s convenience center operations. 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.

89

Exhibit G-1

Dyer County, TennesseeCombining Balance SheetNonmajor Governmental FundsJune 30, 2017

Constitu- TotalSolid tional Nonmajor

Law Waste / Drug Officers - GovernmentalLibrary Sanitation Control Fees Funds

ASSETS

Cash $ 0 $ 0 $ 0 $ 1,598 $ 1,598Equity in Pooled Cash and Investments 36,221 45,051 59,983 0 141,255Due from Other Governments 0 6,212 0 0 6,212Due from Other Funds 0 0 4,198 0 4,198

Total Assets $ 36,221 $ 51,263 $ 64,181 $ 1,598 $ 153,263

LIABILITIES

Accounts Payable $ 0 $ 18,754 $ 0 $ 0 $ 18,754Due to Other Funds 0 0 0 1,598 1,598Total Liabilities $ 0 $ 18,754 $ 0 $ 1,598 $ 20,352

FUND BALANCES

Restricted:Restricted for Administration of Justice $ 36,221 $ 0 $ 0 $ 0 $ 36,221Restricted for Public Safety 0 0 64,181 0 64,181

Committed:Committed for Public Health and Welfare 0 32,509 0 0 32,509

Total Fund Balances $ 36,221 $ 32,509 $ 64,181 $ 0 $ 132,911

Total Liabilities and Fund Balances $ 36,221 $ 51,263 $ 64,181 $ 1,598 $ 153,263

Special Revenue Funds

90

Exhibit G-2

Dyer County, TennesseeCombining Statement of Revenues, Expenditures,

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

Constitu- TotalSolid tional Nonmajor

Law Waste / Drug Officers - GovernmentalLibrary Sanitation Control Fees Funds

RevenuesLocal Taxes $ 2,150 $ 82,695 $ 0 $ 0 $ 84,845Fines, Forfeitures, and Penalties 0 0 84,648 0 84,648Charges for Current Services 0 41,165 0 1,839 43,004Other Local Revenues 0 130 22,676 0 22,806

Total Revenues $ 2,150 $ 123,990 $ 107,324 $ 1,839 $ 235,303


Finance $ 0 $ 0 $ 0 $ 1,839 $ 1,839Administration of Justice 819 0 0 0 819Public Safety 0 0 65,692 0 65,692Public Health and Welfare 0 132,005 0 0 132,005

Total Expenditures $ 819 $ 132,005 $ 65,692 $ 1,839 $ 200,355

Excess (Deficiency) of RevenuesOver Expenditures $ 1,331 $ (8,015) $ 41,632 $ 0 $ 34,948

Net Change in Fund Balances $ 1,331 $ (8,015) $ 41,632 $ 0 $ 34,948Fund Balance, July 1, 2016 34,890 40,524 22,549 0 97,963

Fund Balance, June 30, 2017 $ 36,221 $ 32,509 $ 64,181 $ 0 $ 132,911


91

Exhibit G-3

Dyer County, TennesseeSchedule of Revenues, Expenditures, and Changes

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



RevenuesLocal Taxes $ 2,150 $ 2,100 $ 2,100 $ 50

Total Revenues $ 2,150 $ 2,100 $ 2,100 $ 50

ExpendituresAdministration of Justice

Other Administration of Justice $ 819 $ 6,920 $ 6,920 $ 6,101Total Expenditures $ 819 $ 6,920 $ 6,920 $ 6,101

Excess (Deficiency) of RevenuesOver Expenditures $ 1,331 $ (4,820) $ (4,820) $ 6,151

Net Change in Fund Balance $ 1,331 $ (4,820) $ (4,820) $ 6,151Fund Balance, July 1, 2016 34,890 29,522 29,522 5,368

Fund Balance, June 30, 2017 $ 36,221 $ 24,702 $ 24,702 $ 11,519

Budgeted Amounts

92

Exhibit G-4


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



RevenuesLocal Taxes $ 82,695 $ 80,000 $ 80,000 $ 2,695Charges for Current Services 41,165 8,000 41,500 (335)Other Local Revenues 130 150 150 (20)State of Tennessee 0 33,500 0 0

Total Revenues $ 123,990 $ 121,650 $ 121,650 $ 2,340

ExpendituresPublic Health and Welfare

Sanitation Management $ 132,005 $ 129,465 $ 129,465 $ (2,540)Total Expenditures $ 132,005 $ 129,465 $ 129,465 $ (2,540)

Excess (Deficiency) of RevenuesOver Expenditures $ (8,015) $ (7,815) $ (7,815) $ (200)

Net Change in Fund Balance $ (8,015) $ (7,815) $ (7,815) $ (200)Fund Balance, July 1, 2016 40,524 23,459 23,459 17,065


Budgeted Amounts

93

Exhibit G-5


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



RevenuesFines, Forfeitures, and Penalties $ 84,648 $ 26,500 $ 26,500 $ 58,148Other Local Revenues 22,676 45,000 45,000 (22,324)

Total Revenues $ 107,324 $ 71,500 $ 71,500 $ 35,824

ExpendituresPublic Safety

Drug Enforcement $ 65,692 $ 84,850 $ 84,850 $ 19,158Total Expenditures $ 65,692 $ 84,850 $ 84,850 $ 19,158

Excess (Deficiency) of RevenuesOver Expenditures $ 41,632 $ (13,350) $ (13,350) $ 54,982

Net Change in Fund Balance $ 41,632 $ (13,350) $ (13,350) $ 54,982Fund Balance, July 1, 2016 22,549 14,773 14,773 7,776


Budgeted Amounts

94

Major Governmental Fund

General Debt Service Fund ____________________________

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

____________________________

95

Exhibit H


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



RevenuesLocal Taxes $ 3,442,648 $ 3,344,466 $ 3,344,466 $ 98,182Other Local Revenues 151,836 520,000 520,000 (368,164)Federal Government 256,188 0 255,654 534Other Governments and Citizens Groups 0 255,654 0 0

Total Revenues $ 3,850,672 $ 4,120,120 $ 4,120,120 $ (269,448)

ExpendituresPrincipal on Debt

General Government $ 469,609 $ 472,813 $ 472,813 $ 3,204Education 2,416,038 2,358,076 2,416,038 0

Interest on DebtGeneral Government 147,344 147,344 147,344 0Education 1,019,581 1,299,775 1,283,692 264,111

Other Debt ServiceGeneral Government 76,584 81,000 80,750 4,166Education 150,930 13,498 150,930 0

Total Expenditures $ 4,280,086 $ 4,372,506 $ 4,551,567 $ 271,481

Excess (Deficiency) of RevenuesOver Expenditures $ (429,414) $ (252,386) $ (431,447) $ 2,033

Other Financing Sources (Uses)Refunding Debt Issued $ 9,975,000 $ 0 $ 9,975,000 $ 0Premiums on Debt Sold 189,989 0 189,989 0Payments to Refunded Debt Escrow Agent (10,087,808) 0 (10,087,808) 0

Total Other Financing Sources $ 77,181 $ 0 $ 77,181 $ 0

Net Change in Fund Balance $ (352,233) $ (252,386) $ (354,266) $ 2,033Fund Balance, July 1, 2016 1,919,913 1,360,056 1,360,056 559,857

Fund Balance, June 30, 2017 $ 1,567,680 $ 1,107,670 $ 1,005,790 $ 561,890

Budgeted Amounts

96

Fiduciary Funds ________________________________________

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

________________________________________ Cities - Sales Tax Fund – The Cities - Sales Tax Fund is used to account for the second half of the sales tax revenues collected inside incorporated cities of the county. These revenues are received by the county from the State of Tennessee and forwarded to the various cities on a monthly basis. Watershed District Fund – The Watershed District Fund is used to account for acreage assessments collected on drainage district properties, along with interest earnings, which are held in trust for the maintenance of the watershed districts. City School ADA - Dyersburg Fund – The City School ADA - Dyersburg Fund is used to account for the city school system’s share of education revenues collected by the county, which must be apportioned between the various school systems on an average daily attendance basis. These collections are remitted to the city school system on a monthly basis. Constitutional Officers - Agency Fund – The Constitutional Officers - Agency Fund is used to account for amounts collected in an agency capacity by the county clerk, circuit and general sessions courts clerk, clerk and master, register of deeds, and sheriff. Such collections include amounts due the state, cities, other county funds, litigants, heirs, and others. District Attorney General Fund – The District Attorney General Fund is used to account for restricted revenue held for the benefit of the Office of District Attorney General.

97

Exhibit I-1Dyer County, TennesseeCombining Statement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2017

DistrictAttorneyGeneral

ASSETS

Cash $ 0 $ 0 $ 0 $ 2,001,880 $ 0 $ 2,001,880Equity in Pooled Cash and Investments 0 99,590 137,458 0 4,608 241,656Due from Other Governments 630,759 0 444,429 0 91 1,075,279Property Taxes Receivable 0 0 2,396,817 0 0 2,396,817Allowance for Uncollectible Property Taxes 0 0 (28,106) 0 0 (28,106)

Total Assets $ 630,759 $ 99,590 $ 2,950,598 2,001,880 $ 4,699 $ 5,687,526

LIABILITIES

Due to Other Taxing Units $ 630,759 $ 99,590 $ 2,950,598 $ 0 $ 0 $ 3,680,947Due to Litigants, Heirs, and Others 0 0 0 2,001,880 4,699 2,006,579

Total Liabilities $ 630,759 $ 99,590 $ 2,950,598 $ 2,001,880 $ 4,699 $ 5,687,526

Agency Funds

Cities - SalesTax

WatershedDistrict

Constitu-tional

Officers -Agency Total

CitySchoolADA -

Dyersburg

98

Exhibit I-2

Dyer County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency FundsFor the Year Ended June 30, 2017

Beginning Ending Balance Additions Deductions Balance

Cities - Sales Tax Fund Assets Equity in Pooled Cash and Investments $ 0 $ 3,802,923 $ 3,802,923 $ 0 Due from Other Governments 606,998 630,759 606,998 630,759

Total Assets $ 606,998 $ 4,433,682 $ 4,409,921 $ 630,759

Liabilities Due to Other Taxing Units $ 606,998 $ 4,433,682 $ 4,409,921 $ 630,759

Total Liabilities $ 606,998 $ 4,433,682 $ 4,409,921 $ 630,759

Watershed District Fund Assets Equity in Pooled Cash and Investments $ 111,620 $ 9,407 $ 21,437 $ 99,590

Total Assets $ 111,620 $ 9,407 $ 21,437 $ 99,590

Liabilities Due to Other Taxing Units $ 111,620 $ 9,407 $ 21,437 $ 99,590

Total Liabilities $ 111,620 $ 9,407 $ 21,437 $ 99,590

City School ADA - Dyersburg Fund Assets Equity in Pooled Cash and Investments $ 120,515 $ 8,283,029 $ 8,266,086 $ 137,458 Due from Other Governments 407,947 444,429 407,947 444,429 Property Taxes Receivable 2,377,912 2,396,817 2,377,912 2,396,817 Allowance for Uncollectible Property Taxes (76,100) (28,106) (76,100) (28,106)

Total Assets $ 2,830,274 $ 11,096,169 $ 10,975,845 $ 2,950,598

Liabilities Due to Other Taxing Units $ 2,830,274 $ 11,096,169 $ 10,975,845 $ 2,950,598

Total Liabilities $ 2,830,274 $ 11,096,169 $ 10,975,845 $ 2,950,598

Constitutional Officers - Agency Fund Assets Cash $ 2,229,467 $ 8,634,816 $ 8,862,403 $ 2,001,880

Total Assets $ 2,229,467 $ 8,634,816 $ 8,862,403 $ 2,001,880

Liabilities Due to Litigants, Heirs, and Others $ 2,229,467 $ 8,634,816 $ 8,862,403 $ 2,001,880


(Continued)

99

Exhibit I-2

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

Beginning Ending Balance Additions Deductions Balance

District Attorney General Fund Assets Equity in Pooled Cash and Investments $ 2,505 $ 4,765 $ 2,662 $ 4,608 Due from Other Governments 0 91 0 91

Total Assets $ 2,505 $ 4,856 $ 2,662 $ 4,699

Liabilities Due to Litigants, Heirs, and Others $ 2,505 $ 4,856 $ 2,662 $ 4,699

Total Liabilities $ 2,505 $ 4,856 $ 2,662 $ 4,699

Totals - All Agency Funds Assets Cash $ 2,229,467 $ 8,634,816 $ 8,862,403 $ 2,001,880 Equity in Pooled Cash and Investments 234,640 12,100,124 12,093,108 241,656 Due from Other Governments 1,014,945 1,075,279 1,014,945 1,075,279 Property Taxes Receivable 2,377,912 2,396,817 2,377,912 2,396,817 Allowance for Uncollectible Property Taxes (76,100) (28,106) (76,100) (28,106)

Total Assets $ 5,780,864 $ 24,178,930 $ 24,272,268 $ 5,687,526

Liabilities Due to Other Taxing Units $ 3,548,892 $ 15,539,258 $ 15,407,203 $ 3,680,947 Due to Litigants, Heirs, and Others 2,231,972 8,639,672 8,865,065 2,006,579


100

Dyer County School Department _________________________________________

This section presents fund financial statements for the Dyer County School Department, a discretely presented component unit. The School Department uses a General Fund and three 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. School Transportation Fund – The School Transportation Fund is used to account for transportation of students in the school system.

101

Exhibit J-1

Dyer County, TennesseeStatement of ActivitiesDiscretely Presented Dyer County School DepartmentFor the Year Ended June 30, 2017

Net (Expense) Revenue andChanges in

Operating Net PositionCharges Grants Total

for and GovernmentalFunctions/Programs Expenses Services Contributions Activities

Governmental Activities: Instruction $ 18,798,223 $ 1,744 $ 2,071,705 $ (16,724,774) Support Services 13,731,287 37,886 353,583 (13,339,818) Operation of Non-instructional Services 3,434,631 643,668 2,671,277 (119,686)

Total Governmental Activities $ 35,964,141 $ 683,298 $ 5,096,565 $ (30,184,278)

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 4,648,470 Local Option Sales Taxes 4,047,677 Wheel Tax 1,185,094 Interstate Telecommunications Tax 2,718 Grants and Contributions Not Restricted to Specific Programs 20,280,933 Unrestricted Investment Income 58,101 Miscellaneous 300,255Total General Revenues $ 30,523,248

Change in Net Position $ 338,970Net Position, July 1, 2016 51,001,999

Net Position, June 30, 2017 $ 51,340,969

Program Revenues

102

Exhibit J-2

Dyer County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Dyer County School DepartmentJune 30, 2017

OtherGeneral School Govern- TotalPurpose Transpor - mental GovernmentalSchool tation Funds Funds

ASSETS

Cash $ 0 $ 0 $ 880 $ 880Equity in Pooled Cash and Investments 5,989,569 1,153,589 1,116,270 8,259,428Accounts Receivable 6,905 14,036 0 20,941Due from Other Governments 954,405 3,175 50,275 1,007,855Property Taxes Receivable 3,420,795 1,056,590 0 4,477,385Allowance for Uncollectible Property Taxes (40,114) (12,390) 0 (52,504)

Total Assets $ 10,331,560 $ 2,215,000 $ 1,167,425 $ 13,713,985

LIABILITIES

Accounts Payable $ 462,813 $ 3,837 $ 0 $ 466,650Accrued Payroll 10,651 3,714 0 14,365Payroll Deductions Payable 810,940 11,148 0 822,088Cafeteria Salaries and Benefits 26,855 0 0 26,855Total Liabilities $ 1,311,259 $ 18,699 $ 0 $ 1,329,958


Deferred Current Property Taxes $ 3,286,404 $ 1,015,081 $ 0 $ 4,301,485Deferred Delinquent Property Taxes 75,249 23,240 0 98,489Other Deferred/Unavailable Revenue 320,150 0 0 320,150Total Deferred Inflows of Resources $ 3,681,803 $ 1,038,321 $ 0 $ 4,720,124

(Continued)

Nonmajor Funds

Major Funds

103

Exhibit J-2

Dyer County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Dyer County School Department (Cont.)


FUND BALANCES

Restricted:Restricted for Education $ 16,280 $ 0 $ 0 $ 16,280Restricted for Operation of Non-instructional Services 0 0 1,017,425 1,017,425

Committed:Committed for Education 724,209 0 0 724,209Committed for Support Services 0 1,157,980 0 1,157,980

Assigned:Assigned for Education 1,331,338 0 150,000 1,481,338

Unassigned 3,266,671 0 0 3,266,671Total Fund Balances $ 5,338,498 $ 1,157,980 $ 1,167,425 $ 7,663,903

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 10,331,560 $ 2,215,000 $ 1,167,425 $ 13,713,985

Nonmajor Funds

Major Funds

104

Exhibit J-3

Dyer County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionDiscretely Presented Dyer County School Department

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

Total fund balances - balance sheet - governmental funds (Exhibit J-2) $ 7,663,903

(1) Capital assets used in governmental activities are not financialresources and therefore are not reported in the governmental funds. Add: land $ 1,374,381 Add: construction in progress 1,338,572 Add: buildings and improvements net of accumulated depreciation 41,815,851 Add: infrastructure net of accumulated depreciation 238,976 Add: other capital assets net of accumulated depreciation 4,141,487 48,909,267

(2) Long-term liabilities are not due and payable in the current period andtherefore are not reported in the governmental funds. Less: compensated absences payable $ (112,963) Less: other postemployment benefits liability (4,797,926) Less: net pension liability - teacher legacy pension plan (2,137,395) (7,048,284)

(3) Amounts reported as deferred outflows of resources and deferred inflowsof resources related to pensions will be amortized and recognized ascomponents of pension expense in future years. Add: deferred outflows of resources related to pensions $ 3,965,425 Less: deferred inflows of resources related to pensions (2,590,244) 1,375,181

(4) Net pension assets of the teacher retirement plan are not currentfinancial resources and therefore are not reported in the governmentalfunds. 22,263

(5) Other long-term assets are not available to pay for current-periodexpenditures and therefore are deferred in the governmental funds. 418,639

Net position of governmental activities (Exhibit A) $ 51,340,969

June 30, 2017

105

Exhibit J-4


and Changes in Fund Balances - Governmental Funds

Discretely Presented Dyer County School DepartmentFor the Year Ended June 30, 2017


RevenuesLocal Taxes $ 8,492,092 $ 1,373,532 $ 0 $ 9,865,624Licenses and Permits 1,922 0 0 1,922Charges for Current Services 36,580 45,961 600,757 683,298Other Local Revenues 358,841 16,404 18,122 393,367State of Tennessee 20,380,037 1,127,059 20,359 21,527,455Federal Government 135,583 0 3,707,027 3,842,610

Total Revenues $ 29,405,055 $ 2,562,956 $ 4,346,265 $ 36,314,276


Instruction $ 17,489,952 $ 0 $ 1,306,014 $ 18,795,966Support Services 8,836,772 2,641,231 484,445 11,962,448Operation of Non-instructional Services 832,508 0 2,418,255 3,250,763Capital Outlay 2,666,588 0 0 2,666,588

Total Expenditures $ 29,825,820 $ 2,641,231 $ 4,208,714 $ 36,675,765

Excess (Deficiency) of RevenuesOver Expenditures $ (420,765) $ (78,275) $ 137,551 $ (361,489)

Other Financing Sources (Uses)Transfers In $ 20,714 $ 0 $ 0 $ 20,714Transfers Out 0 0 (20,714) (20,714)

Total Other Financing Sources (Uses) $ 20,714 $ 0 $ (20,714) $ 0

Net Change in Fund Balances $ (400,051) $ (78,275) $ 116,837 $ (361,489)Fund Balance, July 1, 2016 5,738,549 1,236,255 1,050,588 8,025,392

Fund Balance, June 30, 2017 $ 5,338,498 $ 1,157,980 $ 1,167,425 $ 7,663,903

Nonmajor Funds

Major Funds

106

Exhibit J-5

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

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

Net change in fund balances - total governmental funds (Exhibit J-4) $ (361,489)

(1) Governmental funds report capital outlays as expenditures. However, in thestatement of activities, the cost of these assets is allocated over their usefullives and reported as depreciation expense. The difference between capitaloutlays and depreciation is itemized as follows: Add: capital assets purchased in the current period $ 2,379,758 Less: current-year depreciation expense (1,704,643) 675,115

(2) The net effect of various miscellaneous transactions involving capital assets(sales, trade-ins, and donations) is to decrease net position. Less: book value of assets disposed (542,826)

(3) Revenues in the statement of activities that do not provide current financialresources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2017 $ 418,639 Less: deferred delinquent property taxes and other deferred June 30, 2016 (400,304) 18,335

(4) Some expenses reported in the statement of activities do not require the use ofcurrent financial resources and therefore are not reported as expenditures inthe governmental funds. Change in net pension asset - teacher retirement plan $ 13,155 Change in net pension liability - teacher legacy pension plan (2,003,720) Change in deferred outflows related to pensions 2,584,946 Change in deferred inflows related to pensions 355,700 Change in compensated absences payable (26,182) Change in other postemployment benefits liability (374,064) 549,835

Change in net position of governmental activities (Exhibit B) $ 338,970

107

Exhibit J-6

Dyer County, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Dyer County School DepartmentJune 30, 2017

TotalSchool Nonmajor

Federal Central GovernmentalProjects Cafeteria Funds

ASSETS

Cash $ 0 $ 880 $ 880Equity in Pooled Cash and Investments 99,725 1,016,545 1,116,270Due from Other Governments 50,275 0 50,275

Total Assets $ 150,000 $ 1,017,425 $ 1,167,425

FUND BALANCES

Restricted:Restricted for Operation of Non-instructional Services $ 0 $ 1,017,425 $ 1,017,425

Assigned:Assigned for Education 150,000 0 150,000

Total Fund Balances $ 150,000 $ 1,017,425 $ 1,167,425


108

Exhibit J-7Dyer County, TennesseeCombining Statement of Revenues, Expenditures,

and Changes in Fund Balances - Nonmajor Governmental Funds

Discretely Presented Dyer County School DepartmentFor the Year Ended June 30, 2017

TotalSchool Nonmajor

Federal Central GovernmentalProjects Cafeteria Funds

RevenuesCharges for Current Services $ 0 $ 600,757 $ 600,757Other Local Revenues 0 18,122 18,122State of Tennessee 0 20,359 20,359Federal Government 2,029,387 1,677,640 3,707,027

Total Revenues $ 2,029,387 $ 2,316,878 $ 4,346,265


Instruction $ 1,306,014 $ 0 $ 1,306,014Support Services 484,445 0 484,445Operation of Non-instructional Services 221,134 2,197,121 2,418,255

Total Expenditures $ 2,011,593 $ 2,197,121 $ 4,208,714

Excess (Deficiency) of RevenuesOver Expenditures $ 17,794 $ 119,757 $ 137,551

Other Financing Sources (Uses)Transfers Out $ (20,714) $ 0 $ (20,714)

Total Other Financing Sources (Uses) $ (20,714) $ 0 $ (20,714)

Net Change in Fund Balances $ (2,920) $ 119,757 $ 116,837Fund Balance, July 1, 2016 152,920 897,668 1,050,588

Fund Balance, June 30, 2017 $ 150,000 $ 1,017,425 $ 1,167,425


109

Exhibit J-8


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Dyer County School DepartmentGeneral Purpose School FundFor the Year Ended June 30, 2017


Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2016 6/30/2017 Basis) Original Final (Negative)

RevenuesLocal Taxes $ 8,492,092 $ 0 $ 0 $ 8,492,092 $ 8,425,198 $ 8,425,198 $ 66,894Licenses and Permits 1,922 0 0 1,922 1,997 1,997 (75)Charges for Current Services 36,580 0 0 36,580 47,589 47,589 (11,009)Other Local Revenues 358,841 0 0 358,841 77,661 327,661 31,180State of Tennessee 20,380,037 0 0 20,380,037 20,153,166 20,277,221 102,816Federal Government 135,583 0 0 135,583 129,481 129,481 6,102

Total Revenues $ 29,405,055 $ 0 $ 0 $ 29,405,055 $ 28,835,092 $ 29,209,147 $ 195,908

ExpendituresInstruction

Regular Instruction Program $ 14,870,102 $ (77,968) $ 110,034 $ 14,902,168 $ 15,038,150 $ 15,288,151 $ 385,983Special Education Program 1,935,079 0 0 1,935,079 1,955,787 1,955,788 20,709Career and Technical Education Program 675,625 0 0 675,625 703,952 703,953 28,328Student Body Education Program 9,146 0 0 9,146 9,800 9,800 654

Support ServicesAttendance 83,498 0 0 83,498 90,946 90,945 7,447Health Services 288,688 (84) 5,387 293,991 300,422 300,421 6,430Other Student Support 454,887 0 0 454,887 475,803 475,803 20,916Regular Instruction Program 494,624 (30,186) 20,004 484,442 589,800 589,800 105,358Special Education Program 183,275 0 0 183,275 184,237 184,237 962Career and Technical Education Program 55,502 0 0 55,502 64,924 64,923 9,421Technology 604,502 0 2,522 607,024 684,550 684,549 77,525Other Programs 124,055 0 0 124,055 0 124,055 0Board of Education 487,135 (16,037) 5,014 476,112 569,781 569,780 93,668Director of Schools 260,797 (1,401) 0 259,396 270,461 270,461 11,065Office of the Principal 1,741,765 (5,625) 0 1,736,140 1,793,607 1,793,608 57,468Fiscal Services 338,094 (13,177) 0 324,917 347,718 347,718 22,801Operation of Plant 2,438,078 (545) 5,000 2,442,533 2,604,978 2,604,978 162,445Maintenance of Plant 1,281,872 (13,744) 705 1,268,833 1,273,807 1,273,805 4,972

(Continued)

Budgeted Amounts

110

Exhibit J-8


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Dyer County School DepartmentGeneral Purpose School Fund (Cont.)



Expenditures (Cont.)Operation of Non-instructional Services

Food Service $ 7,348 $ 0 $ 0 $ 7,348 $ 9,550 $ 9,550 $ 2,202Community Services 150,425 0 1,169 151,594 160,357 160,358 8,764Early Childhood Education 674,735 (455) 1,591 675,871 686,052 686,053 10,182

Capital OutlayRegular Capital Outlay 2,666,588 (970,583) 1,179,912 2,875,917 3,000,000 2,999,999 124,082

Total Expenditures $ 29,825,820 $ (1,129,805) $ 1,331,338 $ 30,027,353 $ 30,814,682 $ 31,188,735 $ 1,161,382

Excess (Deficiency) of RevenuesOver Expenditures $ (420,765) $ 1,129,805 $ (1,331,338) $ (622,298) $ (1,979,590) $ (1,979,588) $ 1,357,290

Other Financing Sources (Uses)Transfers In $ 20,714 $ 0 $ 0 $ 20,714 $ 18,854 $ 18,854 $ 1,860

Total Other Financing Sources $ 20,714 $ 0 $ 0 $ 20,714 $ 18,854 $ 18,854 $ 1,860

Net Change in Fund Balance $ (400,051) $ 1,129,805 $ (1,331,338) $ (601,584) $ (1,960,736) $ (1,960,734) $ 1,359,150Fund Balance, July 1, 2016 5,738,549 (1,129,805) 0 4,608,744 4,660,382 4,660,382 (51,638)

Fund Balance, June 30, 2017 $ 5,338,498 $ 0 $ (1,331,338) $ 4,007,160 $ 2,699,646 $ 2,699,648 $ 1,307,512

Budgeted Amounts

111

Exhibit J-9


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Dyer County School DepartmentSchool Federal Projects FundFor the Year Ended June 30, 2017


Actual Less: Expenditures Budget -(GAAP Encumbrances (Budgetary PositiveBasis) 7/1/2016 Basis) Original Final (Negative)

RevenuesFederal Government $ 2,029,387 $ 0 $ 2,029,387 $ 2,367,586 $ 2,329,293 $ (299,906)

Total Revenues $ 2,029,387 $ 0 $ 2,029,387 $ 2,367,586 $ 2,329,293 $ (299,906)

ExpendituresInstruction

Regular Instruction Program $ 655,378 $ 0 $ 655,378 $ 719,608 $ 687,058 $ 31,680Special Education Program 622,377 0 622,377 666,589 668,199 45,822Career and Technical Education Program 28,259 0 28,259 22,945 28,259 0

Support ServicesOther Student Support 146,751 0 146,751 163,348 158,781 12,030Regular Instruction Program 78,066 (2,920) 75,146 185,655 180,944 105,798Special Education Program 257,204 0 257,204 286,793 286,793 29,589Career and Technical Education Program 2,424 0 2,424 5,797 2,424 0

Operation of Non-instructional ServicesCommunity Services 221,134 0 221,134 294,785 294,785 73,651

Total Expenditures $ 2,011,593 $ (2,920) $ 2,008,673 $ 2,345,520 $ 2,307,243 $ 298,570

Excess (Deficiency) of RevenuesOver Expenditures $ 17,794 $ 2,920 $ 20,714 $ 22,066 $ 22,050 $ (1,336)

Other Financing Sources (Uses)Transfers Out $ (20,714) $ 0 $ (20,714) $ (22,066) $ (22,050) $ 1,336

Total Other Financing Sources $ (20,714) $ 0 $ (20,714) $ (22,066) $ (22,050) $ 1,336

Net Change in Fund Balance $ (2,920) $ 2,920 $ 0 $ 0 $ 0 $ 0Fund Balance, July 1, 2016 152,920 (2,920) 150,000 150,000 150,000 0

Fund Balance, June 30, 2017 $ 150,000 $ 0 $ 150,000 $ 150,000 $ 150,000 $ 0

Budgeted Amounts

112

Exhibit J-10


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Dyer County School DepartmentCentral Cafeteria FundFor the Year Ended June 30, 2017



RevenuesCharges for Current Services $ 600,757 $ 0 $ 0 $ 600,757 $ 633,800 $ 633,800 $ (33,043)Other Local Revenues 18,122 0 0 18,122 16,500 16,500 1,622State of Tennessee 20,359 0 0 20,359 19,800 19,800 559Federal Government 1,677,640 0 0 1,677,640 1,662,899 1,709,657 (32,017)

Total Revenues $ 2,316,878 $ 0 $ 0 $ 2,316,878 $ 2,332,999 $ 2,379,757 $ (62,879)

ExpendituresOperation of Non-instructional Services

Food Service $ 2,197,121 $ (17,756) $ 93,591 $ 2,272,956 $ 2,332,999 $ 2,379,757 $ 106,801Total Expenditures $ 2,197,121 $ (17,756) $ 93,591 $ 2,272,956 $ 2,332,999 $ 2,379,757 $ 106,801

Excess (Deficiency) of RevenuesOver Expenditures $ 119,757 $ 17,756 $ (93,591) $ 43,922 $ 0 $ 0 $ 43,922

Net Change in Fund Balance $ 119,757 $ 17,756 $ (93,591) $ 43,922 $ 0 $ 0 $ 43,922Fund Balance, July 1, 2016 897,668 (17,756) 0 879,912 773,146 773,146 106,766

Fund Balance, June 30, 2017 $ 1,017,425 $ 0 $ (93,591) $ 923,834 $ 773,146 $ 773,146 $ 150,688

Budgeted Amounts

113

Exhibit J-11


in Fund Balance - Actual (Budgetary Basis) and BudgetDiscretely Presented Dyer County School DepartmentSchool Transportation FundFor the Year Ended June 30, 2017



RevenuesLocal Taxes $ 1,373,532 $ 0 $ 0 $ 1,373,532 $ 1,363,976 $ 1,363,976 $ 9,556Charges for Current Services 45,961 0 0 45,961 30,350 30,350 15,611Other Local Revenues 16,404 0 0 16,404 1,500 1,500 14,904State of Tennessee 1,127,059 0 0 1,127,059 1,142,315 1,142,315 (15,256)

Total Revenues $ 2,562,956 $ 0 $ 0 $ 2,562,956 $ 2,538,141 $ 2,538,141 $ 24,815

ExpendituresSupport Services

Board of Education $ 24,696 $ 0 $ 0 $ 24,696 $ 27,000 $ 27,000 $ 2,304Operation of Plant 19,545 0 0 19,545 22,170 22,170 2,625Transportation 2,596,990 (299,562) 228,130 2,525,558 2,644,994 2,644,994 119,436

Total Expenditures $ 2,641,231 $ (299,562) $ 228,130 $ 2,569,799 $ 2,694,164 $ 2,694,164 $ 124,365

Excess (Deficiency) of RevenuesOver Expenditures $ (78,275) $ 299,562 $ (228,130) $ (6,843) $ (156,023) $ (156,023) $ 149,180

Net Change in Fund Balance $ (78,275) $ 299,562 $ (228,130) $ (6,843) $ (156,023) $ (156,023) $ 149,180Fund Balance, July 1, 2016 1,236,255 (299,562) 0 936,693 910,903 910,903 25,790

Fund Balance, June 30, 2017 $ 1,157,980 $ 0 $ (228,130) $ 929,850 $ 754,880 $ 754,880 $ 174,970

Budgeted Amounts

114

MISCELLANEOUS SCHEDULES

115

Exhibit K-1

Dyer County, TennesseeSchedule of Changes in Long-term Other Loans and BondsFor the Year Ended June 30, 2017

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

Description of Indebtedness of Issue Rate Issue Date 7-1-16 Period Period Refunded 6-30-17

OTHER LOANS PAYABLE Payable through General Debt Service Fund Qualified School Construction Bonds, Series 2009 $ 8,960,000 1.515% 12-1-09 9-15-26 $ 5,657,356 $ 0 $ 564,391 $ 0 $ 5,092,965 Qualified School Construction Bonds, Series 2010 5,673,000 (1) 9-1-10 9-15-26 3,935,231 0 356,647 0 3,578,584

Total Other Loans Payable $ 9,592,587 $ 0 $ 921,038 $ 0 $ 8,671,549

BONDS PAYABLE Payable through General Debt Service Fund School Refunding Bonds, Series 2009A 19,910,000 2 to 4.1 6-4-09 6-1-22 $ 15,405,000 $ 0 $ 935,000 $ 9,200,000 $ 5,270,000 School Refunding Bonds, Series 2009B 10,330,000 2 to 4.1 7-28-09 6-1-26 8,080,000 0 510,000 0 7,570,000 General Obligation Refunding Bonds, Series 2015 5,815,000 2 to 4.0 5-27-15 6-1-26 5,370,000 0 460,000 0 4,910,000 General Obligation Refunding Bonds, Series 2016 9,975,000 2 11-18-16 6-1-29 0 9,975,000 50,000 0 9,925,000

Total Bonds Payable $ 28,855,000 $ 9,975,000 $ 1,955,000 $ 9,200,000 $ 27,675,000

(1) Interest rate of approximately 4.85 percent is offset by a federal interest subsidy, resulting in a net interest rate of zero percent.

116

Exhibit K-2Dyer County, TennesseeSchedule of Long-term Debt Requirements by Year

YearEndingJune 30 Principal Interest (1) Other Fees Total

2018 $ 913,076 $ 410,771 $ 13,498 $ 1,337,3452019 913,076 410,771 13,498 1,337,3452020 913,076 410,771 13,498 1,337,3452021 913,076 410,771 13,498 1,337,3452022 913,076 410,771 13,498 1,337,3452023 913,076 410,771 13,498 1,337,3452024 913,076 410,771 13,498 1,337,3452025 913,076 410,771 13,498 1,337,3452026 974,227 410,771 13,498 1,398,4962027 392,714 286,340 5,285 684,339

Total $ 8,671,549 $ 3,983,279 $ 126,767 $ 12,781,595

EndingJune 30 Principal Interest Total

2018 $ 2,035,000 $ 802,713 $ 2,837,7132019 2,105,000 734,850 2,839,8502020 2,225,000 662,394 2,887,3942021 2,280,000 581,454 2,861,4542022 2,335,000 506,954 2,841,9542023 2,390,000 428,844 2,818,8442024 2,450,000 358,544 2,808,5442025 2,535,000 286,544 2,821,5442026 2,595,000 212,344 2,807,3442027 2,200,000 134,500 2,334,5002028 2,240,000 90,500 2,330,5002029 2,285,000 45,700 2,330,700

Total $ 27,675,000 $ 4,845,341 $ 32,520,341

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

Other Loans

Bonds

117

Exhibit K-3

Dyer County, TennesseeSchedule of Notes ReceivableJune 30, 2017

Original Date DateAmount of of Interest Balance

Description Debtor of Note Issue Maturity Rate 6-30-17

General Fund Dyer County Industrial Development Board $ 3,744,016 6-2-03 7-5-18 6% $ 389,599

Total Notes Receivable $ 389,599

118

Exhibit K-4

Dyer County, TennesseeSchedule of TransfersDiscretely Presented Dyer County School DepartmentFor the Year Ended June 30, 2017

From Fund To Fund Purpose

School Federal Projects General Purpose School Indirect costs $ 20,714

Total Transfers $ 20,714

Amount

119

Exhibit K-5

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

SalaryPaid

DuringOfficial Authorization for Salary Period Bond Surety

County Mayor Section 8-24-102, TCA $ 88,522 $ 100,000 Erie Insurance CompanyRoad Supervisor Section 8-24-102, TCA 82,386 100,000 "Director of Schools State Board of Education and

County Board of Education 118,500 (1) 100,000 Travelers Casualty and Surety Company of AmericaTrustee Section 8-24-102, TCA 73,122 1,354,754 Erie Insurance CompanyAssessor of Property Section 8-24-102, TCA 73,122 50,000 Travelers Casualty and Surety Company of AmericaCounty Clerk Section 8-24-102, TCA 73,122 100,000 Erie Insurance CompanyCircuit and General Sessions Courts Clerk Section 8-24-102, TCA 73,122 100,000 "Clerk and Master Section 8-24-102, TCA 73,123 100,000 Travelers Casualty and Surety Company of AmericaRegister of Deeds Section 8-24-102, TCA 73,122 100,000 Erie Insurance CompanySheriff Section 8-24-102, TCA 81,720 (2) 100,000 "

General County/Highway Department Employees 400,000 Local Government Property and Casualty FundAll School Employees 150,000 The Netherlands Insurance Company

(1) Includes a chief executive officer training supplement of $1,000. Does not include benefits for medical, dental, and life insurance premiums of $19,946, retirement benefits of $7,234, and a vehicle allowance of $96.(2) Does not include $600 for a law enforcement training supplement.

120

Exhibit K-6

Dyer County, TennesseeSchedule of Detailed Revenues -

All Governmental Fund TypesFor the Year Ended June 30, 2017

Constitu -Solid tional Highway /

Law Waste / Drug Officers - PublicGeneral Library Sanitation Control Fees Works

Local TaxesCounty Property Taxes

Current Property Tax $ 6,157,423 $ 0 $ 0 $ 0 $ 0 $ 1,730,971Trustee's Collections - Prior Year 128,151 0 0 0 0 41,870Trustee's Collections - Bankruptcy 319 0 0 0 0 0Circuit Clerk/Clerk and Master Collections - Prior Years 36,401 0 0 0 0 12,080Interest and Penalty 33,541 0 0 0 0 10,390Payments in-Lieu-of Taxes - Local Utilities 82,695 0 82,695 0 0 0Payments in-Lieu-of Taxes - Other 0 0 0 0 0 0

County Local Option TaxesLocal Option Sales Tax 0 0 0 0 0 0Litigation Tax - General 176,882 0 0 0 0 0Litigation Tax - Special Purpose 0 2,150 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 0 0 0 0 0 0Business Tax 450,106 0 0 0 0 0

Statutory Local TaxesBank Excise Tax 66,268 0 0 0 0 0Wholesale Beer Tax 80,185 0 0 0 0 0

Total Local Taxes $ 7,211,971 $ 2,150 $ 82,695 $ 0 $ 0 $ 1,795,311

Licenses and PermitsLicenses

Animal Registration $ 9,104 $ 0 $ 0 $ 0 $ 0 $ 0Cable TV Franchise 73,069 0 0 0 0 0

PermitsBeer Permits 1,599 0 0 0 0 0Building Permits 18,791 0 0 0 0 0

(Continued)


121

Exhibit K-6


All Governmental Fund Types (Cont.)



Licenses and Permits (Cont.)Permits (Cont.)

Other Permits $ 24,672 $ 0 $ 0 $ 0 $ 0 $ 0Total Licenses and Permits $ 127,235 $ 0 $ 0 $ 0 $ 0 $ 0

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 6,461 $ 0 $ 0 $ 0 $ 0 $ 0Officers Costs 6,085 0 0 0 0 0Drug Control Fines 0 0 0 6,578 0 0Drug Court Fees 5,791 0 0 0 0 0DUI Treatment Fines 337 0 0 0 0 0Data Entry Fee - Circuit Court 1,918 0 0 0 0 0

General Sessions CourtFines 24,584 0 0 0 0 0Fines for Littering 48 0 0 0 0 0Officers Costs 11,513 0 0 0 0 0Game and Fish Fines 324 0 0 0 0 0Drug Control Fines 2,995 0 0 0 0 0Drug Court Fees 3,478 0 0 0 0 0Jail Fees 5,006 0 0 0 0 0DUI Treatment Fines 6,308 0 0 0 0 0Data Entry Fee - General Sessions Court 17,028 0 0 0 0 0

Juvenile CourtFines 1,347 0 0 0 0 0Data Entry Fee - Juvenile Court 950 0 0 0 0 0Courtroom Security Fee 135 0 0 0 0 0

(Continued)


122

Exhibit K-6





Fines, Forfeitures, and Penalties (Cont.)Chancery Court

Officers Costs $ 2,108 $ 0 $ 0 $ 0 $ 0 $ 0Data Entry Fee - Chancery Court 5,648 0 0 0 0 0

Other Courts - In-countyDrug Court Fees 3,670 0 0 0 0 0

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 0 0 78,070 0 0Other Fines, Forfeitures, and Penalties 37,700 0 0 0 0 0

Total Fines, Forfeitures, and Penalties $ 143,434 $ 0 $ 0 $ 84,648 $ 0 $ 0

Charges for Current ServicesGeneral Service Charges

Surcharge - General $ 100 $ 0 $ 0 $ 0 $ 0 $ 0Solid Waste Disposal Fee 0 0 2,245 0 0 0Surcharge - Waste Tire Disposal 0 0 38,920 0 0 0Patient Charges 4,274 0 0 0 0 0Work Release Charges for Board 104,386 0 0 0 0 0Other General Service Charges 349 0 0 0 0 0

FeesArchives and Records Management Fee 21,965 0 0 0 0 0Telephone Commissions 144,054 0 0 0 0 0Vending Machine Collections 140 0 0 0 0 0Constitutional Officers' Fees and Commissions 0 0 0 0 1,839 0Data Processing Fee - Register 11,382 0 0 0 0 0Data Processing Fee - Sheriff 2,280 0 0 0 0 0Sexual Offender Registration Fee - Sheriff 2,450 0 0 0 0 0

(Continued)


123

Exhibit K-6





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

Data Processing Fee - County Clerk $ 3,645 $ 0 $ 0 $ 0 $ 0 $ 0Total Charges for Current Services $ 295,025 $ 0 $ 41,165 $ 0 $ 1,839 $ 0

Other Local RevenuesRecurring Items

Investment Income $ 10,407 $ 0 $ 0 $ 0 $ 0 $ 22,416Lease/Rentals 33,991 0 130 0 0 46,950Sale of Materials and Supplies 0 0 0 0 0 6,689Commissary Sales 96,136 0 0 0 0 0Miscellaneous Refunds 127,435 0 0 0 0 45

Nonrecurring ItemsSale of Equipment 11,557 0 0 18,210 0 0Sale of Property 8,119 0 0 0 0 0Damages Recovered from Individuals 6,129 0 0 0 0 5,349Contributions and Gifts 175 0 0 4,466 0 0

Other Local RevenuesOther Local Revenues 3,273 0 0 0 0 0

Total Other Local Revenues $ 297,222 $ 0 $ 130 $ 22,676 $ 0 $ 81,449

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 345,717 $ 0 $ 0 $ 0 $ 0 $ 0Circuit Court Clerk 106,840 0 0 0 0 0General Sessions Court Clerk 259,552 0 0 0 0 0Clerk and Master 180,423 0 0 0 0 0

(Continued)


124

Exhibit K-6





Fees Received From County Officials (Cont.)Fees In-Lieu-of Salary (Cont.)

Juvenile Court Clerk $ 16,756 $ 0 $ 0 $ 0 $ 0 $ 0Register 134,943 0 0 0 0 0Sheriff 13,674 0 0 0 0 0Trustee 603,904 0 0 0 0 0

Total Fees Received From County Officials $ 1,661,809 $ 0 $ 0 $ 0 $ 0 $ 0

State of TennesseeGeneral Government Grants

Juvenile Services Program $ 9,000 $ 0 $ 0 $ 0 $ 0 $ 0Aging Programs 405,643 0 0 0 0 0Other General Government Grants 1,812,546 0 0 0 0 0

Public Safety GrantsLaw Enforcement Training Programs 19,800 0 0 0 0 0Drug Control Grants 48,586 0 0 0 0 0

Health and Welfare GrantsHealth Department Programs 150,919 0 0 0 0 0

Public Works GrantsLitter Program 36,039 0 0 0 0 0

Other State RevenuesIncome Tax 84,318 0 0 0 0 0Vehicle Certificate of Title Fees 9,051 0 0 0 0 0Alcoholic Beverage Tax 83,184 0 0 0 0 0Child Support Collections 8,338 0 0 0 0 0Contracted Prisoner Boarding 1,399,081 0 0 0 0 0Gasoline and Motor Fuel Tax 0 0 0 0 0 1,984,965

(Continued)


125

Exhibit K-6





State of Tennessee (Cont.)Other State Revenues (Cont.)

Petroleum Special Tax $ 0 $ 0 $ 0 $ 0 $ 0 $ 27,660Registrar's Salary Supplement 15,164 0 0 0 0 0Other State Grants 54,668 0 0 0 0 0Other State Revenues 291 0 0 0 0 0

Total State of Tennessee $ 4,136,628 $ 0 $ 0 $ 0 $ 0 $ 2,012,625

Federal GovernmentFederal Through State

USDA - Other $ 68,658 $ 0 $ 0 $ 0 $ 0 $ 0Disaster Relief 19,000 0 0 0 0 0Other Federal through State 205,249 0 0 0 0 0

Direct Federal RevenueTax Credit Bond Rebate 0 0 0 0 0 0Other Direct Federal Revenue 16,200 0 0 0 0 0

Total Federal Government $ 309,107 $ 0 $ 0 $ 0 $ 0 $ 0

Other Governments and Citizens GroupsOther Governments

Prisoner Board $ 3,163 $ 0 $ 0 $ 0 $ 0 $ 0Contracted Services 19,751 0 0 0 0 0

Citizens GroupsDonations 25,000 0 0 0 0 0

Total Other Governments and Citizens Groups $ 47,914 $ 0 $ 0 $ 0 $ 0 $ 0

Total $ 14,230,345 $ 2,150 $ 123,990 $ 107,324 $ 1,839 $ 3,889,385

(Continued)


126

Exhibit K-6



GeneralDebt

Service Total


Current Property Tax $ 2,107,836 $ 9,996,230Trustee's Collections - Prior Year 54,908 224,929Trustee's Collections - Bankruptcy 128 447Circuit Clerk/Clerk and Master Collections - Prior Years 15,601 64,082Interest and Penalty 13,109 57,040Payments in-Lieu-of Taxes - Local Utilities 0 165,390Payments in-Lieu-of Taxes - Other 1,072,354 1,072,354

County Local Option TaxesLocal Option Sales Tax 64,866 64,866Litigation Tax - General 0 176,882Litigation Tax - Special Purpose 0 2,150Litigation Tax - Jail, Workhouse, or Courthouse 113,846 113,846Business Tax 0 450,106

Statutory Local TaxesBank Excise Tax 0 66,268Wholesale Beer Tax 0 80,185

Total Local Taxes $ 3,442,648 $ 12,534,775


Animal Registration $ 0 $ 9,104Cable TV Franchise 0 73,069

PermitsBeer Permits 0 1,599Building Permits 0 18,791

(Continued)

Debt Service Fund

127

Exhibit K-6



GeneralDebt

Service Total

Licenses and Permits (Cont.)Permits (Cont.)

Other Permits $ 0 $ 24,672Total Licenses and Permits $ 0 $ 127,235

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 0 $ 6,461Officers Costs 0 6,085Drug Control Fines 0 6,578Drug Court Fees 0 5,791DUI Treatment Fines 0 337Data Entry Fee - Circuit Court 0 1,918

General Sessions CourtFines 0 24,584Fines for Littering 0 48Officers Costs 0 11,513Game and Fish Fines 0 324Drug Control Fines 0 2,995Drug Court Fees 0 3,478Jail Fees 0 5,006DUI Treatment Fines 0 6,308Data Entry Fee - General Sessions Court 0 17,028

Juvenile CourtFines 0 1,347Data Entry Fee - Juvenile Court 0 950Courtroom Security Fee 0 135

(Continued)

Debt Service Fund

128

Exhibit K-6



GeneralDebt

Service Total

Fines, Forfeitures, and Penalties (Cont.)Chancery Court

Officers Costs $ 0 $ 2,108Data Entry Fee - Chancery Court 0 5,648

Other Courts - In-countyDrug Court Fees 0 3,670

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 78,070Other Fines, Forfeitures, and Penalties 0 37,700

Total Fines, Forfeitures, and Penalties $ 0 $ 228,082

Charges for Current ServicesGeneral Service Charges

Surcharge - General $ 0 $ 100Solid Waste Disposal Fee 0 2,245Surcharge - Waste Tire Disposal 0 38,920Patient Charges 0 4,274Work Release Charges for Board 0 104,386Other General Service Charges 0 349

FeesArchives and Records Management Fee 0 21,965Telephone Commissions 0 144,054Vending Machine Collections 0 140Constitutional Officers' Fees and Commissions 0 1,839Data Processing Fee - Register 0 11,382Data Processing Fee - Sheriff 0 2,280Sexual Offender Registration Fee - Sheriff 0 2,450

(Continued)

Debt Service Fund

129

Exhibit K-6



GeneralDebt

Service Total

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

Data Processing Fee - County Clerk $ 0 $ 3,645Total Charges for Current Services $ 0 $ 338,029


Investment Income $ 151,836 $ 184,659Lease/Rentals 0 81,071Sale of Materials and Supplies 0 6,689Commissary Sales 0 96,136Miscellaneous Refunds 0 127,480

Nonrecurring ItemsSale of Equipment 0 29,767Sale of Property 0 8,119Damages Recovered from Individuals 0 11,478Contributions and Gifts 0 4,641

Other Local RevenuesOther Local Revenues 0 3,273

Total Other Local Revenues $ 151,836 $ 553,313

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 0 $ 345,717Circuit Court Clerk 0 106,840General Sessions Court Clerk 0 259,552Clerk and Master 0 180,423

(Continued)

Debt Service Fund

130

Exhibit K-6



GeneralDebt

Service Total

Fees Received From County Officials (Cont.)Fees In-Lieu-of Salary (Cont.)

Juvenile Court Clerk $ 0 $ 16,756Register 0 134,943Sheriff 0 13,674Trustee 0 603,904

Total Fees Received From County Officials $ 0 $ 1,661,809


Juvenile Services Program $ 0 $ 9,000Aging Programs 0 405,643Other General Government Grants 0 1,812,546

Public Safety GrantsLaw Enforcement Training Programs 0 19,800Drug Control Grants 0 48,586

Health and Welfare GrantsHealth Department Programs 0 150,919

Public Works GrantsLitter Program 0 36,039

Other State RevenuesIncome Tax 0 84,318Vehicle Certificate of Title Fees 0 9,051Alcoholic Beverage Tax 0 83,184Child Support Collections 0 8,338Contracted Prisoner Boarding 0 1,399,081Gasoline and Motor Fuel Tax 0 1,984,965

(Continued)

Debt Service Fund

131

Exhibit K-6



GeneralDebt

Service Total

State of Tennessee (Cont.)Other State Revenues (Cont.)

Petroleum Special Tax $ 0 $ 27,660Registrar's Salary Supplement 0 15,164Other State Grants 0 54,668Other State Revenues 0 291

Total State of Tennessee $ 0 $ 6,149,253


USDA - Other $ 0 $ 68,658Disaster Relief 0 19,000Other Federal through State 0 205,249

Direct Federal RevenueTax Credit Bond Rebate 256,188 256,188Other Direct Federal Revenue 0 16,200

Total Federal Government $ 256,188 $ 565,295

Other Governments and Citizens GroupsOther Governments

Prisoner Board $ 0 $ 3,163Contracted Services 0 19,751

Citizens GroupsDonations 0 25,000

Total Other Governments and Citizens Groups $ 0 $ 47,914

Total $ 3,850,672 $ 22,205,705

Debt Service Fund

132

Exhibit K-7


All Governmental Fund TypesDiscretely Presented Dyer County School DepartmentFor the Year Ended June 30, 2017

General School SchoolPurpose Federal Central Transpor -School Projects Cafeteria tation Total


Current Property Tax $ 3,432,761 $ 0 $ 0 $ 1,060,306 $ 4,493,067Trustee's Collections - Prior Year 82,885 0 0 25,598 108,483Trustee's Collections - Bankruptcy 207 0 0 65 272Circuit Clerk/Clerk and Master Collections - Prior Years 23,769 0 0 7,400 31,169Interest and Penalty 20,573 0 0 6,364 26,937Payments in-Lieu-of Taxes - T.V.A. 207 0 0 0 207

County Local Option TaxesLocal Option Sales Tax 4,017,677 0 0 0 4,017,677Wheel Tax 911,295 0 0 273,799 1,185,094

Statutory Local TaxesInterstate Telecommunications Tax 2,718 0 0 0 2,718

Total Local Taxes $ 8,492,092 $ 0 $ 0 $ 1,373,532 $ 9,865,624


Marriage Licenses $ 1,550 $ 0 $ 0 $ 0 $ 1,550Permits

Other Permits 372 0 0 0 372Total Licenses and Permits $ 1,922 $ 0 $ 0 $ 0 $ 1,922

Charges for Current ServicesFees

Vending Machine Collections $ 0 $ 0 $ 0 $ 194 $ 194

(Continued)


133

Exhibit K-7


All Governmental Fund TypesDiscretely Presented Dyer County School Department (Cont.)


Charges for Current Services (Cont.)Education Charges

Tuition - Summer School $ 1,550 $ 0 $ 0 $ 0 $ 1,550Lunch Payments - Children 0 0 308,802 0 308,802Lunch Payments - Adults 0 0 39,190 0 39,190Income from Breakfast 0 0 47,018 0 47,018A la Carte Sales 0 0 200,849 0 200,849Contract for Administrative Services with Other LEA's 28,886 0 0 0 28,886Contract for Student Support Services with Other LEA’s 0 0 0 9,000 9,000Receipts from Individual Schools 6,144 0 4,898 36,767 47,809

Total Charges for Current Services $ 36,580 $ 0 $ 600,757 $ 45,961 $ 683,298


Investment Income $ 58,101 $ 0 $ 5,511 $ 0 $ 63,612Sale of Materials and Supplies 3,956 0 0 0 3,956E-Rate Funding 270,275 0 0 0 270,275Retirees' Insurance Payments 18,497 0 0 0 18,497Miscellaneous Refunds 1,357 0 12,611 2,008 15,976

Nonrecurring ItemsSale of Equipment 5,732 0 0 13,988 19,720Damages Recovered from Individuals 922 0 0 408 1,330Contributions and Gifts 1 0 0 0 1

Total Other Local Revenues $ 358,841 $ 0 $ 18,122 $ 16,404 $ 393,367

(Continued)


134

Exhibit K-7





On-behalf Contributions for OPEB $ 124,055 $ 0 $ 0 $ 0 $ 124,055Health and Welfare Grants

Other Health and Welfare Grants 67,142 0 0 0 67,142State Education Funds

Basic Education Program 18,387,941 0 0 1,127,059 19,515,000Early Childhood Education 675,912 0 0 0 675,912School Food Service 0 0 20,359 0 20,359Driver Education 22,044 0 0 0 22,044Other State Education Funds 268,337 0 0 0 268,337Career Ladder Program 70,595 0 0 0 70,595

Other State RevenuesState Revenue Sharing - T.V.A. 764,011 0 0 0 764,011

Total State of Tennessee $ 20,380,037 $ 0 $ 20,359 $ 1,127,059 $ 21,527,455


USDA School Lunch Program $ 0 $ 0 $ 1,089,646 $ 0 $ 1,089,646USDA - Commodities 0 0 206,432 0 206,432Breakfast 0 0 368,344 0 368,344USDA - Other 0 0 13,218 0 13,218Vocational Education - Basic Grants to States 0 54,836 0 0 54,836Title I Grants to Local Education Agencies 0 656,573 0 0 656,573Special Education - Grants to States 73,825 855,500 0 0 929,325Special Education Preschool Grants 0 32,580 0 0 32,580

(Continued)


135

Exhibit K-7




Federal Government (Cont.)Federal Through State (Cont.)

Safe and Drug-free Schools - State Grants $ 0 $ 223,626 $ 0 $ 0 $ 223,626Rural Education 0 74,462 0 0 74,462Eisenhower Professional Development State Grants 0 99,509 0 0 99,509Other Federal through State 0 32,301 0 0 32,301

Direct Federal RevenueROTC Reimbursement 61,758 0 0 0 61,758

Total Federal Government $ 135,583 $ 2,029,387 $ 1,677,640 $ 0 $ 3,842,610

Total $ 29,405,055 $ 2,029,387 $ 2,316,878 $ 2,562,956 $ 36,314,276


136

Exhibit K-8

Dyer County, TennesseeSchedule of Detailed Expenditures -

All Governmental Fund TypesFor the Year Ended June 30, 2017

General FundGeneral Government

County CommissionOther Per Diem and Fees $ 79,300Social Security 4,760Employer Medicare 1,113Audit Services 13,801Travel 4,425

Total County Commission $ 103,399

Board of EqualizationBoard and Committee Members Fees $ 1,953

Total Board of Equalization 1,953

Other Boards and CommitteesBoard and Committee Members Fees $ 3,240

Total Other Boards and Committees 3,240

County Mayor/ExecutiveCounty Official/Administrative Officer $ 88,522Secretary(ies) 70,101Other Per Diem and Fees 8,400Social Security 9,459Medical Insurance 12,483Local Retirement 7,530Employer Medicare 2,212Advertising 3,075Maintenance and Repair Services - Office Equipment 3,859Postal Charges 2,127Printing, Stationery, and Forms 1,283Travel 6,041Other Contracted Services 7,149Office Supplies 4,095

Total County Mayor/Executive 226,336

County AttorneyOther Salaries and Wages $ 1,200Social Security 74Employer Medicare 17Legal Services 30,739

Total County Attorney 32,030

Election CommissionSupervisor/Director $ 66,457Deputy(ies) 73,293Part-time Personnel 28,194Election Commission 12,315Election Workers 55,945Social Security 10,239Medical Insurance 22,269

(Continued)

137

Exhibit K-8



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

Election Commission (Cont.)Local Retirement $ 2,752Employer Medicare 2,395Audit Services 2,221Legal Notices, Recording, and Court Costs 3,954Maintenance and Repair Services - Equipment 24,090Postal Charges 1,424Printing, Stationery, and Forms 1,552Travel 3,210Office Supplies 2,231Other Charges 2,316Office Equipment 3,599Voting Machines 14,500

Total Election Commission $ 332,956

Register of DeedsCounty Official/Administrative Officer $ 73,122Deputy(ies) 50,429Social Security 6,832Medical Insurance 19,407Unemployment Compensation 188Local Retirement 5,045Employer Medicare 1,598Dues and Memberships 714Postal Charges 196Printing, Stationery, and Forms 2,396Rentals 1,706Travel 1,500Other Contracted Services 401Data Processing Supplies 14,242Office Supplies 604In Service/Staff Development 350Office Equipment 1,398

Total Register of Deeds 180,128

PlanningSupervisor/Director $ 52,279Secretary(ies) 45,415Other Salaries and Wages 1,200Other Per Diem and Fees 8,400Social Security 5,934Medical Insurance 9,790Local Retirement 2,216Employer Medicare 1,388Contracts with Private Agencies 150Dues and Memberships 205Legal Notices, Recording, and Court Costs 420Postal Charges 450

(Continued)

138

Exhibit K-8



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

Planning (Cont.)Other Contracted Services $ 13,825Office Supplies 731In Service/Staff Development 801Office Equipment 164

Total Planning $ 143,368

County BuildingsCustodial Personnel $ 35,021Social Security 2,713Medical Insurance 4,701Employer Medicare 634Janitorial Services 24,658Maintenance and Repair Services - Buildings 14,547Pest Control 1,115Custodial Supplies 8,063Drugs and Medical Supplies 101Liability Insurance 124,218Other Charges 271Office Equipment 509Other Capital Outlay 167,051

Total County Buildings 383,602

Other General AdministrationCommunication $ 17,370Contracts with Other Public Agencies 18,000Dues and Memberships 5,218Maintenance Agreements 6,900Maintenance and Repair Services - Buildings 3,469Maintenance and Repair Services - Office Equipment 1,486Pest Control 780Disposal Fees 691Electricity 17,601Utilities 5,115Premiums on Corporate Surety Bonds 387Workers' Compensation Insurance 28,988Other Capital Outlay 1,881,303

Total Other General Administration 1,987,308

Preservation of RecordsMaintenance and Repair Services - Office Equipment $ 2,408Travel 1,920Office Supplies 1,612Other Supplies and Materials 38Office Equipment 27,864

Total Preservation of Records 33,842

(Continued)

139

Exhibit K-8



General Fund (Cont.)Finance

Accounting and BudgetingSupervisor/Director $ 138,037Social Security 7,926Medical Insurance 8,040Local Retirement 2,855Employer Medicare 1,854Dues and Memberships 434Travel 132Other Contracted Services 10,030Office Supplies 111In Service/Staff Development 199Office Equipment 870

Total Accounting and Budgeting $ 170,488

Property Assessor's OfficeCounty Official/Administrative Officer $ 73,122Deputy(ies) 120,120Other Per Diem and Fees 4,800Social Security 11,328Medical Insurance 19,452Local Retirement 7,856Employer Medicare 2,649Contracts with Private Agencies 22,500Data Processing Services 11,286Dues and Memberships 1,700Legal Notices, Recording, and Court Costs 78Postal Charges 1,279Rentals 3,060Travel 460Data Processing Supplies 3,000Office Supplies 1,967Premiums on Corporate Surety Bonds 175In Service/Staff Development 15Other Charges 510

Total Property Assessor's Office 285,357

Reappraisal ProgramDeputy(ies) $ 32,708Other Per Diem and Fees 8,400Social Security 2,243Medical Insurance 4,429Local Retirement 643Employer Medicare 525Data Processing Services 3,640Postal Charges 1,757Office Supplies 17

Total Reappraisal Program 54,362

(Continued)

140

Exhibit K-8



General Fund (Cont.)Finance (Cont.)

County Trustee's OfficeCounty Official/Administrative Officer $ 73,122Deputy(ies) 91,952Social Security 9,459Medical Insurance 13,016Local Retirement 6,847Employer Medicare 2,212Legal Notices, Recording, and Court Costs 166Maintenance and Repair Services - Office Equipment 585Postal Charges 13,750Printing, Stationery, and Forms 999Travel 779Other Contracted Services 18,714Data Processing Supplies 800Office Supplies 850In Service/Staff Development 642Office Equipment 1,117

Total County Trustee's Office $ 235,010

County Clerk's OfficeCounty Official/Administrative Officer $ 73,122Deputy(ies) 199,322Other Salaries and Wages 5,889Social Security 15,898Medical Insurance 39,845Local Retirement 8,479Employer Medicare 3,718Dues and Memberships 739Legal Notices, Recording, and Court Costs 175Postal Charges 7,500Printing, Stationery, and Forms 2,500Rentals 1,352Other Contracted Services 2,369Data Processing Supplies 21,975Other Supplies and Materials 4,241In Service/Staff Development 100Other Charges 2,365Office Equipment 1,323

Total County Clerk's Office 390,912

Other FinanceGuards $ 6,250Social Security 388Employer Medicare 91Communication 13,162Maintenance and Repair Services - Buildings 229,455Maintenance and Repair Services - Office Equipment 1,150Pest Control 540

(Continued)

141

Exhibit K-8



General Fund (Cont.)Finance (Cont.)

Other Finance (Cont.)Electricity $ 17,193Utilities 3,742Refunds 5,177

Total Other Finance $ 277,148

Administration of JusticeCircuit Court

County Official/Administrative Officer $ 73,122Deputy(ies) 243,809Jury and Witness Expense 17,170Other Per Diem and Fees 4,241Social Security 17,743Medical Insurance 38,275Local Retirement 8,568Employer Medicare 4,149Maintenance and Repair Services - Office Equipment 8,572Postal Charges 2,735Printing, Stationery, and Forms 5,999Travel 4,202Data Processing Supplies 33,948Office Supplies 7,645

Total Circuit Court 470,178

General Sessions CourtJudge(s) $ 153,398Clerical Personnel 26,621Social Security 8,753Medical Insurance 8,054Local Retirement 10,584Employer Medicare 2,552Dues and Memberships 1,322Travel 955Other Contracted Services 606Office Supplies 460Other Charges 341

Total General Sessions Court 213,646

Drug CourtSupervisor/Director $ 12,000Probation Officer(s) 7,200Social Security 1,131Employer Medicare 264Travel 1,557Drug Treatment 26,141Other Supplies and Materials 292

Total Drug Court 48,585

(Continued)

142

Exhibit K-8



General Fund (Cont.)Administration of Justice (Cont.)

Chancery CourtCounty Official/Administrative Officer $ 73,123Deputy(ies) 175,818Social Security 14,109Medical Insurance 30,920Local Retirement 8,515Employer Medicare 3,300Advertising 641Maintenance and Repair Services - Office Equipment 1,657Postal Charges 1,918Printing, Stationery, and Forms 4,525Rentals 613Travel 262Other Contracted Services 3,270Data Processing Supplies 22,630Office Supplies 2,266Office Equipment 2,273

Total Chancery Court $ 345,840

Juvenile CourtProbation Officer(s) $ 87,977Youth Service Officer(s) 43,455Social Security 7,818Medical Insurance 8,373Local Retirement 2,537Employer Medicare 1,828Contracts with Government Agencies 81,223Contracts with Other Public Agencies 9,014Contracts with Private Agencies 4,350Postal Charges 300Printing, Stationery, and Forms 58Office Supplies 1,822In Service/Staff Development 219Office Equipment 3,581

Total Juvenile Court 252,555

Other Administration of JusticeSocial Security $ 914Employer Medicare 214Communication 9,550Maintenance and Repair Services - Buildings 2,369Maintenance and Repair Services - Office Equipment 1,250Pest Control 240Other Contracted Services 16,141Electricity 23,452Office Supplies 1,021Utilities 6,087Office Equipment 340

Total Other Administration of Justice 61,578

(Continued)

143

Exhibit K-8



General Fund (Cont.)Public Safety

Sheriff's DepartmentCounty Official/Administrative Officer $ 81,720Deputy(ies) 657,822Investigator(s) 261,866Captain(s) 51,345Lieutenant(s) 44,696Sergeant(s) 167,894Accountants/Bookkeepers 60,549Salary Supplements 14,400Dispatchers/Radio Operators 261,910Other Salaries and Wages 34,981Social Security 94,731Medical Insurance 168,337Unemployment Compensation 2,480Local Retirement 15,631Employer Medicare 22,155Communication 51,553Contracts with Government Agencies 11,276Contracts with Private Agencies 14,939Dues and Memberships 647Maintenance and Repair Services - Buildings 343Maintenance and Repair Services - Vehicles 38,933Pest Control 900Postal Charges 4,383Printing, Stationery, and Forms 5,304Rentals 1,641Travel 154Data Processing Supplies 3,363Gasoline 82,761Law Enforcement Supplies 45,790Lubricants 3,406Office Supplies 8,847Tires and Tubes 11,588Uniforms 10,907Vehicle and Equipment Insurance 9,366In Service/Staff Development 24,773Motor Vehicles 69,000

Total Sheriff's Department $ 2,340,391

Drug EnforcementTemporary Personnel $ 4,036Social Security 250Employer Medicare 59Drug Treatment 295Other Supplies and Materials 1,926

Total Drug Enforcement 6,566

(Continued)

144

Exhibit K-8



General Fund (Cont.)Public Safety (Cont.)

JailAssistant(s) $ 43,800Deputy(ies) 249,361Lieutenant(s) 45,811Sergeant(s) 100,084Accountants/Bookkeepers 88,846Medical Personnel 36,771Salary Supplements 3,600Attendants 661,370Cafeteria Personnel 71,435Other Salaries and Wages 61,902Social Security 81,499Medical Insurance 160,248Local Retirement 10,475Employer Medicare 19,060Communication 1,893Laundry Service 2,592Maintenance and Repair Services - Buildings 44,946Maintenance and Repair Services - Equipment 18,482Medical and Dental Services 35,622Pest Control 480Rentals 1,934Transportation - Other than Students 3,419Drug Treatment 13,474Other Contracted Services 30,000Custodial Supplies 19,429Drugs and Medical Supplies 37,248Electricity 81,189Food Preparation Supplies 7,505Food Supplies 160,706Prisoners Clothing 7,317Uniforms 4,186Utilities 52,983Building and Contents Insurance 88,893Liability Insurance 23,765In Service/Staff Development 4,650Furniture and Fixtures 6,530Law Enforcement Equipment 26,367

Total Jail $ 2,307,872

WorkhouseAssistant(s) $ 32,617Attendants 232,376Other Salaries and Wages 4,823Social Security 13,002Medical Insurance 25,480Local Retirement 2,552Employer Medicare 3,041

(Continued)

145

Exhibit K-8




Workhouse (Cont.)Electricity $ 9,395Utilities 2,206

Total Workhouse $ 325,492

Fire Prevention and ControlSupervisor/Director $ 44,554Part-time Personnel 16,810Social Security 3,655Disability Insurance 6,210Local Retirement 922Employer Medicare 855Communication 2,373Contracts with Other Public Agencies 28,639Dues and Memberships 180Maintenance and Repair Services - Buildings 35Maintenance and Repair Services - Equipment 19,394Maintenance and Repair Services - Vehicles 3,071Postal Charges 18Electricity 692Uniforms 173Utilities 785Other Supplies and Materials 1,221Vehicle and Equipment Insurance 5,650Workers' Compensation Insurance 15,185Other Charges 1,239Motor Vehicles 115,000Other Equipment 8,198

Total Fire Prevention and Control 274,859

Disaster ReliefSupervisor/Director $ 7,660Other Salaries and Wages 7,660In-service Training 1,012Social Security 899Employer Medicare 210Communication 2,111Instructional Supplies and Materials 1,112Office Supplies 1,175Other Supplies and Materials 163In Service/Staff Development 2,762Other Charges 79Office Equipment 500State Aid Projects 15,219

Total Disaster Relief 40,562

County Coroner/Medical ExaminerContracts with Private Agencies $ 6,240Other Contracted Services 3,300

Total County Coroner/Medical Examiner 9,540

(Continued)

146

Exhibit K-8




Other Public SafetyContributions $ 6,932Electricity 2,510

Total Other Public Safety $ 9,442

Public Health and WelfareLocal Health Center

Salary Supplements $ 42,902Communication 3,102Janitorial Services 8,940Maintenance Agreements 3,645Maintenance and Repair Services - Buildings 8,989Maintenance and Repair Services - Office Equipment 325Postal Charges 1,353Drugs and Medical Supplies 340Electricity 12,545Office Supplies 8,477Utilities 3,807Other Supplies and Materials 463

Total Local Health Center 94,888

Rabies and Animal ControlContracts with Other Public Agencies $ 94,750

Total Rabies and Animal Control 94,750

Alcohol and Drug ProgramsOther Contracted Services $ 9,571Office Supplies 7,013

Total Alcohol and Drug Programs 16,584

Crippled Children ServicesContributions $ 1,240

Total Crippled Children Services 1,240

Other Local Health ServicesMedical Personnel $ 97,048Social Security 5,752Medical Insurance 7,164Local Retirement 1,163Employer Medicare 1,345Travel 7,674

Total Other Local Health Services 120,146

General Welfare AssistanceSupervisor/Director $ 29,332Equipment Operators 25,583Social Security 3,064Medical Insurance 11,593

(Continued)

147

Exhibit K-8



General Fund (Cont.)Public Health and Welfare (Cont.)

General Welfare Assistance (Cont.)Employer Medicare $ 717Communication 2,008Maintenance and Repair Services - Buildings 311Maintenance and Repair Services - Vehicles 373Electricity 7,261Gasoline 767Office Supplies 861Utilities 2,868

Total General Welfare Assistance $ 84,738

Aid to Dependent ChildrenEducational Assistants $ 37,541Communication 270Postal Charges 188Rentals 4,200Travel 1,650Electricity 184Food Supplies 75,011Office Supplies 875Other Supplies and Materials 530

Total Aid to Dependent Children 120,449

Other Local Welfare ServicesPart-time Personnel $ 12,532Communication 279Travel 894Food Supplies 14,811Other Supplies and Materials 1,070

Total Other Local Welfare Services 29,586

Sanitation Education/InformationGuards $ 60,902Other Salaries and Wages 615Social Security 3,743Medical Insurance 7,706Employer Medicare 875Consultants 1,500Gasoline 3,565Other Charges 2,818

Total Sanitation Education/Information 81,724

Other Public Health and WelfareHealth Equipment $ 10,000

Total Other Public Health and Welfare 10,000

(Continued)

148

Exhibit K-8



General Fund (Cont.)Social, Cultural, and Recreational Services

Adult ActivitiesSupervisor/Director $ 35,000Clerical Personnel 7,824Social Security 2,536Unemployment Compensation 31Employer Medicare 593Dues and Memberships 150Maintenance and Repair Services - Vehicles 1,894Postal Charges 183Travel 3,561Gasoline 1,215Office Supplies 1,263Other Supplies and Materials 415Liability Insurance 284Other Charges 441Office Equipment 1,230

Total Adult Activities $ 56,620

Senior Citizens AssistanceAssistant(s) $ 28,087Supervisor/Director 38,137Social Workers 21,012Other Salaries and Wages 193,920Social Security 17,162Medical Insurance 8,858Unemployment Compensation 1,130Local Retirement 1,656Employer Medicare 4,014Communication 450Dues and Memberships 810Maintenance and Repair Services - Office Equipment 1,480Travel 914Other Contracted Services 4,319Gasoline 73Office Supplies 165Tax Relief Program 100,429

Total Senior Citizens Assistance 422,616

LibrariesContracts with Other Public Agencies $ 144,500

Total Libraries 144,500

Parks and Fair BoardsContributions $ 2,295

Total Parks and Fair Boards 2,295

Other Social, Cultural, and RecreationalCommunication $ 4,718

(Continued)

149

Exhibit K-8



General Fund (Cont.)Social, Cultural, and Recreational Services (Cont.)

Other Social, Cultural, and Recreational (Cont.)Contributions $ 65,410Dues and Memberships 14,836Maintenance and Repair Services - Buildings 7,944Maintenance and Repair Services - Office Equipment 1,410Electricity 17,513Utilities 4,458

Total Other Social, Cultural, and Recreational $ 116,289

Agriculture and Natural ResourcesAgricultural Extension Service

Salary Supplements $ 129,544Communication 2,643Maintenance and Repair Services - Buildings 1,929Maintenance and Repair Services - Office Equipment 7,501Pest Control 1,000Travel 1,759Electricity 2,327Office Supplies 1,956Utilities 2,372Office Equipment 2,118

Total Agricultural Extension Service 153,149

Soil ConservationSecretary(ies) $ 19,203Social Security 1,078Medical Insurance 3,485Local Retirement 107Employer Medicare 252

Total Soil Conservation 24,125

Flood ControlContracts with Other Public Agencies $ 31,699

Total Flood Control 31,699

Other OperationsVeterans' Services

Other Salaries and Wages $ 20,157Social Security 1,250Employer Medicare 292Communication 527Postal Charges 94Travel 2,047Other Contracted Services 399Office Supplies 392

Total Veterans' Services 25,158

(Continued)

150

Exhibit K-8



General Fund (Cont.)Other Operations (Cont.)

MiscellaneousMedical Insurance $ 1,477Trustee's Commission 145,952Other Charges 4,404

Total Miscellaneous $ 151,833

Total General Fund $ 13,330,934

Law Library FundAdministration of Justice

Other Administration of JusticeLibrary Books/Media $ 798Trustee's Commission 21

Total Other Administration of Justice $ 819

Total Law Library Fund 819

Solid Waste/Sanitation FundPublic Health and Welfare

Sanitation ManagementAttendants $ 10,325Social Security 640Employer Medicare 150Communication 456Contracts with Government Agencies 18,754Contracts with Private Agencies 98,789Utilities 1,511Trustee's Commission 1,259Other Charges 121

Total Sanitation Management $ 132,005

Total Solid Waste/Sanitation Fund 132,005

Drug Control FundPublic Safety

Drug EnforcementConfidential Drug Enforcement Payments $ 3,000Veterinary Services 2,760Animal Food and Supplies 1,693Law Enforcement Supplies 22,573Trustee's Commission 833Other Charges 3,971Law Enforcement Equipment 862Motor Vehicles 30,000

Total Drug Enforcement $ 65,692

Total Drug Control Fund 65,692

(Continued)

151

Exhibit K-8



Constitutional Officers - Fees FundFinance

County Trustee's OfficeConstitutional Officers' Operating Expenses $ 1,839

Total County Trustee's Office $ 1,839

Total Constitutional Officers - Fees Fund $ 1,839

Highway/Public Works FundHighways

AdministrationCounty Official/Administrative Officer $ 82,386Accountants/Bookkeepers 43,481Communication 6,800Data Processing Services 7,199Dues and Memberships 4,247Evaluation and Testing 614Legal Notices, Recording, and Court Costs 1,275Maintenance Agreements 1,162Postal Charges 540Printing, Stationery, and Forms 655Travel 1,800Electricity 7,566Natural Gas 268Office Supplies 4,160Uniforms 4,882Water and Sewer 3,222Other Supplies and Materials 4,519

Total Administration $ 174,776

Highway and Bridge MaintenanceForemen $ 45,552Equipment Operators 312,473Equipment Operators - Light 118,889Truck Drivers 178,568Laborers 176,235Overtime Pay 21,096Contracts with Private Agencies 345,157Rentals 806Asphalt - Cold Mix 5,866Asphalt - Hot Mix 579,226Asphalt - Liquid 65,126Concrete 1,841Crushed Stone 121,859Fertilizer, Lime, and Seed 812General Construction Materials 4,583Other Road Materials 19,046Pipe - Metal 165,756Road Signs 2,643Sand 10,646

(Continued)

152

Exhibit K-8



Highway/Public Works Fund (Cont.)Highways (Cont.)

Highway and Bridge Maintenance (Cont.)Wood Products $ 590Gravel and Chert 40,000Other Supplies and Materials 2,644

Total Highway and Bridge Maintenance $ 2,219,414

Operation and Maintenance of EquipmentMechanic(s) $ 82,784Laborers 38,860Diesel Fuel 113,756Equipment and Machinery Parts 146,327Garage Supplies 9,694Gasoline 22,749Lubricants 22,324Small Tools 3,713Tires and Tubes 17,211Other Supplies and Materials 2,207

Total Operation and Maintenance of Equipment 459,625

Other ChargesTrustee's Commission $ 60,155Vehicle and Equipment Insurance 46,065Workers' Compensation Insurance 55,953

Total Other Charges 162,173

Employee BenefitsSocial Security $ 64,586Employee and Dependent Insurance 120,646Local Retirement 14,074Employer Medicare 15,105

Total Employee Benefits 214,411

Capital OutlayEngineering Services $ 110Highway Equipment 247,825Office Equipment 3,764Other Equipment 33,600

Total Capital Outlay 285,299

Total Highway/Public Works Fund $ 3,515,698

General Debt Service FundPrincipal on Debt

General GovernmentPrincipal on Bonds $ 460,000Principal on Notes 9,609

Total General Government $ 469,609

(Continued)

153

Exhibit K-8



General Debt Service Fund (Cont.)Principal on Debt (Cont.)

EducationPrincipal on Bonds $ 1,495,000Principal on Other Loans 921,038

Total Education $ 2,416,038

Interest on DebtGeneral Government

Interest on Bonds $ 147,344Total General Government 147,344

EducationInterest on Bonds $ 625,573Interest on Other Loans 394,008

Total Education 1,019,581

Other Debt ServiceGeneral Government

Financial Advisory Services $ 15,000Trustee's Commission 61,084Other Debt Service 500

Total General Government 76,584

EducationUnderwriter's Discount $ 62,224Other Debt Service 88,706

Total Education 150,930

Total General Debt Service Fund $ 4,280,086

Total Governmental Funds - Primary Government $ 21,327,073

154

ExhibitK-9


All Governmental Fund TypesDiscretely Presented Dyer County School DepartmentFor the Year Ended June 30, 2017

General Purpose School FundInstruction

Regular Instruction ProgramTeachers $ 9,629,700Career Ladder Program 30,989Educational Assistants 705,579Other Salaries and Wages 82,266Certified Substitute Teachers 37,118Non-certified Substitute Teachers 63,744Social Security 605,719Pensions 875,016Life Insurance 10,848Medical Insurance 1,484,702Dental Insurance 18,497Unemployment Compensation 11,644Local Retirement 8,050Employer Medicare 142,679Other Fringe Benefits 6,475Contracts with Other School Systems 223,089Contracts with Private Agencies 26,608Maintenance and Repair Services - Equipment 8,325Instructional Supplies and Materials 353,119Textbooks - Bound 209,600Regular Instruction Equipment 336,335

Total Regular Instruction Program $ 14,870,102

Special Education ProgramTeachers $ 1,082,755Career Ladder Program 4,585Educational Assistants 248,188Speech Pathologist 92,957Other Salaries and Wages 12,000Social Security 81,757Pensions 104,934Life Insurance 1,820Medical Insurance 240,407Local Retirement 553Employer Medicare 19,430Other Fringe Benefits 975Contracts with Private Agencies 13,280Maintenance and Repair Services - Equipment 166Instructional Supplies and Materials 5,186Other Supplies and Materials 412Special Education Equipment 25,674

Total Special Education Program 1,935,079

Career and Technical Education ProgramTeachers $ 406,214Career Ladder Program 3,000

(Continued)

155

ExhibitK-9



General Purpose School Fund (Cont.)Instruction (Cont.)

Career and Technical Education Program (Cont.)Educational Assistants $ 16,798Other Salaries and Wages 3,600Social Security 24,644Pensions 37,318Life Insurance 397Medical Insurance 71,238Employer Medicare 5,764Other Fringe Benefits 100Other Contracted Services 4,382Instructional Supplies and Materials 52,739Vocational Instruction Equipment 49,431

Total Career and Technical Education Program $ 675,625

Student Body Education ProgramInstructional Supplies and Materials $ 5,239Other Supplies and Materials 3,907

Total Student Body Education Program 9,146

Support ServicesAttendance

Supervisor/Director $ 53,720Career Ladder Program 1,000Social Security 3,096Pensions 4,944Life Insurance 35Medical Insurance 8,046Employer Medicare 724Communication 597Maintenance and Repair Services - Equipment 73Travel 3,073Other Contracted Services 8,190

Total Attendance 83,498

Health ServicesMedical Personnel $ 112,142Other Salaries and Wages 82,702Social Security 11,228Pensions 17,614Life Insurance 205Medical Insurance 23,860Employer Medicare 2,626Communication 1,446Printing, Stationery, and Forms 5,620Travel 3,581Other Contracted Services 7,477Drugs and Medical Supplies 12,783

(Continued)

156

ExhibitK-9



General Purpose School Fund (Cont.)Support Services (Cont.)

Health Services (Cont.)Other Supplies and Materials $ 4,194In Service/Staff Development 3,210

Total Health Services $ 288,688

Other Student SupportCareer Ladder Program $ 1,000Guidance Personnel 221,065Clerical Personnel 24,010Social Security 13,751Pensions 20,075Life Insurance 257Medical Insurance 51,972Employer Medicare 3,216Contracts with Government Agencies 86,846Evaluation and Testing 27,422Travel 4,218Other Supplies and Materials 533Other Equipment 522

Total Other Student Support 454,887

Regular Instruction ProgramSupervisor/Director $ 80,013Career Ladder Program 3,000Librarians 53,079Materials Supervisor 38,001Other Salaries and Wages 33,508Social Security 12,160Pensions 15,354Life Insurance 170Medical Insurance 24,733Local Retirement 950Employer Medicare 2,856Communication 1,650Consultants 10,450Travel 32,327Other Contracted Services 28,093Library Books/Media 46,092Other Supplies and Materials 28,376In Service/Staff Development 57,366Other Equipment 26,446

Total Regular Instruction Program 494,624

Special Education ProgramSupervisor/Director $ 78,997Career Ladder Program 1,000Secretary(ies) 57,002

(Continued)

157

ExhibitK-9




Special Education Program (Cont.)Social Security $ 7,943Pensions 7,232Life Insurance 115Medical Insurance 18,174Local Retirement 847Employer Medicare 1,858Communication 1,277Postal Charges 11Travel 4,535Other Supplies and Materials 61In Service/Staff Development 3,444Other Equipment 779

Total Special Education Program $ 183,275

Career and Technical Education ProgramSupervisor/Director $ 8,377Career Ladder Program 100Accountants/Bookkeepers 4,495Clerical Personnel 19,001Social Security 1,932Pensions 766Life Insurance 22Medical Insurance 3,751Local Retirement 99Employer Medicare 452Communication 204Maintenance and Repair Services - Equipment 287Travel 8,763Other Contracted Services 3,766Other Supplies and Materials 1,892Other Equipment 1,595

Total Career and Technical Education Program 55,502

TechnologyInstructional Computer Personnel $ 137,473Social Security 8,078Life Insurance 154Medical Insurance 12,145Local Retirement 1,428Employer Medicare 1,889Communication 817Maintenance and Repair Services - Equipment 2,777Internet Connectivity 58,873Other Contracted Services 6,000Cabling 3,443Software 123,684

(Continued)

158

ExhibitK-9




Technology (Cont.)Other Supplies and Materials $ 15,921Other Equipment 231,820

Total Technology $ 604,502

Other ProgramsOn-behalf Payments to OPEB $ 124,055

Total Other Programs 124,055

Board of EducationSecretary to Board $ 2,547Board and Committee Members Fees 25,338Social Security 1,729Local Retirement 64Employer Medicare 404Audit Services 14,000Dues and Memberships 11,539Legal Services 27,575Travel 597Other Contracted Services 36,429Liability Insurance 109,306Premiums on Corporate Surety Bonds 1,968Trustee's Commission 165,991Workers' Compensation Insurance 76,275In Service/Staff Development 8,724Criminal Investigation of Applicants - TBI 4,649

Total Board of Education 487,135

Director of SchoolsCounty Official/Administrative Officer $ 117,500Career Ladder Program 1,000Secretary(ies) 38,001Social Security 10,271Pensions 13,169Life Insurance 51Local Retirement 940Employer Medicare 2,402Other Fringe Benefits 27,276Communication 10,580Dues and Memberships 6,334Maintenance and Repair Services - Equipment 1,584Postal Charges 101Travel 6,371Other Contracted Services 9,909Office Supplies 7,747Administration Equipment 7,561

Total Director of Schools 260,797

(Continued)

159

ExhibitK-9




Office of the PrincipalPrincipals $ 654,668Career Ladder Program 11,916Career Ladder Extended Contracts 7,992Assistant Principals 360,247Secretary(ies) 220,426Other Salaries and Wages 9,266Social Security 74,095Pensions 94,018Life Insurance 928Medical Insurance 148,512Local Retirement 4,086Employer Medicare 17,330Communication 36,558Maintenance and Repair Services - Equipment 7,406Travel 11,892Other Contracted Services 20,650Office Supplies 15,826Other Equipment 45,949

Total Office of the Principal $ 1,741,765

Fiscal ServicesAccountants/Bookkeepers $ 109,142Purchasing Personnel 64,772Clerical Personnel 56,645Social Security 13,435Life Insurance 227Medical Insurance 37,853Local Retirement 5,610Employer Medicare 3,142Dues and Memberships 605Maintenance and Repair Services - Equipment 2,435Travel 1,576Other Contracted Services 18,218Office Supplies 11,651Administration Equipment 12,783

Total Fiscal Services 338,094

Operation of PlantCustodial Personnel $ 578,805Other Salaries and Wages 1,375Social Security 30,964Life Insurance 1,154Medical Insurance 138,632Unemployment Compensation 102Local Retirement 4,773Employer Medicare 7,242

(Continued)

160

ExhibitK-9




Operation of Plant (Cont.)Pest Control $ 9,530Disposal Fees 72,365Other Contracted Services 128,081Custodial Supplies 141,723Electricity 819,381Natural Gas 79,758Water and Sewer 36,672Other Supplies and Materials 11,062Building and Contents Insurance 365,988Plant Operation Equipment 10,471

Total Operation of Plant $ 2,438,078

Maintenance of PlantSupervisor/Director $ 60,652Secretary(ies) 39,669Other Salaries and Wages 343,185Social Security 25,528Life Insurance 477Medical Insurance 67,074Local Retirement 5,743Employer Medicare 5,970Communication 3,473Maintenance and Repair Services - Buildings 327,561Maintenance and Repair Services - Equipment 73,074Other Contracted Services 87,350Equipment and Machinery Parts 21,621Gasoline 15,816Other Supplies and Materials 198,119Maintenance Equipment 6,560

Total Maintenance of Plant 1,281,872

Operation of Non-instructional ServicesFood Service

Career Ladder Program $ 900Social Security 56Pensions 81Employer Medicare 13Food Supplies 6,298

Total Food Service 7,348

Community ServicesSupervisor/Director $ 1,580Other Salaries and Wages 63,457Social Security 3,579Pensions 143Life Insurance 103

(Continued)

161

ExhibitK-9



General Purpose School Fund (Cont.)Operation of Non-instructional Services (Cont.)

Community Services (Cont.)Medical Insurance $ 12,913Local Retirement 791Employer Medicare 837Advertising 17,172Communication 577Consultants 33,670Dues and Memberships 100Maintenance and Repair Services - Equipment 8Postal Charges 285Printing, Stationery, and Forms 300Rentals 3,600Travel 7,000Other Supplies and Materials 4,310

Total Community Services $ 150,425

Early Childhood EducationSupervisor/Director $ 23,699Teachers 343,059Educational Assistants 120,520Certified Substitute Teachers 3,171Non-certified Substitute Teachers 3,591Social Security 28,541Pensions 33,146Life Insurance 580Medical Insurance 80,962Local Retirement 649Employer Medicare 6,679Other Supplies and Materials 23,714In Service/Staff Development 6,424

Total Early Childhood Education 674,735

Capital OutlayRegular Capital Outlay

Architects $ 76,375Other Contracted Services 37,592Building Construction 281,655Building Improvements 1,501,507Communication Equipment 57,789Furniture and Fixtures 76,368Maintenance Equipment 16,565Motor Vehicles 41,874Site Development 576,863

Total Regular Capital Outlay 2,666,588

Total General Purpose School Fund $ 29,825,820

(Continued)

162

ExhibitK-9



School Federal Projects FundInstruction

Regular Instruction ProgramSupervisor/Director $ 6,270Teachers 195,506Educational Assistants 273,620Other Salaries and Wages 3,011Social Security 23,885Pensions 14,055Life Insurance 875Medical Insurance 106,514Unemployment Compensation 991Local Retirement 1,446Employer Medicare 6,254Instructional Supplies and Materials 17,796Other Supplies and Materials 494Other Charges 4,661

Total Regular Instruction Program $ 655,378

Special Education ProgramTeachers $ 142,194Educational Assistants 220,595Speech Pathologist 48,867Certified Substitute Teachers 350Non-certified Substitute Teachers 5,800Social Security 22,131Pensions 17,272Life Insurance 759Medical Insurance 132,970Unemployment Compensation 591Local Retirement 2,578Employer Medicare 5,180Maintenance and Repair Services - Equipment 1,128Instructional Supplies and Materials 15,169Other Supplies and Materials 4,403Special Education Equipment 2,390

Total Special Education Program 622,377

Career and Technical Education ProgramOther Supplies and Materials $ 13,296Vocational Instruction Equipment 14,963


Support ServicesOther Student Support

Assessment Personnel $ 67,933Part-time Personnel 29,700Other Salaries and Wages 4,000Social Security 4,110

(Continued)

163

ExhibitK-9



School Federal Projects Fund (Cont.)Support Services (Cont.)

Other Student Support (Cont.)Pensions $ 6,503Life Insurance 51Medical Insurance 11,738Unemployment Compensation 167Employer Medicare 1,392Travel 9,401In Service/Staff Development 9,624Other Charges 2,132

Total Other Student Support $ 146,751

Regular Instruction ProgramSupervisor/Director $ 50,265Social Security 3,116Pensions 4,544Life Insurance 26Unemployment Compensation 64Employer Medicare 729Travel 384Food Supplies 262In Service/Staff Development 18,676

Total Regular Instruction Program 78,066

Special Education ProgramPsychological Personnel $ 59,993Speech Pathologist 8,787Other Salaries and Wages 38,299Social Security 5,942Pensions 5,423Life Insurance 103Medical Insurance 4,538Unemployment Compensation 96Local Retirement 957Employer Medicare 1,517Communication 1,320Travel 10,518Other Contracted Services 88,953Other Supplies and Materials 14,847In Service/Staff Development 15,911

Total Special Education Program 257,204

Career and Technical Education ProgramTravel $ 513In Service/Staff Development 1,911


(Continued)

164

ExhibitK-9



School Federal Projects Fund (Cont.)Operation of Non-instructional Services

Community ServicesSupervisor/Director $ 22,780Teachers 66,590Educational Assistants 35,541Other Salaries and Wages 52,305Social Security 10,687Pensions 9,972Unemployment Compensation 646Local Retirement 137Employer Medicare 2,570Travel 870Other Contracted Services 3,578Food Supplies 2,233Instructional Supplies and Materials 660Other Supplies and Materials 4,838In Service/Staff Development 1,830Other Charges 5,072Other Equipment 825

Total Community Services $ 221,134

Total School Federal Projects Fund $ 2,011,593

Central Cafeteria FundOperation of Non-instructional Services

Food ServiceSupervisor/Director $ 75,396Accountants/Bookkeepers 36,633Cafeteria Personnel 716,105Other Salaries and Wages 24,869Social Security 49,652Pensions 6,816Life Insurance 2,163Medical Insurance 102,792Local Retirement 2,728Employer Medicare 11,612Other Fringe Benefits 1,425Communication 3,469Data Processing Services 22,769Dues and Memberships 564Printing, Stationery, and Forms 2,276Transportation - Other than Students 9,354Travel 3,755Disposal Fees 1,637Permits 640Custodial Supplies 8,635Food Supplies 828,148Uniforms 80

(Continued)

165

ExhibitK-9



Central Cafeteria Fund (Cont.)Operation of Non-instructional Services (Cont.)

Food Service (Cont.)USDA - Commodities $ 206,432Other Supplies and Materials 57,997In Service/Staff Development 3,033Food Service Equipment 18,141

Total Food Service $ 2,197,121

Total Central Cafeteria Fund $ 2,197,121

School Transportation FundSupport Services

Board of EducationTrustee's Commission $ 24,696

Total Board of Education $ 24,696

Operation of PlantDisposal Fees $ 2,544Electricity 14,905Natural Gas 1,441Water and Sewer 655

Total Operation of Plant 19,545

TransportationSupervisor/Director $ 60,652Mechanic(s) 188,422Bus Drivers 885,035Clerical Personnel 37,288Other Salaries and Wages 18,648Social Security 71,761Life Insurance 2,566Medical Insurance 65,646Unemployment Compensation 3,255Local Retirement 7,713Employer Medicare 16,814Communication 3,612Maintenance and Repair Services - Equipment 132Maintenance and Repair Services - Vehicles 13,064Other Contracted Services 61,963Diesel Fuel 185,683Food Supplies 334Lubricants 17,658Tires and Tubes 47,576Vehicle Parts 80,108Other Supplies and Materials 40,472Vehicle and Equipment Insurance 78,315In Service/Staff Development 3,930Transportation Equipment 706,343

Total Transportation 2,596,990

Total School Transportation Fund 2,641,231

Total Governmental Funds - Dyer County School Department $ 36,675,765

166

Exhibit K-10

Dyer County, TennesseeSchedule of Detailed Receipts, Disbursements, and Changes in Cash Balances - City Agency FundsFor the Year Ended June 30, 2017

Cash Receipts Current Property Taxes $ 0 $ 2,393,104 $ 2,393,104 Trustee's Collections - Prior Years 0 69,847 69,847 Circuit/Clerk and Master Collections - Prior Years 0 16,697 16,697 Interest and Penalty 0 14,283 14,283 Local Option Sales Tax 3,802,923 5,145,407 8,948,330 Wheel Tax 0 640,232 640,232 Interstate Telecommunications Tax 0 2,088 2,088 Marriage Licenses 0 1,092 1,092 Other Permits 0 279 279Total Cash Receipts $ 3,802,923 $ 8,283,029 $ 12,085,952

Cash Disbursements Remittance of Revenues Collected $ 3,764,894 $ 8,158,592 $ 11,923,486 Trustee's Commission 38,029 107,494 145,523Total Cash Disbursements $ 3,802,923 $ 8,266,086 $ 12,069,009

Excess of Cash Receipts Over (Under) Cash Disbursements $ 0 $ 16,943 $ 16,943Cash Balance, July 1, 2016 0 120,515 120,515

Cash Balance, June 30, 2017 $ 0 $ 137,458 $ 137,458

Fund Fund Total

City School ADA -

DyersburgCities -

Sales Tax

167

SINGLE AUDIT SECTION

168





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

Dyer County Mayor and Board of County Commissioners Dyer County, Tennessee To the County Mayor and Board of County Commissioners: We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Dyer County, Tennessee, as of and for the year ended June 30, 2017, the related notes to the financial statements, which collectively comprise Dyer County’s basic financial statements, and have issued our report thereon dated October 30, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Dyer County’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Dyer County’s internal control. Accordingly, we do not express an opinion on the effectiveness of Dyer County’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

169

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: 2017-003, 2017-004(A), and 2017-005. Compliance and Other Matters As part of obtaining reasonable assurance about whether Dyer County’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and are described in the accompanying Schedule of Findings and Questioned Costs as items: 2017-001, 2017-002, and 2017-004(B). Dyer County’s Responses to Findings Dyer County’s responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. Dyer County’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Dyer County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Very truly yours,

Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee October 30, 2017 JPW/sb

170





Independent Auditor’s Report on Compliance for Each Major Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures

of Federal Awards Required by the Uniform Guidance Dyer County Mayor and Board of County Commissioners Dyer County, Tennessee To the County Mayor and Board of County Commissioners: Report on Compliance for Each Major Federal Program We have audited Dyer 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 Dyer County’s major federal programs for the year ended June 30, 2017. Dyer County’s major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Management's Responsibility Management is responsible for compliance with the 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 Dyer County’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have

171

a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Dyer County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Dyer County’s compliance. Opinion on Each Major Federal Program In our opinion, Dyer County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. Report on Internal Control Over Compliance Management of Dyer County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Dyer County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Dyer County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

172

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Dyer County, Tennessee, as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise Dyer County’s basic financial statements. We issued our report thereon dated October 30, 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, Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee October 30, 2017 JPW/sb

173

Dyer County, Tennessee, and the Dyer County School DepartmentSchedule 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

U.S. Department of Agriculture: Passed-through State Department of Agriculture: Child Nutrition Cluster: (3) National School Lunch Program (Commodities - Noncash Assistance) 10.555 N/A $ 206,432 (5) Passed-through State Department of Education: Child Nutrition Cluster: (3) School Breakfast Program 10.553 N/A 368,344 National School Lunch Program 10.555 N/A 1,089,646 (5) Passed-through State Department of Human Services: Child Nutrition Cluster: (3) Summer Food Service Program for Children 10.559 N/A 205,249 Passed-through State Department of Education: Child and Adult Care Food Program 10.558 N/A 13,218 Passed-through State Department of Health: Commodity Supplemental Food Program 10.565 GG-15-43478-00 68,658Total U.S. Department of Agriculture $ 1,951,547

U.S. Department of Defense: Passed-through State Department of General Services: Section 1033 Excess Property Program (Noncash Assistance) 12.U01 N/A $ 219,333 (6)Total U.S. Department of Defense $ 219,333

U.S. Department of Education: Passed-through State Department of Education: Title I Grants to Local Educational Agencies 84.010 N/A $ 656,573 Special Education Cluster: (3) Special Education - Grants to States 84.027 N/A 929,325 Special Education - Preschool Grants 84.173 N/A 32,580 Career and Technical Education - Basic Grants to States 84.048 N/A 54,836 Twenty-first Century Community Learning Centers 84.287 N/A 223,626 Rural Education 84.358 N/A 74,462 Improving Teacher Quality State Grants 84.367 N/A 102,429Total U.S. Department of Education $ 2,073,831

U.S. Election Assistance Commission: Passed-through Tennessee Secretary of State: Help America Vote Act Requirements Payments 90.401 (4) $ 14,500Total U.S. Election Assistance Commission $ 14,500

U.S. Department of Health and Human Services: Passed-through Northwest Tennessee Development District: Special Programs for the Aging - Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 (4) $ 56,088 Passed-through State Department of Human Services: Child Care and Development Block Grant 93.575 (4) 32,301Total U.S. Department of Health and Human Services $ 88,389

U.S. Department of Homeland Security: Passed-through State Department of Military: Emergency Management Performance Grants 97.042 (4) $ 19,000Total U.S. Department of Homeland Security $ 19,000

Total Expenditures of Federal Awards $ 4,366,600

(Continued)

Expenditures

174

Dyer County, Tennessee, and the Dyer County School DepartmentSchedule of Expenditures of Federal Awards and State Grants (1) (2) (Cont.)

FederalFederal/Pass-through Agency/State CFDA ContractGrantor Program Title Number Number

State Grants: Juvenile Court Improvement Funds - State Department of Children's Services N/A GG1029733 $ 9,000 Drug Court Treatment Resources Grant - State Department of Finance and Administration N/A (4) 48,586 Preventive Health and Human Services - State Department of Health N/A GG1467689 150,919 Litter Program - State Department of Transportation N/A 40100-21717 36,039 FastTrack Infrastructure Development Program - State Department of Economic and Community Development N/A (4) 1,711,372 State and National Archival Partnership Grant - Tennessee Secretary of State N/A 30504-01417-04 4,500 Prevention Alliance of Dyersburg and Dyer County - State Department of Mental Health and Substance Abuse Services N/A (4) 67,142 Early Childhood Education - State Department of Education N/A (4) 675,912 ConnecTenn - State Department of Education N/A (4) 10,312 Family Resource Center - State Department of Education N/A (4) 59,923 Coordinated School Health - State Department of Education N/A (4) 115,000 Safe Schools - State Department of Education N/A (4) 20,580

Total State Grants $ 2,909,285

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) Dyer County elected not to use the 10% de minimus cost rate permitted in the Uniform Guidance.(3) Child Nutrition Cluster total $1,869,671; Special Education Cluster total $961,905.(4) Information not available.(5) Total for CFDA No. 10.555 is $1,296,078.(6) During the year ended June 30, 2017, Dyer County received excess military equipment from the U.S. Department of Defense valued at $219,333.

Expenditures

175

Dyer County, TennesseeSummary Schedule of Prior-year FindingsFor the Year Ended June 30, 2017

Fiscal Page Finding CFDAYear Number Number Number

OFFICE OF COUNTY MAYOR

2016 180 2016-001 N/A

OFFICE OF ROAD SUPERVISOR

2016 181 2016-002 N/A

OFFICE OF CIRCUIT AND GENERAL SESSIONS COURT CLERK

2016 181 2016-003 N/A

OFFICE OF SHERIFF

2016 182 2016-004 The Office had Accounting Deficiencies N/A

2016 183 2016-005 N/A

OFFICES OF CIRCUIT AND GENERAL SESSIONS COURT CLERK AND SHERIFF

2016 184 2016-006 Duties were not Segregated Adequately N/A

DYER COUNTY

2016 185 2016-007 N/A

There were no prior-year federal award findings to report.

Title of Finding Current Status

Prior-year Financial Statement Findings

Corrected

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 whether corrected oruncorrected. Presented below are financial statement findings along with their current status from the Annual FinancialReport for Dyer County, Tennessee, for the year ended June 30, 2017.

Prior-year Federal Awards Findings

Travel Allowances were not Subjected to Payroll Taxes or Reported to the Internal Revenue Service

CorrectedCompensation was Paid in-lieu-of Insurance Benefits to Some Employees

Unclaimed Funds were not Reported and Paid to the State

Corrected

Some Receipts were not Issued at the Time of Collection, and Some Funds were not Deposited within Three Days of Collection

Not Corrected - See Explanation on Corrective Action Plan



CorrectedThe County Commission's Audit Committee is not a Functioning Committee

176

Financial Statements:

1. Our report on the financial statements of Dyer County 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 Numbers: 84.027 and 84.173 Special Education Cluster: Special Education - Grants to States and Special Education - Preschool Grants

8. Dollar threshold used to distinguish between Type A and Type B Programs. $750,000

9. Auditee qualified as low-risk auditee? YES

DYER COUNTY, TENNESSEE

SCHEDULE OF FINDINGS AND QUESTIONED COSTS


PART I, SUMMARY OF AUDITOR'S RESULTS

177

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. OFFICE OF COUNTY MAYOR FINDING 2017-001 THE OFFICE HAD DEFICIENCIES IN BUDGET

OPERATIONS (Noncompliance Under Government Auditing Standards)

Our examination revealed the following deficiencies in budget operations of the office. These deficiencies exist because management failed to hold spending to the limits authorized by the county commission, which resulted in unauthorized expenditures, and management failed to provide sufficient oversight.

A. Expenditures exceeded appropriations approved by the county commission in the Solid Waste/Sanitation Fund by $2,540.

B. Salaries exceeded appropriations in three of 89 salary line-items of the

General Fund by amounts ranging from $115 to $1,023 and in the only salary line-item in the Solid Waste/Sanitation Fund by $325. The budget resolution approved by the county commission states that the salary, wages, or enumeration of each official, employee, or agent of the county shall not exceed appropriations that accompany this resolution. Therefore, the salaries that exceeded line-item appropriations were expenditures not approved by the county commission.

Section 5-9-401, Tennessee Code Annotated, states that “All funds from whatever source derived, including, but not limited to, taxes, county aid funds, federal funds, and fines, that are to be used in the operation and respective programs for the various departments, commissions, institutions, boards, offices, and agencies of county governments shall be appropriated to such use by the county legislative bodies.” RECOMMENDATION Expenditures should be held within appropriations approved by the county commission. MANAGEMENT’S RESPONSE – COUNTY MAYOR We concur that expenditures should be more closely monitored. The county’s solid waste program has a contract with Crockett and Gibson counties. A substantial invoice pertaining

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to this contract was not received until after year-end, which resulted in a payable and caused the expenditures to exceed budget appropriations.

_________________________________ OFFICE OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK FINDING 2017-002 UNCLAIMED FUNDS WERE NOT REPORTED AND

PAID TO THE STATE (Noncompliance Under Government Auditing Standards)

The clerk did not report and pay to the state unclaimed funds (old outstanding checks) totaling $22,930. At June 30, 2017, Circuit Court had 292 outstanding checks totaling $16,581 and General Sessions Court had 98 outstanding checks totaling $6,349 that were all issued before July 1, 2016. The Unclaimed Property Act, Section 66-29-101, et seq., Tennessee Code Annotated, provides that any funds held by the court for more than one year and unclaimed by the owner are considered abandoned. This statute further provides for the funds to be reported and paid to the state Treasurer’s Office. This deficiency is the result of management’s failure to correct the finding noted in the prior-year audit report and management’s failure to implement their corrective action plan. RECOMMENDATION The clerk should report and pay to the state unclaimed funds held for more than one year as required by state statute. MANAGEMENT’S RESPONSE – CIRCUIT AND GENERAL SESSIONS COURTS CLERK We make an effort to locate the owners of the funds we have on hand in the form of uncashed checks. The identity of the funds is known; however, the owners have not chosen to cash the checks. An effort is underway to eliminate this finding.

_________________________________ FINDING 2017-003 THE OFFICE DID NOT PROVIDE DOCUMENTATION

OF THE REVIEW OF ITS SOFTWARE AUDIT LOGS (Internal Control – Significant Deficiency Under Government Auditing Standards)

The courts’ computer software application allowed users to generate receipts that did not flow through the accounting records. These receipts are referred to as out-of-court payments because these funds are not deposited with the courts but are disbursed directly to the appropriate party. The software application generated a log that provided the only audit trail of these transactions. Although the official was aware of the importance of reviewing this log, the official failed to provide documentation of its review. When the importance of documentation was brought to management’s attention in April 2017, the official began maintaining documentation. Procedures for documenting the review of this log are currently in place.

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RECOMMENDATION Management should ensure that documentation is maintained for the review of the audit log. MANAGEMENT’S RESPONSE – CIRCUIT AND GENERAL SESSIONS COURTS CLERK We accept information from plaintiffs when the defendant makes a direct payment to them. Although we do not receive actual cash, we do give credit to the defendants’ case. We review these payments and compare them to the accounts and notate on each randomly chosen payment. We will continue to keep this procedure in place.

________________________________ OFFICE OF SHERIFF FINDING 2017-004 SOME RECEIPTS WERE NOT ISSUED AT THE TIME OF

COLLECTION, AND SOME FUNDS WERE NOT DEPOSITED WITHIN THREE DAYS OF COLLECTION (A. – Internal Control – Significant Deficiency Under Government Auditing Standards; B. – Noncompliance Under Government Auditing Standards)

As part of our audit procedures for obtaining reasonable assurance that funds were receipted and deposited properly, we judgmentally selected receipts for the months of November and December 2016, to trace to deposits and to a log of mail received by the department. Our examination revealed the following deficiencies, which can be attributed to a lack of management oversight and the failure of management to correct the finding noted in the prior-year audit report.

A. Receipts were not always issued at the time of collection. Instead, checks were held

in the office, and up to 15 days lapsed between the dates checks were listed as being received on the mail log until receipts were actually issued. The practice of issuing receipts subsequent to the actual collection increases the risk that collections will not be accounted for properly.

B. Some funds were not deposited within three days of collection as required by Section 5-8-207, Tennessee Code Annotated (TCA). During the months tested, five items were held from five to seven business days after receipts were issued before being deposited to the office bank account. This delay in depositing was in addition to the time period noted in Part A. above, where numerous checks had already been held without receipt. The delay in depositing funds weakens internal controls over collections and increases the risks of fraud and misappropriation.

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RECOMMENDATION Official receipts should be issued at the time of collection, and all collections should be deposited within three days of collection as required by state statute. MANAGEMENT’S RESPONSE – SHERIFF We disagree with this finding. Required internal controls, which are an unfunded mandate and have been enacted without additional personnel, have further delayed the process of depositing funds within three days. AUDITOR’S COMMENT New provisions for establishing and maintaining internal controls did become effective for the fiscal year ended June 30, 2016, as required by Section 9-18-102(a), TCA. However, sound business practices dictate that management is responsible for designing internal controls to give reasonable assurance of the effectiveness and efficiency of operations. As noted in the finding above, receipts were not always issued promptly for collections, and funds were not deposited within three days of collection as required by state statute. These deficiencies continue to exist due to management’s failure to correct the finding noted in prior-year audit reports since June 30, 2014.

_________________________________ OFFICES OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK AND SHERIFF FINDING 2017-005 DUTIES WERE NOT SEGREGATED ADEQUATELY

(Internal Control – Significant Deficiency Under Government Auditing Standards)

Duties were not segregated adequately among the official and employees in the Offices of Circuit and General Sessions Courts Clerk and Sheriff. The employees responsible for maintaining accounting records were also involved in receipting, depositing, and/or disbursing funds. Sound business practices dictate that management is responsible for designing internal controls to give 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. RECOMMENDATION Officials should segregate duties to the extent possible using available resources. MANAGEMENT’S RESPONSE – CIRCUIT AND GENERAL SESSIONS COURTS CLERK We are a small office and operate within a budget that is efficient in the use of employees. However, that requires us to not be able to totally segregate all duties as reported in this

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finding. We do separate receipting and financial duties to the extent that the clerk who receipts does not make bank deposits. MANAGEMENT’S RESPONSE – SHERIFF We disagree with this finding. Corrective actions were taken, and internal controls have been implemented and processes segregated with personnel who have additional required duties including some state mandated reporting. Many improvements in processes and internal controls have been achieved within the extent of current resources. Although while striving for excellence, the Dyer County Sheriff’s Department will continue additional training of personnel to attempt to achieve full segregation of duties within the extent of current resources, if possible. The audit recommendation of additional personnel may be required to fully achieve this segregation process. AUDITOR’S COMMENT REGARDING SHERIFF’S RESPONSE The Comptroller’s Office and the County Technical Assistance Service have provided guidelines to assist the office in properly segregating duties. These guidelines have suggestions for small offices with as little as two employees. It is the responsibility of the sheriff to assign the work in his office to best implement segregation of duties. The Comptroller’s Office has not recommended hiring additional personnel in order to properly segregate duties.

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PART III, FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS There were no findings and questioned costs related to federal awards for the year ended June 30, 2017.

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FindingNumber

OFFICE OF COUNTY MAYOR

2017-001

OFFICE OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK

2017-002

2017-003

OFFICE OF SHERIFF

2017-004

OFFICES OF CIRCUIT AND GENERAL SESSIONS COURTS CLERK AND SHERIFF

2017-005

Dyer County, TennesseeManagement's Corrective Action Plan


Title of FindingCorrective Action

Plan Page Number

Duties were not Segregated Adequately

We reviewed the financial statement and federal award findings and recommendations with management toprovide an opportunity for their response as required by the auditee requirements within Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Management’s corrective action plans for all financial statement findingsand federal award findings are presented in this section and have been indexed below. The corrective action planswere prepared by management and have been presented as they were submitted.

Unclaimed Funds were not Reported and Paid to the State

The Office did not Provide Documentation of the Review of its Software Audit Logs

The Office had Deficiencies in Budget Operations

Some Receipts were not Issued at the Time of Collection, and Some Funds were not Deposited within Three Days of Collection

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186

188

189

186-187, 190

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DYER COUNTY

MAYOR P.O.Box 1360 Dyersburg, TN 38025-1360

Corrective Action Plan

Office of County Mayor

CHRIS YOUNG

FINDING: THE OFFICE HAD DEFICIENCIES IN BUDGET

OPERATIONS

Response and Corrective Action Plan Prepared by:

Amy C. Perkins, CPA, Dyer County Finance Director

Person Responsible for Implementing the Corrective Action: Amy C. Perkins, CPA, Dyer County Finance Director

Anticipated Completion Date of Corrective Action: June 30, 2018

Repeat Finding:

No

Reason Corrective Action was Not Taken in the Prior Year:

Not Applicable

Planned Corrective Action:

The county's Solid Waste Program has a contract with Crockett County and Gibson County.

Due to a substantial invoice pertaining to this contract being received after year end and

resulting in a payable, expenditures exceeded budget appropriations. We concur that

expenditures should be more closely monitored.

Chris Young, Dyer County Mayor

/\ /JV I U1t1 L½f1xt�Amy C. Perkins, CPA, Dyer County Finance Director

Phone: 731-286-7800 Fax: 731-286-6462 Email: [email protected]:tn.us 185

ToM 1 ]ONES

Circuit Clerk


FINDING: UNCLAIMED FUNDS WERE NOT REPORTED AND PAID TO THE STATE


Tom Jones, Circuit and General Sessions Courts Clerk

Person Responsible for Implementing the Corrective Action:

Tom Jones, Circuit and General Sessions Courts Clerk

Anticipated Completion Date of Corrective Action:

JW1e 30, 2018

Repeat Finding:

Yes

Reason Corrective Action was Not Taken in the Prior Year: None given


We are making every effort to have payees cash the old checks they are holding in order for them to clear the bank. However, since some payees have not done so, we are sending the funds for the old outstanding checks to the state's Unclaimed Property Division.

FINDING: 2017-00X DUTIES WERE NOT SEGREGATED ADEQUATELY

Response and Corrective Action Plan Prepared by: Tom Jones, Circuit and General Sessions Courts Clerk

DYER COUNTY COURTHOUSE

P.O. BOX 1360

DYERSBURG, TN 38025-1360

731-286-7809

RESIDENCE

3706 HIGHWAY 78

DYERSBURG, TN 38024

731-285-4152 186

187

ToM TJ JONES

Circuit Clerk·


Finding: The office did not provide documentation of the review of its software audit logs

Response and corrective action plan prepared by: Tom "TJ" Jones, Circuit Court Clerk

Anticipated completion date of corrective action: Immediately

Not a repeat finding

Planned corrective action: The log that reflects the out of court payments has been and will be reviewed monthly. The actual log was placed in a box of files while my office was being carpeted and painted. During that time I was also out on medical leave. When I returned, I simply looked in the box and located the file as well as other documents. The clerk views the log monthly and initials randomly selected transactions as requested by auditors. I will continue this practice in the future.

RESIDENCE DYER COUNTY COURTHOUSE

P.O. BOX 1360

DYERSBURG, TN 38025-1360

731-286-7809

3706 HIGHWAY 78

DYERSBURG, TN 38024

731-285-4152 188

Dyer County Sheriff's Office Jeff Box, Sheriff 401 East Cedar Street

Dyersburg, Tennessee 38024 731-285-2802

Fax: 731-286-7828

[email protected]


10/24/2017

FINDING: SOME RECEIPTS WERE NOT ISSUED AT THE TIME OF

COLLECTIONS, AND SOME FUNDS WERE NOT DEPOSITED

WITHIN THREE DAYS OF COLLECTION


Jeff Box, Dyer County Sheriff




12/15/2017

Repeat Finding:

Yes

Reason Corrective Action was Not Taken in the Prior Year: Corrective actions were taken and Internal Controls have been implemented, Internal Controls

require person to open mail, one person to make a check list of what's received in the mail and an

additional person to receipt for the checks received in the mail, a person to make journal entries, a

person to prepare deposits and an additional person to make deposits. All listed person's have

additional required duties some of which are state mandated reporting. Current job responsibilities,

required mandated processes and internal controls without the recommendation of additional

personnel has continued to delay the reporting process.


Issue additional receipt books to personnel to increase the occurrence of the receipting process.

Page 1 of 2

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mailto:[email protected]

FINDING:

Dyer County Sheriff's Office Jeff Box, Sheriff 401 East Cedar Street

Dyersburg, Tennessee 38024 731-285-2802

Fax: 731-286-7828

[email protected]

DUTIES WERE NOT SEGREGATED ADEQUATELY






12/15/2017

Repeat Finding:

Yes

Reason Corrective Action was Not Taken in the Prior Year: Corrective actions were taken and Internal Controls have been implemented, segregated processes

have occurred with personnel whom have additional required duties some of which are state

mandated reporting. Many improvements in processes and internal controls have been achieved.

The recommendation of additional personnel maybe required to fully achieve this segregation

process.


Additional training of personnel to attempt to achieve full segregation of duties within extent of current

resources, if possible.

Page 2 of 2

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mailto:[email protected]

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 Dyer County.

DYER COUNTY SHOULD ADOPT A CENTRAL SYSTEM OF ACCOUNTING, BUDGETING, AND PURCHASING

Dyer County does not have a central system of accounting, budgeting, and purchasing. Sound business practices dictate that establishing a central system would significantly improve internal controls over the accounting, budgeting, and purchasing processes. The absence of a central system of accounting, budgeting, and purchasing has been a management decision by the county commission resulting in decentralization and some duplication of effort. 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

DYER COUNTY TENNESSEE - · PDF fileannual financial report dyer county, tennessee for the year ended june 30, 2017 comptroller of the treasury justin p. wilson division of local government